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INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 41

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INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 41

February 27, 2017

POLITICS
President of Uzbekistan received First Deputy Prime Minister of Kazakhstan

Ensuring people’s interests, further improvement of welfare of the people - the foundation of all our aspirations

INVESTMENTS
Uzbekistan to channel 690.5mn into coal industry

FREE INDUSTRIAL ECONOMIC ZONE
Free Economic Zone “Angren”

POLITICS

President of Uzbekistan received First Deputy Prime Minister of Kazakhstan
On 23 February President of the Republic of Uzbekistan Shavkat Mirziyoyev received First Deputy Prime Minister of the Republic of Kazakhstan Askar Mamin, who arrived in our country to take part at the scheduled meeting of the Joint intergovernmental commission on bilateral cooperation between Uzbekistan and Kazakhstan.
The Head of our state, welcoming the guest, mentioned with satisfaction the positive dynamics in developing and strengthening Uzbekistan-Kazakhstan relations of a strategic partnership, including in trade-economic spheres.
In correspondence with the agreements, reached during the meeting of the leaders of our countries in Samarkand in September 2016, the parties are working together on a solid package of prospective projects, aimed at radical increase of the volume and enhancing the assortment of mutual trade, as well as strengthening industrial cooperation between the leading enterprises of the two countries.
In 2016 the trade turnover between our two countries exceeded 2 billion US dollars. Over 230 enterprises with Kazakh capital operate in our country. The interactions in the sphere of automobile and railway as well as air transportation are maintained in traditionally active mode.
The President of Uzbekistan underlined the importance of further expanding the productive and mutually beneficial cooperation between the two countries, primarily through promoting and supporting concrete cooperation projects in trade, investment, technological and transport-communications spheres.
The need to establish and strengthen close contacts between the regions of the two countries was particularly stressed, which opens wide opportunities for development of commercial ties and cultural exchange.
Askar Mamin sincerely thanked President of our country Shavkat Mirziyoyev for a warm reception and reaffirmed the willingness of Kazakhstan to enhance full-scale practical cooperation with Uzbekistan.
(Source: UzA)

