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LATEST NEWS : JANUARY 2007  (Archives)

The Government of the Republic of Uzbekistan represented by the Authority (Ministry of Economy) and the participants in the Consortium of Investors consisting of the National Holding Company Uzbekneftegaz, LUKOIL Overseas (Russia), Petronas Carigali Overseas (Malaysia), CNPC International Ltd. (China) and KNOC Aral Ltd. (Korea) signed the Protocol on the effectiveness of PSA on January 30, 2007 in Tashkent with a view to implement the Production Sharing Agreement for the Uzbek part of the Aral Sea, UzReportcom reported.

The PSA for the project was signed on August 30, 2006 in Tashkent. All members of the consortium have equal shares in the project. The duration of the PSA is 35 years.

The tender for the selection of contractor for 2D seismic survey on the offshore, transit and onshore area of the Uzbek part of the Aral Sea was invited at the beginning of January this year.

The scope of survey will make up around 2300 line kilometers. About one fourth of the work scope will fall on the offshore area with the water depth of up to 40 meters, with another fourth falling on the transit area and half on the onshore. The tender is planned to be completed this year in March.

The exploration operations will be carried out in two phases. The first phase will cover the seismic survey and drilling of 2 exploration wells over a period of three years within the framework of the minimal program. The minimal financial commitments for that phase will amount to about 100 million dollars. The feasibility study with the subsequent approval of commercial terms and conditions of the PSA will be developed and approved upon results of the first phase, and after that the exploration activities of the second phase will be carried out.

Over the last several years, 8 gas condensate fields were discovered in the Ustyurt region, where the contract area of the PSA is located; these fields are gradually brought into development. The geological survey carried out in this region is indicative of a high hydrocarbon potential of the Aral Sea. More than 30 prospective oil and gas structures can possibly exist in the Aral offshore area of 12.5 thousand square meters.

The Institute for the Study of Civil Society together with the Konrad Adenauer Foundation (Germany) conducted a roundtable meeting entitled "Political parties and Internet" on January 29-30, 2007 in Tashkent, Uzbek media reported. The representatives of the Uzbek Agency of Communication and Information took part in the meeting.

The aim of the event was to discuss the opportunities offered by Internet in the promotion of a particular political line, formation of public opinion, supporting two-way communication between the voters and the parties.

At the roundtable participants discussed the need for the creation and the content of political parties' websites. Germany's experience in the sphere was studied. For this purpose Konrad Adenauer Foundation invited experts from Germany to tell the audience about the priority directions in the operation of the websites of political parties in an online regime, online PR-campaigns, etc.

The specialists of the Uzbek Agency of Communication and Information said Uzbekistan had created the legislative framework, telecommunication infrastructure and all the conditions for the formation and development of several national information resources of interest to the population and state agencies. Taking into consideration the growing importance of information and information exchange in the modern society, a national information environment is being formed, national information resources are being created and promoted. For the purpose of bringing to order and further development the extensions of the www.uz national information-search system, a technological platform for the hosting and technical support and provision of security of online state information resource has been created.

Active development of the national Internet segment has led to the increase in the number of Internet users to 1.7 million people, and the number of collective access (internet cafes) to 634. The speed of Internet connection to international information networks has reached 230 Mbit/sec. Wireless access technology (Wi-Fi) is developing and expanding rapidly. A task has been set to increase the number of national online information sources, and improve the quality of websites registered in the UZ segment of the Internet (second level www.uz websites totaled 3,639 as of 1 January 2007). To date the websites with entertainment, technical or private content prevailed, however today a stable increase in the official information of state agencies, educational, social, informative and media nature is being observed.

Improvements have been observed in the online broadcasting of TV and radio programmes of Ozbekiston, Yoshlar, Mashal and Dostlik channels. Today, 638 newspapers, 198 magazines, 55 publications and 4 information agencies are present in Uzbekistan (according to http://mmf.uz ), of them more than 50 have online versions.

Roundtable participants also reviewed the reports, such as "Architecture" of e-government", "Role of Internet in PR-campaigns", "Importance of Internet to government agencies responsible for public relations", "Experience of foreign political parties in using Internet", etc.

Uzbekistan-Japan Centre for Human Development organized a video-conference for children with impaired vision, UzReportcom reported.

Schoolchildren of Tashkent-based school No 101 and Osaka School in Japan communicated on January 25, 2007.

The average age of the video conferencing participants was between 12 and 15. The children were interested in seeing and communicating with their contemporaries.

During the conference, the kids exchanged information on their cities, history of the countries and subjects being studied at the school, and other. At the end of the video conferencing the children received answers to their questions.

A seminar and practical consulting sessions on "Gaining access to carbon finance" were held at the International Business Centre in Tashkent. The event was organised by the World Bank Office in cooperation with the Government of Uzbekistan, UzReportcom reported.

The events were intended for the state officials and local project officers who can potentially benefit from the Clean Development Mechanism, envisaged by the Kyoto protocol.

Seminar participants were familiarized with the role of World Bank in supporting the implementation of the Kyoto Protocol and learn about the benefits that can be gained from carbon funds, appropriation of which is at the World Bank's disposal. Despite the fact that Uzbekistan ratified the protocol as of 12 October 1999, this legally founding international agreement on the reduction of greenhouse gas emissions at the global scale entered into force only on 16 February 2005, following the ratification by 55 countries, in accordance with the protocol provision on the minimum number of parties to the agreement.

In the course of practical consultations, the activity of the Designated National Authority (DNA) on provision of assistance in implementation of the Kyoto Protocol was discussed. The membership of the sessions relating to the DNA was limited to the representatives of state structures responsible for the administration of the activity in the framework of the Kyoto Protocol.

At the end of the seminar practical consultations were also provided for the registered project developers interested in conducting carbon finance projects. The World Bank Working Group will provide technical assistance to the participants registered for practical consultations on the compliance with the requirements set, and paperwork for the carbon finance projects.

Several enterprises had signed up for these practical consultations to cover gas and oil industry, municipal service sector and small-scale carbon finance projects.

Twenty-eight years-old Ruslan Chagaev – the forthcoming rival of the WBA champion Nikolai Valuev of Russia on the super heavyweight has announced at his recent interview that he has already started to train for the upcoming standoff, UzReportcom reported.

“Now I hold my training at the German town of Schwering which includes only the physical exercises”, - Chagaev said. “I work on the physical build-up. I run and lift the weights, and train twice a day. You see, Valuev is a world champion and I must come up all in my muscles to face him. The ring will show who is the best”.

“The face-off coincides with the birthday of my son Arthur – he will be three on March 24”, - Ruslan has said. “And the fight shall take place in a few days – I think early in April. So my victory will be an advance present to my son! I hope certainly everything will be okay. The dream of my life is to fight for the champion’s title. That’s why I will do all my best to win”.

President of Uzbekistan Islam Karimov awarded an Order of Friendship to the Russian Ambassador Extraordinary and Plenipotentiary to Uzbekistan Farit Mukhametshin, Uzbek TV's Akhborot news programme reported.

The order was awarded in recognition of Mukhametshin's "significant contribution to stepping up bilateral cooperation between the two states", the TV said.

The Ceremony took place at the Presidential Oqsaroy Residence on January 29, 2007, the report added.

The World Bank and the Government of Uzbekistan on January 29, 2007 signed a US$15 million IDA [International Development Agency] credit for Phase I of Uzbekistan Basic Education Project, UzReportcom reported. The Project will help improve the quality and overall cost effectiveness of basic education in the country.

Rustam Azimov, Deputy Prime Minister and Finance Minister of Uzbekistan, and Loup Brefort, World Bank's Country Manager for Uzbekistan, signed credit agreement.

Uzbekistan has achieved near universal access in enrollment in primary education for girls and boys totalling 99%, and secondary enrollment totalling 95.5%. The country has achieved almost complete literacy, which increased from 97.7% in 1991 to 99.3% in 2003. The share of the adult population that has gained specialized secondary, vocational, or higher education exceeds 75%. However, the quality of education still remains a main concern in achieving the Millennium Development Goals (MDGs). Challenges to quality education include a general lack of textbooks, low household incomes impacting the indirect costs of education (textbooks and other books, uniforms, and school supplies, for example), poor school facilities, a lack of qualified teaching staff, low salaries for teachers, and a lack of interactive teaching and learning methods.

The proposed Uzbekistan Basic Education Project has been designed to support a US$1.2 billion, five-year programme to raise the quality of basic education, which was launched by the Uzbek Government in July 2004. The Programme, designed for 2004-2009, targets basic needs in the country and responds to the Bank's earlier recommendations to address the quality of basic education. The Bank's participation should help to focus the government's Programme more heavily on cost effectiveness and results, and thus help bring about a stronger development outcome for the entire Programme.

Loup Brefort, World Bank's Country Manager for Uzbekistan, said at the press-conference on Monday that the World Bank supports reform in education sector in Uzbekistan as it is essential for future growth of the country.

"The Project is expected to make a critical contribution to helping the country achieve the MDG in education, which is aimed at improving the quality of primary and basic secondary education by 2015 while at the same time maintaining universal access", - Loup Brefort said.

He said that the Project consists of four main components:
 

• Provision of Learning Materials and Resources for General Schools and Pre-Schools;
• Strengthening of In-Service Training for Teachers and Principals in General Secondary Schools and Pre-Schools;
• Support for Activation of School Boards; and
• Improvements in Education Finance, Budgeting and Management.
   

Mr. Brefort said introduction of school board is positive move and involvement of community to development of school and decision-making process is important. He added that the project will allow to test so-called capitation financing, which stipulates allocation of budget based on number of children. He said that the capitation financing will be tested and in case of success will be implemented widely.

By the time the Project is completed the young people of Uzbekistan should be benefiting from more effective teaching in general secondary schools. Teaching practices will be improved as a result of in-service training, and allocation and utilization of public financial resources in the education will become more efficient.

As earlier reported, the World Bank's Board of Executive Directors on 26 October approved a US$40 million IDA credit for the Uzbekistan Basic Education Project. The project will help improve the quality and overall cost effectiveness of basic education in the country.

Mr. Brefort said the credit issued in two tranches and the phase I envisages US$15 million loan. He added that the bank will issue the second tranche based on the results of the first phase of the project.

Bakhtiyor Daniyarov, representative of Public Education Ministry of Uzbekistan, said the project covers 23 districts in seven Uzbek regions. The project will cover Bukhara, Kashkadarya, Khorezm, Navoi, Samarkand, Surkhandarya and Syrdarya regions.

Mr. Daniyarov said that the project will be implemented in schools in districts, which are difficult of access.

Uzbekistan joined the World Bank in 1992. The World Bank's mission in the country is to improve people's livelihoods through being a partner in economic reforms, supporting the modernization of the country's social sectors and infrastructure, and sharing its knowledge and experience with the government and the people of Uzbekistan. Total World Bank commitments to Uzbekistan amount to US$ 630 million.
 

The following was contributed by Uzbek Ambassador to South Korea Vitali Fen on the occasion of the 15th anniversary of establishment of diplomatic relations between South Korea and Uzbekistan, The Korea Times reported.

It is a privilege for me to address today the esteemed readers of The Korea Times on the occasion of the 15th anniversary of the establishment of diplomatic relations between our countries which occurred on Jan. 29, 1992.

Despite the short history of diplomatic relations, the Republic of Korea has become a reliable friend and partner of our young independent state. It is necessary to emphasize that today bilateral cooperation and partnership embraces practically all areas of activity.

I am glad to mention in this regard that close trustworthy dialogue has been established between the leaders of both states. The presidents of our two countries have met each other six times in the past.

Of especially great importance in the history of both nations was an exchange of top-level visits between President of Uzbekistan Islam Karimov and the President of Korea Roh Moo-hyun in 2005-2006. As a result of those visits, relations between the two countries have taken the shape of strategic partnership and in-depth cooperation.

The Republic of Uzbekistan and the Republic of Korea closely cooperate on the international scene, rendering each other mutual support in the frame of leading international organizations.

The unanimous election of outstanding Korean diplomat Ban Ki-moon as the secretary general of the United Nations has become a tremendous success not only for Korean diplomacy, but also for all Asian countries, including Uzbekistan.

Uzbekistan, as an active proponent of establishing the nuclear free zone in the Central Asia, strongly supports a non-nuclear status for the Korean Peninsula.

In this context, we entirely support the policy of reconciliation and cooperation which is carried out by the Republic of Korea toward North Korea as well as a peaceful, diplomatic solution of its nuclear issue through the six-party talks in Beijing.

In its turn, the Republic of Korea supports the process of democratic and socioeconomic reforms carried out in Uzbekistan, and renders the country considerable assistance.

It is noteworthy to say, that the economies of the two countries harmoniously supplement each other on a mutually beneficial base. Uzbekistan possesses rich natural resources, such as gas, oil, gold, uranium, copper, cotton, as well as well-educated people. And Korea has high technologies and sufficient financial resources.

Therefore, the joint development of Uzbekistan's natural resources using Korea's high-tech and investments creates a favorable opportunity for mutually advantageous cooperation between two countries on a long-term basis.

As of today, Korean investments in Uzbekistan's economy, including automobile, textile, telecommunications and the oil-and-gas industries already exceeds $1.9 billion.

The total amount of announced investments, according to the package of documents signed between the two countries at the last summits of both presidents, reached $1.8 billion. Bilateral trade is growing dynamically too. In 2006 it approached almost $700 million, with Korea in first place among the trading partners of Uzbekistan in Asia.

Essential assistance is rendered by the government of Korea with the aid of Korea International Cooperation Agency and other governmental institutions in the development of education and professional training in Uzbekistan.

An important component of mutual relations is cooperation in culture, sports and tourism. Every year interest grows in South Korea for visiting the historical sights of Uzbekistan, such as ancient cities like Samarkand, Bukhara, Khiva.

In 2006 nearly 10 thousand Korean citizens have visited our country.

One of the biggest diasporas of ethnic Koreans (over 200,000) is in Uzbekistan living in harmony with the other population, and forming a close link between the two nations.

Today, celebrating the 15th anniversary of the establishment of diplomatic relations between the Republic of Uzbekistan and the Republic of Korea, I would like to wish the esteemed readers of The Korea Times and the friendly people of the Republic of Korea happiness and prosperity.
 

Two safes of goalkeeper Temur Juraev in after match penalty shootouts allowed Pakhtakor Tashkent to win CIS Cup in Moscow on Sunday, January 28, 2007.

Pakhtakor faced Latvia's Ventspils in final match of CIS Cup and clinched first cup for Uzbekistan in history of the tournament.

Uzbek champions dominated in the match and created more chances compared to Latvian side, but failed to convert them into goals. Latvian side failed to create significant chances.

The full time and two 10-minute extra-times finished with the score 0-0.

Pakhtakor started penalty shootouts with miss of Server Jeperov, but substitute goalkeeper Temur Juraev saved decisive penalty shot of Ventspils' Zangareev, which allowed Uzbek club to keep hopes to clinch the cup.

Later, Juraev became the hero of the match by saving shot of Latvian goalkeeper Andris Vanins to claim victory for Pakhtakor.

Pakhtakor became the first Uzbek club, which won CIS Cup, and the second Uzbek club, which played in final of the tournament.

Cooperation of Uzbekistan and Japan was successful for past 15 years, Japanese Ambassador to Uzbekistan, told press-conference on January 26, 2007, UzReportcom reported.

Uzbekistan and Japan mark 15th anniversary on establishment of diplomatic relations on last Friday. The countries established diplomatic ties on January 26, 1992.

Yuichi Kusumoto, Ambassador Extraordinary and Plenipotentiary of Japan to Uzbekistan, said at the press conference dedicated to the event that Japanese Prime Minister Shinzo Abe and Uzbek President Islam Karimov, as well as Japanese Foreign Minister Taro Aso and Uzbek Foreign Minister Vladimir Norov exchanged messages on this occasion.

Mr. Kusumoto summed up results of cooperation for last 15 years and spoke about perspectives of Uzbek-Japanese relations.

Japanese envoy said the cooperation between countries were successful and added that the countries have warm relations.

Japanese ambassador said the relations between countries will expand and strengthen, especially after visit of Prime Minister of Japan Junichiro Koizumi. Koizumi visited Uzbekistan in August 2006 and he became the first Japanese Prime Minister who visited Central Asia. Shortly after visit, Shinzo Abe succeeded post of Koizumi.

Yuichi Kusumoto said Japan rendered assistance to Uzbekistan for US$1.104 billion as of 2005 FY, of which US$878 million were yen credits and US$152 million were no-string aid and US$74.83 million were technical assistance. He said Uzbekistan is largest ODA [official development assistance] receiver.

He said that yen loans of Japanese were directed to develop economic infrastructure, including to development of communication, railways. No-string aid was directed to social sectors like education and medical services.

Mr. Kusumoto said in his view Uzbekistan and Japan should develop relations in five directions, including economic assistance, business promotion, tourism promotion, cultural cooperation and regional cooperation.

Speaking about economic assistance, Japanese diplomat said Japan will continue to assist economic reforms in Uzbekistan to improve well-being and life standards of Uzbek people. He hoped that the sides will develop and implement "good projects".

Mr. Kusumoto said Uzbekistan and Japan should promote business contacts to boost trade and investment cooperation taking into account potential of the countries. He added that the visit of Japanese Prime Minister to Uzbekistan opened new opportunities for businesses and more Japanese companies express interest in Uzbekistan.

He said that Japanese companies pays special attention and takes its serious to issues on cooperation with Uzbekistan. He added that Japanese firms need more information on ongoing processes and reforms in Uzbekistan to attract them to the country.

Ambassador said tourism is attractive sector for both Uzbekistan and Japan. He said Uzbekistan should advertise its tourism potential in Japan to attract more Japanese tourists to the country. He said that some 2,000 Japanese tourists visit Uzbekistan annually and added that some 17 million Japanese travel worldwide annually. Kusumoto also said services for tourists should be improved in restaurants and hotels.

Japanese envoy said that Japan Embassy in Uzbekistan will continue to organize concerts, exhibitions and various to develop cultural cooperation with Uzbekistan. He said Japan will also assist Uzbek people to study Japanese and said some 2,000 Uzbek students study Japanese now.

Kusumoto also said the embassy will assist Uzbek universities to establish contacts with their Japanese counterparts. He said that several Uzbek universities already established ties with Japanese universities.

Mr. Kusumoto noted importance of regional cooperation and drew attention to Central Asia plus Japan initiative. Uzbek side firmly supports this initiative.

Japanese diplomat said foreign ministers of Central Asia and Japan will meet within framework of this dialogue this year.
 

