INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 120

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INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 120

June 16, 2015

economy.. 2

The enterprises of coal industry of Uzbekistan produce over 4.5 million tons of coal annually. 2

Substituting Imports. 2

finance.. 5

Revenues of the State Budget of Uzbekistan for the 1st quarter totaled to 7.6 trillion soums. 5

Art.. 6

Novelty Cinema. 6

sport.. 7

Uzbekistan Gymnasts became champions of Asia. 7

 

 

economy

The enterprises of coal industry of Uzbekistan produce over 4.5 million tons of coal annually

Within the framework of the industrial fair of geology, energy, chemical, petrochemical and metallurgical industries which is passing these days in Uzexpocenter of the country, a presentation dedicated to the development priorities of the coal industry was made. It was organized by “Uzbekugol” Joint Stock Company which provided information about their investment activities, implemented projects, technical re-equipment of the coal industry, the program of localization and industrial cooperation, as well as plans and prospects.

As was noted at the event, the annual capacity of the coal industry of our country is over 4.5 million tons of coal, a major consumer of which is the electricity sector. Demand for solid fuel is formed by industrial, social and communal areas and by the population. In recent years, coal mining is done with the annual growth rate of not less than 110%.

The planned growth of coal production to 11 million tons per year will provide an increase of its share in the energy mix from 5% to 20%, and annual savings of natural gas to the whole enterprise of “Uzbekenergo” due to the transfer of boilers to year-round burning of coal in the amount of 2.0 bln cubic meters per year. At the event, it was stressed that the program of modernization, technical and technological re-equipment of the coal industry and its balanced development for the period 2013 – 2018, envisages further sustainable development of the coal industry through the implementation of priority investment projects, the expansion of the resource base, training of specialists of the industry to meet the growing demand of industries and population in coal production.

– We take active participation not only in fairs organized at the initiative of the President of, but participate in its sectoral and regional stages as well. According to contracts, we have a positive dynamics and growth. If In 2007 we concluded agreements with eight domestic enterprises on the amount of 1 billion 128 million soums, in 2014 it reached 22 bln and in 2015 increased to 27.4 billion soums, – said Svetlana Kim, the press-secretary of “Uzbekugol” (currency rates of CB RU from 16.06.2015   1$= 2546.22 soums).

Considerable attention in the ongoing work of “Uzbekugol” is paid on import substitution, which includes the expansion of the output of the localization program, as well as intra and inter-sectoral industrial cooperation.

(Source: UzReport.uz )

 

Substituting Imports

A three-month exhibition marathon – the first stage of the International Industrial Fair and Cooperation Exchange – is wrapping up in Uzbekistan this week. Launched in early April in Samarkand, the exposition locomotive of achievements in the domestic industry has visited all regions of Uzbekistan, reaching its final stop at Uzexpocenter. Tens of thousands of samples of goods, the production of which was set up under cooperation and import substitution, have once again proved the effectiveness of this platform. For a ninth time it brings together local manufacturers, researchers, experts and foreign investors seeking to implement interesting initiatives.

A HARMONY OF SUCCESSION

The subject of import substitution has proved one of the major trends for discussion in the CIS space. The situation leaves no doubt that the impact of geopolitics on global economic ties tends to grow. This is another proof of the truth that the country may be considered fully independent solely when it achieves the efficient operation of the real sector that delivers the products that are critically important for the country’s normal operation.

It would surely be a mistake to say that the other CIS countries did not work on the creation of their own production facilities, and are now trying to catch up with that. But, as they say, the deal is about the details. Twenty years ago, Uzbekistan shaped a clear strategy and a development policy, which implied gradual transition from a resource model to maximal production of finished goods with added value. Succession is the key word in this context. In the early years of independence it was impossible to give up gas and cotton exports, as they brought foreign currency to the budget. And the country at the time had no capacity and processing technology. Therefore, the government has identified key areas for industrial development and concentrated on the elaboration of appropriate legislative and administrative conditions.

Those days, experts clearly outlined the problem: import substitution in itself cannot emerge without certain key conditions. The agenda included investments in the establishment of new production facilities and modernization of the existing ones, benefits for enterprises dealing with localization, loyal loan policy, introduction of international quality management standards, predictability of tax policy and transfer of technologies. A system-based approach of the state was the key pillar, as it was responsible for the coordination and development of the sector. The creation of abovementioned conditions was a pledge to the successful development of localization and import substitution processes in Uzbekistan. As a result, in 2000 – 2013, labor productivity in the country has grown by 2.1 times, and the energy intensity of the economy decreased by 3.2 times. The structure of exports underwent a qualitative change, multiplying the share of products with high added value. For example, the supply of cars increased by 11.6 times, yarn – by 4.1 times, knitted fabrics – 14.8 times, fertilizers – 11.3 times.