Ensuring people’s interests, further improvement of welfare of the people - the foundation of all our aspirations
On 24 February President of the Republic of Uzbekistan Shavkat Mirziyoyev arrived in Kashkadarya region to review the pace of creative and beautification works, social-economic reforms and a for a dialogue with people.
Kashkadarya region has a huge economic potential. At present 70 per cent of the extracted natural gas, around 78 per cent of petroleum, 80 per cent of gas condensate, over 13 per cent of grain and over 14 per cent of cotton is accounted for this region.
The region has a dynamic industry, which comprise 38 per cent of the gross regional product. Such large industrial enterprises as “Shurtan neftegaz”, “Muborak neftegaz”, Shurtan gas-chemical complex, Mubarek gas-processing plant, Dehkanabad potash fertilizers plant, Talimarjan thermal power station, “Hisor neftegaz” are locomotives of the domestic industry.
Small business and private entrepreneurship is also dynamically developing. At present 51,6 per cent of gross regional product is manufactured by them. Over 80 per cent of total workforce work in this sector.
Rich crops are harvested in the agricultural sphere, where structural reforms are underway. In the last five years, cotton fields have been reduced by 3200 ha, where potatoes, vegetables and melons are being cultivated. In the last three years, over 22 per cent of farming units have been transformed to diversified units.
Shavkat Mirziyoyev, in his pre-election manifesto, outlined big goals and tasks on steady continuation of these activities, to elevate the development of Kashkadarya region to a new level along with other regions of the country. The President of Uzbekistan is expected to review the pace of implementation of the plans and tasks, ongoing creative works and prospective projects during the tour of Kashkadarya region.
* * *
President of the Republic of Uzbekistan Shavkat Mirziyoyev has inspected promising projects being implemented in Karshi District’s agricultural sector.
The Nishan kuzgu multi-functional farm in Karshi is setting up a mechanized complex for meat packaging and storage. Foreign-made modern equipment has been installed there.
This project gives not only economic but also big social effect. Its modern facilities, including a cold storage facility, will ensure meat products’ abundance and safety. More than 100 jobs will be created.
The Head of state said that it was necessary to create such enterprises also in other regions of the country, to improve the work of veterinary and public health services and to strengthen the country’s food self-sufficiency.
The Qorabayir otchilik majmuasi pedigree (horses) farm being established in Yakkabogh District will specialise in breeding horses of the Qorabayir type. In this farm, up to 200 horses will be bred for sale on internal and external markets. More than 40 people will be provided with jobs here.
The President of the country looked at a project of a stock-raising complex which will be built in Koson District.
In Qashqadaryo Region, agriculture is developing consistently, and high results are being achieved in stock raising, poultry and fish farming. The creation of multi-functional farms and wide opportunities for private entrepreneurs help to raise the prosperity of the people and to provide quality food products for the population.
This modern stock-raising complex for two thousand cattle will be of important significance in providing meat and milk not only for the region’s inhabitants but also for people of other regions of the country. This complex being built under a 14 billion som project is to start working at full capacity in the first quarter of next year.
12 hectares of land will be allocated for the construction of the complex, and 750 hectares for growing fodder crops. It is envisaged to produce 4280 tonnes of milk and 210 tonnes of meat a year. 140 jobs will be created there.
The President paid special attention to the purchase of pedigree cattle for the stock-raising complex, to the introduction of modern technologies for stock raising and the initiation of the processing of milk and meat right there.
In Kamashi District, a complex will be built for keeping 5 thousand turkeys. On the basis of use of modern technologies, the complex is to raise and supply 20 thousand young turkeys a year. 30 jobs will be created here. The launch of the project is set for December this year.
It was emphasized that this project was of important significance to giving rural families 100 turkey chicks each and thus creating a source of income for them.
The Head of state also examined a project of fish farming in the Tolimarjon water reservoir.
Fish farming is developing dynamically in Qashqadaryo Region. Last year 4.4 thousand tonnes of fish was produced in the region. This year, 10.2 billion soms worth of credits are to be allocated for fish farms there so that fish production reaches 5.2 thousand tonnes.
A new agro-firm will provide machine-mechanized services for fish farms, and it will also supply young fish and food for fish.
Young fish raised at the agro-firm will then be released into the reservoir. A 600-tonne cold storage facility, an enterprise for fish processing and a special compound feed production workshop will also be set up there. The agro-firm will process 500 tonnes of fish a year. 90 people will be provided with jobs there.
It was said that Qashqadaryo Region could raise fish all year round, supply the local population with fish and also start exporting fish. It was emphasized that such agro-firms would help to further develop this sector and create new jobs and also help in implementing the country’s food programme.
A rabbit farm is being created in Kamashi District. It will also be processing rabbit meat and fur. This project being implemented by the Kamashi momiq quyonlari agro-firm will make it possible to raise 8 thousand rabbits and produce 120 tonnes of dietary meat a year.
30 people will be working at the farm. Moreover, rabbits will be given to 500 families. This will make it possible to provide dietary meat for locals and create an additional source of income for them.
The Head of state inspected the project of restoration of the Karshi – III phase unit of pump stations. It was said that this project would help in the efficient use of the region’s water resources.
As a result of the implementation of the project, water supplies to 402 hectares of irrigated land will improve.
* * *
Large-scale reforms are being implemented in Qashqadaryo Region, too, as in all the other regions of the country. Improvement work and modernization projects have been carried out in its towns and villages. New enterprises, educational and medical establishments, gardens and avenues and wide and smooth roads are being built.
