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August 13, 2015


economy.. 2

Localization of production on the basis of processing of raw materials – one of the most important directions of economic reforms in manufacturing of the Republic of Uzbekistan. 2

sport.. 4

Twelve Months to Go Before Rio Olympics. 4



Localization of production on the basis of processing of raw materials – one of the most important directions of economic reforms in manufacturing of the Republic of Uzbekistan

At a sitting of the government of the Republic of Uzbekistan dedicated to the results of the nation’s socio-economic development in 2014, special attention was given to the realization in 2015 of measures that are designed to maintain the high rates of economic growth as well as to modernize and diversify the leading industries of manufacturing.

International experience (South Korea, the People’s Republic of China, Singapore, Indonesia, Malaysia etc.) testifies to the fact that the processing of local raw materials and creation of import-substituting production facilities ensure the permanency of industrial production as a basis of national economic independence.

The intensification of localization and expansion of inter-sector industrial co-operation are among the main reserves and factors of economic growth and restructuring of the manufacturing sector. The localization of production on the basis of local raw materials is determined as one of the priorities of economic reforms in Uzbekistan in 2015.

The economic reforms cover the following purposes: further intensification of the localization process; expansion of inter-sector industrial co-operation, in particular between small businesses and large enterprises; creation, on the basis of local raw resources, of modern high-tech competitive production facilities that are capable of substituting imports and satiating the home market with all sorts of consumer goods and components required; economy and rational use of foreign currency; creation of new jobs and improvement of the employment situation in the country.

Today, a number of large-scale investment projects are implemented in different sectors of the Republic’s manufacturing, which have the potential to launch in the near future the production of polypropylene, polyethyleneterephtalate, pharmaceutical substances, automobile tires, solar panels, ceramic granite, fast-food and other goods.

In the country’s free industrial zones, enterprises are set up on the basis of co-operation with foreign companies, in a move to turn up units and components for automobile power plants (transmissions), ceramic polish, glass-fiber plastic and basalt plastic fittings, telephone-sets, tablet PCs, TV-sets, notebooks and the like.

In addition to these larger-scale projects, localization projects make a sizable contribution to the intensification of local raw-material processing. Carried out by small businesses and enterprises operating in various industries, the localization projects aim to master the production of components, new materials and ready-for- consumption goods to be sold by their producers.

It is worth noting that the localization projects, substituting many components, spare parts and articles previously imported to the Republic, are funded out of the financial resources of these small businesses and enterprises and exclusively on their initiative.

And the driving force behind such projects is the Localization Program of the Republic of Uzbekistan.

The Presidential Resolution No 2120, “On the Localization Program of production of finished goods, components and materials for the period 2014-2016” as of February 4th 2014, plans the realization of 486 localization projects.

Proceeding from the priorities identified for 2015, another important document has been passed at the beginning of the current year – the Presidential Resolution No 2298, “On the Localization Program of production of finished goods, components and materials for the period 2015-2019” as of February 11th 2015, which brings together proposals from the basic industries of manufacturing, small businesses and the state on how to localize the production of different product groups.

The characteristic feature of this Program is an increase in the minimum localization level to 36 per cent for a proposal to be included in the Program, which is aimed at ensuring that a broader range of local raw materials are used in production.

The Presidential Decree in question approves:

  • A list of localization projects (602 projects), all of which envisage the production of competitive import-substituting output, projected production volumes and localization levels;
  • A list of promising projects to localize the production of finished goods, components and materials on the basis of deep processing of local mineral resources, involvement into the production process of sizable waste and innovation developments (58 projects), which will encourage the Republic’s economic establishments to develop local raw materials, with the indication of potentially promising product categories that can be manufactured on their basis;
  • A list of finished goods, materials and components, whose production is advisable in the period 2015-2019 (over 110 product categories), i.e. a list of goods, which are now imported, because they are not made in Uzbekistan at all or produced in insufficient quantity;
  • For the first time, the basic industries of manufacturing have determined, together with the adjacent sectors and small businesses, the volumes of imports reduction owing to localization of production and expansion of inter-sector industrial co-operation, which are indicated in approved parameters of imports reduction by 30-40 per cent at an average, compared with the year 2014.