The government support of localization and import substitution processes in Uzbekistan is built of integrated measures that are aimed at the creation of high-tech and competitive segments of the national economy. The need in transition to a fundamentally new stage – from raw materials to the export-oriented industrial type of development in the mid-90s of the last century conditioned the development of permanent medium-term programs of localization. They have become the bedrock for the modernization, innovation, creation of high performance workplaces and advanced staff training, which are key prerequisites for making the products of the domestic real sector competitive. The practice of concluding special investment contracts with foreign investors who get production capacities at zero cost but with certain obligations has proved effective too.

Today, the localization retains the position of the major priority of economic policy in Uzbekistan. Participants of localization projects get substantial benefits and preferences. They are exempt from income tax, single tax payment and property taxes, customs duties for imported technological equipment, spare parts and components that are not produced in the country but used in the production process. The funds released through the benefits should be channeled to the creation of new, expansion, reconstruction and modernization of existing facilities, introduction of quality management systems, incentives for engineering and technical staff of enterprises, research and development activities, as well as to cost savings.

The experts’ analyses of the state of cooperation between domestic enterprises showed that absence or lack of information has been one of the main causes of its underdevelopment, and consequently the import of the similar domestically produced goods. Thereupon, Uzbekistan has initiated the creation of the list of finished goods, materials and components that are recommended for production by domestic manufacturers.

Previously, entrepreneurs had to look for niches in the market by themselves, wasting time for market research. Today, the related ministries and departments have taken on the study and development of the lists of products needed in the country. The proposals are forwarded to stakeholders and posted on the specialized website, as well as on the website of the Ministry of Economy.

The launch of an automated system of development and consideration of localization certificates is another important initiative that has contributed to the successful implementation of the Program of Localization. The resource enables localization project initiators to register a primary application online.

The results of the scaled work are evident – goods worth over 620 billion soums have been produced under 504 localization projects in the first quarter of 2015. The intended effect of import exceeded $260 million. The list of nearly 430 new products includes spare parts for excavators, body stamped parts for Damas cars, compressor units, motor oil, mining trolleys, new types of refrigerators and freezers, ovens, lamps, energy-saving LED lamps, components for household appliances, bicycles, fitness equipment, and other finished goods (currency rates of CB RU from 16.06.2015   1$= 2546.22 soums).

Tangible progress has been achieved in supplying domestic market with quality food and textile products. As of the beginning of 2015, enterprises have produced 19 new kinds and 151 new designs of finished apparel and knitwear, 98 new types of confectionery, canned fruits and vegetables, meat and dairy foods. As a result, the volume of consumer goods production has increased by 11.2%, including foodstuffs – by 19.2% and non food products – by 6%.

TIME TO RECONCILIATE HOURS

Experts emphasize that the world moves onwards, so today it challenges with stepping up efforts on strengthening the cooperation ties and enhancing the production of competitive products, economical and rational use of foreign exchange reserves, bolstering stability in the domestic market, increasing the number of small businesses in the industrial sector. Altogether that would empower our economy to evolve and grow, providing the population with quality and cheap domestic products, while increasing purchasing power and incomes. A special role in this process is assigned to the International Industrial Fair and Cooperation Exchange, which has demonstrated for the ninth time the capacity of the domestic real sector.

Traditionally, this large-scale event is held in two stages. This scheme is very convenient, as it allows enterprises and small businesses to get acquainted with market conditions in their regions, explore the capacity of partners and competitors, and then come up with ready-made proposals to the national level. The first phase from March to June is the time for territorial industrial exhibitions, which then have been followed by sectoral industrial fairs, the last of which has been underway in Uzexpocentre halls. The large-scale action will be crowned by the final marathon – the Ninth International Industrial Fair and Cooperation Exchange (IIFCE) in October 2015.

The scheme provides many promising opportunities. For example, regional fairs identify the needs for the near future and thereupon the participants conclude contracts of intentions for the development of new industrial products. After that, they have some four months to fix the production of new products, produce test batches, as well as bring the technical parameters of products to the required quality level and agree them with a customer. As a result, the contracts transform into specific agreements on the supply at the second stage, shaping the manufacturer’s order book for the next year. In the first stage of last year’s IIFCE, more than 3,800 companies presented over 19,000 products. The participants signed contracts for the supply of products totaling 890.5 billion soums, and $260.2 million for export. The numbers multiplied in the second stage.