In pursuance of the Presidential Resolution dated January 23, 2007 "On State Programme "The Year of Social Protection", and as a part of its efforts to provide social support to the population of the Aral region, Ecosan International Organisation will conduct "The Aral region: partnership for social protection of the population" International Conference on January 30, 2007 at the National Press Centre of Uzbekistan, UzReportcom reported.

Members of the Senate and the Legislative Chamber of Oliy Majlis (parliament) of Uzbekistan, representatives of the Ministerial Council of Karakalpakstan, officials and representatives of the ministries, agencies, non-governmental organizations, diplomatic corps and international organisastions, as well as ecologists and scientists of the Ecosan Tashkent Club (a branch of the Roman Club) and media will participate in the event.

A presentation will be conducted on the topic of the national contest for the best report in press, on radio or television, and in electronic media about the socio-economical protection of the population.

The contest is being organised for the purpose of raising public awareness and assisting regular elucidation of the ecology-related issues and to stress the need to take measures to protect the environment and reduce the negative consequences of the ecological problems, eliminate the main factors of ecological risk.

Uzbekistan and Singapore have pledged to develop closer economic ties and strengthen political dialogue between two countries on January 25, 2007, Uzbek media reported.

Uzbek President Islam Karimov is paying a state visit to Singapore on invitation of President Sellapan Ramanathan on January 24-26, 2007. On January 25, 2007 Uzbek President Islam Karimov held talks with his Singaporean counterpart and other officials.

Within the visit, Uzbekistan and Singapore signed agreements to boost ties in air services, humanitarian ties and business certification standards.

During the talks, the Uzbek President Islam Karimov discussed issue on international terrorism and nuclear non-proliferation, where both sides held similar views.

Five agreements were also signed to further economic relations, expand air links and strengthen political dialogue.

Uzbek President Islam Karimov also said Uzbekistan decided to open an Embassy in Singapore.

Berlin hosted a meeting devoted to the "Year of Social Protection" in Uzbekistan, Jahon Agency reported. The representatives of scientific and public circles of Germany participated in the event. Paritatische Charity Association and the Embassy of Uzbekistan in Germany organised the event.

Meeting participants studied the information on the work being carried out in Uzbekistan in the sphere of social security and social protection of the population, particularly, about the measures being taken by the country's administration to support needy population strata – pensioners, people with disabilities, and children being raised in orphanages and boarding schools.

The audience showed particular interest in the information on the target measures aimed to intensify social protection of the population and the initiatives envisaging the development of the atmosphere of kindness and mutual understanding in the society.
The head of the department for public affairs of the Paritatische N. Hoffmann stopped and spoke in detail about the good transitions that exist in Uzbekistan, such as giving each year a particular theme. "This helps solve the most urgent problems, stimulates fundamental reforms in social life of the society, and strengthens the feeling of consent and healthy lifestyle," she said.

The Director of the Karlo Publishing House K. Rot also emphasized the importance of measures being implemented in Uzbekistan to protect the population. "Social policy being pursued in the republic is a bright example of the care demonstrated by the Uzbek administration toward its people," he said.

A participant of the meeting, Adviser for Youth and Sport Issues at Paritatische, G. Zeifert highly appraised the measures being envisaged in the framework of the "Year of Social Protection" intended to protect the life interests of the youth. She particularly emphasized the country's strong efforts to create all the necessary conditions for all-round development of the young generation.

In the framework of the event, participants watched a video about the cultural-historical heritage of Uzbekistan.
 

President of Uzbekistan Islam Karimov held face-to-face talks with the President of Singapore Sellapan Ramanathan at Istana residence here on January 25, 2007, UzA Agency reported.

The two leaders discussed the current state and perspectives of the Uzbekistan-Singapore relations and some international issues. They confirmed mutual interest in strengthening bilateral relations.

President of Uzbekistan stressed that the two nations had similar views on most international problems, which was a good foundation for cooperation.

This year marks 10 years since Uzbekistan and Singapore had established diplomatic relations. Trade turnover between the countries made up USD 100 million in 2006.

Extended negotiations took place between the delegations of the two states, headed by President Islam Karimov and Singapore’s Prime Minister Lee Hsien Loong.

The talks focused on attraction of modern technologies to oil and gas, pharmaceutical and electronic industries, manufacture of high-tech products and exporting them to third countries.

After the negotiations, Islam Karimov and Lee Hsien Loong signed an Agreement between the governments of Uzbekistan and Singapore on cooperation in economic and humanitarian spheres.

The Joint Communiqué between the Republic of Uzbekistan and the Republic of Singapore was also accepted.

Other signed documents include the intergovernmental air communication agreement, the memorandum on bilateral consultations between the foreign ministries, the agreement on cooperation in standardization, metrology and accreditation, and the memorandum of understanding between the Uzbek Commerce and Industry Chamber and Singapore Business Federation.
 

The Second ICT training course for the Members of the Parliament (MPs) organized by the UNDP Project "Enhancing legislative and institutional capacities of the Parliament" in the Legislative Chamber of the Parliament of the Republic of Uzbekistan was completed.

The aim of the training course was to enhance ICT skills of the members of the Legislative Chamber of the Parliament. A special ceremony was organized by the Project to award the Parliamentarians with certificates of successful completion.

During the training course Parliamentarians have acquired skills to use computer software such as Microsoft XP Professional, Microsoft Office suite and other productivity tools. This knowledge will help to significantly improve the quality of day-to-day work of the MPs, and increase its output.

Moreover, the M's have studied the basics of Internet research, which is extremely important to find necessary information in the World Wide Web and, on this ground, to seek and provide better solutions for implementing international standards in the legislation of the Republic of Uzbekistan.

These courses have proved not only necessary for the MPs, but also essential for further deepening of reforms in different aspects of social life of the country. Whereas the first training course that took place from March to June contributed to improving law-drafting skills and enhancing knowledge on law-drafting process of the MPs, the second set of ICT sessions can be seen as its logically congruent continuation.

This course is also a good example of cooperation between the UNDP projects and national partners. The training course is facilitated by trainers of the UNDP project "Capacity Building for Internet Technologies Development and Promotion in Uzbekistan" that is implemented jointly with the Academy of Sciences of Uzbekistan.

The key objective of the project "Enhancement of the legislative and institutional capacities of the Parliament" is to enhance the effectiveness and efficiency of legislative processes and procedures through modernization of existing and development of new information resources, provision of easier access to legal and other relevant information, capacity building and training of the Parliamentarians and staff, introduction and application of ICT tools, organization of substantive workshops and conferences, and improvement of the library resources.
 

The government of Japan has decided to extend to the Government of Uzbekistan a grant assistance of up to 595 million Japanese yen (US$5.36 million) for the project on improvement of Primary Medical Services in Tashkent and Jizzakh regions with a view to contributing to the increase level of primary healthcare services in the rural regions of the Republic of Uzbekistan.

Mr. Yuichi Kusumoto, Ambassador Extraordinary and Plenipotentiary of Japan to Uzbekistan and Mr. Rustam Kasimov, Deputy Prime Minister, Minister of Higher and Secondary Special Education, will attend the signing ceremony of exchange of notes of the project on 26 January.

The project consists mainly of the provision of the basic and indispensable equipment at the level of primary healthcare to the rural medical centres of Tashkent and Jizzakh regions.

The equipment will be supplied in four districts both in Tashkent and Jizzakh regions.

The government of Japan has been consistently supporting for the improvement of welfare of the people of Uzbekistan mainly in the field of health since its independence and it is expected that the implementation of the project will also lead to further improvement of level standards of the people in the country.

In the framework of the Uzbek delegation's visit to Germany, a presentation on the draft laws "On strengthening the role of political parties in the renewal and further democratisation and modernisation of the country" and "On introduction of amendments to certain articles of the Constitution of the Republic of Uzbekistan" submitted by President Karimov to the parliament in accordance with the legislative initiative procedure, Jahon Agency reported. The head of the delegation, Minister of Justice F. Otahonov, members of the delegation, and representatives of public and political circles of Germany participated in the event.

In his speech, Justice Minister explained the essence and importance of the new laws. He particularly emphasized that the legislative initiatives of President Karimov were a part of the gradual reformation of the society, and aimed at raising the role of political parties in the renewal and democratisation of state governance and modernisation of the country. It was noted that the draft laws were a logical extension of the measures being taken in the country to reform parliamentary, administrative and judicial systems.

The presentation evoked great interest of the audience. In particular, expressing support of further development of close dialogue between the two countries, a member of the Bundestag, former parliamentary State Secretary of the Federal Ministry of Family, Youth and Women, a member of "the greens" party Ms M. Beck said that until recently the interest of the West in Uzbekistan was mainly due to the country's natural resources, whereas now the world community's attention is directed at the political importance of Uzbekistan. "The countries of Central Asia, which have lived through the epochs of tsarism and communism need some time for transformation. The main task is to take a principle course of the development of democratic institutions. In this regard, I think that the legislative initiatives of the President of Uzbekistan are worth careful assessment. This step of the Uzbek government is, undoubtedly, aimed at strengthening the role of political parties in the society and administration of the country," she said.

"It was very interesting to learn about the course of reforms in Uzbekistan. During the presentation, I was once again convinced that the administration of your country is taking important steps toward the democratisation of the society.

In my opinion, all these measures will have a strong impact on the cooperation between Uzbekistan and Germany and European Union," said former member of the Chamber of Deputies of Berlin F. Lipelt.

A Head of Department at the Foreign Affairs Ministry R. Schulze in his commentary said that for many years Uzbekistan and Germany have been supporting "close and good" relations, including those in the sphere of law and development of democratic institutions. He emphasized the interest of Germany in the development of bilateral cooperation with Uzbekistan, which was confirmed in the course of the visit of the Head of German foreign political department Steinmeyer to Tashkent in November 2006. The decision to open a regional Bureau of the Technical Assistance Society of Germany in Uzbekistan intended to provide consulting services to the countries of Central Asia on law and governance is also an evidence of the preparedness of the two countries to develop bilateral cooperation.

The Chairman of the Europa-Berlin Society W. Furman said the organisation closely tracked the development of democratic processes in Uzbekistan and supported the cooperation between Uzbekistan and the Konrad Adenauer Foundation. He also emphasized the interest of the Society in the development of close and friendly relations with Uzbekistan.
 

"Uzbekistan is one of the recognized centres of the formation and development of Islamic culture and philosophy," the President of the American-Turkish Association Abdulla Khwaja wrote in his letter in response to the fact that Uzbekistan was listed by the US Department of State among the "Countries of Particular Concern" (CPC) for alleged violations of religious freedom, Jahon Agency reported. In his letter, Mr. Khwaja particularly draws attention to the fact that religious holidays Eid al-Fitr and Eid al-Adha are official national holidays in Uzbekistan, and that every year over 50,000 Uzbeks receive government support in making pilgrimage to Mecca and Medina.

"Following the independence Uzbekistan has faced an upsurge of religious extremism and fanaticism. But the country's government took a trenchant position in combating them and managed to sustain security and stability. For this, Uzbekistan should be praised and supported, not criticized.

The first Islamic University in Central Asia was established in Tashkent in September 1999. Over the last 15 years, some 2,000 mosques have been built and reconstructed, and 10 Madrassahs have been opened in the country.

In today's Uzbekistan, Islam peacefully coexists with other religions.

The representatives of 18 religious confessions freely perform their religious ceremonies and rites. The people of Uzbekistan, in view of their historical-cultural heritage, have always stood out for high degree of tolerance. The decision of the US Department of State absolutely ignores these factors and is based on biased judgments," Abdulla Khwaja wrote.

The members of the Congress of Bukhara Jews of the US and Canada have also responded to the decision of the US Department of State. In particular, in their messages, the President of the organisation Boris Kandov, and the leader of the Bukharian Jewish community in Queens, Rabbi Yitzhak Yehoshua note that the US Department is mistaken in its conclusion, which is based on incorrect understanding and interpretation of the real situation in Uzbekistan.

"Our contacts with the members of our community residing in Uzbekistan attest to the absence of any incidents of the infringement of rights or restriction of the activity of religious organisations, including Jewish," the letter says. "We state with all responsibility that inter-religious and intercultural tolerance has always been a distinguishing feature of the Uzbek society. It would not be an exaggeration to say that, as regards the support of inter-religious and intercultural dialogue, Uzbekistan can be placed among the most tolerant societies of the world.

We highly appreciate Uzbekistan Government's constant attention to and respect of the religious, cultural values and traditions of Bukharian Jews' community residing in Uzbekistan.

We believe that behind the allegations of infringement of religious freedom in Uzbekistan lies the obvious interest of certain circles, trying to delude the world community by giving rise to misleading inferences."

According to the Head Imam (Imam-Muhtasib) of Riga Muslims Society Midhat Satdanov, the conclusions and statements of the US State Department are simply the evidence of the fact that the latter does not possess objective information about the real status of the faithful in Uzbekistan.

"The members of our community and Uzbek Diaspora keep close contracts with their historical homeland," said Satdanov. "We know that the Government of Uzbekistan pays strong attention to supporting not only Muslim, but also other religions. We are aware of the fact that the number of Uzbek citizens making pilgrimage to Holy places is growing from year to year.

Uzbekistan is one of the recognized centers of the formation and development of Islamic culture and philosophy. Work is being done in the country to study and preserve rich spiritual heritage of the nation. For this particular purpose, for the first time in the Post-Soviet space an Islamic University was opened in Tashkent on the initiative of President Karimov.

I would also like to note on the fact that the US Department of State's report does not contain a single word about the caricatures of the prophet Muhammad published in some of the European countries. This also illustrates America's biased policy in relation to "disfavoured" countries."

"We, the Uzbeks, residing in Latvian Republic, were shocked by the fact that Uzbekistan was listed among the CPC countries," the President of the Nur Uzbek Cultural Society in Latvia Bahriddin Sindorov wrote in his letter. "We keep track of all the events taking place in Uzbekistan, and keep contacts with our historical homeland. Not less then the US Department of State are we aware of the situation in Uzbekistan. I visited Uzbekistan in September and personally witnessed the large-scale constitutional reforms being implemented by Karimov's administration and intended to develop democracy and multi-party system in the country.

We strongly support the statement of the Ministry of Foreign Affairs of Uzbekistan published in response to the inclusion of the country into the CPC list."
 

Ambassador Extraordinary and Plenipotentiary of the Republic of India to the Republic of Uzbekistan H.E. Skand R. Tayal in an interview with UzReport.com told about the achievements of India, results and perspectives of bilateral cooperation and shared his impressions from staying in Uzbekistan.

Your Excellency, what are the achievements that will mark celebrations of Republic Day (1950) on 26 January 2007?

In my view, our most notable achievement has been the evolution of a strong, stable and secular democratic society. The Constitution, which the people of India adopted on 26 January 1950, has stood the test of time and provides the foundation for our socio-economic progress. Our country of more than One billion citizens has truly achieved 'unity in diversity'. The world community recognizes that the Republic of India has made outstanding all round progress and has emerged as a dynamic economy.

Today, India is the second fastest growing economy in the world with an annual GDP growth rate ranging from 8% to 9%. The country ranked 4th largest economy in the world in terms of Purchasing Power Parity (PPP). A highly talented, skilled and English-speaking human resource base forms its backbone. India has a diversified and large industrial base which is fast acquiring global competitiveness. Indian companies are increasingly venturing into other countries for marketing, production, acquisition and even research and development. More than half of the Fortune 500 companies have their presence in India. With its vast potential and robust growth, the Indian economy has emerged as one of the driving engines of growth in world economy.

India is in the forefront of frontier areas of technology such as Information Technology, Bio-technology and Space Sciences. Indian IT industry and IT professionals have made name for themselves in the world market and top international companies like Microsoft, IBM, Google, and many others source their IT requirements from India. Indian IT giants like Infosys, TCS, Wipro, Satyam and others are well-known for their contributions to the ICT revolution in the world.

Similarly, in the high-tech area of Space research, India can now design, build and operate state-of-the-art communication and Remote-sensing Satellites into Polar Sun synchronous Orbit. In the first week of this month, Indian Satellite Launching Vehicle, PSLV, has successfully carried in to the Space 2 Satellites belonging to Brazil and Indonesia.

India today ranks among the few developing countries which have achieved self-sufficiency in food production. India has the privilege of having the First Rank in the total irrigated land of 145 million hectares and emerged as one of the largest food producers in the world. The saga of India's 'Green Revolution' is well-known to the world. The country has endeavoured to fulfill the basic needs of healthcare and housing for a large section of its people.

Today, Foreign Exchange Reserves in India stand at US$170 billion. India has contributed nearly half a billion dollars to IMF for lending to other countries. We are committed to sharing our growing economic and technological success with friendly countries like Uzbekistan.

As we celebrate our Republic Day, we look to the future with a great deal of confidence and optimism.

Indian-Uzbek relations have centuries-old history of trade, economic and cultural links. Please tell us about contemporary state of bilateral cooperation in economic, trade and culture; the results of the last year and perspectives of its development?

The close friendly relationship between India and Uzbekistan, which is characterized by mutual beneficial all round cooperation, is based on our shared historical and cultural ties. In more recent times, our countries have come to share common values such as secularism, tolerance and strong opposition to the forces of fundamentalism and terrorism. We have a common vision of stability in our region, and peace and prosperity of our people, and we are determined to work together to achieve these aims. Our cooperation is underpinned by over 60 agreements in different areas.

Regular exchanges of high level visits have been maintained. During the visit of His Excellency President Islam Karimov to India in April 2005 a Joint Statement was issued and 12 important agreements were signed. The visit of our Prime Minister, Dr. Manmohan Singh, to Uzbekistan in April 2006, during which Seven documents for bilateral cooperation were signed, provided a fresh impetus to our friendly bilateral relations. The new understanding has opened the doors for significant Indian investments in Uzbek hydrocarbons sector, and mining & minerals sector. We hope to continue with this tradition of high level exchanges.

Both Uzbekistan and India have made an important contribution to the fight against international terrorism and the Second Meeting of our Joint Working Group to Combat International Terrorism took place in October 2005, and the next meeting is scheduled to be held in March this year.

A number of steps have been taken to enhance our trade and economic relations which, however, remain below their potential. The Sixth Session of the Inter-Governmental Commission on Trade, Economic, Scientific and Technological Cooperation between the Republic of India and the Republic of Uzbekistan was held in March 2006 in New Delhi. The Uzbek Minister for Foreign Economic Relations, Investment & Trade led the Uzbek delegation to India to Co-Chair the Sixth Session of the Inter-Governmental Commission.

