INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 220

POLItiCs. 2

President of the Republic of Uzbekistan Islam Karimov received Lee Kwan-Sup, First Vice Minister of Industry, Trade and Energy of the Republic of Korea, at the Oqsaroy on November 5. 2

economy.. 2

GM Uzbekistan increases production capacities by 20%.. 2

investments. 3

Attraction of foreign investments and advanced technology to develop electrical engineering in the Republic of Uzbekistan. 3

International cooperation.. 5

Session of the CIS Rail Transport Council opens in Tashkent 5

sport.. 6

IKA held its XV Ordinary Congress meeting. 6

 

 

POLItiCs

President of the Republic of Uzbekistan Islam Karimov received Lee Kwan-Sup, First Vice Minister of Industry, Trade and Energy of the Republic of Korea, at the Oqsaroy on November 5.

The head of our state pointed out that South Korea is one of Uzbekistan’s key investment and technology partners. A number of strategic projects across diverse sectors of our country’s economy are in progress with enthusiastic participation of Korean businesses. A classic case of this type of cooperation is the recently completed construction of the Ustyurt Gas Chemical Complex at the Surgil Deposit worth around 4 billion dollars.

It was stressed at the meeting that the attendance of the Tashkent International Investment Forum by an eminent South Korean delegation demonstrates the further enhancement of strategic partnership relations between our two nations and the implementation of agreements reached during highest-level talks.

The conversation at the Oqsaroy has served to discuss issues pertinent to the engagement of Korean investors in the processes of privatization of public enterprises and assets in Uzbekistan and to the joint realization of new investment schemes in principal industrial and infrastructure sectors.

The two sides said they highly appreciate the 24 deals and memoranda signed within the framework of the International Investment Forum with South Korean partners on the acquisition of public assets in the hydrocarbon, chemical, electro-technical, machine-building and food industries, in the production of construction materials as well as in the infrastructure realm totaling more than 220 million dollars.

Lee Kwan-Sup thanked the President of the Republic of Uzbekistan for a warm reception and noted that the Republic of Korea attaches priority significance to the further development and consolidation of bilateral mutually advantageous cooperation, primarily in the trade-economic and investment spheres.

(Source: Press-service of the President of the Republic of Uzbekistan)

economy

GM Uzbekistan increases production capacities by 20%

GM Uzbekistan increased production capacities by 20% – from 250,000 to 300,000 automobiles a year, Review.uz edition reported quoting data of Uzavtosanoat, presented during the Ninth International Industrial Fair and Cooperation Exchange.

According to Uzavtosanoat, GM Uzbekistan has three plants in Uzbekistan – in Asaka (Andijan region), in Tashkent city and in Pitnak (Khorezm region).

Asaka-based plant currently produces Matiz, Nexia, Cobalt, Lacetti, and Spark. The plant will start production of new model T250 (Aveo). The production capacity of the plant is 250,000 cars a year.

The capacity of the Tashkent-based plant on assembly of Captiva and Malibu cars makes up 10,000 automobiles a year.

The plant in Pitnak can produce up to 40,000 cars of Damas, Labo and Orlando models a year.

It was underlined that GM Uzbekistan currently employs over 7,500 people.

(Source: UzDaily.com)

investments

Attraction of foreign investments and advanced technology to develop electrical engineering in the Republic of Uzbekistan

The economy of Uzbekistan these days is an integral part of the global economic system. The country has been intensifying its export potential year in, year out, while shifting the focus of its exports structure from raw materials to high-tech manufactured goods with great value added. Despite the fact that some crisis-related negative phenomena continue to persist in the world economy, decelerating its growth rates, the Republic of Uzbekistan tends to demonstrate a high and stable pace of economic development and solidification of its macroeconomic stability.  This remarkable performance has been made possible thanks to the systematic and thorough implementation of the priorities specified in the National Program of Socio-Economic Development and complex programs of outstripping development of sectors and industries of the Uzbek economy. In 2013, the Republic’s GDP grew by 8 per cent and the volumes of industrial output – by 8.8 per cent, including the volumes of consumer goods and farm produce – by 15.9 per cent and 6.8 per cent, respectively.

