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March 16, 2015


 digesteconomy.. 2

Auto Industry of Uzbekistan: In the Face of Crisis. 2

elections OF THE PRESIDENT of the republic of uzbekistan.. 3

Islam Karimov’s meetings with voters of Namangan and Ferghana regions. 3

Meetings in the campaign headquarters of candidates. 5

The CIS observation Mission arrived in Uzbekistan. 5

Legislative Chamber of Oliy Majlis of republic of Uzbekistan.. 6

Deputies Considered the Report of the Accounting Chamber 6


No Shame in Saving. 8

Tourism… 9

Measures for the development of roadside and tourism infrastructure of Uzbekistan elaborated. 9










Auto Industry of Uzbekistan: In the Face of Crisis

Domestic auto industry has faced certain predictable problems. The demand for its products in major export markets in Russia and other CIS countries started ‘shrinking’ at the result of the collapse in oil prices. Under these conditions, the automotive industry of Uzbekistan has to take nonconventional but optimally effective solutions to not just hold its ground in the attained segments, but also to press the competitors.

Experts say that any crisis is always a good opportunity for the development with a correct approach. The market ‘washes out’ inefficient companies, thus opening space for other players. Today, the conditions of the falling demand for cars in Russia, as a major importer of Uzbek cars, toughen the competition between the parties. So, there is a need to attract a customer with additional shares, options and discounts. This means that the manufacturer actually reduces its profits in advance by offering the better product for less money.

How to surpass the unplanned expenses? The answer is simple – it has to optimize production and reduce production costs through the introduction of energy-saving technologies, development of localization, and effective management. The Uzbek automotive industry has gone this way, focusing on several areas of production. In order to avoid the further dependence on the Russian market, the local manufacturers of components and cars have intensified PR rallies in the other, somewhat exotic markets for Uzbekistan. For example, last year, Uzbekistan delivered its products not only to Azerbaijan, Belarus, Kazakhstan, Russia and Ukraine, but also to Brazil, Indonesia, South Korea and Turkey.

The diversification of exports has been grounded on localization of the necessary parts for cars. Along with the obvious benefits from cost savings in foreign currency for the purchase of necessary equipment, the manufacturers thereby reduced the cost of finished goods – the cars – and thus benefited in the fight against competitors. Dozens of cutting edge joint ventures, specializing in the manufacture of quality components and complex parts that are as good as their foreign counterparts, have been established under the localization program over the past five years. They were provided with certain tax and customs privileges, which also allowed the manufacturers enhancing the competitiveness of products at the expense of a significant reduction in production costs. There is an interesting fact: the majority of localization enterprises are located in the Fergana Valley, near the GM Uzbekistan. They produce more than 80% of the total number of components used in the assembly of passenger cars and commercial vehicles.

Last year, the Uzbek-South Korean joint venture UzChasis was the first among Uzavtosanoat enterprises to establish exports of spare parts to Brazil. In May 2014, it signed a contract for $4.5 million. Last year, the company shipped 34,500 items of goods to General Motors do Brasil Ltda worth more than $726,000. There is more to come. Specializing in the manufacture of automobile headlights and lamps made of polymeric materials for Nexia, Matiz, Spark, Cobalt and Lacetti cars, the joint venture is capable of producing up to 250,000 sets per year. Equipped with modern high-tech equipment by the foremost manufacturers of Korea, Germany and Japan, the company is unique and has no counterparts in Central Asia. Today, its experts are working on such promising projects as designing of a new lighting system for the domestic auto T-250, lights and lanterns under J-200 (Gentra) projects, B-150 (Damas) and rear light for MAN. Another Uzbek-South Korean joint venture of Uzsungwoo, which is engaged in production of stamped parts for new cars by GM Uzbekistan, also entered into an agreement for the supply of its products in Brazil in August 2014. Late last December the company carried out the first shipment of automotive components.

The domestic enterprises are working on unique projects. In the end of 2015 the Uzbek-South Korean joint venture Uz-Koram is planning to launch a new production line for the production of automotive components made of fiberglass. The larger batch of its products will be used for the assembly of the Gentra car. Besides, the company is considering the issue of development of production of various parts for Gentra seats.

The release of new models of cars is another interesting trend for expanding exports. For instance, a recently commissioned new car plant in Khorezm region is estimated to produce more than 40,000 Damas and Orlando cars annually. Also, according to the Uzavtosanoat company, it is currently working on the development of a new model of Labo.