The 3rd India Trade Exhibition was organized by India-CIS Chamber of Commerce and Industry in last October in Tashkent with participation of 60 major Indian companies. The exhibition attracted a large number of Uzbek entrepreneurs who held negotiations with their Indian counterparts for bilateral trade and investment in Uzbekistan. Indian textile company "Spentex" bought two Uzbek textile mills for US$ 81 million last year. Other Indian companies are interested to invest in textiles and pharmaceutical sectors in Uzbekistan. Two major commercial delegations and several Indian businessmen have visited Uzbekistan last year, and more are expected during this year.

An agreement on Defence cooperation was signed in April 2005 for enhanced interaction in the defence sector. There are visits and contacts between our defence planners, top level Commanding Officers as well as Special Forces. India provides training programmes to Uzbek Defence personnel. We have signed a programme for cooperation in agriculture and another one in the area of science and technology.

Under the Indian Technical and Economic Cooperation Programme, India finances short and medium term training of 120 Uzbek nationals every year in various disciplines in Institutes in India. Twenty Uzbek students go to India every year for Graduate and Post-Graduate studies with the help of Indian scholarships. With an Indian assistance of Rs.30 million, the Jawaharlal Nehru India-Uzbekistan Centre for Information Technology was established at the Tashkent University of Information Technology, which was inaugurated by our Prime Minister in April 2006. An Entrepreneurship Development Centre will be established in Tashkent with the financial and technical assistance from India.

India and Uzbekistan have many similarities in culture. We have signed a Cultural Exchange Programme for the period 2005-2007 during President Islam Karimov's visit to India in April 2005. Our Culture Centre, named after our Late Prime Minister Lal Bahadur Shastri, is very active in Uzbekistan. The Centre organizes regular courses in Yoga, Kathak, Hindi and Indian studies. It also organizes a number of events in collaboration with Uzbek cultural institutions and groups.

Mr. Ambassador, what are your impressions about Uzbekistan? What places have you already visited? What did you like the most? How do you spend your leisure time? Do you have a hobby?

I am very touched by the very friendly sentiments which people of Uzbekistan, at all levels, have in their hearts for India. I sense a great feeling of brotherhood between our peoples. Uzbeks, even in small cities and villages, know a lot about Hindustan and nurse a desire to visit India and see Taj Mahal!

I have toured extensively in your country and have already visited Nukus, Urgench, Khiva, Karshi, Termez, Namangan, Ferghana and Andijan, besides several trips to Bukhara and Samarkand. In all parts of the country, I have returned very impressed by the large number of newly constructed schools, lyceums and colleges. Most cities have impressive sports facilities. The future of a country lies in the hands of their well educated youth. And I congratulate H.E. President Islam Karimov for his farsighted vision to invest in the education and well being of the younger generation.

I am very fond of reading books on history, biographies and contemporary issues. I play Golf once a week at the beautiful Lakeside Golf Course in Tashkent. Of course, these days in winter I am unable to play as the ground is covered with snow!

What are your New Year wishes for the people of Uzbekistan?

As the Ambassador of the Republic of India, I feel greatly honoured to extend my warmest New Year greetings to the most friendly people of Uzbekistan. 2006 has been an eventful year for India and Uzbekistan. We hope that 2007 will be a fruitful year with further strengthening of friendly bilateral relations. I wish the people of Uzbekistan good health, happiness, peace and prosperity in the New Year.
 

Ethnographic Museum of Applied Art of the German city of Leipzig, established in 1874, is one of the largest and most prestigious museums in the world. The Museum has bright and valuable collections of art works and cultural artefacts from nearly all regions of the world.

Administration of the museum has recently decided to organise an exhibition of art and culture of Uzbek nation, Jahon Agency reported. The project was implemented with the assistance of Bukhara regional khokimiat (authorities) and the Embassy of Uzbekistan in Germany.

An official ceremony of presenting the artworks of Uzbek craftsmen was held recently in Leipzig. The representatives of Leipzig authorities, administration and staff of the museum and media participated in the event.

A presentation was made on the main stages in cultural and historical development of Uzbekistan, and the policy pursued by the country's administration to revive the spiritual, historical and cultural heritage of the nation.

The Director of Leipzig Ethnography Museum of Applied Art K. Deimel said the artworks presented to the museum opened a new page in its history and would serve for the familiarization of the city's residents and guests with the rich culture, traditions and modern life of Uzbekistan.

An expert in ethnology and oriental culture Doreen Bur said Uzbekistan retained the unique traditions of national applied art passed on from one generation to another from century to century.

"I am convinced that the exhibition will provide a new impulse for the deepening of bilateral cooperation in the spheres of culture, and will contribute to the development of relations between the nations of the two countries," she emphasized.
 

President of Uzbekistan Islam Karimov left for Singapore on three-day state visit on January 24, 2007, UzA Agency reported.

The visit of the Uzbek leader is taking place on invitation of the President of Singapore Sellapan Ram Nathan.

During the meetings, the sides will discuss issues of expanding Uzbek-Singaporean cooperation, actual problems of international character representing mutual interest.

On results of negotiations it is planned to sign several bilateral documents aimed at deepening the interaction of the two countries in various spheres.

It is expected that Agreement on Cooperation in the field of Standardisation, Metrology and Accreditation, a Memorandum of Understanding between the Ministries of Foreign Affairs of Uzbekistan and Singapore on Bilateral Consultations, an Air Services Agreement and a Memorandum of Understanding on Cooperation between the Singapore Business Federation and the Chamber of Commerce of Uzbekistan will be signed.

Singapore acknowledged independence of Uzbekistan in April 1992 and the States established diplomatic relations on April 8, 1997.

Uzbekistan and Singapore signed agreement on encouragement and mutual protection of investment, which entered into force on July 15, 2003.

The agency said the positions of two states have common view on majority of key issues and there is no political disagreement between countries, which allows to deepen mutual beneficial cooperation.

The report said bilateral trade turnover between Uzbekistan and Singapore is increasing for last several years. It said bilateral trade turnover rose by threefold in 2003-2005 and made up US$76.1 million in 2005 (US$71.2 million is export, and US$4.9 million is import). In eleven months of 2006, bilateral trade turnover comprised US$86.2 million.

Uzbekistan mainly exports cotton-fibre, energy resources and services to Singapore and imports electronic and mechanic equipments.

The report said 12 enterprises with Singaporean capital operate in Uzbekistan, of which two are companies with 100% Singaporean investments.
 

Uzbekistan, an ancient Centre of world civilization, is seeking Singapore's cooperation to bolster its drive to develop a modern market economy. In an exclusive interview with Today (Singapore), President of Uzbekistan Islam Karimov talked about the growth of democracy in the country, opening it to foreign investment and its tourism potential.

President Karimov, who arrived in Singapore on a three-day state visit, said his people were impressed with the way a small country like Singapore was able to develop its high-tech industries and keep pace with the challenges of the global economy. "There is wide scope for Singapore investment and entrepreneurial opportunities in Uzbekistan," President Karimov said.

Your Excellency, Uzbekistan has made remarkable progress under your leadership since it gained independence. Has the time arrived for more multi-sectoral representation in the governing of Uzbekistan so that the people will have a greater voice in the democratic process?
 

Since Uzbekistan gained independence it has clearly defined for itself a secular way of development and building a civil society. This path is based on the universally-recognised principles of democracy and freedom. At the same time, it is based on historical, national and spiritual values and mentality of our people.

Mostly thanks to this we have been able to preserve the social and political stability, sustainable rates of economic growth and gradually implement the large-scale reforms in the country. The model we have chosen for economic development and the liberalisation of public life, according to the recognition of many high-profile international organisations, entirely justifies itself.

The processes of liberalisation are already bearing positive results in the economic sphere, and firstly, owing to accelerated development in private entrepreneurship and small businesses.

In 2006, the positive tendencies continued in the dynamics of macroeconomic parameters and acceleration of the growth rates in all spheres of the real sector. Thus, the economic growth rate continued to remain sustainable and accounted for 107.3%, exports grew almost by 30%, gold-currency reserves by 33%, the State Budget grew by 27%, the real wages of employees, pensions, stipends and allowances rose by 36% approximately, but the level of inflation did not exceed 7%.

In this regard, I would like to note that the International Monetary Fund (IMF), which visited Uzbekistan in December 2006, rated the efficiency of economic model highly, the stage-by-stage reforms carried out in our country.

As far as the second part of your question is concerned – hardly can anyone decide to assert that the creation of a democratic society is possible with a wave of one's hand.

The building of a democratic state and civil society is a long continuous process with enormous problems and difficulties.

Its success firstly depends on the dynamism of the change of mentality of the population and how solidly democratic and liberal values are adopted in the consciousness of the people. People have to be convinced of the necessity and benefit of the reforms being accomplished.

Therefore, in light of our development strategy, we went along the evolutionary path, which meets, above all, the interests of our people.

The modernisation and liberalisation of society on all levels is being accelerated: The processes of renewal of state governance and reforming of the court-legal sphere, liberalisation of mass media, upholding of human rights, and establishing civil institutions that represent the interests of various social layers of the country's population.

Since 2005 the bicameral parliament has been operating effectively in the Republic. I would like to note that in our country there are five political parties, which carry out their activities through their factions in the lower Legislative Chamber, and in the local level – through the deputy groups.

Establishing the upper chamber of the country's Parliament – the Senate, a representative body of the local (in all there are 14 subjects) electoral structures, has cardinally increased opportunities for the people to participate in drafting and adopting legislative acts and norms.

The active system of checks and balances is being established in practice, which ensures that the high level of adopted laws given a harmonious balance of interests is preserved in society.

At the same time, the future of the civil society being established in Uzbekistan and efficiency of the ongoing reforms, above all, depend on further activity of population, its drawing into the political life of the country, allocation of bigger rights to political parties and social movements that represent various mostly disagreeing interests of the people.

In the context of this conclusion, therefore, the draft constitutional law, "On strengthening the role of political parties in the renewal and further democratisation of state governance and modernisation of the country", was submitted for nationwide discussion at the end of 2006. It is aimed at a broader drawing of the people into the processes of social and state construction.

I am convinced that reforming the political system and democratising state governance will have an immediate impact on resolving problems related to sustainable economic development and efforts to raise quality of life for the people.

How far has Uzbekistan opened up and succeeded in the attraction of foreign investment for the development of the country's economy and from which countries is this investment coming?

Since the first days of independence, there is systemic work being carried out in our country to establish and improve the favourable investment climate, create comfortable conditions for activity and protect foreign investors' rights.

Certainly, it is impossible to address all these issues within the framework of one article. I will dwell upon just some legislative and legal guarantees, finance and tax preferences for foreign investors in Uzbekistan.

Above all, it should be noted that we have adopted a special law "On guarantees and measures of protection of foreign investor rights", under which the inviolability and protection of rights and ownership of foreign investors are ensured in Uzbekistan. The legislation, which is in force to the date of investing, is applied to foreign investors during 10 years from the time of investing. The foreign investor has a right at his own discretion to apply those provisions of the new legislation that improve the conditions of his investment. Besides, the free repatriation or reinvestment of profits from investing is guaranteed without any limitations.

From the economic viewpoint, it is important to note that from Oct 15, 2003, the Republic of Uzbekistan joined Article VIII of the IMF Charter and without restrictions converts its national currency. We realise that the convertibility of our national currency – the soum is of special significance to attract the foreign investments, modernise the economy and promote exports.

In this, owing to the vast system of tax privileges and preferences we have created a climate even far more attractive for investors than the national producer. Thus, the enterprises established in Uzbekistan with participation of foreign capital are free from income tax payments from three to seven years, property tax for up to two years and customs duties in bringing in the technological equipment.

Foreign investors may participate in privatisation of enterprises in any spheres of our economy, including at the expense of reinvesting their income earned in Uzbekistan.

Uzbekistan is attractive for foreign investors also from the standpoint of geographic location. Therefore, considering the central geo-strategic position of Uzbekistan in entire Central Asia the country during the short period of time provided the integration of its own automobile and rail roads with intercontinental and transport corridors between Europe and Asia, and established the direct flights with all continents and largest cities of the world. This has allowed the country to become the large logistical center to penetrate the markets of the Commonwealth of Independent States (CIS), European countries, as well as the countries of Central and South Asia.

Uzbekistan is also attractive with cadre potential. The system of continuous education, which was established within the framework of the specially adopted national programme for training cadres, has allowed ensure 100% literacy of the population. The broad network of educational and scientific institutions is developed in Uzbekistan - ranging from specialised scientific research institutions to multi-profile universities that are a firm basis for the innovative development of the country and training of advanced engineering and science workers.

All these preconditions allowed Uzbekistan to become the most attractive country in Central Asia for foreign investments. Currently, there are more than 3,500 joint ventures operating in Uzbekistan. And over the past three years, mastered direct foreign investments grew four-fold. Direct foreign investments account for 76% in structure of the volume of the assimilated foreign capital. As a whole, the volume of the assimilated foreign investments now accounts for over US$20 billion.

About 30% of the total volume of mastered foreign investments is made up by prospecting and development of oil and gas deposits projects, 15% by the development of information systems and telecommunications, 13% by implementing textile projects, and 7% by the financial sector.

Over the past years, hundreds of new large industrial sites have been commissioned with participation of foreign capital. Thus, the industrial facilities, the largest in Central Asia, such as the Shurtan gas and chemical complex, Bukhara oil refinery, an automobile plant in Asaka, a soda factory in Kungrad and large textile complexes have been built and put into operation. Besides, the five banks with foreign capital, about 10 international insurance and audit companies are functioning in Uzbekistan.

The measures taken in this area led to an increase in foreign trade turnover over the past 10 years by more than five times. The share of products with a high value-added cost in the structure of exports grew by up to 65% or almost four times.

The largest investor countries in our economy and also our main trading partners are Japan, South Korea, the Russian Federation, China, Germany, France, Turkey. They and other countries engaged in investment activity from the early days of independence.

I hope that in the nearest future, Singapore will also join this list of countries with whom we look forward to close cooperation.

What other measures are being undertaken by Uzbekistan to promote and grow the economy?

Based upon the historical, national specifics, the way of life and mentality of people that has been formed over the many centuries Uzbekistan chose its own way of development. The reforming of Uzbekistan's economy is based on five main principles.
 

• we have declared the priority of economy over the politics, freeing both internal and external economic relations from ideology.
• we believe that the state must act as a main reformer and consistent initiator of democratic and market reforms.
• maintaining the supremacy of law.
• it is of an exclusive importance for us to have a strong social policy that protects the interests of the people who are in need of support by the state and society.

And, finally, in our conditions the transition to market relations is accomplished gradually and in an evolutionary way.

Implementation of these principles has predetermined the achieved successes of development of our economy.

From 1996, our economy entered the course of the sustainable economic growth. Between 2000 and 2006, the economy of Uzbekistan increased by 50%, and over the past three years, GDP growth rates have exceeded 7%. Sectors such as light and automobile industries, communications services, and transport are seen to be outstripping growth rates against the GDP. This has led to positive changes in the structure of economy. Thus, the share of industry in the structure of GDP over the past four years grew 1.5 times and exceeded 22% in 2006, and the share of services by nearly 40%.

The tough monetary and fiscal policy sharply decreased inflation, the rate of which during the past three years has not exceeded 7%, and the state budget in 2005-2006 had a surplus.

In turn, the low rate of inflation provides stability for the national currency exchange rate.

In this, the consolidated state expenditures towards the GDP have decreased from 38% in 2000 to 31.6% last year. In the same period the income tax rate was reduced from 31% to 10%, and the maximal rate of income tax for physical entities from 40% to 25% and deductions to the pension fund from 40% up to 24%.

The achievement of the national currency convertibility on the current operations alongside with the measures on export's stimulation has provided the stable growth of exports of goods and services which has increased for more than 1.7 times from 2000 to 2006. Last year the surplus of balance of payments accounted for 9,1% of the GDP, the gold-currency reserves of the country increased almost five times over the last five years.

The policy of structural and institutional transformations is under way, which is very important for a transitional economy.

In this regard, above all, it should be noted that more than 6,750 medium and large enterprises were privatised in the last five years and 980 of them were privatised in 2006.

On the other hand, a considerable administrative reform was carried out, as a result of which approximately 20 ministries and agencies were abolished, over 500 state functions on administrative regulation of economy were liquidated, and the number of the administrative and managerial staff was reduced to 75,000 people or 22% from the total number.

These measures significantly lowered the regulating role of the State in economy and removed its superfluous administrative interference in economic processes.

We are attaching a profound importance to reforms in the agricultural sector, which provides almost 30% of the GDP, where the main attention is paid to the development of private farms. Last year, the farms produced more than 90% of raw cotton, while yet only five years ago the farms provided less than 10% of the raw cotton production. Today, the farms and private sector produce practically more than 90% of agricultural products.

At the moment, the share of the non-state sector accounts for about 78% of the GDP, 80% out of the total number of all employed in the economy work for the non-state sector.

For several years, Uzbekistan has been one of the largest exporters of cotton and gold, and in addition to these traditional exports it should be said that for the third year in a row our automobiles are becoming the bestselling foreign cars in the fast growing markets of Russia and other CIS countries.

The achievements in the sphere of economy and stability of the state finances allow us to successfully implement large-scale social programmes such as the National Programme for Cadres Training, the State Programme for Reforming the Healthcare System, the National Programme for Developing Secondary Education, and others.

What are the areas of economic cooperation and investment do you want developed in collaboration with Singapore? In this respect, how easy is it for a Singapore company to set up business in Uzbekistan?

Many people in Uzbekistan and I personally with a special interest follow the economic achievements of Singapore. In our view, its economy is unique and a bright example of effective economic policy of the country's Government.

You were able to build a flexible economy, which reacts timely and accommodates to the trends and challenges of the global economy. If to look at the history of development of Singapore's economy, then one could see the classic example of the development stages of national economy, when the simple handicraft production on the initial stage has grown up to date into the modern and diversified high-technology economy.

We know that the economy of Singapore has been one of the world's top five most competitive economies for several years in a row and the people of Singapore had proved that the size of the country and its population are not a determining factor for finding its own place and role in the world economy.

Your solid economic foundations have allowed the country to overcome the Asian economic crisis of the late 90s with minimal losses.