The continuation of measures designed to boost home demand, combined with the provision of all conceivable assistance to indigenous manufacturers of goods and services, have contributed much to an increase in production volumes of consumer goods by 15.9 per cent, retail turnover – by 14.8 per cent and services – by 12.4 per cent. The services sector’s share of the national GDP reached 51.2 per cent in 2013.

Production volumes of localized goods grew by 39.7 per cent, with the estimated effect of import substitution amounting to US $4 billion.

In the electro-technical industry of Uzbekistan, there are 6 enterprises producing more than 2,000 categories of cables and wires, 9 enterprises specializing in the manufacture of industrial-technical goods (such as transformers, sub-stations, switchboards, lifts, all sorts of components and units for other industries), 15 enterprises involved in the production of composite appliances and radio-techncial goods  (including modern models of TV-sets, consumer and industrial refrigerators, air-conditioners, electric kettles, irons etc.) and 5 enterprises providing maintenance services and repairs.

The main item of such success is the orientation of the national economy towards import-substitution and localization, which serve as the powerful catalysts for manufacturing, since they allow the economy to diminish its dependence on outward factors and to fuller utilize its inner production reserves and available mineral resources. The Republic of Uzbekistan is the most industrially developed state in the Central Asian region. Electric engineering is one of the main sectors of the country’s economy. The economic reforms carried out by the Uzbek government, the structural changes undertaken in all spheres, the comprehensive economic and social policy followed in Uzbekistan have created a very propitious environment for the development of such sectors as radio electronics, electrical engineering and instrument making.

Today, over 40 enterprises under various types of ownership function in the Republic’s electro-technical industry. Joint venture enterprises set up with a share of foreign investments operate successfully in the sector, too.

As the sweeping economic reforms progress in the country and the state support plays an increasingly appreciable role, the indicators of production, export and quality of manufactured goods at the sector’s enterprises tend to improve. In particular, prior to the outbreak of the global economic crisis in 2008, the production volume in the electro-technical industry of Uzbekistan was estimated at 315.0 billion Soum. In 2012, a given indicator reached 988.1 billion Soum, with the predicted figure standing at 777.8 billion Soum. By the year 2011, the sector’s growth rate reached 126 per cent. Accordingly, its volume of merchandise exports jumped to US $186.6 million, or 117.4 per cent of growth, compared with the pre-crisis period. At the same time, the industry managed to turn out 254 billion Soum worth of consumer goods (currency rates of CB RU from 06.11.2015   1$= 2692.13 soums).

From the first days of independence, the Republic of Uzbekistan was pursuing the policy of structural transformation and outstripping development of modern high-tech industries and production facilities, with a view to raising the level of the nation’s competitiveness and strengthening its position in the world marketplace. Among the priorities is the production of composite consumer appliances and brand-new import-substituting and export-oriented electrical goods.

At present, the organization of facilities to produce consumer electronics of the world-famous brands is assuming ever greater importance in the country, with the Uzbek government giving special prominence to this direction. In order to create a far more favorable business climate for foreign investors, special industrial zones “Andijan” and “Djizak” have been established. Depending on the amount of capital invested, a newly-created enterprise is exempt from taxes and customs duties.  In addition, it is granted a package of other privileges within 3-10 years.

For the time being, a big effort is under way to implement investment projects aimed at launching the production of new types of consumer electronics. In particular, in the last few years Uzeltechsanoat, operating in conjunction with foreign companies in conformity with governmental decisions, implemented 16 investment projects to the tune of US $140.1 million. Of these, 4 investment projects were intended to expand production by introducing new types of electric goods. As a result, several new categories of high quality import substituting consumer electronics were put into production in 2013. These include:

– LCD TV-sets

– Small appliances

– Consumer split system air conditioners

– Washing machines

– Household refrigerators etc.

Everything points to the fact that great strides are made by the electro-technical industry, in which large amounts of capital are invested and where new export-oriented production facilities are erected in a move to swell the output of home-made non-food consumer goods.

