September 19, 2014
Uzbekistan uses investments for US$6.7bn in 1H.. 2
Meeting with a Delegation from the Republic of Korea. 3
economy
From the Bank to the Counter
Uzbekistan has seriously expanded its capacity with regard to fruits, vegetables and food production in recent years. The progress has been largely determined by the support banks rendered to businesses and farms through special preferential credit resources for the introduction of mini-technologies and advanced processing equipment, drip irrigation systems, purchase of agricultural machinery, fertilizers and seeds. In the last five years alone, the country’s commercial banks have loaned four trillion soums to the foodstuff producers. (Currency rates of CB from 19.09.2014 1$= 2359.56 soums)
The agro-industrial complex of Uzbekistan has always been one of the pillars of the real economy sector. It has been permanently leading both in terms of volume of production, and in attracting foreign investment, introduction of up-to-date technological equipment. These positions have been achieved primarily by focusing on high-performance and efficient agriculture, based on the new generation of farmers whose activity has come beyond just cultivation of agricultural products. Partially established by foreign investors and equipped with the latest hardware, modern enterprises is another important component of success. As a result, the country has made a significant progress: annually it has been growing about 16 million tons of fruits and vegetables. Over 180 species of fresh and processed fruit and vegetable products are exported to 80 countries. In the last three years alone, the volume of exported agricultural products has more than tripled. Bank loans have largely contributed in these indicators.
In 2013, the commercial banks loaned 365 billion soums for the cultivation, preservation, processing, and support for fruit and vegetable exports. The loans empowered thousands of businessmen to buy seeds and seedlings, fertilizers, purchase agricultural machinery of various modifications, build greenhouses, cold storages, intensive gardens, and commission new production lines. Besides, jointly with foreign financial institutions, Uzbekistan is currently implementing big projects worth more than $1.1 billion. They are aimed at introduction of advanced agro-industrial technologies, development and reconstruction of agricultural Infrastructure, irrigation and drainage systems, production of foods through deep processing of local feedstock.
Targeted at the establishment of new production facilities and equipping them with compact production lines, the loan funds have led to an increase of the number of mini-enterprises for meat and dairy, fruit and vegetable processing in rural areas, as well as service centers for the agricultural food procurement. As a result, certain types of previously imported products are now manufactured domestically. The loan portfolio of commercial banks contains thousands of new projects on the introduction of modern agricultural technologies, increase of agricultural production, improvement of infrastructure and logistics.
(Source: «Uzbekistan Today» newspaper)
investments
Uzbekistan uses investments for US$6.7bn in 1H
Uzbekistan used investment into fixed capital for US$6.7 billion in US dollar equivalent in the first half of 2014, which rose by 12.8% year-on-year.
According to the State Statistics Committee of Uzbekistan, total volume of investments directed to fixed capital in national currency exceeded 15.014 trillion soums in the reporting period, which rose by 10.8% year-on-year. Ratio of the volume of investments into fixed capital to the gross domestic product (GDP) made up 24.6% in January-June 2014, which rose by 0.7 percentage points compared to the same period of 2013. (Currency rates of CB from 19.09.2014 1$= 2359.56 soums)
The investments for 9.079 trillion soums (60.5% from total volume of investments) were used in production industries of economy, and 5.935 trillion soums (39.5%) – non-production industries.
According to the committee, 53.3% of investments into fixed capital fell to share of enterprises and population, 20% – foreign investments and credits, 11.9% – loans of banks and other credit resources, and 10.8% – off-budget funds, including Fund for Reconstruction and Development of Uzbekistan.
Share of the state budget in total volume of used investments into fixed capital made up 5.7% and fund for land reclamation – 0.3%.
State enterprises used investments for 11.651 trillion soums and non-state enterprises – 3.363 trillion soums in the reporting period.
About 23.6% of investments, used by the state enterprises, fell to share of the state budget, 24.6% – own resources of enterprises and population, 35.7% – off-budget funds, as well as 13.2% – foreign investments and loans.
About 59% of investments, used by non-state enterprises, fell to share of own resources of enterprises and population, and 21.9% – foreign investments and loans. Share of loans of the banks and credit resources made up 14.9% in total volume of used investments in the reporting period.
Largest volume of foreign investments and loans were directed to fuel-energy sector (58.1%) and transport and communication sector (24.1%).
(Source: UzDaily.com)
international cooperation
Meeting with a Delegation from the Republic of Korea
A meeting has taken place at the State Committee for Privatization, De-monopolization and Development of Competition of the Republic of Uzbekistan with officials from the Republic of Korea.
Deputy Chairman of the State Committee for Privatization, De-monopolization and Development of Competition of the Republic of Uzbekistan Abdusamad Himmatov, President of Korea Consumer Agency Dae-Pyo Jung stressed the consistent advancement of ties between Uzbekistan and South Korea across all the aspects of interaction, whose important normative foundation is built on agreements reached during meetings between the leaders of two nations. The state visits of President Islam Karimov to the Republic of Korea in September 2012 and President of the Republic of Korea Park Geun-hye to our country in June 2014 raised the bilateral relations to a qualitatively new level.
South Korea is a reliable strategic partner of Uzbekistan. Both countries wield enormous potential in the economic sphere. In this field, the two nations enjoy the most favorable regime.
The cooperation between our two countries has been steadily progressing at the inter-agency level. Uzbekistan’s State Committee for Privatization, De-monopolization and Development of Competition closely interacts with a range of similar agencies and organizations of the Republic of Korea, including the Korea Consumer Agency. In accordance with the Memorandum on Cooperation signed in 2013 between the State Committee for Privatization, De-monopolization and Development of Competition of the Republic of Uzbekistan and the Korea Consumer Agency, corresponding training seminars are being held. The two sides exchange expertise and information between specialists.