President of the Republic of Uzbekistan Shavkat Mirziyoyev is inspecting new facilities being built and projects of construction of production enterprises in Qashqadaryo Region in the course of today’s visit to that region. These projects will serve to raise the prosperity of the population.
The Head of state looked at new projects for the development of Karshi District’s light industry.
The fist project to be looked at is a programme for the establishment of modern light industry enterprises in the region in 2017-2019 and for the modernization of existing light industry enterprises there. This programme envisages the establishment of 17 enterprises.
Under the programme that is being worked out, nearly 3000 new jobs are to be created by the Ozbekyengilsanoat joint-stock company in cooperation with a number of commercial banks. Today there are 7 textile factories working in the region. Their capacity can process 10 per cent of the cotton fibre produced in Qashqadaryo Region.
President Shavkat Mirziyoyev inspected the LT Textile International Uzbek-Chinese-Dutch joint project and said that Qashqadaryo Region is one of the country’s largest cotton fibre producing regions and that it is necessary to effectively use this potential and process cotton fibre.
This joint venture will make it possible to process locally-prodeced cotton fibre in the region itself and to raise the local population’s real incomes.
This enterprise will be producing 22 thousand tonnes of blended yarn and 50 million square metres of fabric a year, and 80 per cent of its products will be for export.
Right there, the President examined an additional investment project of the Universal Taraqqiyot Tesktil joint venture being formed from the former enterprise Yakkabogh Teks in Yakkabogh District.
The creation of 400 jobs is envisaged at the enterprise which specializes in processing cotton fibre into textile products. When this enterprise starts working at full capacity it will produce 6 million square metres of fabric and 2 million sets of bed linen a year.
Today modern energy-saving technologies are being introduced into many production facilities. The Wood Decor Production joint venture being formed from Karshi town’s former cotton gin plant is also being equipped with such technologies.
At this enterprise, where highly efficient tools made by well-known companies are being installed, competitive products on the world market ranging from high quality yarn to manufactured goods will be produced.
The President gave officials instructions to raise the project’s effectiveness.
In this country, special attention is paid to processing raw cotton and silk and to attracting foreign investment to expand the production and assortment of manufactured goods for which there is demand on external markets.
While inspecting an investment project envisaging the production of fabrics at Guzar District’s former cotton processing enterprise, the Head of state concentrated attention on the creation of new jobs.
Today people require specific jobs. The satisfaction of this requirement very much depends on enterprises. That project makes it possible to provided jobs for 600 people.
Taking into account the optimization of areas sown with cotton and the seasonal nature of this work, Uzpakhtasanoateksport is implementing new investment projects in vacant areas of oil and butter factories in Qashqadaryo Region for the purpose of ensuring workers’ employment and additional income. One of them is a workshop being created in Koson District to dry fruits and vegetables.
At the enterprise where more than 100 jobs will be created it will be possible to process 10 thousand tonnes of fruits and vegetables. A cold storage facility for 500 tonnes of agricultural products is being built in Karshi District. 10 jobs will be created there. The storage facility will be put into use this year.
* * *
The Head of State examined projects on “Production of liquid synthetic fuel on gas-to-liquids (GTL) technology from the separated methane of the Shurtan gas-chemical complex” and “Expansion of production capacity of the Shurtan gas-chemical complex”.
The project “Production of liquid synthetic fuel on gas-to-liquids (GTL) technology from the separated methane of the Shurtan gas-chemical complex” reflects the most advanced technological solutions in gas-chemical industry in the world. This is one of biggest mega-projects in the CIS.
Implementation of the project by Uzbekneftegaz company demonstrates rapid development of the sphere along with its huge significance in ensuring energy security of our country.
The project envisages processing 3,6 billion cubic meters of natural gas and production of 1,5 million tons of quality synthetic fuel, i.e. 743 000 tons of diesel fuel, 311 000 tons of jet kerosene, 431 000 tons of naphtha and 21 000 tons of liquefied gas.
The commissioning of the new plant will bring about reduction of foreign currency spending, development of real sectors of the economy, upsurge of the transit potential of our country, as well as meeting the demand for petroleum products and diminishing the oil imports.
Construction and installation works are expected to be finished at the 2nd quarter of 2020 and 682 people will be employed at the plant.
On the instructions of the Head of our state, the concept of the project ‘Expansion of production capacity of the Shurtan gas-chemical complex” has been revised and the issue of introducing synthetic naphtha to the production process was studied. After completion of the project, the plant’s polyethylene production capacity will increase from the current level of 125 000 tons/year to 450 000 tons/year, or by 3,6 times. As a result, wide opportunities for developing petrochemicals will arise. In the first phase, through processing the high-value synthetic naphtha, new types of polyethylene and polypropylene as well as distillation products will be manufactured.
The opportunity to use distillation products in manufacturing new types of products will create a basis for establishing a technological cluster, and serve as a significant factor in development of chemical, automobile, pharmaceuticals, construction and textile industries.
The project will be implemented in the existing territory of the plant and will not interfere with production processes of the complex.
It should be underlined that the using the available intellectual and technological potential of the plant will lead to significant reduction of the production cost of the product and efficiency of investments.
The construction and installation works will be concluded in the fourth quarter of 2020 and 250 new jobs will be created.
President Shavkat Mirziyoyev provided instructions on financing these projects, which have a significant role in the economic development of our country, procuring the equipment on time, drafting a roadmap for construction works, timely commissioning of the enterprises and employing the population.
* * *
The Head of State inspected new houses, built on a renewed standard design in the Yakka-yog’och housing estate of the Nukrobod community in Karshi district.