Meanwhile, cool solid facts reflect the current changes by far not quite accurately. They are best illustrative by the example of the enterprises that initiate new products for the country. For instance, only four pharmaceutical companies operated in the country 20 years ago. Today, there are dozens of them. For example, the Uzbek-South Korean joint venture Bagil Medical New Technology launched the manufacture of 5-milligram syringes late last year. The company is working on expanding the manufacture of high-quality medical products, and intends to expand its product range and export 50% of production in 2016. It is also planning to launch production of four kinds of medical syringes and IV lines, as well as sterilized medical cotton wadding from local raw materials meeting international standards. The cost of works is estimated at $2.6 million. The new line will annually produce 1,100 tons of products. It is scheduled to export over $2.2 million worth of products annually.

The Uzbek-Chinese venture Navoiy Hunan Pulp has covered a huge gap in the domestic market, which has been occupied by foreign manufacturers over the last years. The company launched the production of diapers for children meeting international quality standards, including 19 kinds of baby diapers and feminine hygiene products. Last year, the joint venture manufactured products to 6.4 billion soums and exported goods to $84,000.

Automotive industry presents a textbook example of the domestic localization. Several dozen companies supply GM Uzbekistan with different components, and their number has been growing year by year. For example, the Uzbek-Singapore joint venture Idas Elektroniks Sistem in Andijan has been producing high-quality players and digital clocks for domestic cars. In the first quarter of 2015 the company produced 28,900 players and 26,200 clocks.

This year’s Cooperation Exchange has clearly demonstrated the intention of the government to enable all possible economic incentives and mechanisms to enhance the effectiveness of the domestic industry. Co-operation is vital in this context because it ensures dynamic and sustainable development of the economy with its tendency to innovations, introduction of new effective technologies, intensive use of local raw materials and production resources, and catalyzes diversification in the industry. Therefore, the fair traditionally gives the chance to domestic enterprises to make direct contracts avoiding tenders.

The international component is equally important. The first fair was attended by only 50 foreigners, while last year’s – by more than 1,200 representatives of foreign firms and companies from 57 countries. Foreign participants and guests note the high level of its organization. The fact that all industrial enterprises of Uzbekistan are located in one place but specialize in various fields ranks among the major advantages for foreign visitors. The visitors can learn about the industrial capacity of Uzbekistan, negotiate on the ways of purchasing local products and conclude delivery contracts. Besides, foreign entrepreneurs have an opportunity to assess the prospects of establishment of private or joint venture on the production of high-tech products in Uzbekistan, or implementation of tolling operations.

The first stage of IIFCE reflected the focus on improvement of the product quality as another important trend in the current domestic industry. This allowed to quickly changing the situation in many sectors that were previously dominated by imported goods. To date, the domestic products have pushed the imported ones off shelves of local stores. It is important that Uzbekistan has achieved this not on at the expense of cheaper prices, but through efforts to improve quality.

(Source: «Uzbekistan Today» newspaper)

finance

Revenues of the State Budget of Uzbekistan for the 1st quarter totaled to 7.6 trillion soums

The Ministry of Finance of the Republic of Uzbekistan held a board meeting on the execution of the state budget for the 1st quarter of 2015 (currency rates of CB RU from 16.06.2015   1$= 2546.22 soums).

The meeting was attended by board members, heads of departments of the central apparatus of the Ministry of Finance, the directors of the Fund, the Minister of Finance of the Republic of Karakalpakstan, the Head of Treasury, the heads of regional departments of off-budgetary Pension Fund, the Heads of Finance and Audit Offices of the regions and Tashkent city.

The opening speech was delivered by Deputy Prime Minister of the Republic of Uzbekistan – Finance Minister Rustam Azimov.

According to the agenda the following speakers also gave their speeches:

The First Deputy Minister of Finance B. Yusupov presented a report on the execution of the State budget and the budget of the Republic of Karakalpakstan, local budgets of regions and Tashkent city for the 1st quarter of 2015.

Deputy Minister of Finance – Head of Treasury B.Ashrafhanov reported about the work carried out by the Treasury Departments during the execution of the State Budget of the Republic of Uzbekistan for the 1st quarter of 2015.

The first deputy of the Off-Budget Pension Fund under the Ministry of Finance of the Republic of Uzbekistan M.Ziyadullaev spoke about work conducted by Extra-budget Pension Fund for allocation of pensions and benefits intended for the citizens for the 1st quarter of 2015.

The Executive Director of the Republican Road Fund M.Abdullaev made a speech on the current status of the maintenance and repair of highways of the republic.