This representative of the utility car family in Compact LCV segment is highly in demand in the local and foreign markets. This class of cars is popular with commercial entities that deal with small deliveries or transportation in big cities. In the conditions of urban traffic congestion this compact and maneuverable car is truly irreplaceable. Therefore, the car has obvious export prospects.

It is worth to mention the domestic manufacture of specialized vehicles, which has been increasingly integrating to the foreign market. Last week, the Samarkand automobile plant produced a jubilee 20,000th car, an ISUZU NPR82 garbage truck, driven by compressed natural gas. The government of Uzbekistan intends to purchase 1,000 vehicles of this kind to equip specialized services by the end of 2015. Besides, the plant has launched the production of cars on compressed natural gas of three types: van, dump trucks and flatbed trucks.

ISUZU Motors Ltd. Executive Vice President Takanobu Furuta visited Uzbekistan on this occasion. He emphasized that the representative of the family, which is running on natural gas and was manufactured at Samarkand plant, was chosen to be the anniversary car. «It represents a new generation of environmentally friendly transport that meets high European standards that considerably enhance its competitiveness,» he said.

It is remarkable that, despite the temporary challenges arising from the situation on the global market, today the domestic automotive industry does not slow its run down. Te Joint Stock Company Uzavtosanoat continues implementation of a dozen of projects aimed at production of new components, cars and trucks, buses. Some two decades ago, few people believed that domestic cars might run Europe or the Middle East, while today it is commonplace. What are the prospects for tomorrow? Judging by the scale, the automotive industry is ready for a serious struggle for new markets.

(Source: «Uzbekistan Today» newspaper)


elections OF THE PRESIDENT of the republic of uzbekistan

Islam Karimov’s meetings with voters of Namangan and Ferghana regions

On March 11, Candidate for President of the Republic of Uzbekistan from the Movement of Entrepreneurs and Businessmen – the Liberal Democratic Party of Uzbekistan Islam Karimov met voters of Namangan region.

The meeting was opened by the chairman of the 6th Namangan district election commission G.Ortikov.

Candidate for President of the Republic of Uzbekistan Islam Karimov made a speech about his election program.

The program defines the main directions of the continuation of the process of modernization and democratization in the country, liberalization of the socio-economic sphere. In particular, the priorities indicated by reforming the economy and the growth of its competitiveness, providing more opportunities for the development of private property and entrepreneurship, the revision of the state’s share in the economy, increasing the fertility of sown areas, the introduction of new agricultural technologies in agriculture, supporting farms, small businesses and scope services, expansion of localization programs, improvement of the investment climate, employment, strengthen mutually beneficial cooperation with foreign countries.

In Namangan many sectors of the economy, including light industry are dynamically developing. It was achieved great success in the production of shoes, men’s, women’s and children’s clothing. Modern and import substituting production enterprises “Istiklol design Markazi”, “Iftikhor kiyim sanoat” are increasingly in demand in the domestic and foreign markets.

The geography of exports of manufactured goods to the enterprises of the region, which is currently available in 70 countries. In the field of large-scale work on youth education harmoniously developed personality, to further improve the living standards of the population, the development of industry and services in rural areas.

Professor of Namangan State University T.Fayzullaev, champion of Uzbekistan in boxing G.Kuchkarov and others noted that as a result of the tremendous work to strengthen the independence, social and political stability, economic development increases the credibility of our country in the world, standard of living and welfare of the people are growing. It was emphasized that the process of preparation and holding of elections of the President of Uzbekistan carried out in full accordance with democratic principles such as openness, transparency and multi-party system.

* * *

Candidate for President of the Republic of Uzbekistan from the Movement of Entrepreneurs and Businessmen – the Liberal Democratic Party of Uzbekistan Islam Karimov on the same day met voters of Fergana region.

The meeting was opened by the Chairman of the 11th Ferghana district election commission N.Sobirov.

At the meeting, Candidate for President of the Republic of Uzbekistan Islam Karimov made a speech.

In the pre-election program of the candidate special attention is paid to enhancing the competitiveness of our economy through the modernization and diversification of industry, the elimination of all barriers to the development of private property and entrepreneurship, and provide complete freedom of the subjects of this sphere, improve soil fertility and optimize the structure of sown areas, further transformation farms in multidisciplinary, development and localization of production of export products, improving the investment environment, employment, and sustained improvements in quality of life, strengthen mutually beneficial cooperation with foreign countries.