Affordable and comfortable houses, based on new designs, are under construction in all regions of our country to further increase the prosperity of population. The resolution of the President of the country «On programme of construction of affordable houses on renewed standard designs in rural areas for 2017-2021» on 21 October 2016 has elevated these efforts to a new level.
In line with the resolution, three-room houses with a 200 sq meters land plot have been built in the Yakka-yog’och housing estate. The houses have 63,5 square meters of usable floor space and comprises two bedrooms, a living room, a kitchen, a bathroom and a boiler room.
Also, two-storey houses with 16 two and three-room apartments have been built here. The houses have been built considering the climate conditions of the region, particularities of the way of life of our people, in line with the sanitary and safety requirements.
We all know well to what degree having an own house is important for a man, the President remarked. Therefore, the principles of justice and impartiality should be observed in allocating these houses.
The instructions have been given to lower the price of houses through reducing the cost of construction materials, to connect houses to external engineering networks- water, electricity, gas supply systems, building internal roads, beautification of the housing estate.
Shavkat Mirziyoyev called on the new house of the family of Alisher Ahmedov, reviewed the created conditions for living, talked to the new house owners. The young family sincerely thanked the Head of state for the attention and care.
Shavkat Mirziyoyev inspected the design of the greenhouse, which might be used by the residents of the houses, built on a renewed standard design in Mirmiron housing estate.
25 ha greenhouse is built with local construction materials. Here it is possible to grow lemons, papaya, tomatoes, carrots, cauliflower and other vegetables – in total for 3 billion soums (currency rates of CB RU from 27.02.2017, 1$= 3356.87 soums) annually. A part of the harvest will be sent to a domestic market and a part will be exported. 229 new jobs are expected to be created here, which will serve in raising the well-being of the population.
The President of our country provided instructions on using modern technologies in constructing such greenhouses, attracting to work not only qualified specialists, but also recent college graduates.
* * *
President of our country Shavkat Mirziyoyev visited «Karshi leather» joint venture in Karshi, familiarized with the program of further development of the leather industry in the region, promising projects for cultivation of horticultural products, creation of a new logistics center, as well as vineyards in Yakkabog’, Kitob, Shakhrisabz districts.
Development of the leather and footwear industry in Kashkadarya region plays an important role in high-quality processing of raw hides, harvested in the region. A targeted program for 2017-2018 years on the implementation of 18 investment projects worth 12.9 million US dollars has been developed in the region.
In accordance with the program, 5 projects on footwear industry in Karshi, Dehqononod, Kitob and Nishon districts, a project on manufacturing leather accessories in Kitob district, and a project on manufacturing finished leather at “Karshi leather” enterprise will be realized. This will allow to process 1 million astrakhans annually, manufacture 460 thousand pairs of footwear and 100 thousand leather accessories and generate employment for over 200 people.
The project for 9,1 million US dollars under implementation at “Karshi leather” enterprise was presented. As a result of realization of this project, high-quality and competitive finished leather products will be manufactured with annual exports for 45 million US dollars. The enterprise, which will be commissioned gradually, will employ over 300 people, mainly recent college graduates.
In a conversation with the founders of the joint venture and foreign investors, the President of Uzbekistan highlighted the need to effectively organize production process, close cooperation with relevant agencies and regional khokimiyat in this regard, analysing the foreign markets, constant expansion of the geography of exports.
Kashkadarya region has huge opportunities in processing and exporting fruit and vegetable products. «Shakhrisabz» logistics centre will serve these purposes. The logistics centre, to be organized on the base of former sericulture factory, will specialise in receiving, sorting and processing fruits and vegetables, carrying out laboratory analysis on the level of world standards, packaging as well as exporting them fresh, cooled and dried forms.
With commissioning of the centre in full capacity, annually over 25 thousand tons of products will be exported to the countries of Europe, CIS, China, India, South Korea and other countries. One thousand people will be employed here. Farmers and rural population will be able to sell grown products for 80 billion soums (currency rates of CB RU from 27.02.2017, 1$= 3356.87 soums) per year.
«Big agro export» LLC, specialised in growing, storing and processing 8 thousand tons of lettuce, broccoli, cauliflower, and other agricultural products annually, is founded in Chiroqchi district. The enterprise with 194 ha land and 14 million US dollars investments will include a greenhouse in 2 ha for growing seedlings, a cooling storage with a capacity of 4000 tons. As a result of implementing the project, annual export of products for 6,8 million US dollars and creation of 90 permanent and 500 seasonal jobs is expected.
New vineyards on 5 thousand ha land will be created in Yakkabog’, Kitob and Shakhrisabz districts in 2017-2019. A project on processing 4 thousand tons of grapes per annum will be realized in Yakkabog’ district.
The Head of our state stressed that these projects have an important significance in further increasing the cultivation of agricultural products in the region and expanding their processing, uninterrupted supply of products to the domestic market and increasing their exports and consequently raising the quality of life of people.
The scientists of our country presented a project on cultivating medicinal plants in the forest land. In accordance with the project, from this year on saffron plantations will start to appear in the mountain and foothill areas of Kashkadarya region. This plant is widely used in medicine and food industry. Its cultivation in local conditions will widen its use as a raw material in pharmaceuticals and its exports as a food spice.
The President of our country underlined that the flora of Uzbekistan is rich in medicinal plants and saffron has been widely used in folk medicine since ancient times. The specialists of the sphere were given recommendations on increasing the types of such plants and expanding their plantations.
(Source: UzA)