The economic potential of Singapore and Uzbekistan's natural resources, its geographic location and the available legal basis for investment and entrepreneurship activity open up broad opportunities to develop bilateral relations with Uzbekistan. In our view, the most fruitful and mutually beneficial directions of cooperation between our countries may become:
 

• cooperation in finance and banking has good prospects. The expansion of ties between financial institutions and banks must play a decisive role in facilitating the growth of mutual investments and trade.
• the availability of natural and raw resources in Uzbekistan and high-technology industry in Singapore supported by financial resources is a prerequisite for the participation of Singapore companies in prospecting, mining and processing of hydrocarbon and other types of raw.
• in addition to this it should be noted the high potential effectiveness of attracting the investments from Singapore into the mining and processing of nonferrous and precious metals. As you know, there are large deposits of gold, silver, copper, molybdenum, tungsten, uranium, and other metals and poly-metals in Uzbekistan.
• I would like to specially underscore our interest in attracting the Singapore companies, which are making business in the sphere of high-tech, since the information and telecommunication technologies are developing in Uzbekistan with the highest rates, and such companies earn the highest profits in Uzbekistan. The attractiveness of this sector is confirmed by the presence of the biggest companies from South Korea, Japan, Germany, Russia, China and other countries in the market of modern technologies of Uzbekistan.
• the natural and climatic conditions, the availability of the unique historical and religious monuments, as well as the direct air routes to all continents and biggest cities of the world, and consequently the existing conditions for tourism, mountain skiing and re-creative leisure on the high mountainous areas predetermine the cooperation in the sphere of tourism as one of the prospective directions of investing into the economy of Uzbekistan.
• Uzbekistan is also interested in developing the ties in the cadres training, scientific exchange and education.

And finally I would like to offer the potential investors to consider the possible cooperation in the sphere of establishing and administering the specialised economic and export zones in Uzbekistan. It is strengthened by the fact that the transport infrastructure of our country is integrated with intercontinental transport corridors.

I would like to specially note that at the moment 12 enterprises with direct Singapore investments including the two enterprises with 100% Singapore capital are actively operating in Uzbekistan. Certainly, this is not a big indicator in comparison with available enormous potential of development of bilateral trade, economic and investment cooperation.

We welcome the interest of the Singapore companies to the operations in the Republic of Uzbekistan and invite them to more active cooperation with our country. On our side, we will render the necessary efforts to create the comfort conditions for the work of the Singapore companies in Uzbekistan.

What are the major problems confronting Uzbekistan and what are the measures being undertaken to counter these problems? Would you identify the drug trafficking and terrorism as two of the major problems facing Uzbekistan?

For over the 15 years of its independent development our country and people had to face and find the solution to many tough problems and tests.

Certainly, the selfless work, creative potential of our people, the course and model of social and economic development chosen by our country has served as a major support in addressing these tasks.

Our goals are clear and open. In their essence they are based on the strife to create the democratic state and civil society with a steady rise of the people's welfare in it, which is impossible without peace and interethnic accord. And this is not only in relations with the close and far neighbors, but also with an entire world community.

Undoubtedly, today we clearly see serious problems for our stable and steady progress on the selected and already tested course of development and progress.

In this regard I would like to emphasise that the threats and challenges in this way, first of all, the security threats and destabilisation of the situation proceed from and directly depend on the state of affairs in the entire vast Central Asian region and the region of South Asia, and on resolving the Middle East problem.

The tendency of integration of various destructive forces and international centers, which strive to create the situation of the so-called "managed destabilisation" both in the region and particular country to achieve their geo-strategic and geopolitical goals, causes one's profound alarm and apprehension.

Not less important and tangible problem is the international terrorism and drug trafficking. They cannot be considered separately within the borders of Uzbekistan since these problems have long become the painful spot for the entire civilised world.

The transit of drugs through the states of Central Asia also remains the critical problem both for the country and the entire region, as a whole. Are our concerns valid? According to the United Nations, in 2006 the record harvest of opium was collected in Afghanistan – 6,100 tons, the quarter of which passes through our region.

In October 2002, during the visit of the United Nations Secretary-General to Uzbekistan the Republic put forward the initiative to create the Central Asian regional information-coordination Center for the struggle against the trans-border crime related to illegal circulation of drugs (CARIC). At the moment, the creation of the Center is in its final stage.

Another our initiative – the creation in Central Asia of a nuclear-weapon-free zone has also been completely realised. The UN General Assembly in its four resolutions and two decisions has expressed support to the initiative of Uzbekistan. Completion of the acceptance of our initiative took place on September 8, 2006, in Semipalatinsk, where all five Central Asian states signed the Treaty on a nuclear-weapon-free zone in Central Asia.

In conclusion, I would like to note that modern challenges and threats require the formation of a new and effective model of international cooperation in the struggle against them.

Uzbekistan, while hoping for the understanding and support in these issues on the part of the international community has always been and remains the state open for the equal cooperation. This aspect is important for all of us and only jointly we can achieve successes that would promote the prevention of conflicts and maintenance of stability not only in the Central Asian region, but also all over the world.

What would you say are the main tourist attractions that would draw more visitors to your country?

The territory of modern Uzbekistan is one of the most ancient centers of the world civilisation. Since the far antiquity the powerful state formations appeared on its territory replacing one another. It is the region where the West and the East, their cultures and religions met, where the great scholars and thinkers lived and created, who with their work had enriched the treasury of the world civilisation.

Yet in the period of antiquity our blessed soil has been named a country of thousand cities. There are truly precious pearls of the world civilisation in here, which are the contemporaries of Rome, Athens, Alexandria and Carthage – the cities of Samarkand, Bukhara, and Khiva that have been included into the UNESCO World Heritage List.

Brilliant works on philosophy, medicine, mathematics, astronomy, geography, history and literature have come into being in this very place. These works later stimulated the European Renaissance and provided the basis of the European science for many hundreds of years ahead. The representatives of the Uzbek soil: Amir Temur, Mirzo Ulugbek, Zakhiriddin Muhammad Babur, Al-Khorezmi, Abu Reyhan Beruni, Abu Ali Ibn Sino, Al-Ferghani and others had added a vivid page to the world history chronicle.

The rich historical and cultural heritage of the republic is reflected in the centuries-old history of the region, which is related firstly to the history of the Great Silk Road that had extended from the antique Rome to the ancient capital of Japan – Nara. Being located at the crossroads of this road the region had intensively developed and imbibed the various cultures and traditions.

The greatest monuments of Islamic culture such as the necropolis "Shahi Zinda" of the 11th century (Samarkand), the ensemble "Registan" of the 15th century (Samarkand), the tombs of Imam Al-Bukhari of the 9th century (Samarkand), Khaji Bakhouddin Nakshbandi of the 14th century (Bukhara) and At-Termizi of the 9th century (Termez) are located in Uzbekistan.

In its turn, it should be noted that the world's most ancient temples and statues of Buddha were discovered along the archeological excavations in the territory of historical settlements in the south of Uzbekistan.

The unique geographical and natural conditions are attractive for the development of ecological tourism in Uzbekistan. In these directions the extreme and winter tours are organised in the finely equipped tourist complexes in the mountainous regions of the country. The new direction of tourism - a natural history tourism in the territories of large reserves and parks is developing.

One should not forget that Uzbekistan has always been famous for its handicrafts. At the moment, there are about 500 enterprises in Uzbekistan, which produce the souvenir goods based on the national craft: the porcelain and ceramic ware, national knives, ceramic toys, gold embroideries, carpet-weaving, and other.

The tourist infrastructure is dynamically developing. The new hotels and pleasure resorts were built and the new tourist routes have been introduced. There are 168 hotels in the republic. At the moment, there are 408 tourist operators in the tourist market of Uzbekistan, which are ready to provide the full range of services for the international tourists.

Annually about one million tourists from a wide variety of countries of the world including Japan, France, Korea, Russia, Germany, Austria, the Great Britain, Italy and others visit our country. The guests visiting Uzbekistan are delighted with our ancient and ever young cities, customs and traditions, distinctive art and culture, wonderful nature of our soil, enormous creative work and transformations accomplished by our people. I am convinced that should the tourists from Singapore once visit Uzbekistan they will want to return to our country by discovering Uzbekistan again and again.

It has been a great honor for us that the city of Tashkent was conferred on the high title of capital of Islamic culture by the Organization of Islamic Conference – the International Islamic Educational, Scientific and Cultural Organisation.
 

Uzbekistan and Singapore will sign several bilateral documents within the visit of President of Uzbekistan Islam Karimov to Singapore, Channel News Asia reported.

President of Uzbekistan Islam Karimov will make a state visit to Singapore on 24-26 January.

The report said Uzbek leader will be accompanied by Deputy Prime Minister and Minister of Finance Rustam Azimov, Minister of Foreign Affairs Vladimir Norov, Minister of Foreign Economic Relations, Investments and Trade Elyor Ganiev, officials and a business delegation.

President Karimov will be calling on and hosted to a State Banquet by President S R Nathan.

President Karimov will also be meeting Prime Minister Lee Hsien Loong and Minister Mentor Lee Kuan Yew.

Speaker of Parliament Abdullah Tarmugi will be hosting President Karimov to lunch. President Karimov will also be visiting Parliament House.

Singapore's Foreign Ministry says four agreements will be signed during the visit.

They are an Agreement on Cooperation in the field of Standardisation, Metrology and Accreditation, a Memorandum of Understanding between the Ministries of Foreign Affairs of Uzbekistan and Singapore on Bilateral Consultations, an Air Services Agreement and a Memorandum of Understanding on Cooperation between the Singapore Business Federation and the Chamber of Commerce of Uzbekistan.
 

An agreement on technical cooperation has been signed between Japan's Isuzu Motors and the bus assembling plant in Uzbekistan's central town of Samarqand, Uzbek TV reported.

The report said the plant would assemble two types of buses and new modifications of lorries under a license from the Japanese company.

This year the plant will produce 1.500 buses, it said.

Uzbek newspaper Pravda Vostoka reported that the plant will start produce buses and lorries in full capacity in near future. The capacity of the plant is 4.000 buses and lorries a year.

The newspaper said some 200 new Isuzu buses will circulate in Samarkand, which will mark its 2750th Anniversary this year.

Uzbekistan Airways, national air company, will turn 15 on January 28, 2007, UzA reported. On this day in 1992, President Islam Karimov signed a decree on creation of the O`zbekiston Havo Yo`llari company with a status of the national air carrier.

Today Uzbekistan Airways carries out flights to more than 40 cities of the world and has representative offices in 24 states. The number of passengers using the company’s services makes up about 2 million every year.

If in the beginning of its operation O`zbekiston Havo Yo`llari had mostly old passenger planes, to date it has renewed its fleet and has 16 modern liners, including Boeing-767-300ER, Boeing-757-200, А-310 and RJ-85. It also has locally made Il-114-100, as well as freight carriers Il-76.

To meet the needs of the new planes, the company had to renew the ground technical base. In accordance with the special government program, airports in the capital and other large cities were fully modernized. Of 12 airports belonging to Uzbekistan Airways, 5 (Tashkent, Samarkand, Bukhara, Urgench and Termez) now have the international status and can accept all types of modern planes.

In 2006, Uzbekistan Airways carried about 1.7 million passengers, 1.6% up from 2005.

The company currently employs about 14.000 people.

President of Uzbekistan Islam Karimov signed a resolution on January 23, 2007 envisaging adoption of the Program on the Year of Social Protection, Uzbek Media reported.

The program is aimed at providing concrete material help and moral support to socially vulnerable layers of population, forming legislative base providing guarantees and stimulating charitable activities.

On January 24-26, 2007 the President of the Republic of Uzbekistan Islam Karimov upon the invitation of the President of the Republic of Singapore Sellapan Rama Nathan will pay a State Visit to this country, Jahon Agency reported.

During the talks the parties are expected to discuss the issues of expanding the Uzbek – Singapore relations, the outstanding problems of international nature of mutual interest.

On the outcomes of the talks the sides plan to sign a number of bilateral documents aimed at deepening the interaction of the two states in various spheres.

The World Bank Country Office said World Bank appointed Loup Brefort as the new Country Manager for Uzbekistan, UzReportcom reported.

Loup Brefort is a French national, joined the Bank in 1990 as a Public Sector Management Specialist in the Africa Region. He has since held various positions, his most recent assignment being Country Manager, Kazakhstan, where he has been at the core of our revived country relations.

In this new position, Mr. Brefort's top three priorities will be to oversee a technical assistance program to assist the Government to develop its Welfare Improvement Strategy; closely monitor the implementation and results of the Interim Strategy recently discussed by the Board; and provide effective leadership and management to the country team and Tashkent Office to guide the Bank in meeting our development goals in Uzbekistan.

Japanese bus and truck maker Isuzu Motors Co has begun producing small buses in Uzbekistan through local car assembler and seller Samarkand Automobile Factory LLC, the Japanese carmaker said on January 22, 2007, UzReportcom reported.

Isuzu Motors and Samarkand Automobile Factory signed a contract for the production of the small buses at a plant of Samarkand Automobile Factory.

Under the contract, Isuzu Motors will supply chassis of its ELF small truck model to Samarkand Automobile Factory through Japanese trading company Itochu Corp. The Uzbekistan company will assemble small buses based on the imported chassis and will sell them under the company's brand in Uzbekistan.

Isuzu Motors forecasts sales of 1,000 buses based on the Isuzu ELF in 2007 and 3,000 units in 2010. The carmaker is considering introducing its buses in other Central Asian countries in the near future.

Clientele base of MTS-Uzbekistan, former Uzdunrobita, reached 1.5 million-point, Uzbek media reported. It added that over thousand Uzbeks choose MTS-Uzbekistan every day.

The company said that subscribers' base of MTS-Uzbekistan increased by 150% compared to the beginning of 2006. It said the company served over 600,000 in the beginning of 2006.

MTS-Uzbekistan, earlier rendered services under Uzdunrobita brand, founded in August 1991 and it is the first mobile operator in Central Asia. The company also leads on number of subscribers in Uzbekistan.

According to official data, over 2.72 million people used mobile services in Uzbekistan as of 1 January 2007.

A high-level team from the Asian Development Bank (ADB) on January 19, 2007 wrapped up two days of discussion with the Uzbek government on the future direction of the organization's partnership and reiterated its commitment to continue assistance to Uzbekistan, UzRepotcom reported. A press conference was held on this occasion at the Uzbekistan Banking Association.

The management team from the ADB's Central and West Asia Department (CWRD) led by its Director General Juan Miranda arrived in Tashkent for the two-day visit on January 18, 2007.

The team met with Rustam Azimov, Deputy Prime Minister and Minister of Finance of Uzbekistan, Saidakhmad Rakhimov, ADB Governor for Uzbekistan, as well as ministers of public education, agriculture and water resources. Team members also met with the first deputy minister of economy, deputy minister of foreign economic relations, investments and trade, chairpersons of the Central Bank, Uzbek Association for Transport Communications and other senior government officials.

Discussions focused on ensuring alignment of the ADB's future operation programmes with its Country Strategy and Programme (CSP) for Uzbekistan and the country's needs, as well as general strategic, macroeconomic, and sector development issues. The two sides expressed their willingness to strengthen cooperation in policy and economic reforms and discussed the general role of the ADB and the Uzbek government's expectations.

During the press conference, the head of the ADB delegation Juan Miranda noted that the bank plans to be more focused and plan more for the long term in its operations.

"ADB considers Uzbekistan as a good partner," Mr Miranda said. "We sincerely hope to see Uzbekistan to develop fast economically and would like to contribute to this process."

ADB is the biggest donor to the country's education sector, for which it has provided some US$260.5 million in loans since 1997. In agriculture, ADB supported the government pilot in reduction in the state procurement system and development of water user associations. Assistance to water utilities is expected to benefit 1.1 million people, according to the ADB experts.

The ADB team and the government of Uzbekistan discussed future cooperation in the areas of regional cooperation, roads and railway rehabilitation. ADB has provided assistance to the government in preparing a transport sector strategy and will subsequently help in designing a regional transport sector strategy.

It should be noted that the total commitment of the ADB to Uzbekistan on 23 projects has made up US$976 million. In the overall volume of loans approved by the ADB for Uzbekistan, education accounts for 30.4%, agriculture and nature resources – 26%. Water supply, sanitary and wastes management (13%), as well as transport and communication sector (13%) account for 26% of the total number of loans. Assistance in the sphere of healthcare, social protection, finance, industry, trade and energy constitutes 17.6% of the loans sum. Moreover, ADB has issued 70 grants of technical assistance to Uzbekistan worth US$39.6 million.

ADB, headquartered in Manila, is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 66 members – 47 from the region.
 

President of Uzbekistan Islam Karimov congratulated participants of solemn ceremony of the 15th anniversary of National International Culture Centre.

Uzbek head said Uzbekistan is multi-national country, where live and work over 130 nations in mutual understanding.

Representatives of various culture and civilizations lived in Uzbekistan within many centuries, which allowed to form peculiar mentality of Uzbek people, which differs with goodness, peaceableness, openness and generosity of soul.

In his message, President Karimov said respect between people is important foundation and pledge for stability and peace in Uzbekistan.

Islam Karimov said that National International Culture Centre became house of friendship during its operation, where ideas and initiatives on further strengthening of international and civil consent are born.

A handbook describing the parliamentary reform in Uzbekistan, the transition to a bicameral system, and illustrating the lawmaking process at all stages, was presented in Tashkent UzReportcom reported.

The publication, "The Legislative Chamber of Oliy Majlis of the Republic of Uzbekistan", also lists the procedures for exercising parliamentary control, legal screening of draft laws, as well as arranging reconciliation procedures. It was prepared and published with the support of the OSCE Project Co-ordinator in Uzbekistan and the EuporeAid programme of the European Commission as part of a joint project.

"Developing the parliamentary process as well as democracy is multifaceted process which requires major efforts and resources," said Ambassador Miroslav Jenca, the OSCE Project Co-ordinator in Uzbekistan.

"As an organization committed to ensuring security and stability through democratic development, the OSCE supports the efforts of its participating States in undertaking democratic transformation."

The event was attended by parliamentarians, government representatives, the diplomatic corps and civil society members.

"We hope that this publication will serve as a useful guide to members of the Uzbek Parliament, and reflect on the daily work of deputies and the lawmaking process, which has huge significance in all areas of public life. This project could be the next the step in reinforcing a dialogue on issues such as building a democratic society between MPs and constituencies as well as various public and state institutions," added Ambassador Jenca.

Head of Lukoil Overseas in Uzbekistan Andrei Podbolotov commented on Lukoil's gas project in Uzbekistan to corporate newspaper of Russian company "Neftenoy Vedomosti".

Podbolotov said Lukoil and Uzbekistan signed product-sharing agreement on Kandym-Khauzak-Shadi-Kungrad. He said Lukoil Uzbekistan Operating is implementing project. The PSA acts for 35 years till 2039.

Currently, the work on drilling of wells is underway in Khauzak deposit, the company are recruiting personal and equipment on preliminary processing of gas, gas collection point, new village and electricity network are constructed, he said.

He said that in future the company plans to construct new road and railway and create developed infrastructure. He added that the company will receive first gas in next year.

