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January 9, 2014


January 09, 2014

economy.. 2

Development trends in the national economic system.. 2

Almalyk Mining and Metallurgical Complex ‘s output worth 2 trillion soums in 2013. 4


Scholars of Uzbekistan continue to study the heritage of ancient settlements. 4


Press-service of MFA




Development trends in the national economic system

The year 2014 promises to be quite a success for the Uzbek economy. And it’s not just about the completion of a number of major projects and the start of new ones; it is more about its capabilities and abilities of effectively addressing new global challenges.


Innovation behind success

Experts predict this year a decline of global economic growth and new risks. Many economies, especially in Europe, have already revised forecasts of growth in industrial production and GDP, reduce investment in infrastructure projects, while multinational companies are already implementing programs to optimize production processes, which resulted in not only a fall in output, but also in jobs. On this pessimistic background, Asian countries become more attractive for investors, showing growth, albeit at a slightly slowing down rate. On this investment map, Uzbekistan occupies a special place, which has for several years demonstrated 8% GDP growth. In modern day conditions such rates are unattainable for many, not only developing but also developed economies. This has been achieved through proper tuning of the economic system, creation of a universal mechanism, which effectively combined market relations and forms of government control.

Today, a successful economy cannot evolve basing only on one sector. It requires comprehensive solutions, such as innovations, information technologies, modernization of production and, above all, the development of public-private partnership. In circumstances when markets feel investment hunger and the country needs to implement major projects, it is the interaction of government and business on mutually beneficial conditions which can move the economy forward for the solution of socially significant challenges. This approach, when all issues are addressed complexly, constitutes the key to success in the economic policy of Uzbekistan. At the end of each year the country adopts an investment program for next year, which becomes a road map for the implementation of major projects, and it is important that most of them are carried out jointly with representatives of domestic and foreign business. Besides, there are long-term programs for the development of individual sectors, a specialized program for the localization of production.

One of the main trends in the development of the Uzbek economy, which experts believe will allow it to continue to successfully cushion the effects of the global economic crisis, is the introduction of innovative technologies based on energy efficiency, resource conservation and implementation of renewable energy sources. So that to be effective in the present conditions it is necessary first of all to be economical since the price, being the main competitive feature of any product, is made up of numerous parameters – the cost of electricity, material and technical resources, logistics and human resources. Therefore, success comes to those who offer the lowest cost with quality meeting international standards.

The upper house of parliament at its last plenary meeting last year approved two fundamental economic instruments for 2014, the Government Budget and Employment Program. The National Budget for example continues liberalization of the tax burden on business, in particular, tax rate on corporate income lowered from 9% to 8%. As a result, experts calculate the businesses will have additional 130 billion soums (Currency rates of CB from 09.01.2014  1$=2203.22 soums)to channel toward expansion and modernization of production.

This decision is just another step in a series of measures ongoing over the past two decades to reduce administrative barriers, create the most favorable conditions for running business. Small business and private entrepreneurship, foreign investors, exporting enterprises enjoy a number of tax and customs allowances. This allowed the domestic industries in the short term to not only rearm their manufacturing capacities, but also reach new export markets. Today, the products branded Made in Uzbekistan are widely known not only in the CIS, but also in Europe, Asia and the Middle East.

Another important component of economic policy is creation of new jobs. This year, the national economy is envisaged to create more than 983 thousand jobs, including about 500,000 places for graduates of vocational colleges. This will not only provide the industry with new and qualified staff, but will open wide prospects for these young people.

I should note a unique innovation for Uzbekistan, which entered into force this year. President of Uzbekistan at the end of last year approved the Budget Code of the Republic of Uzbekistan. This document is intended to systematize the entire budget process and build a single and unified legal framework of public finance consistent with international standards. Experts stress that this decision will make it possible to make a serious progress in ensuring transparency and stability of the entire financial system.


Points for growth

Public-private partnerships are clearly seen in the regional development. Uzbekistan is large and is still quite a young country, yet has managed to resolve a lot of issues concerning social and living conditions of the rural population. However, there is much more to go in this area. In particular, as part of rural housing development program it is projected this year to build 11,000 houses, 343.6 km of water supply pipes, 307.3 km of power lines, 433 km of gas pipelines, 263 km of roads. This year’s program will incorporate a new very interesting innovation: the new rural houses will be equipped will solar energy installations.

Year 2014 is expected to become for the republic a new step in the development of solar energy. In addition to the introduction of equipment for medical and educational facilities, the republic will create unique generation capacities. Soon, the first solar power plant will be built in Samarqand region, and in the future the country will build more such objects. In addition, power suppliers will continue building a new thermal power plant in Namangan region, Turaqurghon TPP. The plant is projected to be equipped with two combined steam and gas installations of 450 MW capacity each. Equally important is a project implemented at the intersection of power and coal industry: Angren TPP is building a 130-150 MW power unit with district heating selection for burning high-ash coal. It will create additional generating capacity through the introduction of modern solid fuel combustion technologies. Coal industries of the country will not remain aside. Last year the government approved a program of modernization, technical and technological re-equipment of the coal industry and its balanced development for 2013-2018, the total value of which exceeds $555 million.