INVESTMENTS

Uzbekistan to channel 690.5mn into coal industry
Uzbekugol held on February 20 a press conference titled ‘Levels of perspective specialty development’ to inform media on the work done under the Cabinet Resolution ‘On Additional Measures for Improvement of Coal Production Supply to the Population and Budget Organisations of the Republic.’
Uzbekugol, a part of Uzbekenergo, has mined and sold coal for over 69 years. Of 5.7b tonnes of coal, only 1,9b tonnes have been explored.
Uzbekugol’s agencies mine 4m tonnes of coal per year, with 85% supplied to the energy sector. The population and budget and municipal sectors are the main consumers.
The Resolution provides for 84 coal warehouses to be built in the regions and equipped with briquette-building machines.
The project, costing 45.4bn soums (currency rates of CB RU from 27.02.2017, 1$= 3356.87 soums), will be financed by a 2-year 7% credit by the People’s Bank.
Apart from pushing briquette production up 800,000 tonnes, retail price slumped 13% to 126,400 soums per 1 tonne, as Uzbekistan Railways slashed 50% of its transportation price until March 1.
Under the newly-adopted draft Coal Industry Development and Modernisation Programme 2017-2021, $690.5bn will be invested into 6 projects. The funds are as follows:
$87.5mn – the capital of coal companies;
$155.6mn – credits by regional commercial banks;
$68.7mn – credits from the Reconstruction and Development Fund;
$378.7mn – China’s soft loans to SCO member states.
The investment projects include:
Shargunkumir Modernisation, a $105.5mn project with a Cabinet-approved feasibility report;
Angren Mine Construction, an estimated $165mn project with the feasibility study in progress;
Nishbash Mine Construction, an estimated $175.2mn project currently under examination;
Equipment Upgrade, an estimated $170.2mn project involving the purchase of mining equipment;
Uzbekugol Production Capacity Support, a $15mn project to buy details for mining equipment;
Railway Transport Modernisation, a $59.6mn project to buy locomotives, dumpcarts and others.
Thanks to the projects, the stripping works in 2017 are expected to reach 22.3mn cubic metres, with 26.8mn expected in 2019 and 27.8mn in 2021.
If in 2016 surface mining brought in 3.6mn tonnes of coal, then 2017 will bring 3.72 tonnes. Up to 3.97 tonnes of coal are expected in 2019 and 4.14 in 2021.
The total of coal produced will rise from 3.87mn tonnes in 2016 to 3.92mn tonnes in 2017, 4.78mn tonnes in 2019, and 11.67mn tonnes in 2021.
(Source: UzReport.uz)