At the meeting it was noted that the revenues of the State Budget of the Republic of Uzbekistan for the 1st quarter of 2015 amounted to 7638,7 trillion soums, while expenses amounted to 7615,6 trillion soums. The State Budget of the Republic of Uzbekistan showed surplus of 0.1 percent compared to the gross domestic product.

Incomes of local budgets for the 1st quarter of 2015 amounted to 3364,5 trillion soums that ensured local revenues by 100.9%.

Territorial financial authorities in cooperation with local authorities and the tax authorities are taking the necessary measures to increase the local taxes and fees and their collection, as well as effective and targeted use of budgetary funds and the establishment of properly monitoring of budgetary discipline in the institutions financed from the local budget.

Measures have been taken and appropriate activities have been developed to ensure the consistently high rates of economic growth and the mobilization of this available reserves and opportunities.

By the results of the meeting, financial authorities have been assigned the following tasks:

– Qualitative performance of targets of the State Budget for the II quarter;

– Measures to reduce accounts receivable and accounts payable of budget organizations;

– Analyze the occurrence of current accounts payable, and take steps in the direction of off-budgetary funds and the expected savings from the repayment of accounts payable;

– Provide timely funding of allocated funds for the preparation to autumn-winter period of social institutions and establish control over the storage and intended use of coal in the budgetary organizations;

– Establish control over the repair and replacement of heating boilers of budgetary organizations (primarily in rural settlements), as well as adaptation of boilers to coal and briquettes, and take measures to provide the necessary facilities;

– Prepare proposals for the draft State Budget for 2016.

(Source: UzReport.uz )

Art

Novelty Cinema

The future development of Uzbekfilm is being actively discussed in the year of the 90th anniversary of the first film studio of Uzbekistan.

An Uzbekistan Today correspondent found out the details of what the management of the Uzbekkino National Agency thinks in this connection in his talk with Muzaffar Akramov, head of the Agency’s marketing department.

“Recently, the Cabinet of Ministers approved a plan of the further development of national cinematography. However, it provides only a partial vision of its development. Much will be clarified in the process of elaboration of the law “On Cinematography” and introduction of amendments and additions to the Statutes of “Uzbekkino” agency. We will have to work out and adopt the State program on the perfection and raising the efficiency of our activities, as well as modernization, technical and technological re-equipment of “Uzbekkino” National Agency and its affiliates for 2016-2020.”

What are the plans regarding the Uzbekfilm studios, which is going to celebrate its 90th anniversary?

“This unique film studio is the basis of the national film industry; moreover, it boasts solid traditions and history since the national cinematography has been developing along with it. Today, however, like any other organization, it needs reorganization. This has been envisaged in the plan, which is currently under implementation. In the future, the Uzbekfilm studios will have subsidiary companies, which will operate independently. A whole number of issues will have to be solved in the future, including those linked with financing and efficient management of film producing organization and consolidation of their logistical support. At the same time, all directions of the Uzbekfilm studios activities will be retained: production of feature and documentary films as well as cartoons.

What films will we watch in the foreseeable future?

“Along with the classics of national cinematography from the Republican film stock we will see new films. The national cinematographers and animated cartoon artists face the task of shooting films about our contemporaries; fsoter love for Motherland, national and general human values.

Great attention will be assigned to promotion of film art. Efforts will be made towards revival of shut down cinema halls so that each region will have at least one public cinema hall. Our plans envisage the comeback of centers for public lectures for popularization of the art of cinema among the population.”

Modern cinematography is not just about creativity, but also high technologies…

“And our cinematography should master the most advanced film production technologies within the next few years. The major film studios of the country Uzbekfilm plans to actively introduce digital technologies as well as products in the modern HD format. Particular attention shall be attached to modernization of the cartoon film production association – it also has plans to significantly renew its equipment. The Cinema House too is awaiting reconstruction and re-equipment. The Republican cinema fund will be provided with sufficient consumable materials required for ensuring the preservation of several dozen thousands of films.”

(Source: «Uzbekistan Today» newspaper)

sport

Uzbekistan Gymnasts became champions of Asia

The team of Uzbekistan in rhythmic gymnastics became the champions of Asia.

At the Asian Championship 2015 in South Korea the gymnasts of our country Elizaveta Nazarenkova, Anastasia Serdyukova and Anora Davljatova won gold medals in the team competition. Silver awards went to “hosts” of tournament, gymnasts of South Korea, and “bronze” to the representative of Kazakhstan.

In the group competition, the team of Uzbekistan comprised of Luiza Ganieva, Martha Rostoburova, Zarina Kurbanova, Valeria Davydova and Samira Amirova won the bronze medal. The Asian champion became the team of the Chinese, the Japanese team took the “silver”.

(Source: UzReport.uz)

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