Podbolotov said other works on PSA are also carried out. In line with project, the company will invest US$150 million in 2006 or twice much compared to previous year and reaches US$300 million. He said the cost of the project was US$1 billion during the PSA signing, but there are all grounds to say that the investments will reach US$2 billion. This is largest investment project in Uzbekistan.

Head of Lukoil Overseas in Uzbekistan said that the produced gas in Uzbekistan will be supplied to existing pipelines and those sides, which offer profitable prices. He added that Uzbekistan will receive 50% of produced gas and other part will receive Russian company.

Podbolotov said Lukoil will construct gas processing plant with capacity of 10 billion cubic metres per year in Kandym deposit. He said that the plant will have unique equipment and capacity on gas processing. He added that there are several such unique plants in the world.

He said that Lukoil will process 10-12 billion cubic metres of gas annually in 2012-2013. He noted that Uzbekistan annually produces up to 60 billion cubic metres of gas.
 

Tashkent Photography House of Art Academy of Uzbekistan is hosting exhibition of computer graphics "Click Art", Uzbek media reported.

The exhibition, which opened on 12 January, presents pictures, images and graphics, magazines, calendars and other products, made with help of computer.

The event was organized by Artists Union of Art Academy of Uzbekistan and Tashkent Photography House.

The Federation International Football Association – the FIFA in Zurich in Switzerland has announced the rating for January of the national teams of over 200 countries of the world, Narodnoye slovo newspaper reported.

The national team of Uzbekistan has maintained its position and o­nce again has found itself in the 45th place at the rating. The Uzbek team is now placed after the teams of Iran and Australia in Asia and among the countries of the CIS – at the third place after the Ukraine and Russia.

The first place went to the five-times world champion – the national team of Brazil. The current world champion – the national team of Italy and the Argentinean football players secured the places of the strongest three.

The delegation led by the Director-General of Central and Western Asia Department of the Asian Development Bank Juan Miranda has held negotiations in some ministries and departments of Uzbekistan, UzA reported.

The visit of the ADB delegation was aimed at further strengthening of cooperation with Uzbekistan, as well as discussion with the Uzbek government of the perspectives of future interaction between the ADB and Uzbekistan.

During the talks with Fayzullo Mullajanov, Chairman of the Central Bank of Uzbekistan, Saidahmad Rahimov, Chairman of the National Bank of Uzbekistan for Foreign Economic Activity, the sides noted that the successes achieved in the Uzbek banking sphere and gradually pursued reforms have great importance in further enhancement of bilateral ties.

The guests also held negotiations in the Uzbek Economy Ministry, Uzbek Association of Transport Communications, Uzbekiston Temir Yollari (Uzbekistan Railways) state joint-stock company.

The Ukrainian -Uzbek relations and cooperation prospects will be in focus at the scientific conference "Ukraine -Uzbekistan: Parallels of Historical Path and Cooperation Terms in the 21st Century". The conference will take place on 1st February 2007 at the Vernandskyi Kyiv National Library, UzReportcom reported.

Within the framework of the event the exhibitions into Uzbek History and Contemporeinity and Culture and Traditions of Uzbekistan are scheduled for the same date at the Vernandskyi Kyiv National Library. The events will be triggered by the Uzbek Embassy in Ukraine to tackle the interconnection between the Uzbek culture and Ukraine.

Within the framework of the event a ceremony of signing agreement on scientific-information cooperation between the Alihser Navoi Uzbek National Library and the Vernandskyi Kyiv National Library will be held. The festive events also include presentation of the Uzbek national cuisine and performance of the Uzbek national ensemble.

The roundtable will see participation of Uzbek Ambassador to Ukraine Ilhom Khaidarov, Uzbek National Library Director Absalom Umarov, Vernandskyi Kyiv National Library Director Oleksiy Anyshchenko, people's deputies, public figures and scientists.

The delegation of Uzbekistan headed by the Uzbek Justice Minister Foziljon Atahanov is visiting the Federative Republic of Germany, Jahon Agency reported.

The Uzbek delegation has been invited by the Federal government of Germany with the purpose of assisting to reforms in judicial-legal sphere and liberalization of criminal legislation of Uzbekistan, further strengthening of bilateral relations in this field.

The delegation, including representatives of the Senate (Upper House) and the Legislative Chamber (lower house) of Oliy Majlis (Parliament) of Uzbekistan, Internal Affairs Ministry and General Prosecutor's Office, is participating in a special presentation programme.

The programme envisages familiarization of the Uzbek delegates with the judicial-legal system of Germany, German experience of criminal legislation improvement, including introduction and functioning of habeas corps institution, as well as assistance to establishment of direct contacts among the heads of corresponding ministries and departments of the two countries with discussion of concrete directions of bilateral collaboration.

During the visit, the Uzbek delegation is planning to hold meetings in the ministries of justice, foreign and internal affairs of Germany, relevant committees of the German Bundestag (Parliament), as well as visit divisions on criminal investigation of law-enforcement bodies and penitentiary bodies.

The Board of Executive Directors of the Islamic Development Bank (IDB), which concluded its 242nd Session at the Bank's Headquarters in Jeddah, Saudi Arabia, approved US$ 15 million financing to three Uzbek banks.

The web site of IDB said the Uzbek banks will receive US$ 15 million within global line of financing.

Survey of UzReport.com revealed that the IDB issued financing to Asaka Bank, Ipoteka Bank and Uzpromstroybank.

According to officials of these banks, Asaka Bank will receive US$ 8 million, Uzpromstroybank will get US$ 4 million and Ipoteka Bank – US$ 3 million.

The credits will be issued in two tranches. The second tranche will be opened after the banks utilize the first tranche.

The credits will be used to finance small and private businesses, engaged in industry and agriculture. The credit line cannot be used in production of tobacco and lottery business.

Restoration of membership of Uzbekistan in the Collective Security Treaty Organization (CSTO) became the main result for the organization in 2006, Secretary General of the CSTO Nikolai Bordyuzha said.

Itar-TASS reported quoting CSTO Secretary General Nikolai Bordyuzha said Restoration of membership of Uzbekistan changed situation in military sphere, first of all in Central Asia.

He said the CSTO will continue strengthen military component in Central Asia and rearmament of Armed Forces and creation of unified anti-aircraft defence of CIS.

Bordyuzha the organization started to transfer from military organization into political one. He added that interparliamentary assembly of the CSTO was created in 2006, which will harmonize legislation in security sphere of the member states.

He said the organization stirred up contacts with international organizations, including the UN and OSCE. But he said the contacts with NATO were not established yet, as it did not respond to proposals of the CSTO on cooperation in drug trafficking and terrorism.

The development of all-round cooperation with China is one of the most important priorities of the Uzbek foreign policy. The diplomatic relations between Uzbekistan and China were established 15 years ago in January.

On the eve of this event, Uzbek embassy in Beijing, China, hosted a meeting with the heads, leading experts of foreign political analytical centres of China and representatives of mass media, Jahon information agency reports. The meeting participants appraised highly the current state of bilateral relations development, gave recommendations n further activation of collaboration between the two countries.

Chinese experts appraised highly the internal and foreign policy pursued by the Uzbek government and highlighted the importance Uzbekistan plays in supporting peace and stability in the Central Asian region.

During the meeting, the Chinese guests were informed on achievements of Uzbekistan in boosting constitutional regime, the Drafts of the Constitutional Law "On strengthening the role of political parties in renovation and further democratisation and modernisation of the country" and the Law "On introduction of changes in some articles of the Constitution of the Republic of Uzbekistan" submitted by the President to the parliament, as well as on the measures taken to further ensure religious freedom.

Participants of the forum paid special attention to efforts of the Uzbek government on preservation and revival of architectural monuments and development of modern infrastructure of historical cities of the country.

Beijing also hosted a solemn reception with participation of the representatives of political, public and analytical circles of China, Shanghai Cooperation Organisation Secretariat, foreign diplomatic corps.

"Relations of friendship and cooperation between the two countries have developed stably in 15 years. Interaction in different directions is deepening," said Lee Huei, Assistant to Foreign Minister of China. "Witnessing the positive development of bilateral interaction, I'm full of confidence that Chinese-Uzbek ties have great future," he emphasised.

The Chinese guests noted that the Uzbek nation is strengthening state independence and moving on the path of progress under the direction of the President Islam Karimov.

These events were covered widely by the leading Chinese mass media, namely Xinhua information agency, People's Daily Online newspaper and others.

People's Daily Online published an article entitled "Chinese-Uzbek relations: interaction becoming closer", which is devoted to the 15th anniversary of diplomatic relations establishment between the two countries. The article notes that China and Uzbekistan are good neighbours, friends and partners.

Authors of the article say: "China and Uzbekistan support each other in political sphere as well. The interaction of our countries is becoming closer. In particular, the high-level agreements bear intensive character. Chinese leader Hu Jintao paid state visit to Uzbekistan in June 2004. The two leaders [Islam Karimov and Hu Jintao] signed Declaration on further development and strengthening of friendly relations, partnership and cooperation between Uzbekistan and China.

Corresponding departments of the two countries also signed nine documents stipulating for cooperation in such spheres, as healthcare, education and power engineering.

Trade and economic cooperation between Uzbekistan and China expanded significantly in the past period. Only in the first seven months of 2006, the volume of bilateral trade reached US$659 million, which is nearly 62.6% more compared to 2005.

People's Daily Online writes that China always supports Uzbekistan in moving on the chosen path of progress.

PetroChina International (Uzbekistan) Co. Ltd, a subsidiary set up in Uzbekistan by China National Oil and Gas Exploration and Development Corporation (CNODC), a fully-owned subsidiary of China's largest oil and gas producer CNPC, has obtained an oil/gas exploration license granted by Uzbekistan state oil company, which means PetroChina International is to kick off five years' oil/gas exploration in Uzbekistan as of April 2007.

Xinhua News Agency reported that in accordance with the regulations of the license, PetroChina International will carry out oil/gas exploration in five onshore blocks located in three basins, covering an area of 3.4 square kilometers.

Earlier in August, an oil and gas exploration agreement signed between CNODC and Uzbekistan's state oil company took effect, according to which CNPC is to invest some 200 million US dollars in five years to drill 15 oil wells in Uzbekistan. A 50-50 joint venture will be set up between the two companies after discovery of oil fields worth of commercial exploration.

Insiders held that the aforesaid agreement paves the way for CNPC to get more oil/gas resources in Uzbekistan.

Silver Silk, an Uzbek-US joint venture, opened in Ferghana, Jahon Agency reported.

The report said the venture processes raw silk. It added that the venture equipped with modern technology and ensures quality of products.

The venture plans to export its production to Japan, Italy, Turkey, Poland, China and other foreign countries.

The project cost of the venture is US$ 2.5 million, director-general of Silver Silk Rustam Zokirov said. The designed capacity of the venture is 400 tones of cocoon per year.

The eighteenth world champion on chess the gross master from Uzbekistan Rustam Kasymjanov rose up nine standings higher and secured the 27th place in the new list. At the moment the Uzbek chess player secures the third place with 2,682 points among the Asian chess players after Vishvanatan Anand and Krishnan Shashikiran.

As the Information Agency “Jahon” reported, the capital of Uzbekistan - Tashkent has been announced by the International Islamic Educational, Scientific and Cultural Organization (ISESCO) a world Islamic culture capital in 2007 to represent the entire Asian continent.

On such occasion the world dignitaries and other renowned officials are addressing their messages of congratulations to the President of Uzbekistan Islam Karimov.

The message by Secretary General of the Islamic Conference Organization Ekmelliddin Ihsan oglu read: “Tashkent received such high and honorable title thanks to the outstanding merits of Uzbekistan before the Islamic culture and science, careful preservation of monuments and enrichment of Islamic heritage”.

The letter further continued that the “ISESCO choice is also explained by the fact that the rich history and culture of the pearl of Asia – Tashkent takes a special place in science, arts and world civilization”.

According to the message, the Organization of Islamic Conference highly assesses the efforts of the leadership of the Republic of Uzbekistan aimed at reviving the spiritual and national values, studying and preserving the rich historical, science, educational, and cultural heritage.

Another letter of congratulation arrived from the Director of the International Institute for Intercultural and Civilization Dialog, the former President of Iran Sayeed Muhammad Hatami.

“Granting the dear Tashkent a title of the cultural capital of the Islamic world is an evidence of the fact that this city as well as the great Uzbekistan and Uzbek people occupy a leading place not only in Islamic civilization, but also in culture and arts of an entire Orient,” – the Message by former Iranian President has said.

President of Uzbekistan Islam Karimov signed the Law "On making amendments and addenda in the Law of the Republic of Uzbekistan "On mass media" on 15 January 2007.

The amendments were approved by the Legislative Chamber (Lower House) of Oliy Majlis (Parliament) of Uzbekistan on 28 June 2006 and adopted by the Senate (Upper House) on 30 November 2006.

The Law consists of six sections and 40 articles. It should be noted that the amendments have been introduced with the purpose of ordering the relations occurring in the sphere of mass media, especially in the field of creation, activity and cessation of mass media structures.

According to preliminary assessments, the trade turnover between the Republic of Uzbekistan and Russian Federation in 2006 accounted for USD 2.6 billion, “Pravda Vostoka” Newspaper reported.

The pace of the trade growth between the two countries, which are said to have signed the Treaty on allied relations, grew by 40 percent against the year 2005 indicators. The exports of fruit and vegetable products from Uzbekistan to Russia grew by almost fourfold and made up over million tons, the newspaper wrote.

Uzbekistan’s accession to Eurasian Economic Community organization, recovery of the membership in the Collective Security Treaty Organization and number of other documents inked by the heads of the two governments, the analysts say, open up in 2007 the new prospects and opportunities to strengthen and further enhance the mutually beneficial economic engagement between Uzbekistan and Russia.

Shelkovo-agrohim, Russian firm located in Moscow region, opened its office in Tashkent, Uzbekistan, RTV-Podmoskovie reported.

The report said new office signed first agreement on supply of chemical means to protect plants for 2 million Russian rubles.

The report added that this is start of long-term cooperation. It added the Uzbek side is interested in purchase quality fertilizers.

Avazmalik-konserva LLC in cooperation with farmers founded agriculture firm Bobur meva-sabzavot in Shakhrisabz district of Kashkadarya region, UzA Agency reported. The venture will process fruits and vegetables and supply canned goods to Russian market.

The report said Avazmalik-konserva produced 200.000 jars of tomato paste and 40.000 jars of marinaded cucumbers and tomato.

It added that the company is equipped with foreign equipment and the second line on processing of tomato and production of fruit juices are assembled now.

East Butterfly, the Uzbek-Indian-Swiss Joint Venture, expanded assortment of products from the beginning of 2007, Pravda Vostoka Newspaper reported.

The venture produces home appliances based on Indian know-how and technology, the report said. The company produces 32 types of products from stainless steel of Belgium production.

The newspaper said over 70% of products of the venture purchased by law enforcement bodies of Uzbekistan.

It said that the venture installed new equipment, production of India, Germany and Russia, which allows to increase production. The venture also launched new products, including kitchen tables and washbowls.

The company plans to double production volume and reach the volume of 1 billion soums and expend products' assortments to 50.

The report said the venture is holding talks with UzDaewoo Auto, Uzbek carmaker, on opportunity to supply products from plastic and rubber.

Super Times Holding, an Uzbek- Hong Kong joint venture, launched in Jizzakh district of Jizzakh region, UzA Agency reported.

The report said the venture will produce yarn, fabric and clothing. The charter fund of the company accounts for US$18.3 million. At the moment, the equipment is being installed at the site with inauguration of the venture scheduled for the first half of this year.

The power capacity of the company totals at 4.375 tones of yarn annually, the report added.

The ceremony of handing the humanitarian cargo over to the Red Crescent Society of Uzbekistan delivered by the German Red Cross took place in Tashkent on January 16, 2007, Uzbek Media reported.

The cargo weighing 16 tons and worth almost Euro 200.000 consists of medical inventory and dressing (aid) materials.

The cargo delivery initiated under auspices of the German-Uzbek intergovernmental commission arrangements is set to medical institutions in Uzbekistan and medical-social care centers of Uzbekistan’s Red Crescent Society.

The joint program o­n establishment of medical care centers is implemented in Uzbekistan to launch such facilities in the Bukhara, Samarkand, Syrdarya, Ferghana provinces and the city of Tashkent.

They provide the free medical services both for representatives of the German Diaspora in the country and those under Uzbek Red Crescent’s care – the lone elderly, retirees, disabled, and large families.

To date, these centers have much expanded their outreach and capacity. Now the doctors work at them. Besides, they have the X-ray, the heart cardiogram and ultrasound diagnostics installations. Yet for over the past three years such centers aided over the 40.000 persons and the nurses rendered the in-house care for 800 lone and disabled.

The Swiss Company Eastwest Interaction AG has been planning to establish several joint companies along with Uzbekistan's “Uzfarmprom” in Uzbekistan, “Pravda Vostoka” Newspaper reported.

In particular, the foreign investors intend to launch the joint operations o­n the production of disposable syringes, medical and cotton fabric, the report has said.

At the moment, the experts in the field are engaged in elaboration of technical feasibility studies for prospective projects, according to the newspaper.

At the moment, under the leadership of President Islam Karimov a profound attention is paid to the development of sports in Uzbekistan, including the Uzbek national wrestling – Kurash, UzA Agency reported.

Eight years have passed since the Kurash wrestling has been officially recognized as o­ne of the types of sports and broadly spread around the world for over the short period of time. Now there are a lot of fans of this type of the Uzbek national sports all around the globe.

Recently the good news has arrived from France to the International Kurash Association: the Federation of Kurash of this country has been officially registered and started its work as o­ne of the sports organizations supported by the government. Thus, to date 85 states became the members of the International Kurash Association, the report said.

According to representatives of the French Kurash Federation, a friendship tournament of the Uzbek and French sportsmen is scheduled for July this year.

President of Uzbekistan Islam Karimov signed a resolution on organization of activity of branch of the Russian State University of oil and gas named after Gubkin in Tashkent.

The presidential decision said that the university will accept students from 2007/2008 education year.

Uzbek Higher and Secondary Special Education Ministry, Uzbekneftegaz and Russian State University of oil and gas named after Gubkin entrusted to submit proposal in a month term to Cabinet of Ministers on number of students, who will be accepted in 2007/2008 education year and determine curriculum.

The activity of the branch will be financed due to funds of the state budget of Uzbekistan as state grants, issued by Uzbek Higher and Secondary Special Education Ministry, funds received from students as contract payments and sponsors' funds.

Material base and attraction of Russian specialists, to improve skills of Uzbek teachers, will be financed due to resources of Uzbekneftegaz.