As a result, pay attention to the development of all regions of our country and in the Fergana region undergoing fundamental changes and updates. Last year, the gross regional product grew by 8.4 percent. The programs of industrial development have been mastered investment of $ 154.4 million, implemented 550 manufacturing projects.

Small businesses and entrepreneurship are an important factor in the structural transformation of the economy, providing employment. Last year the share of this sector in gross regional product exceeded 62 percen,t in employment reached 79 percent.

Veteran of Labor O.Hoshimov, head of the Ferghana regional branch of the Writers’ Union of Uzbekistan and other E.Siddikova proudly noted that its own path of development of our country – “Uzbek model” of development yields results in all areas. It was noted that the process of preparation for the presidential elections carried out in full compliance with national legislation and international democratic principles. The speakers called on the voters to take an active part in the upcoming March 29 elections of the President of the Republic of Uzbekistan.

 (Source: UzA, translated by IA «Jahon»)

Meetings in the campaign headquarters of candidates

In the campaign headquarters of candidate for the President of the Republic of Uzbekistan it was held a meeting with representatives of the OSCE ODIHR Election Observation Mission, headed by Ambassador Extraordinary and Plenipotentiary Cayetana de Zulueta.

During the meeting it was noted that, in accordance with the legislation the registered candidates for the President of the Republic of Uzbekistan from the four political parties have been conducting their election campaign in accordance with the electoral legislation. Election campaign began on 14 February and is now actively continuing.

Election programs of candidates include various aspects of social and political life and socio-economic development of the country. Candidates for President of the Republic of Uzbekistan are provided with equal opportunities to acquaint voters with their election programs through electronic and print media, as well as by organizing meetings with voters in all 14 electoral districts. In order to clarify the main directions of their election programs candidates are using billboards, printed materials, meetings with voters, the possibility of political advertising and the media, including the party publications.

Candidates for President of the Republic of Uzbekistan and their trustees are provided with equal airtime and print space in the central and regional media, respectively, per 900 and 180 minutes of airtime and 10 and 5 printed bands.

The OSCE ODIHR Observation Mission was informed about the activities of the campaign headquarters of candidates, in particular on the ongoing work to make up a list of observers from political parties.

They also exchanged views on various aspects of the election campaign, which is conducted in an open and transparent manner on the basis of democratic principles of multiplicity of parties, alternativeness and free expression of opinion.

(Source: Republican Press Center on Covering the Election of the President of the Republic of Uzbekistan)

The CIS observation Mission arrived in Uzbekistan

The long-term group of Observation Mission from the Commonwealth of Independent States (CIS), headed by the first deputy chairman of the CIS Executive Committee Vladimir Garkun arrived in Uzbekistan.

By the invitation of the Central Election Commission of the Republic of Uzbekistan the CIS observation Mission will monitor the progress of preparation and conduct of presidential elections.

The CEC held a meeting with members of the Observation Mission. The Chairman of Central Election Commission M.Abdusalomov acquainted the guests with the election campaign of 2015, which pass openly and publicly in accordance with the Constitution of the Republic of Uzbekistan, the laws on elections and adopted by the CEC Program of main measures on preparing and conducting of elections of the President of the Republic of Uzbekistan.

Members of the long-term group of the CIS Observation Mission also have been acquainted with the progress of the election campaign of candidates for the President of the Republic of Uzbekistan. It was noted that equal conditions for election campaigning and the use of media created for them.

During the event, it was emphasized that in order to coordinate the activity of observers from CIS in Tashkent begin its activity headquarters of Mission, which will hold the necessary measures related to the organization of observation. The functions of headquarters of Mission will include the collection, processing and analysis of materials about the electoral process, legal examination of the electoral legislation and monitoring of information programs and television broadcasts, as well as of print media, meetings at the campaign headquarters of candidates.

At the meeting was also noted that the Commonwealth of Independent States observation Mission in its statement on the results of monitoring the preparation and conduct of the parliamentary elections in 2014 concluded that a consistent improvement of electoral legislation have created the necessary legal framework for the conducting open, free and democratic elections. The elections were held in full compliance with the requirements of the Constitution, the current electoral legislation and universally recognized international and democratic legal norms, on the basis of multi-party, competitive, transparent, open and ensured the free expression of the will of citizens of the Republic of Uzbekistan.