To boost the production of goods by processing local raw materials, the Localization Program exempts indigenous enterprises from the following taxes:

  • Customs payments (with the exception of fees charged for customs registration) for imported technological equipment and spare parts thereto, as well as for components, which are not turned out domestically, but are used in the technological production process of localized goods;
  • Income (profit) tax, unified tax payment (for economic establishments preferring the simplified system of taxation) charged on goods produced under localization projects;
  • Property tax charged on the capital production assets, which are used for the production of localized output.

The implementation of a given Program allows enterprises, which are busy putting into mass production of new types of localized goods, to direct the financial resources that become available thanks to the afore-stated privileges and tax holidays, to the creation of new production facilities, the expansion, reconstruction, modernization and technical and technological re-equipment of existing ones, as well as to the inculcation of quality-control systems , acquisition of raw materials needed for the production of localized goods and stimulation of engineering and technical personnel at the enterprises covered by the Localization Program.

Enterprises are included in the Localization Program for the term of no more than 3 years. In exceptional cases, a decision to prolong this term is made by the Special Inter-sector Commission on the realization of the Localization Program of production of finished goods, components and materials on the basis of industrial co-operation. In this case, the following features should be available in the production of localized goods:

  • A step-by-step intensification of localization and reduction of a share of imports in the prime cost of localized produce by deepening the processing of local raw materials and minerals and putting into production previously imported components and materials;
  • Mass production of new categories of localized goods, whose shortages are still observed in the home market.

The past months of the current year have already seen some positive results generated by the effective realization of the Localization Program. In the first quarter, for instance, over 620 billion Soum worth of output has been manufactured under 504 projects, with the calculated import-substitution effect in excess of US $260 million. More than 430 new types of goods have been mastered and put into mass production, including spare parts for excavators, components of compressor units, engine oil, liquors for hydraulic purposes, mine cars, new types of household refrigerators and freezers, electric furnaces, energy-saving light-diode bulbs, components for consumer electronics, bicycles and other goods.

(Source: «Business» newspaper)


Twelve Months to Go Before Rio Olympics

The 31st Olympic Games will take place in Rio de Janeiro in 12 months’ time. The games are set to gather all the top athletes of the world and all of the spectators. But for now we have to focus on the qualifying rounds in these last 12 months.

The rules are simple: the more licenses obtained by the athletes equals to a bigger chance of obtaining more medals at the Olympics by the national teams. Thus the pre-Olympic qualification rounds are a race for obtaining the maximum amount of licenses for the Games in 2016. In London Uzbekistan was represented by 53 athletes in 15 sports. How many athletes will represent Uzbekistan in Rio is the big question. For now we have 4 licenses obtained by Sitora Hamidova, Svetlana Radzivil, Suhrob Hodjaev and Hurshid Hodjibaev.

“On the previous Olympics Uzbekistan took part in the rhythmic gymnastics, gymnastics, trampoline, cycling, swimming, athletics, weightlifting, rowing, boxing, judo, taekwondo, freestyle and Greco-Roman wrestling, shooting, tennis and fencing competitions,” said that General Secretary of the National Olympic Committee of Uzbekistan Oybek Kasymov. “We hope that in Rio our country will take part in even more competitions.”

Preparations for the upcoming games in Uzbekistan began almost immediately after the London Olympics. The momentum was provided by the resolution given by the President of Uzbekistan ‘On the training of athletes of Uzbekistan for the Summer Olympic and Paralympic Games 15th in 2016 in the city of Rio de Janeiro (Brazil)’. As part of the decree many initiatives that will continue to contribute to improving the quality of training of athletes have been implemented.

A Fund for supporting the Olympians has been created under the Olympic Committee of Uzbekistan. Together with the sponsors and other investors, it is helping to reconstruct large and small sports training facilities, increase the material and technical bases of the federations and their facilities. The second line of work of the fund is to stimulate and motivate the coaches and the athletes both socially and financially. In addition the fund acts as a communication hub with international federations and sports clubs.

The support for athletes and coaches has been Increase. Today, they are paid special scholarships. And for increasing the results of the athlete’s special international workshop facilities have been created. Now they host regular training seminars with participation of leading foreign experts on sports.

Much has been done for the enhancement of medical, biological and psychological support for the national teams. The Republican Scientific and Practical Center of Sports Medicine at the National Olympic Committee have begun operating in the capital.

(Source: «Uzbekistan Today» newspaper)

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