Russian State University of oil and gas named after Gubkin will set requirements to enrollment and attestation. The document said graduates of university, who study on state grants, will work at least for three years at oil and gas industry of Uzbekistan. It added that 40% of students will receive state grants.

Federal Service for Control over Drugs of Russia is planning to open its office in Uzbekistan in 2007, Uzreportcom reported.

The service will also open offices in USA, Austria, Iran, Afghanistan, Kyrgyz Republic and Kazakhstan. The first office will open in Tajikistan in early 2007.

The launch of office in Central Asia is connected with expected growth of inflow of Afghan drug through borders of neighboring states.

The meeting of the Information Systems and Telecommunications complex of the Cabinet of Ministers of the Republic of Uzbekistan was held in Tashkent, UzA News Agency reported.

The session was dedicated to the outcomes of the complex’s social and economic development in 2006 and priority tasks for 2007, according to the report.

The role of information and communication technologies o­n the development of economy, the issues of public and agency administration systems, and improvement of computing systems were also discussed at the meeting. Ministries, departments and local administrations were recommended to a render a special attention to introducing of information and communication technologies in their respective areas of work and localities.

Besides, the main attention at the session was paid to measures to be taken by Uzbek enterprises within such complex vis-à-vis implementing the investment program and export plans for 2007. According to the report, they were tasked to timely and fully implement the set projects.

During the meeting all participants were instructed o­n such matters as strengthening of the executive discipline, full and quality observance of laws of Uzbekistan, implementation of Presidential and governmental decrees and resolutions, as well as consolidating the leadership responsibility and efficiency of levels of administration.

A proliferation of standards and codes relating to the growing and supply of foods has generated increasing challenges for developing countries to penetrate markets in richer States but good agricultural practices can also help the developing world cope with globalization, according to the United Nations Food and Agriculture Organization (FAO), which wants to help create a "win-win" solution for all parties, Uzreportcom reported.

"The terminology good agricultural practices is now most commonly used to designate codes of agriculture production methods for implementation at farm level, which are promoted by many governments, retailers, exporters, producers, academia and other actors in the agriculture sector around the world," FAO expert Anne-Sophie Poisot said.

"FAO has an important facilitating role to play in helping public and private stakeholders work together and find win-win situations for the implementation of good agricultural practices in the specific contexts of developing countries."

FAO's approach, while consistent with existing international regulatory frameworks, "is voluntary and would not lead to new international standards or codes, but is," she added in a press release issued in Rome after a seminar to discuss the issue earlier this week.

The agency helps governments, non-governmental organizations (NGOs), local communities and others to foster locally appropriate practices adapted to a range of farmers with different objectives, from smallholders which produce for the domestic markets to export-oriented estates.

In recent years, FAO has launched many initiatives to support the adoption of good agricultural practices and to help institutions implement them in developing countries. National workshops, projects and other activities were organized in Burkina Faso, Uganda, Kenya, Namibia, South Africa, Thailand, Chile and other countries.

Electronic conferences and regional training courses on safety and quality of fresh fruits and vegetables were also organized or will take place in several countries in Latin America and the Caribbean, Asia and Africa.

Pakistan and Uzbekistan decided to form Pakistan-Uzbekistan Friendship Society to promote bilateral relations between the two countries, the Uzbek media reported.

The decision was adopted within the visit of the Pakistan Senate delegation to Tashkent. Pakistani Senator Talha Mahmood will be the president of the Society.

The Senate delegation, led by Senator Mushahid Hussain Sayed [secretary-general of ruling party Pakistan Muslim League], currently visiting Tashkent and held meetings with teachers and students of Central Asia's largest Institute of Oriental Studies.

The delegation took part in a cultural programme, where students performed Pakistan national songs and recited Urdu ghazals of Mirza Ghalib.

Senator Mushahid Hussain, in his speech, stated that Urdu as a language was either spoken or understood by almost 500 million people living in the South Asian sub-continent as well as all over the world and it could serve as the link between Pakistan and Uzbekistan as well since there were 2,500 common words in the Urdu and Uzbek languages.

Uzbek President Islam Karimov called for vigilance and raising combat readiness in his Army Day message. Uzbekistan marks Army Day on 14 January. Following is excerpts from Uzbek leader's message.

Esteemed soldiers, sergeants, officers, generals and veterans of the armed forces!

I congratulate you and all our compatriots, who have devoted themselves to the honourable job of defending Motherland, on the occasion of a remarkable day in our country's life - Homeland Defenders' Day and the 15th anniversary of the armed forces of Uzbekistan.

Over the past 15 years, a great job have been done in our country in terms of its scale and essence to build the armed forces that meet current requirements and standards, the forces that are a reliable guarantee of independence, security and territorial integrity of and sustainable and intensive democratic development in the country.

Summing up the aforementioned, we have every reason to state with a feeling of great satisfaction that today Uzbekistan practically possesses a moderate-sized but modern and adequately armed national army capable of protecting the territorial integrity of the country, inviolability of its borders, its stability and peace and calm of our people.

Dear compatriots! We are living in a very uneasy time. Unrelenting tension in the Central Asian region, the continuing conflicts and confrontations around the world, the growing scope of terrorism, extremism and the onslaught of drugs cannot but cause serious concern.

All these requires all those who are not indifferent to the fate of the country and its future to be vigilant, to raise the combat readiness of our armed forces, increase the reliability of defence and protection of the state border and mobilize our reserves and potentials on this.

In this connection I deem it necessary:

First, to continue and intensify the comprehensive work that has begun to analyze modern challenges and threats to security, to reveal tendencies and possible consequences of their development in the medium- and long-term perspective, to critically approach the assessment of the readiness of our armed forces to counteract every encroachment on the country's security and stability adequately and effectively.

Second, to give specific attention to further equipping troops with up-to-date weapons and hardware, high-precision weapons, electronic and computer control and communication systems, reliable kit and individual means of protection, and, ultimately, to achieve high combat readiness, maneuverability, mobility and self-sufficiency of divisions and units, and, in the first instance, of antiterrorist subunits.

Political and legal reforms being implemented in Uzbekistan under the direction of President Karimov are evoking great interest of foreign political and public figures, experts, and media, Jahon Information Agency reported.

A member of Japanese Parliament Koki Chuma noted that the draft of the Constitutional Law "On strengthening the role of political parties in the renewal and further democratization of state governance and modernization of the country" submitted by President Karimov to parliament for consideration was a real evidence of the intensification of democratic reforms in the country.

"It is natural for every society to have differing opinions regarding socio-political events, and the role of political parties is to ensure civilized discussion of the existing problems taking into account the diversity of opinion groups. In this regard, it is hard to overestimate the importance of the legislative framework supported in the country’s constitution providing specific conditions for the development of political parties," Mr. Chuma said.

A member of Turkish Parliament T. Karakaya said the following:

"New draft laws will raise the international reputation of Uzbekistan and strengthen its role in the world community. I think that the adoption of the Constitutional Law aimed at strengthening the role of political parties is the evidence of substantial progress Uzbekistan has achieved in implementing political reforms under the administration of President Islam Karimov.

The expansion and strengthening of the role of political parties in the development of the electoral system has been central to the process of democratization in all countries. This, in turn, corresponds to the conditions of a democratic political system and satisfies the demands of the society. I am convinced that the regulatory acts being adopted are part of Uzbek administration`s balanced policy that takes into account national customs and the interests of the population."

Egyptian Abulhaul ad-Davliya [transliterated] newspaper published a commentary entitled "The Truth of Life", which speaks of Uzbekistan`s achievements that followed the independence. Particular attention is given to the legislative initiatives of President Karimov.

"The suggestions of the head of Uzbek state illustrate the fact that he is a strong politician and is a true leader of his country, who gives priority importance to the protection of human rights and strengthening of the society’s tolerance. This in turn is the evidence of Uzbekistan high achievements in the renewal and democratization of state governance and modernization of the country," the article said.

Tehran Times has published an article titled as "The evolutionary road of Uzbek democracy". The authors of the article draw the readers` attention to the legislative initiatives of the President of Uzbekistan implemented in stages as a part of the evolutionary socio-political reform and development of the state legal and political system, moving closer with every step to becoming a strong civil society.

In this context, the article says, the events taking place in the socio-political life of Uzbekistan clearly demonstrate the fact that the initiatives put forward by President Karimov lead the country along the way of civilized reforms, rather than though a revolutionary conflict observed today in several countries of the world and the region.

The Military Expert Group of the member countries of the Shanghai Cooperation Organization (SCO) held its second round of consultations from 10 to 12 January in Shanghai to discuss the joint anti-terror military exercise to be staged by their armed forces, Uzreportcom reported.

In an atmosphere of mutual respect, seeking truth and being pragmatic, frankness and amity, the representatives of national defence ministries from Kazakhstan, Kyrgyzstan, China, Russia, Tajikistan, and Uzbekistan carried out serious studies and in-depth discussions on a series of important questions in the course of preparing for and conducting the exercise. They achieved consensus on a wide range of questions.

This round of consultations was chaired by Zhang Qinsheng, deputy chief of general staff of the Chinese PLA, who is the head of the Military Expert Group on the Chinese side. Through discussions, all sides agreed that the group's third round of consultations will be held in early March of 2007 in Russia.

In April 2006, defence ministers from the SCO member countries gathered in Beijing and decided that their armed forces stage a joint anti-terror military exercise in 2007 in Russia. In preparation for this exercise, the Military Expert Group of the SCO member countries held its first round of consultations in Moscow and went to the spot of the exercise to conduct a joint inspection.

Foreign Minister of Uzbekistan, Vladimir Norov has termed the first ever visit by a Pakistan Parliamentary Delegation to Uzbekistan as a landmark event in bilateral relations, Uzreportcom reported. He made these remarks while receiving a delegation led by Senator Mushahid Hussain Sayed at the Ministry of Foreign Affairs in Tashkent.

The delegation had a 70-minute long interaction with the Foreign Minister of Uzbekistan.

Welcoming the delegation from Pakistan, the Uzbek Foreign Minister said that his country was interested in promoting all round relations with Pakistan in different areas including trade, commerce and culture and that Uzbekistan was looking forward to the completion of Gwadar Port since it would be the shortest route to the sea for a land locked country like Uzbekistan.

He referred to the fact that relations between the two countries had received the much needed impetus in the last couple of years from high level visits of President Musharraf to Uzbekistan and President Islam Karimov to Pakistan.

He also lauded the vision of President Musharraf when he had said that Pakistan was transforming the madrassas into centres of learning similar to the days when madrassas produced scholars like Ibne-Sina and Ibne-Khaldoon.

Senator Mushahid Hussain said that visiting Uzbekistan was like "coming home" for Pakistanis given the fact that historical cities like Samarkand and Bukhara were etched in the minds of Pakistanis and also because of giants like Amir Temur and Babur.

He said that this shared heritage and history was reinforced by geography, culture and religion and that ensured a common destiny of Pakistan and Uzbekistan and the time had come to realize the true potential in their relationship.

He expressed the hope that the parliamentary delegation's visit would be a harbinger of a solid and substantive multi faceted relationship between the two countries in all fields.

Earlier, the delegation was cordially welcomed at the Uzbekistan Senate by its Deputy Chairperson, Farrukha Mukhitdinova.

On behalf of the Senate Chairman, Mohammadmian Soomro, Senator Mushahid Hussain invited a Senate delegation from Uzbekistan to visit Pakistan.

He also invited the Uzbekistan Senate Foreign Relations Committee to visit Pakistan at their earliest convenience.

Both these invitations were accepted by the Uzbekistan side and dates of these visits will be coordinated through normal diplomatic channels.

In 2006 Uzbekistan exported more than 694.000 MT of agricultural products worth $ 342 millions. In 2005 this was only about 660 000 MT. Russia remains the main importer of fruits and vegetables from Uzbekistan - the share of Russia in total import of Uzbek agricultural products grew from 50% to 86%.

According to the information of Uzbek news agency “Press-uz.info”, the country exported about 250K MT of vegetables (including melons) worth $ 83 million and 404K MT of fruits, worth $ 244 million in 2006. Furthermore, Uzbekistan exported about 32800 MT of processed fruits and vegetables, and about 7000 MT of wine in the same period.

Experts point out that Uzbekistan has very favorable climate conditions for further growth of production and export of vegetables and fruits.

Uzbekistan increased electricity production by 3.5% in the first 11 months of the year to 44.585 billion kilowatt-hours, Interfax reported.

Heat and power plants produced 38.775 billion kilowatt-hours in the period, up 7% year-on-year, and hydroelectric and block plants produced 5.81 billion kilowatt-hours, down 15.2%, including 513 million kilowatt- hours produced by hydroelectric plants, down 19% year-on-year.

Uzbek power stations provided 17.866 million gigacalories of thermal energy to consumers in January-November, down 1%.

Uzbekistan has 42 power plants with capacity of 11,580 megawatts.

Uzbekinvest national export-import company became leader of insurance market in 2006.

The company signed 27,000 insurance agreements and received 11.5 billion UZS ($ 9.2 million) of insurance premiums.

Uzbekinvest paid insurance compensations for 2.3 billion UZS ($ 1.8 million).

Swiss Verysell S.A. has won a tender to supply computer equipment to the Central Bank of Uzbekistan, Uzreportcom reported.

The bank's tender commission at the end of last year decided to declare Verysell the winner of the international tender, which was announced last August.

The winner is to deliver state-of-the-art computer equipment and peripherals to upgrade the existing computer network of the Central Bank and its regional branches to meet modern requirements. The amount of the contract has not been disclosed.

Talks are under way with Verysell on the details of the project. The contract is expected to be signed in late January or early February. A consortium consisting of Info System Ltd., Croc Inc. and Croc Tashkent was announced the standby winner until the contract is signed.

Established in 1990 Verysell group includes Verysell Distribution, Verysell Telecom, Verysell Projects, Verysell IT Express, Icontry, Enteprise One, Verysell-6 (all registered in Russia) as well as Verysell S.A. (Switzerland) and VS Computer Holdings (Cayman Islands) responsible for procurements from the biggest suppliers and financing the holding respectively.

Uzbekistan, whose nearly 5000 nationals performed Haj this year, is witnessing a rapid progress both in terms of Islam and economic development. Four hundred of the Uzbek pilgrims came with the support of their country's leadership.

According to an Uzbek survey, every 5th Muslim in Uzbekistan has had the privilege of performing the Haj pilgrimage since the country's independence over 15 years ago, English language newspaper Arab News reported.

Muslims of Uzbekistan are peaceful and they are very deeply rooted, morally and traditionally. For ages, people of the region have considered Islam as their faith and a source for enlightenment, and it has played a great role in education. A great effort is going on in the country to use Islam effectively and its great potential as a rich spiritual and cultural heritage is being realized, an official Uzbekistan statement said.

During the years of independence, 2,000 mosques have been built or reconstructed and 10 madrassahs opened. The Islamic University was established at the initiative of President Islam Karimov. The state pays great importance to religious enlightenment. Qur'an, which for many years was prohibited, is now freely available across the country.

From the days of independence, a process of renaissance is in progress in Uzbekistan. Religion is considered as a power to shape the people's vision based on moral and spiritual principles to build up on the rich heritage of the country.

The law on freedom of conscience and religious organizations, which was adopted in the republic in 1991, has reflected a new attitude of the state toward religions and believers. The state has been restoring the status of religious places and has built 15 religious complexes. According to an opinion poll, 37.8% Uzbeks said they supported the process of religious renaissance in the country, 35% said they respected the religious sentiments of all. Some 82% respondents said the believers were not discriminated against.

Some extremists and international terrorists shifted their bases in the last few years. The people of Uzbekistan have opposed them, as they consider such activities as a major threat to the country's stability.

The evening of culture dedicated to Uzbekistan and Uzbek handicraft art took place in the State of Kuwait. Representatives of Kuwaiti public as well as the locally accredited diplomatic corps participated in the event, Jahon Information Agency reported.

The cultural gathering initiated o­n the part of Uzbekistan Embassy to El-Kuwait alongside with the support by the Kuwaiti Textile Art Association is reported to have aroused much and great interest among those gathered.

Thus, the representative of the Kuwaiti ruling family the Sheikha Altaf Salem al –Ali al-Sabah has said that she has opened up many new and charming things about Uzbekistan.

The event is reported to have received a broad coverage in the local mass media in Kuwait. In particular, o­ne of the leading English language newspapers in the country the "Arab times" has published a story o­n Uzbekistan headlined "The Uzbek textile art as wonderful as the Uzbek people".

The newspaper writes that Uzbekistan, situated o­n the crossroads of the Great Silk Road, is a home to Amir Temur, the Great, and is famous for its cotton, silk, embroidery art, jewelry, and ceramics.

"Uzbekistan is a beautiful country with the richest cultural and historical heritage. Wonderful gardens and fabulous architecture of the Indian subcontinent mostly owe to the o­nce legendary gardens of Samarkand, Bukhara and Ferghana. Uzbek women are well known for their mastery in sewing, including the golden and silver-thread embroidery. Practically, each and every household in Uzbekistan has a hand-sewn suzane, covers, tablecloths, and others things of daily use. one of the best pieces of an embroidery art is now at the State museum of arts of Uzbekistan," – the paper wrote.

Besides, according to the "Arab Times", 'there are many beautiful cities in Uzbekistan, which combine both past and present'. "The wonders of Uzbekistan, magnificent minarets, cupolas of bazaars and caravansaries, fields full of vegetables and fruits worth a must-visit to this wonderful country," – it has concluded.

The representatives of more than twenty nations and nationalities are now living at the Kashkadarya Province, Uzreportcom reported. The local Russian, Tartar-Bashkir, Korean and Arabic cultural national centers unite the representatives of various nations, who live here in peace and harmony, as children of one family.

The groups of amateur art activities – the Korean "Ariran", Russian "Sudarushka", Tartar-Bashkir "Bakhar", established at the centers, take an active part at the evening parties and festivals of friendship, according to the report.

"The Uzbek people are respectful to history, culture, art and values of each of nationality and every nation," the head of the regional Tartar-Bashkir national cultural center Ravil Ikhsanov said. "The main goal of our center is to make a worth contribution to harmonize the interethnic relations, further strengthen the friendship and accord alongside the broad propaganda of traditions and customs of our nations".

Starting from March 1, 2007, Uzbekistan forbids import of used vehicles of M2, M3 and N2 categories, new vehicles of these categories equipped with petrol and diesel motors which toxicity level does not meet the requirements of Euro-2 ecological class.

Starting from 1 January 2010, import is forbidden of the vehicles with motors not meeting the requirements of Euro-3 ecological class, except for those of special purpose meeting the codes of foreign economic activity commodity nomenclature #8703 and #8705.

