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February 27, 2014


February 27, 2014


Deputies consider amendments and additions to the Regulation on Judicial Qualifications Board.. 2

economy.. 2

Future Prospects. 2

FRDU issues US$280m to construction of new railroad.. 3

Infrastructure.. 3

Uzbekistan builds a national cell operator. 3



Press-service of MFA of the Republic of Uzbekistan



Deputies consider amendments and additions to the Regulation on Judicial Qualifications Board

On February 25 was held the session of the Legislative Chamber of the Oliy Majlis.

After adoption of the agenda, proposed by the Legislative Chamber Council, the deputies discussed the draft law “On amendments and additions and the Regulation on Judicial Qualifications Board”.

The draft was elaborated in accordance with the Presidential Decree dated 30 November 2012 “On measures to further improve the courts activities”.

It includes measures to radically improve the system of organizational and legal mechanisms of selection, training candidates for judges’ positions, further ensure the true independence of the judiciary, improve the activity of the High Qualification Commission for selection and recommendation for judges’ positions under the President of Uzbekistan.

Taking into account the views expressed during the discussion, the Legislative Chamber adopted the law, which will be submitted to the Senate of the Oliy Majlis for further consideration of the draft law “On amendments to some legislative acts of the Republic of Uzbekistan”.



Future Prospects

Today the light industry of Uzbekistan is distinct with its technologies manufactured by world’s leading companies, the broad geography of exports, and up-to-date full cycle production facilities.

However, some twenty years ago, the majority of cotton produced in Uzbekistan was exported as raw materials due to lack of modern processing facilities. The situation had to be changed urgently, because, being the leading cotton producer and exporting raw materials, Uzbekistan received only a half of the possible revenue. In the early 1990s, the internal market was filled by imported and not always high-quality goods, made from recycled Uzbek cotton.

To bring the industry to a new level Uzbekistan designed an industry development strategy with investments, upgrade and focus on finished goods as the key factors. Foreign investors received a whole range of benefits and preferences, which empowered the establishment of dozens of modern processing plants across the country in a short time. Over the last 20 years more than $ 1.8 billion was disbursed for the upgrade of the sector and more than 150 projects were implemented. This is just the beginning. By the end of 2015, O’zbekyengilsanoat, as a coordinator of the development of light industry, is planning to complete the implementation of another dozen of projects worth more than $1.7 billion under the industrial development program.

Currently, the annual aggregate production volume at all O’zbekyengilsanoat enterprises makes up 320.2 thousand tons of cotton yarn, 225.2 million meters of cotton cloth, 54.6 thousand tons of knitted fabric, 179 million pieces of garment and knitwear and 45 million pairs of hosiery. Last year, the enterprises manufactured goods valued at more than 7.95 trillion soums (Currency rates of CB from 27.02.2014 1$=2229.71 soums) with the growth of 13.2% YOY. The share of industry in total industrial output reached 13% (in 2012 – 12.9%). Compared with 2012, big manufacturers increased the production of cotton fabrics by 1.4 times, knitted fabric 1.3 times, cotton yarn 1.2 times, jerseys – by 7.4%, mixed fabrics – by 7%.

Last year was marked by the launch of two manufacturing enterprises, which do not yield to world’s leading manufacturers in instrumentation. A spinning enterprise Jizzakh Plasteks with the project cost of $42 million was established in Jizzakh region. The first stage of the project on the establishment of a foreign enterprise Textile Technologies Group, which is expected to produce up to six thousand tons of cotton yarn per year, was completed in Yuqorichirchiq district of Tashkent region. Upon completion of the project the enterprise will also manufacture cotton fabric and garments.

The dynamic development allows an active expansion of exports. Being exported to more than 40 countries, Uzbek goods are widely known beyond the country today. CIS countries, EU, China, Turkey and South Korea are major importers of the Uzbek light industry. This year Uzbekistan expects a significant increase in exports also through the development of marketing services and promotion of domestic products in the world markets, in which 40 dealerships companies are involved.