On the result of meeting, members of the Observation Mission were given the mandate of a due form, which give them the right to participate in all events on the preparations and conduct of elections, as well as be at the polling stations on Election Day and during counting of votes.

(Source: Republican Press Center on Covering the Election of the President of the Republic of Uzbekistan)


Legislative Chamber of Oliy Majlis of republic of Uzbekistan

Deputies Considered the Report of the Accounting Chamber

On March 11, a plenary session of the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan was held.

After approving the agenda proposed by the Kengash (Council) of the Legislative Chamber, deputies considered the report of the Accounting Chamber of the Republic of Uzbekistan for 2014, made by the Deputy Chairman of the Accounting Chamber K. Akmalov.

Within the framework of the authority of Parliament conferred by the Constitution of the Republic of Uzbekistan, the Legislative Chamber annually reviews the report of the Accounting Chamber of the Republic of Uzbekistan. As previously reported, the preliminary report of the Accounting Chamber for 2014 was thoroughly discussed at meetings of relevant committee, political party factions and the deputy group of the Ecological Movement of Uzbekistan in the lower house of parliament. During the discussions, deputies made a number of proposals aimed at strengthening cooperation between the Parliament and the Accounting Chamber in the spheres of strengthening parliamentary control and improvement legislative activity, as well as active involvement of representatives of civil society institutions in the country into the control activities.

During the hearing of the report it was noted that activities of the Accounting Chamber during the reporting period was organized on the basis of priorities identified by the President of the Republic of Uzbekistan Islam Karimov at the meeting of the Cabinet of Ministers dedicated to the socio-economic development of the country in 2013 and main priorities of economic program for 2014.

In the report on the activities of the Accounting Chamber in 2014 it was noted that in its work in accordance with the Budget Code of the Republic of Uzbekistan special emphasis was made on the effective implementation of the State budget, intended use of funds, study program execution of state and regional development, developed for ensuring dynamic development of all spheres of economy. However, an examination of the main directions of tax and budget policy and the draft State budget for 2015 was conducted. Pursuant to the Law “On financing political parties”, the completeness of forming income of political parties and their intended use was verified.

On the example of institutions financed from the state budget, the execution of the state budget at the national and local levels, legal, targeted and effective expenditure of public funds was checked. The analysis of the correctness of the State budget revenues by regions and industries, itemized and full budget execution was conducted, realistic targets of the main items of budget revenues was assessed.

The Accounting Chamber also regularly monitored the completeness of forming budgets of State trust funds over their targeted, rational and effective use, with departure to the regions studied the results of measures taken to increase the revenue base of local budgets, cost optimization and reduction of subsidies.

At the plenary session of the lower house of parliament after hearing the report of the Accounting Chamber over the past year, its substantive discussion was held. Representatives of all factions of political parties and the deputy group of the Ecological Movement of Uzbekistan made speeches.

Members of the faction of the Movement of Entrepreneurs and Businessmen – Liberal Democratic Party of Uzbekistan noted that the Accounting Chamber in the reporting period performed control-auditing work in 149 organizations on 33 directions. During the course of this work the effective execution of revenues and expenditures of the State budget, state programs, implementation of investment programs, and implementation of modernization and renewal of production was carefully studied.

In order to prevent financial irregularities, members of UzLiDeP faction consider it necessary to strengthen cooperation between Parliament and the Accounting Chamber in strengthening supervisory powers of parliament, further improvement of the legal framework in this sphere.

Speakers from the faction of the Democratic Party of Uzbekistan “Milliy Tiklanish” emphasized that it is important to further improve the inter-budgetary relations, increase the incomes of local budgets on the basis of rational use of production and resource potential of territories and strengthening of regional economies. As noted by the deputies, it is important to comprehensive study shortcomings, violations of budgetary discipline. In this regard, it is necessary to strengthen the parliamentary control by establishing regular hearing of reports of the heads of relevant ministries, agencies and local khokimiyats on measures taken to address the identified deficiencies, determining their causes of appearance.

Representatives of the faction of People’s Democratic Party of Uzbekistan drew attention to the fact that the Accounting Chamber during the reporting period analyzed the security of the State budget expenditures, reasonableness of costs on targeted complex programs of social development. The Accounting Chamber paid particular attention to the issues of effectiveness of the system of targeted social protection of low-income population, as well as improving the system of financial assistance and social benefits for low-income families. In particular shortcomings by the State Employment Promotion Fund were identified, problems associated with biased approach when assigning benefits to families in need of social protection were established.