Presidential Resolution "On measures to develop motor roads in general use for 2007-2010" dated 20th December 2006 approved the Concept of motor roads development for 2007-2010 and long-term perspective, including target programmes of construction and reconstruction of motor roads in general use of international purpose for 2007-2010, as well as reconstruction of motor roads in general use of state purpose for the same period.

Starting from 1 January 2007, departments of Uzyolbutlash (Uzbek roads repair), Uzavtoyol (Uzbek automobile roads) are exempted for 4 years from payment of customs duties (except for compulsory customs legalization fees) for imported road-building machinery, equipment and spare parts.

The President of the Republic of Uzbekistan Islam Karimov signed the Resolution "On measures to further boost production at the Samarkand Automobile Plant and update the country's motor transport fleet".

As reported earlier, Uzavtosanoat (Uzbek automobile industry) joint-stock company acquired 50% of shares of SamKocAuto closed joint-stock company, and renamed the enterprise into Samarkand Automobile Plant LLC.

The resolution approved proposal of Uzavtosanoat and Asakabank on creation and financing of Uzavtosanoat-lizing specialized leasing company with initial charter capital worth 6 billion UZS ($ 4.8 million) to lease the plant's products for 5 years with income (margin) rate of the leasing company not more than 5% APR.

The buyers purchasing initially buses and lorries manufactured by the Samarkand Automobile Plant, including Uzavtosanoat-lizing company, are exempted until 1 January 2010 from one-time fee payment to the National Road Fund.

The President of the Republic of Uzbekistan Islam Karimov signed Resolution "On further development of mineral and raw material base of tungsten deposits of the country".

The document was prepared with the purpose of further exploration of tungsten deposits on the territory of Uzbekistan. It also aims to provide the Uzbek Combine of Refractory and Heatproof Metals with mineral and raw resources for production of multi-profile export-oriented finished products, as well as to load fully the existing production capacities of the plant.

Forecast directions of perspective development and organization of production at the Uzbek Combine of Refractory and Heatproof Metals have already been prepared.

The plant is exempted from customs duties (except for compulsory customs legalization fees) for imported materials, equipment and spare parts not produced domestically, technical documentation imported to ensure industrial production and enrichment of tungsten ores of Yahton deposit according to the lists approved by the Cabinet of Ministers decisions.
 

Uzkimyosanoat (Uzbek chemical industry) state joint-stock company and Mitsubishi Corporation (Japan) have signed an Agreement on joint preparation of project on reduction of nitrous oxide emission.

The agreement envisages further realization of the volumes of certified reduced emissions in the countries which signed the Kyoto Protocol.

As reported earlier, President of Uzbekistan signed Resolution "On measures to ensure timely realization at Uzkimyosanoat enterprises of the project within the Clean Development Mechanism of Kyoto Protocol" on 25th December 2006.

The document, in particular, provides prolongation until 31st December 2008 of customs duties (except for customs legalization fees) for imported materials, equipment and spare parts not produced domestically, and project-technical documentation imported within the framework of the aforesaid project implementation.

Mitsubishi Corporation is exempted from income (profit) tax levied from the payment source on the territory of Uzbekistan on the incomes received within the project implementation framework.
 

The evening of culture dedicated to Uzbekistan and Uzbek handicraft art took place in the State of Kuwait. Representatives of Kuwaiti public as well as the locally accredited diplomatic corps participated in the event, Jahon Agency reported.

The cultural gathering initiated on the part of Uzbekistan Embassy to El-Kuwait alongside with the support by the Kuwaiti Textile Art Association is reported to have aroused much and great interest among those gathered.

Thus, the representative of the Kuwaiti ruling family the Sheikha Altaf Salem al-Ali al-Sabah has said that she has opened up many new and charming things about Uzbekistan.

The event is reported to have received a broad coverage in the local mass media in Kuwait. In particular, one of the leading English language newspapers in the country the "Arab times" has published a story o­n Uzbekistan headlined “The Uzbek textile art as wonderful as the Uzbek people”.

The newspaper writes that Uzbekistan, situated on the crossroads of the Great Silk Road, is a home to Amir Temur, the Great, and is famous for its cotton, silk, embroidery art, jewelry, and ceramics.

“Uzbekistan is a beautiful country with the richest cultural and historical heritage. Wonderful gardens and fabulous architecture of the Indian subcontinent mostly owe to the once legendary gardens of Samarkand, Bukhara and Ferghana. Uzbek women are well known for their mastery in sewing, including the golden and silver-thread embroidery. Practically, each and every household in Uzbekistan has a hand-sewn suzane, covers, tablecloths, and others things of daily use. One of the best pieces of an embroidery art is now at the State museum of arts of Uzbekistan,” – the paper wrote.

Besides, according to the “Arab Times”, ‘there are many beautiful cities in Uzbekistan, which combine both past and present’. “The wonders of Uzbekistan, magnificent minarets, cupolas of bazaars and caravansaries, fields full of vegetables and fruits worth a must-visit to this wonderful country,” – it has concluded.
 

President of the Republic of Uzbekistan Islam Karimov signed Resolution "On measures of implementation investment projects in the framework of Kyoto Protocol of Framework Convention on Clean Development Mechanism".

Uzbekistan ratified Kyoto Protocol (KP) of Framework Convention on Climate Change (FCCC) on 20 August 1999. According to KP the Clean Development Mechanism (CDM) is established, which allows Uzbekistan attracting investments of international financial organizations, foreign countries and companies, as well as modern technologies for implementing investment projects aimed at limitation and decrease of environment pollution.

In order to fulfill a set of measures on decreasing greenhouse emissions, activating the process of foreign investments and leading technologies attraction for practical implementation of economic energy-efficient projects in economic branches of the country within the CDM, the aforesaid resolution established Council on the CDM with its Secretariat under the Cabinet of Ministers of Uzbekistan. The Council consists of the heads and representatives of relevant ministries and bodies of Uzbekistan.

The main functions of this Inter-Agency Council are determined as follows: identifying priority directions of implementing the CDM; confirmation of rules and procedures for selecting and affirming the CDM projects on national level; confirmation of the CDM projects on national level as of the results of expertise conducted by authorized agencies; confirmation of the projects of Agreements on Buyout of Decreased Emissions between the CDM projects parties.

In line with the resolution, the Ministry of Economy of Uzbekistan is assigned as the National Body of the Republic of Uzbekistan on the CDM implementation.

The National Body based on economic, environmental, social and technological interests of the Republic of Uzbekistan to prepare and select projects for implementation in frames of the CDM, will create and maintain database of these projects. Moreover, it will coordinate activity of authorized ministries and agencies on conducting expertise of the projects offered to implement within the CDM, which should meet the conditions and procedures determined by Article 12 of KP, International Agreements and legislation of Uzbekistan, as well as international and national criteria of sustainable development.

Uzbek Economy Ministry will also introduce the suggested CDM projects for confirmation to the Inter-Agency Council, submit the CDM investment projects to Executive Council of the CDM under the Secretariat of FCCC after their confirmation by Inter-Agency Council. It will carry out constant monitoring over implementation of the CDM investment projects.

Besides, according to the resolution, the profit of foreign partners providing direct investments for implementation of the CDM projects is exempted from profit tax on the territory of Uzbekistan.
 

Uzbek tax authorities have exposed serious violations in the financial activity of the US non-government organization ACDI/VOCA.

It was found out during a check that personnel of the Andijan-based office of ACDI/VOCA "concealed and misused some US$3 million of cash while implementing a micro crediting program," an official from Uzbekistan's state tax committee told reporters.

"The ACDI/VOCA executives acknowledged the fact of the violation, having signed the necessary act; and now sanctions against them are under consideration," the tax committee said.

The ACDI/VOCA office has been functioning in Uzbekistan since 2002. This non-government organization appeared in 1997, after a merger between Agricultural Cooperative Development International and Volunteers in Overseas Cooperative Assistance.
 

Iranian Ambassador to Uzbekistan Mohammad Fat'hali said on January 10, 2007 said that Iran welcomed a decision of the Islamic Educational, Scientific and Cultural Organization (ISESCO) naming Tashkent as one of four cultural capitals of the Islamic world.

The Uzbek newspaper Khalk So'zi (People's Word) on January 10, 2007 quoted the envoy as saying that Tashkent deserved the honor as it "in fact houses a major part of the world's cultural heritage." He expressed his felicitations to the Uzbek government and nation for the election of Tashkent as one of the cultural capitals of the Islamic world for 2007.

"Undoubtedly, Tashkent is one of many cities which play an effective role in promoting the culture of Islam in the world," he said.

The daily said senior officials of political missions and international organizations based in Uzbekistan also welcome the ISESCO decision, IRNA reported.

Uzbek President Islam Karimov signed on January 8, 2007 a resolution on celebration of the 100th Anniversary of birth of Uzbek writer Abdulla Kahhar.

The document created an organizational committee and entrusted it to develop a plan on celebration of the 100th anniversary of birth of Abdulla Kahhar.

The resolution said Uzbek Science Academy, Writers Union, National Spiritual Centre will organize conference on work of Abdulla Kahhar and hold celebrations at Uzbek National Academic Theatre in September.

The Uzbek leader said that museum of Abdulla Kahhar should be reconstructed and replenishment with new exposition.

The document said Uzbek theatres should stage plays of Abdulla Kahhar and publish book with the best works of Abdulla Kahhar.

Uzbekkino (Uzbek Film) national agency entrusted to shoot documentary on life and work of the Uzbek writer, while the Uzbek Agency for Communication and Information will issue postage stamps and envelopes with image of Andulla Kahhar and motives of his works.

Uzbekistan and Russian achieved agreements on strengthening consular interaction, Russian Ambassador to Uzbekistan Farit Muhametshin said in his material published at www.UzReport.com.  

He wrote that the decision adopted to open Russian general consulates in Samarkand and Ferghana, while simeltenously Uzbekistan will launch general consulates in Saint Petersburg and Novosibirsk.

President of the Republic of Uzbekistan Islam Karimov approved the Agreement between the Government of the Republic of Uzbekistan and Government of the Kyrgyz Republic o­n mutual travels of citizens.

President of Uzbekistan signed the relevant resolution which approves the Agreement between the Government of the Republic of Uzbekistan and Government of the Kyrgyz Republic o­n cooperation in the sphere of governmental ties and Treaty between the Republic of Uzbekistan and the Kyrgyz Republic o­n economic, science and technical, and humanitarian cooperation for 2007-2011.

These documents were signed during the official visit of the President of the Kyrgyz Republic Kurmanbek Bakiev to the Republic of Uzbekistan in October 2006.

British magazine The Banker, which publishes annual rating of the best banks in the world, named the Bank Credit Standard as the best bank of Uzbekistan in 2006, the bank's press service told UzReport.com.

The magazine has been holding awarding ceremony "The Bank of the Year" since 1999. The jury, including representatives of corporate sector and leading financial specialists, determine winners in 25 global nominations and name the best banks in 130 countries. The winner bank receives statue and certificate.

Last year, Asaka Bank, the second largest Uzbek bank, was named as the best Uzbek bank in 2005 by the British magazine.

Bank Credit Standard private open joint stock commercial bank was founded on 16 August 2003 with charter capital of 1.3 billion soums. The bank received license of Central Bank of Uzbekistan No. 73 to carry out banking operations.

Echocardiograph of the American company “Philips medical systems” worth UZS 80 million replenished the arsenal of the medical techniques of the Khorezm regional cardiologic center, the “Pravda Vostoka” newspaper reported. Thanks to the new equipment the medical professionals now will be able to precisely diagnose the heart diseases and its vessels.

Given heart attack the echocardiograph with the maximum precision will reveal the affected area of the heart.

Professionals in the field now expect that the ambulance cars of the cities and districts of the province will be equipped with the compact ECG-machines. Besides, the Urgench ambulance and clinic station will also be supplied with such new medical technology, according to the report.

On the eve of the New Year the reference book “Uzbekistan – the 15 years of independence” has been published in the German language. The Uzbek Embassy in Germany along with the editors of the “WOSTOK” magazine is reported to have put out the book, Makhmud Bobonazarov of the Information Agency “Jahon” reported from Berlin.

The given edition is aimed at broad range of readers both for specialists of country studies and representatives of political, business, scientific, and cultural circles of Germany. Its circulation are three thousand copies.

The main goal of the book is to get the German readers acquainted with o­ngoing reforms in Uzbekistan, the successes achieved over the years of independence, as well as revelation of potential opportunities of Uzbekistan to deepen the cooperation in all spheres.

The content of the book consists of 207 pages, eight chapters and bases o­n actual facts o­n Uzbekistan obtained from the encyclopedia of State scientific publishing house “The national encyclopedia of Uzbekistan”, as well as materials of the photo album “Uzbekistan” published o­n the eve of the 15th anniversary of Independence of Uzbekistan.

The first chapter includes the general information o­n Uzbekistan.

The second chapter named “History – over millennia” tells about the history and development of modern Uzbekistan’s civilization, which takes its start from the ancient times.

“The new Uzbekistan – state, policy, society” is the third chapter which offers the detailed information o­n the state system and symbols, the successes achieved o­n implementation of political and social reforms, the important role of the Uzbek Constitution in making the legal state and civil society, securing the rights and freedoms of person and development of the parliamentary system.

The fourth chapter “Uzbekistan and its regions” is dedicated to administrative and territorial division of the republic.

The fifth “Economy” reveals the dynamic development of economy and o­ngoing economic reforms in the country. Information o­n the economic potential of Uzbekistan and rich natural resources are also presented here. Full information o­n favorable conditions established in the country to attract the foreign investments is also presented in this chapter.

The sixth chapter “The public and social life” includes the vast information o­n the system of healthcare, preservation of environment, religion, rich tourist potential and mass media in Uzbekistan.

The seventh chapter of the edition, the “Education and science”, introduces to the reader the essence of the state program o­n cadres training and reforms currently carried out in the sphere of education.

The final, eighth chapter of the book, namely “Cultural life” offers the reader a manifold of the social and cultural life of the republic. This chapter gives an opportunity to learn closer about the ancient history and rich culture of the Uzbek people, who have enormously contributed to the development of the world civilization.

On the whole, the book is rich with the useful and cognitive information o­n Uzbekistan. It is finely designed and illustrated with many photos. It should be underscored that many readers whether they are political scientists, economists, scholars, business people or common citizens they may find an interesting and necessary information o­n Uzbekistan.
 

President of Uzbekistan Islam Karimov signed the Law "On making amendments and addenda in the Civil, Housing codes of the Republic of Uzbekistan and on losing validity of the Law "On bases of state housing policy", Business Information Portal Uzreport.com reported citing the local newspapers.

The law on amendments in the civil and housing codes of Uzbekistan entered into force on January 9, 2007. It was adopted by the Legislative Chamber on May 19, 2006 and approved by the Senate on November 30,2006.

The amendments introduced in the Civil Code concretize the structure of general property in the block of flats, establish peculiarities of possession and use of them in private housing associations, according to the report.

The amendments in the Housing Code revise the provisions related to the management, maintenance and repair of housing fund, legal relationships in this sphere.

Friendship between China and Uzbekistan, tested by years, will strengthen further, Ambassador Extraordinary and Plenipotentiary of China to Uzbekistan Yu Hongjun said in interview with Uzbek newspaper Pravda Vostoka.

Uzbekistan and China established diplomatic ties in January 1992 and this year the sides mark 15th anniversary of this event. Currently, the countries are successfully cooperating in various fields.

The newspaper reported that the great work planned to strengthen and further develop bilateral relations between Uzbekistan and China in 2007.

The report said quoting Chinese envoy that the presidents of two states will meet within the summit of the Shanghai Cooperation Organization [which will take place in Bishkek, Kyrgyz Republic]. It added that Prime Ministers of Uzbekistan and China will meet to discuss several issues on economic cooperation.

The paper also reported that it is also planned meeting of heads of various ministries and departments of two states, to organize roundtables and other events directed to further fruitful cooperation.

Internet festival organized on the occasion of the 2,750th anniversary of the city has begun in Samarkand, Uzreportcom Agency reported. Young citizens, aged up to 30 and demonstrating interest in self-actualization in the sphere of IT, are participating in the event.

Internet festival is being held in several sections, including "The best author's website", "The best web-page", "The best website about Samarkand", "The best youth website", etc. Sponsors of the contest have prepared nice prizes for the winners – computers, digital cameras, mobile phones, Samarkandinfo.uz reported.

The city has someone to be particularly proud of: a representative of Samarkand won the first prize in the finals of the Kelajak Ovozi (the voice of the future) national contest. The student of the Information-Pedagogical Faculty at the Samarkand branch of Tashkent Institute of Information Technologies Andrei Prytov won in the nomination for the best young programmer of Uzbekistan.

The Legislative Chamber's (lower chamber of parliament) Committee for International Affairs and Inter-parliamentary Relations has held a meeting devoted to the preparation of the draft law "On the order of appointment and recall of the heads of diplomatic missions of the Republic of Uzbekistan to foreign states" for the second reading.

The draft law was developed in view of the need to bring the existing law to compliance with certain articles of the Constitution of the Republic of Uzbekistan, Constitutional Law "On the Senate of Oliy Majlis of the Republic of Uzbekistan", and the Law "On the Standing Orders of the Senate of Oliy Majlis of the Republic of Uzbekistan". Thus, current edition does not clearly reflect on the recommendation of the candidate and appointment of the head of diplomatic mission abroad, as well as the appointment and recall of its other members.

The introduction of these provisions to the proposed draft law will clarify the procedures. In view of this, the deputies stopped separately at each point of the articles discussed and made their suggestions regarding the editing of the provisions.

Specialists and experts, as well as representatives of the Ministry of Foreign Affairs, Institute for Monitoring Active Legislation under the President of Uzbekistan also participated in the discussion.

The second issue on the agenda was the summing up of the results of committee's work in 2006 and the plan of work for 2007. The Chairman of the Committee said last year the committee proposed 16 laws on ratification, denouncement, and accession to multi-lateral and bilateral agreements. They were all passed and ratified by the Senate. As a part of the controlling and analytical work, the Committee monitored and controlled the implementation of certain international agreements in different regions of the country.

Also, the Committee conducted 11 conference and seminars. Members of the committee conducted over 200 meetings with the voters in their districts, considered some 350 written and oral claims from the citizens. In 2007, it is scheduled to develop 15 draft laws, control the implementation of three international documents to which Uzbekistan is a party, and conduct seven events.

On the night from January 8 to January 9 this year at 22:21 pm (local time) the force-five earthquake took place in Tashkent, the Uzbek Information Agencies reported based on the release by “Tashkent” seismic station.

According to seismologists, the epicenter of earthquake has remained at 200 kilometers to the southeast of Tashkent, on the territory of Kyrgyzstan.