FREE INDUSTRIAL ECONOMIC ZONE

Free Economic Zone “Angren”
Free economic zone “Angren” has been established by the Decree of the President of the Republic of Uzbekistan No. 4436 dated April 13, 2012.
One of the primary factors in the selection of Tashkent region for the creation of new zone is that, there, in the beginning of 2010 on the basis of the railway station “Ablyk” the logistics center “Angren” started its work. Its main task was the acceptance and handling of goods from three regions of the Fergana valley. This center will be able to provide the companies of SIZ with the services of cargo transportation in any direction of the Republic.
Currently in FEZ “Angren” the production of high-tech products have been organized in the framework of 10 projects with the total amount of investments 181 million USD, in particular, energy-saving LED lamps, copper pipes of different diameters, gypsum wall boards, briquette coal, sugar, etc.
“EGL-NUR” Joint Venture established in 2013 with the participation of OJSC “New Angren CHP” and South Korean Company “EG Lightings Co. Ltd” carries out the production of energy-saving LED lamps for street lighting. The total cost of the project made up 1.0 million USD with the annual production capacity of 48 thousand lamps. Currently 23 workers work at the enterprise.
“Angren Shakar” Foreign Enterprise established in 2014 with the participation of Singapore companies “Welton International Enterprises” and “Kio Investment Pte. Ltd” and Austrian company “SEID Handelsgesellschaftm. b.H.” carries out the production of sugar. The total cost of the project made up 108.5 million USD with the production capacity of 1000 tons of sugar per day. Currently 100 workers work at the enterprise.
“Uz-Shindong Silicon” Joint Venture established in 2014 with the participation of State Committee of Geology, JSC “Uzmetcombinat” and South Korean company “ShindongEnercomInc” carries out the production of technical silicon. The total cost of the project made up 5.9 million USD with the annual production capacity of 5 thousand tons of technical silicon. Currently 90 workers work at the enterprise.
“Original Gold Ceramic” Foreign Enterprise established in 2014 with the participation of British company “Euro Ceramic Trade LLP” carries out the production of architectural lining bricks. The total cost of the project made up 3.4 million USD with the annual production capacity of 25 million pieces. Currently 80 workers work at the enterprise.
“Angren kumir bricket” Joint Venture established in 2012 with the participation of Khokimiyat (City Administration) of Tashkent area and British company “Bradmax Ltd.” carries out the production of coal bricks. The total cost of the project made up 3,1 million USD with the annual production capacity of 45.4 thousand tons. Currently 50 workers work at the enterprise.
Bulgarian motor oils and industrial lubricants producer Prista Oil and Uzbekistan state owned company Uzneftmahsulot opened in 2016 a $19 million plant «Uz-Prista Recycling» in FEZ “Angren” for recycling 40 000 tons of waste oil annually. 40% of the product will be directed to export.
(Source: “Uzbekistan profile” - Information bulletin of Embassy of Uzbekistan in Belgium)

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