November25, 2014
Uzbekistan’s President on Visit in Kazakhstan. 2
Fund for Support of Exports Helps Business to Export Their Products, Services. 2
Special industrial zone “Angren”. 3
Д.Хакимов
А.Каипбергенов
POLICY
Uzbekistan’s President on Visit in Kazakhstan
President of the Republic of Uzbekistan Islam Karimov arrived November 24 in Astana with an official visit on the invitation of Kazakhstan’s President Nursultan Nazarbaev.
The heads of the two states met today to discuss key issues in the development of relations between the two nations, the situation in Central Asia and around the region, as well as the pressing international topics of shared interest.
The dialogue at the highest level is considered in both countries as an important factor in the multifaceted cooperation that defines priority dimensions of bilateral interaction for the future.
The visit’s major events are scheduled for November 25. The two presidents are to hold talks in a contracted format, to be joined later by members of delegations from the two countries.
The evolution of relations between Uzbekistan and Kazakhstan acquires particularly important significance not merely in terms of its longer-term prospects, but also for the stability and prosperity in Central Asia in general.
The robust joint normative framework covers practically all spheres of bilateral cooperation, centered on the Eternal Friendship Treaty signed in 1998 and the Strategic Partnership Treaty inked in June 2013.
(Source: Press-service of the President of the Republic of Uzbekistan)
FINANCE
Fund for Support of Exports Helps Business to Export Their Products, Services
Fund for support of small businesses and private entrepreneurship is continuing to deepen marketing research of external markets and help businesses to export their goods and services.
The main task of the fund is to help small businesses to export their goods and services via studying perspective external market, Pravda Vostoka reported.
The fund developed information on routes and estimated transport, customs and other expenses, related to exports of goods to some foreign states, as well as studied certification of products to Russia, Kazakhstan, Ukraine, Germany, France, China and other states.
The fund assisted Uzbek businesses to participate in various exhibitions and fairs abroad. In the result, the business entities signed 26 agreements on intention of export of goods and service for US$67.4 million.
The fund also organizes business meeting, forums, cooperation exchanges with participation of foreign companies. In particular, meeting with business circles of South Korea, Singapore, Latvia, Spain, Belgium, Kazakhstan, China, Japan and Lithuania were held and 11 memorandum of understandings, several export and investment agreements for US$74.5 million were inked.
Fund for support of export of small businesses and private entrepreneurship and Enterprise Lithuania can sign an agreement on cooperation. It also inked an agreement with Association of Chambers of trade, industry and handicrafts in 2014.
The Japanese delegation, including representatives of ITOCHU Corporation, NEXI, JETRO, MARUBENI and ROTOBO, visited Uzbekistan. MARUBENI expressed each month to export 50 tonnes of dry fruits from Uzbekistan.
The fund said that its works helped hundreds of small businesses to launch exports of their goods and services to abroad. For example, Tashkent regional branch of the fund helped to register export contracts to over 90 private enterprises. Economic effect of these enterprises exceeded US$100 million. These enterprises exported their products to Kazakhstan, Kyrgyzstan, Russia, Azerbaijan and other countries.
(Source: UzReport.uz)
Special industrial zone “Angren”
Mutual Interest
The agenda of the Angren Special Industrial Zone (SIZ) includes 16 investment projects worth over $224.8 million to be implemented in the coming years. They envision the establishment of companies specializing in fruit and vegetable processing, food production, manufacture of electronics and last-generation construction materials.
The Angren SIZ has turned into a so-called ‘second prolusion’ for the domestic real economy sector and foreign investors. After the successful launch of Navoi Free Industrial Economic Zone, the pioneer in the CIS space, many companies expressed willingness to invest in Uzbekistan. However, there were certain impediments – the threshold for entry into the Navoi zone was high, especially for small projects, so during joint business forums and conferences some domestic and foreign investors have repeatedly appealed to the representatives of national government structures with a proposal to reduce limits. For example, in case of Navoi FIEZ, investors received privileges for seven years if investing $3 -10 million, for 10 years – from $10 to $30 million, and for 15 years with the amount exceeding $30 million. Such amounts and terms were attractive for large projects and companies, but left no room for small business and private entrepreneurship. Therefore, in April 2012, it was decided to create a new zone designed for a different class of investors. To do this, they significantly reduced the investment threshold: three years of benefits were provided for those who invest $300 thousand – $3 million, five years for $3 million – $10 million investment, and seven years for investments exceeding $10 million.
Uzbekistan has already invested about $60 million in the development of infrastructure at Angren SIZ. The area was chosen with a reason behind it. The region is perfectly secured by power and human resources, and is located at the intersection of transport routes from different parts of the country. Today, the high-tech industries of Angren SIZ export their products. Over the past years, the leading companies from Austria, Bulgaria, Great Britain, India, Singapore and South Korea have partnered the commissioning of enterprise specializing in the production of copper pipes of different diameter, industrial silicon, energy saving lamps, coal briquettes, modern construction and finishing materials, sugar. The joint enterprises have provided over a thousand new jobs.
The Zone generates new approaches to production development. For example, for a long time Uzbekugol almost never used the fine powder obtained during the coal extraction. The Uzbek-Chinese enterprise Jun Long Industrial in Angren SIZ has established the manufacture of coal briquettes out of coal powder, thus providing thousands of people with heat in the winter cold. The parties invested $3.2 million in the joint venture, and provided over 70 new jobs.
With the capacity of processing about 150 tons of powder and producing up to 90 tons of coal briquettes a day, in ten months of 2014 Jun Long Industrial has manufactured products worth over 200 million soums, which were supplied to Farghona, Andijon, Namangan, Syrdaryo, Samarqand and other regions(currency rates of CB RU from 10.11.2014 1$= 2401.09 soums).
“Coal briquettes are mainly made in an oblong package,” said a representative of the joint venture Saminjon Mahkamov. “Unlike the traditional one, this type of coal is easy to use, less harmful to the environment, and long-keeping at a certain temperature.”
South Korean investors have been particularly active in the development of Angren SIZ. A joint Uzbek-South Korean venture Uz-Shindong Silicon has been recently commissioned to produce the industrial silicon. The projected cost of the plant is $8.67 million. After reaching its full capacity the enterprise will be able to produce up to five thousand tons of silicon daily, providing about 200 new jobs.
The Uzbek-South Korean company Egl-nur is another successful example. Driven by modern technologies the enterprise manufactures world standard energy saving lamps.
“As of 2014, we have produced and delivered goods worth 750 million soums,” says Manufacturing Engineer Botir Jamolov. “This year, we have concluded purchase and sale contracts with more than 30 companies and institutions. That suggests an increase in production volumes, and creation of new jobs.”
(Source: «Uzbekistan Today» newspaper)
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