At the same time, notwithstanding the large-scale reforms accomplished by the country’s leaders in all sectors of manufacturing, a wide range of measures taken to modernize and re-equip the existing production facilities, numerous investment projects implemented in the national economy and new categories of commodities introduced into production, the Uzbek electro-technical market remains dependent on imports, whose volumes increase from year to year. In 2012, for instance, it was estimated at US $104.7 million for several types of goods, a 140.5 per cent rise on a year earlier.

According to experts’ estimates, the Republic’s market for consumer electronics is one of the most dynamically developing ones in the CIS and Central Asia. This estimate takes into account not only a rapid increase in population (in 2014, the Uzbek residents numbered more than 30 million, or some 6 million families that are potential consumers of electric goods).

If we suppose that the renovation period for one type of consumer electronics in Uzbekistan is 5 years on the average, then it is necessary to turn out no less than 1.2 million articles a year, in order to meet the population’s demand for a given type of electric produce. Such production is categorized as a large-scale one. Calculations show that in cases where each of the 1.2 million families annually spends US $350 at an average on such a purchase, the market’s volume comes to US $420 million a year. It is a very impressive figure, indeed. To compare: the production volume of consumer goods at all enterprises incorporated in Uzeltechsanoat reached 254 billion Soum (or about US $115 million) in 2012.

The current situation is paradoxical. With a whole industry of radio electronics and electric engineering available in Uzbekistan, virtually complete control over the vast and capacious home market for consumer electronics is given to foreign manufacturers. This fact is confirmed by the official data from the State Statistics Committee of the Republic of Uzbekistan.

The import volumes of electric goods are growing exponentially. Between 2009 and 2013, as one example, the importation of composite consumer electronics grew by 288 per cent on the average. As far as small appliances are concerned, their import volumes surged 6-fold, or by 633 per cent. This impressive increase is explained, first of all, by the rise in the living standards of the Uzbek people, as well as by the absence of sufficient capacity to meet their demand for a given group of consumer electronics.

The key problem for the Republic lies in the fact that enormous amounts of money are spent to acquire imported electric commodities, although all required conditions are in place in the country to manufacture them at home.

Worldwide, electric engineering is one of the most rapidly developing industries. Its output is used everywhere, in all spheres of life and activity. At one time, the electro-technical sector became a catalyst behind a run-away economic growth in a number of countries, particularly those located in South-East Asia. In spite of certain difficulties, however, the last few years have witnessed an impressive growth dynamic in the electro-technical market of Uzbekistan, including that for consumer electronics. Its average annual rates of growth stand at about 30 per cent. And although the home market is still dominated by overseas producers, whose market share currently exceeds 70 per cent, indigenous manufacturers are steadily expanding their presence in the market. The state is devoting much attention to their development.

The main brands in the Republic’s consumer electronics market include TCL, Haier, Samsung, LG, Sony, Hitachi and the like, representing such countries as China, Korea, Malaysia, Japan and others. Among the domestic brands are ARTEL, Sino and Roison.

The foreign companies mentioned above dominate the Uzbek market for consumer electronics. Experts put their market share at some 70 per cent, hence the vast amounts of foreign currency reserves spent each year by the country. It is worth noting here that the price for imported consumer electronics is too high for many residents of Uzbekistan to afford.

That’s why, production of high quality import-substituting and export-oriented goods contribute greatly to the development of the electro-technical industry and satiation of the population’s demand for home-made consumer electronics at more reasonable prices.

(Source: «Business partner.uz» newspaper)

International cooperation

Session of the CIS Rail Transport Council opens in Tashkent

Railway Transport Council of the members of the Commonwealth of Independent States (CIS) and its executive body- Council’s Directorate were established in accordance with the Treaty of heads of governments of CIS countries on 14 February 1992 in order to maintain sustainable economic links among CIS countries.

The Council considers and decides on the operational activities of the railways, sharing and technical content of freight cars and containers, conditions for passengers and freight, train safety in international transport, development of systems of accounting and settlement for performed services, scientific and technical cooperation.

Chairman of the Railway Transport Council of CIS countries O.Belozerov opened the 63th regular session of the Council.