It is important that the country has an engineering framework for the development of light industry. Uzbekistan has recently started manufacturing modern textile equipment. The Swiss company Rieter AG implemented a project on building an assembly plant for the production of belt, carding and ring spinning machines. The course on purchasing more than 700 pieces of equipment for the manufacture of garments, yarn and linen by the end of 2014 proves a commitment to innovation.

(Source: “Uzbekistan Today” newspaper)


FRDU issues US$280m to construction of new railroad

Fund for Reconstruction and Development of Uzbekistan (FRDU) provided a loan for US$280 million to Uzbekistan Temir Yollari state joint stock railway company.

The loan was provided to construction of railroad Angren-Pap, which will go through Kamchik pass.

The funds will be used to purchase necessary equipment and tools, as well as to carry out mountain construction works with the project.

Uzbekistan Temir Yollari started construction of new electrified railway Angren-Pap with the length of 122.7 km in July 2013.

The railway will pass through Qamchiq pass and link Ferghana Valley (Andijan, Namangan and Ferghana regions) with other part of Uzbekistan.

Preliminary cost of the project makes up US$1.769 billion and was included to investment plan of the company for next five years.

The project will be financed due to resources of the state budget, own resources of Uzbekistan Temir Yollari and loans of international financial institutions.

China Railway Tunnel signed a contract with the state joint stock railway company Uzbekistan Temir Yollari for construction of tunnel through Qamchiq pass with the cost of US$455million in September 2013.

Within the contract the Chinese company will construct tunnel with the length of 19 km for movement of railway and adit tunnel, which will be used in case of accident.

Uzbekistan Temir Yollari is planning to use investments for US$293.72 million in 2014, including US$120 million of own resources.



Uzbekistan builds a national cell operator

Competition is the strongest motivation for companies not just in terms of development, but also in enhancing the quality of their products or services at any market. Therefore, the emergence of new competitors, as a rule, leads to the fact that the market comes at an advanced level. As a result, every party benefits: consumers get new services and improved quality, and the company secures revenue growth. The domestic mobile communication is no exception.

Quite recently, the domestic cell market was very simple, with two GSM-operators Beeline and Ucell, and two CDMA-operators Uzmobile and Perfectum Mobile. The total number of cell phone users in the country has exceeded 19 million, and each family has an average of three cell phones. The presidential decree, signed in the middle of last week, changed this situation.

Now, according to the document, Uzbekistan will build its national mobile operator based on CDMA-operator Uzmobile, which is a structural subdivision of the country ‘s largest telecommunication operator Uzbektelecom. This year, it plans to launch 1,020 base stations and 500 radio relay sets in Tashkent, as well as a switching station and a billing system for two million numbers. By the end of 2015 the network will cover all regional centers, and by 2017 – the rest settlements of the republic. Within this period, it is planned to commission about 6,000 base stations and the same number of radio relay sets.

The list of operator’s priorities includes engineering, construction, operation and provision of services of cellular networks and data transmission, long distance and international networks. It is also expected to introduce the latest advanced technologies of high speed data for Internet access, mobile TV services, electronic payments and commerce.

In order to purchase base stations, telecommunication hardware and software, the company will draw concessional long-term loans from foreign banks and financial institutions, as well as supplier loans. Local banks will render support too. They will allocate loans for construction, installation and commissioning.

To make the process effective the national operator was provided with certain privileges and preferences. For instance, Uzbektelecom is exempt from customs duties for the equipment imported for the needs of Uzmobile by January 1, 2018. Besides, it is planned to develop and approve a resolution on the release of the national operator for a period of five years from the state fee for licensing of engineering, construction, operation and service of cellular networks, as well as from payments for the use of radio spectrum. Thus, all the released funds should be forwarded to the development of its network.

Development of requirements specification on building of the network is scheduled to be accomplished by the end of February, and by the end of March it is planned to negotiate on the delivery of telecommunication equipment with the world’s leading suppliers, as well as on drawing concessional loans with foreign financial institutions. The feasibility study of the project is planned to be submitted to the government in April.

(Source: “Uzbekistan Today” newspaper)