Development work will continue on special industrial zone in Jizzakh. Fourteen agreements we signed last year on joint high-tech industries involving direct investment from China. A modern sugar factory of 1,000 tons daily capacity is planned to put into operation in Angren FIZ. The total construction cost exceeds $108 million. The leaders of the mining industry – the Navoi Mining and Metal Plant expand capacity of Qizilqum phosphorite unit, while the Olmaliq Mining and Metal Plant will reconstruct crushing and milling unit of copper concentrator and a zinc plant.

Already this year, Uzbekistan starts construction of the only plant to produce agricultural and automobile tires and conveyor belts. The total project cost is $190 million. The plant is to be built within three years. Uzkimyosanoat now announced a tender for contractors to undertake the project.

In the transport sector, perhaps, the largest in terms of work performed and expectations, will be a project of an electrified railway line Angren-Pop, which was started last year. Experts estimate the new railway line will complete a unified network of railways in Uzbekistan, create a new international transit railway corridor China-Central Asia-Europe, as well as will provide favorable conditions for the further comprehensive economic and social development of the Farghona Valley. The project is scheduled to complete in mid 2016.

Do not forget about the car industry, which annually brings surprises to domestic car fans. In 2014 there will be two, as Damas micro-van production line moves to Khorazm region. The assembly is planned to start that in the first quarter, and in the fourth quarter the plant switches to the full production cycle. This will free up capacity of the automobile factory in Asaka for new models. Another premiere will be family minivan Chevrolet Orlando.

The new year will be a breakthrough in combining business with technology. Since January 1, the government launched a single portal of online government services for registration of entrepreneurs. Applications for registration with all necessary documents, as well as the issuance of registered documents of incorporation and certificate of state registration, are processed in electronic form using digital signature. And Tashkent’s passenger carriers launch a pilot project to regulate the movement of taxis and busses in real time with the use of GPS-aided remote control and management systems.

(Source: “Uzbekistan Today” newspaper)


Almalyk Mining and Metallurgical Complex ‘s output worth 2 trillion soums in 2013

In Almalyk Mining and Metallurgical Complex were discussed the 2013 results and plans for 2014.

In 2013, the enterprises of AMMC nearly fulfilled all production figures. In 2013, the Complex’s output was at 2 trillion soums.

In 2013, over 20 projects were implemented at AMMC under the Program of modernization, technical and technological re-equipment of the Complex. Thus, within the Program in 2013 two new facilities were built at AMMC: Uzun area of Kochbulak mine and copper pipe production plant in Angren SIZ. Now it is planned to master the production of a new product – copper pipes from 4.5 mm to 50 mm. Most products (approximately 90%-95%) will be exported. Most importantly, the products will be sold with substantial added value.

A number of projects are to be completed this year. Besides construction works, reconstruction works are underway in a number of enterprises of the Complex, new equipment, convenient to use and reduces the cost of production, is being purchased.

On whole, 6 projects are to be completed this year under the Program.

At the Central mechanical repair plant of the Complex, an investment project “Launch of manufacture of mining operations equipment” is being implemented, within which a new shop- electroslag remelting- is being built. The main objective of this project – manufacture of forgings of up to 5 tons. With the commissioning of the new shop, it is planned not only to use own spare parts, but also to deliver them to other enterprises of the country.

Also, combined cement plant is being erected in Jizzakh city, which will produce white and Portland cement (60-70% of white cement will be exported).

Construction of underground mine at Kayragach field is ongoing, commissioning of which will allow to fill in the capacity and increase output of precious metals.

In an increasingly fierce competition this year, the Complex should reduce production costs by 12%. Production modernization and reconstruction are designed to this aim. New facilities focus on reducing costs of raw materials, fuel and energy resources and etc.




Scholars of Uzbekistan continue to study the heritage of ancient settlements

Among the artifacts restoring and studying by specialists of the Institute of Archeology of the Academy of Sciences there are lots of remains of the unique ceramic tableware of the Samanid period, collected during the excavations at the ancient city of Afrosiyob.

Exploring the findings, the scholars conclude that in the 10th – 11th centuries on the territory of present Samarqand the pottery reached its height. Prior to this time the quality of the pottery was much lower, and later – in the period of the Karakhanids it was widely used the wooden utensils.

“During the Samanids reign the production of ceramic tableware was highly developed. Depending on the purpose of a dish the composition used for its production was changed. In production of cauldrons was used fireclay and special technology of mixing it. For the production of the tableware, which was used to serve food, it was used different kinds of clay and technology. The methods of decoration of dishes were also different. Our workers, for example, with great pleasure study plates and lagans,” tells about the research, a senior fellow at the Institute of Archeology Mutalib Hasanov.

“On my table is one of many plates of the Samanids period that we collected from the fragments found. The plate became worthless, but the glaze in it was preserved. Pay attention to its glitter, brightness and juiciness of colors – they look almost intact, despite many centuries passed.

Its decoration is of special attention, as some kind of saying is written. Namely this text turned the starting point in determining that the fragments from which was collected the plate was the parts of the one article.

Today we try to read what is written. For this purpose we have send the photos of the plate to the Tashkent specialists in epigraphy. On experience with similar findings we can suppose that this is an aphorism. Samanids loved to decorate their dishes with various wise sayings. ‘Wealth does not bring happiness’, ‘Science is difficult, but brings more fruits’ – these are just some of the sayings that we managed to read on other products. It is noteworthy that we have not met the dishes with the same utensils. Each article is a piece of art!”

(Source: “Uzbekistan Today” newspaper)