Further development of cooperation in the field of railway transport and implementation of the agreements, reached in previous meetings of the Council for Rail Transport of the Commonwealth, as well as the 2015 9- month results.

During this period 1.4 billion tons of goods have been transported, which is 15 percent more than commitments of member countries. An increase in average transport distance by 3.5 percent has also been recorded. During the reporting period, railway administrations continued “railway car” assistance for the export needs of member countries. Its volume amounted to 3.9 thousand cars. The volume of cargo in containers for the past period amounted to 20 million tons, which is 6.1 percent more than the commitments. For 9 months of 2015 the number of passengers, carried on interstate routes, amounted to 14.8 million.

Uzbekistan railways’ activity has been on the focus of the event. Head of the Uzbekiston temir yo’llari joint-stock company A.Ramatov spoke about the reforms in railway sphere, modernization, technical and technological renovation of rail enterprises under the leadership of President Karimov.

Uzbek railways currently are a modern high-tech transport system of over 6 thousand kilometers length. Consequently, our country plays an important role in organization of railway transportation in Eurasian railspace and effective use of international transport corridors.

Modernization, technical and technological equipment of rail transportation enterprises allowed Uzbekistan to become the only country in Central Asia with a full construction and repairs base for rolling stock.

In 2013 a foundry-mechanical plant was modernized for over 150 million US dollars. It is equipped with technological lines of German companies and is the only enterprise, capable of producing molding products for rail transport. By 2020 the enterprise aims to produce up to 1200 cars annually, as well repair 1500 cars. Besides, Tashkent plant for construction and repair of passenger cars has mastered the production of modern passenger cars. In recent years, it produced 120 new and 735 modernized cars.

O’zbekiston temir yo’llari JSC is developing strong ties with industrial, scientific and operational companies in other countries, foreign training centers for quality training and retraining, as well as strengthening cooperation with the Railway Transport administrations of CIS countries.

Recently a memorandum on cooperation has been signed between O’zbekiston temir yo’llari JSC and the Ministry of Railway Transport of Turkmenistan.It envisages that O’zbekiston temir yo’llari will conduct overhaul and depot repair of all the rolling stock of the neighboring state.

Deputy Prime Minister of the Republic of Uzbekistan. B.Zakirov took part in the opening session.

(Source: UzA)

sport

IKA held its XV Ordinary Congress meeting

International Kurash Association held its XVth Ordinary Congress in Khorramabad city, Iran.

Members of the Executive committee of the International Kurash Association, representatives of all regional conferederations of kurash, sports community and mass media attended the event.

At present over kurash federations operate in over 120 countries of the world. World and regional championships, international tournaments are held by the IKA and regional confederations.

At the General Assembly of the Asian Olympic Council, held in September this year in Ashgabat, kurash was included to the program of the Asian Summer Games 2018 in Indonesia, the Games which are widely accepted as the second biggest multi-sport event in the world after the Summer Olympics. Kurash will also feature in the official competition programs of the Asian Beach Games 2016 in Vietnam and Asian Indoor and Martial Arts Games 2017 in Turkmenistan.

During the Congress, the Continental Union Presidents presented their reports on activities made in the year 2015 in their respective continents and plans for 2016. The two newly established national Kurash federations in Italy and Monaco were granted the full membership in the IKA.

The Congress members elected Mr. Haider A. Farman (the Director of the Asian Games Department of the Olympic Council of Asia representing Kuwait) as IKA President, Mr. Murodjon Aliev (First deputy minister of culture and sport of Uzbekistan) as IKA Chairman.

The IKA Congress members also approved the chairpersons of the IKA Standing Committees on sports, refereeing, ethics and discipline, International relations, legal matters, athletes, education, women in sport, protocol and marketing.

The Kurash Association of India presented the progress report on the World Junior (U20) Kurash championships and the IKA’s XVI Ordinary Congress which will be held in November 2016 in the Indian resort city of Kochi.

X World Kurash Senior Championships, which will be held in Khorramabad on 5-6 November, wrestlers will compete in weight categories under 60, 66, 73, 81, 90, 100, over 100 kg and open categories for the title of the World champion at the Takhti Sport Complex in Khorramabad.

(Source: UzA)

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