The privatization process underway in Uzbekistan has been yielding its remarkable effects. Ensuring by the state of all the rights of private property owners and investors, guarantees of property immunity, numerous privileges and preferences opens up a broad way for the development of business also for investors from abroad. Active in this process have been businesspeople from South Korea.
It was underscored during the conversation that the dynamically evolving trade-economic and investment cooperation between the Republic of Uzbekistan and the Republic of Korea serves for the further expansion of interrelations, for the successful realization of prospective joint projects.
The two sides exchanged views on issues pertaining to the further consolidation of cooperation in the filed of privatization of public property and the development of market economy built on sound competition, de-monopolization and protection of consumer rights.
(Source: UzA)
Tourism
The development of tourist infrastructure in the regions of the Republic of Uzbekistan: Khorezm province
Today tourism is a vital component of economy in many countries. Uzbekistan is no exception. Developing this industry of the national economy constitutes one of the priority tasks of the Republic’s state policy.
It should be observed that the special attractiveness of Uzbekistan as a tourist destination lies in the abundance on its territory of unique architectural, cultural and archeological monuments from various historical epochs.
Each region of the country boasts architecture, culture, folklore and historical legacy of exceptional beauty and importance, original climatic conditions and health-improving and recreational zones. All these factors provide a solid foundation on which to develop different types of tourism, in particular sporting tourism, eco-tourism, extreme tourism and winter tourism.
To make the most of the tourism potentialities, reams of which are available all over the Republic, the Uzbek government is attaching great importance to the development of tourist infrastructural facilities in the regions. Corresponding programs have been worked out and approved to secure this purpose.
In Uzbekistan, all the programs approved in a given field are aimed at developing and diversifying regional tourism. They stipulate the realization of concrete measures to improve tourist infrastructure and hotel business, to strengthen the personnel of tourist organizations, as well as to inculcate modern systems of management in the regional tourist sectors. For example, the Resolution of the President of the Republic of Uzbekistan No ПП-1940 as of 20th March 2013 approved the Program for the development of tourism in Khorezm province in the period 2013-2015. Its main purposes include: the achievement of an appreciable increase in export and investment potentialities of the local tourist industry, the expansion of its share of the province’s GDP by intensifying the hotel business and improving tourist infrastructure, the formation and introduction of new tourist routes that encompass all the cultural and historical sights of the region.
In addition, the Program provides for the elaboration of concrete proposals, which are designed to organize systemic work on the development of tourism in Khorezm province, including the rendering of world-class tourist services and their promotion to the international tourist market.
What’s more, the document specifies a series of important tasks in the tourist industry, such as the creation in the region of modern tourist infrastructure; the improvement of both the state of its historical-cultural heritage and the quality of information, communications, banking, transport and other services; the solidification of personnel; the introduction of new types of tourism, taking into consideration the region’s historical-cultural monuments and biological-climatic peculiarities; the expansion of a list of traditional and modern types of cultural and entertainment services and the assortment of souvenirs made there, as well as the implementation of steps that facilitate the promotion of the province’s tourist potential by disseminating appropriate information.
The Program envisages the conduct of more than 200 events in 2013-2015, all of which designed to develop modern tourist infrastructural facilities in the region, to diversify tourist services and to improve the quality of tourist, hotel and transport services rendered by local companies and enterprises. In particular, in order to further entrench transport infrastructure in Khorezm province, it is planned to augment the frequency of international flights to the Uzbek town of Urgench from European and Asian countries; to apply stepped out-of-season discounts on tourist packages, including ticket and accommodation prices, etc.; to launch up-to-date high-speed trains on the following routes: Samarkand – Urgench and Urgench – Bukhara – Karshi – Termez; to put into operation specialized tourist-class means of transport ; to build new lavatories and improve operational ones in oft-visited places; to improve the condition of airports, railway passenger terminals and other similar establishments; to organize high-quality medical, banking and transport servicing of tourists on a level with the highest world standards.
Besides, the Program covers a number of tasks to raise the efficacy of the region’s natural potential by developing active types of tourism, such as safari on camels, fishing and rest on the shores of local lakes, as well as by conducting sporting events of the national character, including contests in kurash and ulok-kupkari.
There are also plans to organize a thematic yard, Handicraft Land, on the basis of the Karvon Saroy Complex, to show theatrical performances dedicated to national ethnography and folk ceremonies, to launch permanent exhibitions-fairs of national arts and cultural-entertaining programs “Evening Urgench” and “Evening Khiva”, to open a picture-gallery in the town of Urgench, to organize excursions on arbas along the small ring roads in the towns of Urgench and Khiva, to install Khan parks “Bogi Shamol” and “Chordara” in the Khiva district.
As well as that, the Program under discussion approves a list of 39 cultural-heritage sites based in Khorezm province, which are to be studied, laid up, restored and improved. It is planned to reconstruct and modernize 4 hotels, which function in the region, to build 7 new hotels on the basis of edifices standing empty and to construct 26 completely new hotels, with the total number of hotels and rooms being increased, respectively, from 27 and 60 and from 1,500 to 2,950.
Let it be emphasized that the fulfillment of all measures stipulated in the Program for the development of tourism in Khorezm province in the period 2013-2015 is sure to give a powerful incentive to the further development of tourism in the region and to raise the industry’s competitiveness in the international marketplace, to augment the number of foreign tourists and the inflow of currency receipts to the national economy, to create new jobs and to improve the population’s well-being.
(Source: «Business partner.uz» newspaper)
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