The local authorities reported no victims and destruction.

The Kyrgyz mass media reported that about force-six earthquake o­n Richter scale took place on the territory of Kyrgyzstan. The epicenter was on the borderline of Kyrgyzstan and Tajikistan on the slopes of the Turkestan mountain range at 90 kilometers from the town of Batken, 60 km – the town of Sulukta and 260 km – the town of Osh – all in Kyrgyzstan.

Also, the reports have said that the tremors were felt in Batken – force-five to six, Sulukta – force-five to six, Kyzylkiya – force-five, and Osh – force-four to five, respectively.

At the moment, no reports followed about victims and destruction.

Besides, the earth tremors were felt in Japan, Turkey, Portugal, Iran, Alaska, and Pacific Ocean, according to reports.

 In 2007 Uzbekistan will export 850 million cubic meters of natural gas to Kyrgyzstan. The agreement has recently been signed in Tashkent during the official visit of a Kyrgyz delegation headed by Daniyar Usenov, Kyrgyz Deputy Prime Minister.

"As a result of productive talks with Uzbek partners, we have managed to reach an agreement o­n the transfer of 30 million cubic meters of natural gas to Kyrgyzstan at a price of 55 USD per thousand cubic meters till the end of the period of 2006", stated Daniyar Usenov, Deputy Prime minister of Kyrgyzstan.

Totally, in the next year Uzbekistan will export to its southern neighbor 850 million cubic meters of natural gas including 707 million cubic meters to the "Kyrgyz Gas" Public Corporation and 143 million cubic meters to the "Power Stations" Public Corporation. This part of gas will be delivered to the Kyrgyz fuel and energy centre for supplying the production of heating.

According to the "Uzbekneftegas" National Holding Company, the two sides signed a number of mutually beneficial contracts. For instance, "Uzbekenergo" State Stock Company, "Power Stations" Kyrgyz Public Corporation and "Uztransgas" Stock Company signed a mutually beneficial contract to deliver 1.3 billion kilowatt-hours of electric power at the price of 0.011 USD per unit to Uzbekistan during irrigation season.

In turn, the "Uztransgas" Stock Company will transfer 143 million cubic meters of natural gas at the price of 100 USD per thousand cubic meters to "Power Stations" Public Corporation against the latter's delivery of electric power. It should be mentioned that Kyrgyzstan used to import gas from Uzbekistan from the supply that was exported to Kazakhstan. Now the sides have advanced to a new level as the result of the agreement signed between the presidents of Kyrgyzstan and Uzbekistan during Kurmanbek Bakiev's visit to Tashkent.

Between May and September 2007, the Kyrgyz partners will deliver additional water resources of about 1.56 billion cubic meters to neighboring regions in Uzbekistan.

"In the middle of October, 2006 the authorities of "Uzbekneftegas" National Holding Company informed potential consumers for Uzbek natural gas that beginning January 1, 2007 the price of raw gas would be hundred USD per thousand cubic meters", stated Uktam Eshmurodov, Deputy Director-General of "Uztransgas" Stock Company. The price increase was mostly connected with market conditions and the increase of gas transmission costs o­n the world market. Foreign partners supported the decision of Uzbek side o­n establishing export price for natural gas that was based o­n market conditions.

According to press-service of "Uzbekneftegas" National Holding Company, in 2006 Uzbekistan increased gas exports to 12.6 billion cubic meters compared with 11.5 billion cubic meters in 2005.

According to results for the end of the period of 2005, the total natural gas production in Uzbekistan was 59.686 billion cubic meters.

Recently the Ministry of Health hosted a news conference dedicated to the results of 2006, the year of Charity and Medical Workers, the “Uzbekistan Today” newspaper reported. Opening the event, Feruz Nazirov, the Minister of Health, made a detailed report about all the events conducted in the sphere of medicine this year and many other relevant aspects.

Particularly, these included the construction of new and reconstruction of existing buildings and establishments, equipping them with modern medical technology, training and retraining of medical personnel, welfare standards of medical workers and many others issues.

Asomiddin Komilov, the Deputy Minister for Mother and Child Healthcare, said that a large amount of work has been done this year to reduce the incidence of anemia among mothers and children. "Flour Fortification is the main focus for lowering the level of anemia and its treatment. Therefore, according to the program of flour fortification, more than 350 thousand tons of flour was enriched with iron in 2006. In 2007,more than 95% of flour is planned to be fortified with iron. In the ten-year battle against anemia, we have managed to lower the percentage of people suffering from anemia by 20-30%. This is a good achievement for such a short span of time", said Asomiddin Komilov, and added that in 2008-2009 it is planned to introduce a flour fortification program in private flour mills as well.

B. Niyazmatov, the Deputy Minister of Sanitary Inspection, said that all projects and prophylaxis actions directed at addressing AIDS, tuberculosis and other severe diseases will be continued. "The project o­n fighting against AIDS adopted in 2003 was completed this year. So, the report o­n the work made in the context of this project will be heard at the end of December. In January-February next year a new program o­n propaganda against AIDS and drug addiction will be adopted. The unresolved questions will be solved in 2007", B. Niyazmatov pointed out.

"In order to increase the prestige of people working in the sphere of healthcare, a law "On establishing the Day of Medical Workers of the Republic of Uzbekistan" was adopted in September 2006. Besides, a badge of honor entitled "Luminary of Healthcare" was approved by the Cabinet", said Feruz Nazirov.

In answer to the questions about the quality of first aid, including ambulance service, the Minister responded: "In 2007 it is planned to purchase 100 Hyundai ambulances with all the necessary medical equipment, which will help to increase the level of this branch of healthcare".

A great deal of attention during the event was given to the issue of qualified personnel training and raising of their qualifications, especially, of general practitioners, physicians of particular specialties, and paramedical personnel.

At the end of the news conference the Minister and the Deputies familiarized journalists with the plans of the Ministry of Health for 2007, "The Year of Social Protection". In particular, the projects launched this year will be finished in the coming year. To complete the campaign o­n immunization against measles and Rubella in the summer months of 2007 is also o­ne of the tasks to accomplish. In a word, the Minister of Health said that there is a lot of work ahead. However, the social direction of the domestic policy of the government of the Republic gives sufficient grounds to say that all tasks and problems will be solved.
 

Today around a million citizens of Uzbekistan are securities holders, the “Uzbekistan Today” newspaper reported. In 2006 the total circulation of securities in the "Tashkent" Republican Stock Exchange has increased more than four times totaling UZS 104.2 billion. The Uzbek Government began to implement the Securities Market Development Program for 2006-2007, which was confirmed by an earlier presidential decree.

The Centre for Coordination and Control over the Securities Market, State Property Committee, Ministry of Finance and Central Bank of Uzbekistan started to develop acts which regulate the procedure of transactions including their state registration, and transparency for profitable placement of the funds of investors and to prevent risks.

The Program consists of five principal directions. Special attention is to be paid to the further development of a primary securities market due to privatization of state enterprises and setting up new stock companies. The volume of a secondary securities market is increasing, and the development of corporative management in stock companies and formation of a modern stock exchange infrastructure and personnel training will continue in Uzbekistan.

The recently passed Law "On securities market" will certainly be a key event for the secondary securities market. According to Askar Alimuhamedov, an expert of "Tashkent" Republican Stock Exchange, the new document will allow unifying norms of acting laws and meeting international standards. According to the Program, the development of bill must be completed by early 2007. The act has to oblige all participants of the securities market to provide free information and explain the limits to the provisions of deposits, registration and consulting activity by investment institutes, and the activity of investment mediators and nominal securities holders.

On o­ne hand, the Decree of September 27, 2006 of President Islam Karimov "On measures of further development of securities market" toughens requirements for issuers and makes them increase the reliability of their securities o­n the other it gave an opportunity to issue more corporative bonds.

Particularly, now o­nly public corporations can act as issuers who for recent three years must have positive rates of profitability, paying capacity, financial stability and liquidity confirmed by an auditing organization. These companies should be able to provide independent rating estimations for risk.

According to the director-general of Centre for Coordination and Control over the Securities Market Kamoliddin Talipov, the statistics shows that the secondary stock exchange is also developing in Uzbekistan. As a result of the first ten months of 2006, the share of secondary securities market has increased from 77.2 to 85.7 percent compared with that of last year. The rate has also doubled compared to 2005. The active interest of people in the Uzbek stock market as a mechanism for attracting additional financial resources is observed in the country.

At present the stock exchange comprises more than 250 investment institutions. Securities of around UZS 3 trillion are in circulation. The number of individuals holding securities exceeds o­ne million people. Securities Market Development Program states that the main direction in securities market is further development of its infrastructure. The goal is to make this market more available to investors.
 

At the moment International Association “Kurash” (Uzbek National wrestling) includes more than 80 national federations of the countries of Asia, America, Africa, Europe and Oceania. The National Federation “Kurash” of Japan was established in 1999. On the eve of the New Year the president of the “Kurash” Federation of Japan Hideo Kamaga talked to a correspondent of “Jahon” Information Agency.

On its many features “Kurash resembles such Japanese martial arts as Judo and Sumo, which are also profess the strength of spirit, courage and justice”, - H.Kamaga has said.

My first acquaintance with the Uzbek kurash took place in 1998, when I visited Uzbekistan with the delegation of the Japanese sportsmen. I was amazed with dynamism of this type of martial arts. However, the sincere care of the President of Uzbekistan Islam Karimov and his personal support of the rebirth and raising the international prestige of this ancient Uzbek type of sports excited me much.

I was so much enthusiastic about kurash that I put before me a goal to fully assist the spread of this type of sports in Japan. And as a result of our joint efforts with our Uzbek colleagues the “Kurash” Federation has already been founded in Tokyo in January 1999.

Summing up the eighth year activities I would like to note that we carried out a huge work o­n spreading and popularization of this type of sports in Japan along with the colleagues from the International Association of “Kurash”. I must underscore that Kurash is now becoming o­ne of the favorite kinds of martial arts in our country. In connection with it I was pleased to watch the contests of the Uzbek Kurash at the Asian Games in Doha in December 2006.

As for the further plans o­n popularization of Kurash in Japan I would like to say that in January 2007 we are going to hold the international conference o­n Kurash during which the strategies of development of this types of sports around the world will be discussed.

I avail myself of this opportunity and would like to congratulate the Uzbek people and all fans of this wonderful type of sports o­n the New Year and express my best wishes of peace, health and prosperity.
 

An ADB-funded railway modernization project has recently been completed that is promoting economic growth, development of new industries and businesses, regional linkages, and more productive use of natural and agricultural resources in Uzbekistan.

The US$70 million project was approved in October 2000 to rehabilitate 341 kilometers of railway track between Jizzakh and Khodjadavalet, which carries the highest volume of traffic in Uzbekistan's railway network. The project was closed at New Year.

It is expected that some 5.5 million people from four provinces traversed by the project line - Bukhara, Jizzakh, Navoi, and Samarkand – will have better access to economic opportunities, with freight transport users and passengers enjoying the most direct benefits.

With railways the primary mode of transportation in Uzbekistan, a better railway system boosts internal trade by cutting travel and business costs. It is also vital in expanding tourism to historic cities such as Bukhara and Samarkand on the famed Silk Route.

In addition, Uzbekistan's location leaves it well placed to provide a vital link in the transportation of goods by land from East Asia to Europe from where it can attract more investors. The improved railway will also better link the country to the regional transport corridor, opening up the Central Asian market of nearly 60 million people.

"ADB is happy to assist the Government of Uzbekistan in making its railway more efficient," said Hong Wei, ADB's Country Director in Uzbekistan, during a ceremony to mark the project completion in December. "An efficient railway will help open up vast resources, spur development of new industries and businesses, and generate jobs, particularly for the poor."

The project provided equipment for track laying and maintenance, installed fiber optic telecommunications systems and computerized financial accounting systems, and established a revolving fund to provide start-up capital for small business ventures by former railway employees. It also carried out restructuring and policy reform initiatives to improve the efficiency and service of the national railway company, Uzbekistan Temir Yullari's (UTY).

The loan was accompanied by a technical assistance grant to plan the development of the network; set up the revolving small business fund; develop and market passenger services for tourists; and study the adverse effects of soil salinity on infrastructure along the project route and propose protection and mitigation measures.

The total cost of the project was US$155 million. The US$70 million loan from ADB's ordinary capital resources has a term of 25 years, including a grace period of 5 years.
 

Islamic Educational, Scientific and Cultural Organization (ISESCO) announced Tashkent, capital city of the Republic of Uzbekistan, the Cultural Capital of the World of Islam in 2007.

Uzbekistan is a country in Central Asia with population of 26 million and large part of them are Muslims. Its capital city of Tashkent is the largest and oldest city in central Asia and the main transportation hub of the region.

The architectural style of Tashkent is unique. Large numbers of museums and parks, an Islamic university and several theater companies have added to the cultural-historic atmosphere of the city.

Member of the Japanese Parliament Koki Chuma noted that the draft of the Constitutional Law "On strengthening the role of political parties in the renewal and further democratization of state governance and modernization of the country" submitted by President Karimov to parliament for consideration was a real evidence of the intensification of democratic reforms in the country.
Political and legal reforms being implemented in Uzbekistan under the direction of President Karimov are evoking great interest of foreign political and public figures, experts, and media, Jahon Information Agency wrote.

Member of the Japanese Parliament Koki Chuma noted that the draft of the Constitutional Law "On strengthening the role of political parties in the renewal and further democratization of state governance and modernization of the country" submitted by President Karimov to parliament for consideration was a real evidence of the intensification of democratic reforms in the country, Uzreport.com says in its translated article.

"It is natural for every society to have differing opinions regarding socio-political events, and the role of political parties is to ensure civilized discussion of the existing problems taking into account the diversity of opinion groups. In this regard, it is hard to overestimate the importance of the legislative framework supported in the country's constitution providing specific conditions for the development of political parties," Mr. Chuma said.

A member of Turkish Parliament T. Karakaya said the following:

"New draft laws will raise the international reputation of Uzbekistan and strengthen its role in the world community. I think that the adoption of the Constitutional Law aimed at strengthening the role of political parties is the evidence of substantial progress Uzbekistan has achieved in implementing political reforms under the administration of President Islam Karimov.

The expansion and strengthening of the role of political parties in the development of the electoral system has been central to the process of democratization in all countries. This, in turn, corresponds to the conditions of a democratic political system and satisfies the demands of the society. I am convinced that the regulatory acts being adopted are part of Uzbek administration's balanced policy that takes into account national customs and the interests of the population."
Egyptian Abulhaul ad-Davliya [transliterated] newspaper published a commentary entitled "The Truth of Life", which speaks of Uzbekistan's achievements that followed the independence. Particular attention is given to the legislative initiatives of President Karimov.

"The suggestions of the head of Uzbek state illustrate the fact that he is a strong politician and is a true leader of his country, who gives priority importance to the protection of human rights and strengthening of the society's tolerance. This in turn is the evidence of Uzbekistan high achievements in the renewal and democratization of state governance and modernization of the country," the article said.

Tehran Times has published an article titled as "The evolutionary road of Uzbek democracy". The authors of the article draw the readers' attention to the legislative initiatives of the President of Uzbekistan implemented in stages as a part of the evolutionary socio-political reform and development of the state legal and political system, moving closer with every step to becoming a strong civil society.

In this context, the article says, the events taking place in the socio-political life of Uzbekistan clearly demonstrate the fact that the initiatives put forward by President Karimov lead the country along the way of civilized reforms, rather than though a revolutionary conflict observed today in several countries of the world and the region.
 

The unified social tax rate has been cut from 25% to 24% starting 1 January 2007 in conformity with Presidential Resolution.

On 18 December 2006, President Karimov signed the Resolution "On the forecast of key macroeconomic indicators and the parameters of State Budget of the Republic of Uzbekistan for 2007."

In accordance with the document, the distribution of funds will be made between the state purposeful funds and the Council of the Federation of Trade Unions.

Meanwhile, the income from the unified social tax payments from the labour remuneration fund of legal entities will be shared between state agencies as follows: Pension Fund under the Ministry of Finance – 23.5%; State Fund to Assist Employment – 0.3%; and the Council of the Federation of Trade Unions – 0.2%.

Uzbekistan Olympic team will leave to UAE on 6 January to prepare to upcoming Olympic Games qualification match against Tajikistan.

It is expected that Uzbek team led by Vadim Abramov will hold warm-up matches against Al-Vasl (UAE), Iraq national team, Dynamo Kiev (Ukraine) and Litex (Bulgaria).

Uzbekistan Olympic team started training campaign on 3 January and hold two warm up matches against Uzbek Premier League clubs. Olympic team defeated Andijan (1-0) and Mashal (3-2).
V.Abramov called following players to his team

Goalkeepers:

Alexander Lobanov (Sogdiana), Eldor Tajibaev (Pakhtakor) and Aziz Ashurov (Tractor)

Defenders:

Alexander Kletskov, Ahrol Riskullaev, Anzur Ismoilov, Rahmat Berdimuradov (all from Pakhtakor), Shavkat Mulladjanov (Kyzylkum), Viktor Popenko (Rubin-2, Russia) and Bahrom Yuldoshev (Tractor)

Mid-fielders:

Odil Ahmedov, Sadriddin Abdullaev, Farkhod Tadjiev (all from Pakhtakor), Aziz Ibragimov, Lutfulla Turaev (both from Mashal), Nodir Kuziboev (Neftchi), Muzaffar Umrzakov (Tractor), Sobir Usmonkhodjaev (Kyzylkum) and Dilshod Sharafutdinov (Samarkand-D).

Forwards:

Bakhodir Nasimov (Samarkand-D), Shakhboz Erkinov (Pakhtakor), Kamol Murzaev (Mashal) and Marat Bikmaev (Rubin).
 

Rauf Inileyev has been named as the new coach of Uzbekistan, taking over from Russia's Valeri Nepomniatchi.

The 55-year-old, who led the country's under-23 side to the quarter-finals of December's Asian Games, will be assisted by former national team captain Mirdjalal Kasimov and his first game in charge will be against Azerbaijan on 7 February.

"It is a proud moment for any coach to be given the task of leading his national team," said R.Inileyev. "This is something I have always dreamed about.

"I'm very happy that Kasimov has agreed to work with me as my assistant and I think that one day he will be a great coach in his own right and that it is possible for him to coach the national team."
Inileyev will guide the team at next summer's AFC Asian Cup finals, where they have been drawn to face Malaysia, China and Iran in Group C.

"It's a very difficult group," he said, "but the goal will be to reach the quarter-finals."

V.Nepomniatchi stood down due to his failing health after he struggled to qualify the Uzbeks for the finals in South East Asia behind group winners Qatar.