In this regard, representatives of the faction suggested the Accounting Chamber to pay particular attention to the need of preventing financial crimes before their occurrence in implementing control measures.

According to members of the Social Democratic Party faction of Uzbekistan “Adolat”, the Accounting Chamber should strengthen control over the financial condition of economic entities of agriculture and make proposals on improving the legislation on its results. It was emphasized that it is also important to develop, through in-depth analysis and evaluation of taken measures of proposals on further increasing the purchasing power of the population. It is also important to take more stringent measures on detecting, suppression and preventing crime in executing the State budget.

Representatives of the deputy group of the Ecological Movement of Uzbekistan reviewed the activities of the Accounting Chamber on identifying cases of financial irregularities in the sphere of environmental protection and rational use of natural resources, their causes and take measures on eliminating them. The importance of continuing work on eliminating the causes of offenses, strengthening control measures, improving legislation in this sphere was particularly emphasized.

Taking into account the views expressed during the discussion, the Legislative Chamber of the Oliy Majlis approved the report of the Accounting Chamber of the Republic of Uzbekistan for 2014 and adopted a relevant resolution.

(Source: Information Service  of the Legislative Chamber of the Oliy Majlis)


No Shame in Saving

Building a legislative and technological platform for the development of energy saving and renewable energy sources has been underway in Uzbekistan. The policy is focused on the adoption of the best and international practices by organizing expert discussion platforms for representatives of business, government and research community.

The electric power industry is implementing a program on modernization and expansion of existing facilities. It provides for the development of wind and solar power, hydro power, introduction of integrated solar-thermal power plants.

Careful and efficient use of the energy produced, also through the introduction of energy-efficient solutions that can reduce its consumption for heating in winter or cooling facilities in the summer is seen reasonable along with the development of alternative energy. As part of these processes Uzbekistan has been implementing a communication strategy on enhancing of the energy efficiency at industrial enterprises. Not far behind and the social sector, where in recent years, widespread energy-saving technology. The government launched scaled programs on reconstruction and construction of public buildings, including schools, colleges, kindergartens, hospitals and sports facilities using the latest technologies.

Experts say that the goals are unfeasible without up-to-date equipment, research and development innovations. It is highly relevant to research in the field of power generation, transmission and consumption of electricity based on renewable energy. Research institutions and facilities of the Academy of Sciences, as well as industrial organizations rank among the major contributors in the introduction of new technologies.

In order to effectively move forward there is a need to take into account the relevant experience of the leading countries. Uzbekistan chose South Korea, its longtime strategic partner, for the development of alternative energy sources. It is planned to involve Korean experts in the implementation of joint projects, as well as development of a general program of renewable energy development in Uzbekistan, and construction of energy efficient buildings with maximum use of information and communication technologies (Smart House system).

This was the purpose of the visit of the leading experts of the Green Technology Center-Korea to the Uzbek capital. The Center was initiated by the government to develop strategies and coordinate national policies in promoting ‘green technologies’. It determines the vector of development, as well as a list of countries with which the Korean organizations and companies should cooperate. The Center is also assisting the partner countries with research in the field of energy saving and renewable energy, and development of joint project proposals.

Representatives of the Green Technology Center commended the reforms undertaken by the Uzbek government in the field of energy efficiency and renewable energy development. They expressed their willingness for joint cooperation and suggested to elaborate a kind of a ‘road map’ for the joint implementation of interesting initiatives in energy saving and renewable energy in Uzbekistan.

(Source: «Uzbekistan Today» newspaper)


Measures for the development of roadside and tourism infrastructure of Uzbekistan elaborated

In order to increase the tourism attractiveness of the country and further development of roadside and tourism infrastructure of the Republic, on March 9, 2015 the Cabinet of Ministers adopted a Resolution “On measures for the development of roadside and tourism infrastructure,” the press service of “Uzbektourism” reported.

Resolution approves the address lists for construction and reconstruction of sanitary units to the standard project.

According to the document, sanitary facilities on the standard project around 27 cultural heritage sites and entertainment facilities such as a museum “Afrosiyob” in Samarkand, Bukhara Emir’s palace “Ark”, the park “Somoniylar” ensemble “Chor Bakr “Bukhara madrassah” Norbutabi “in Kokand, madrassas” Abulkasim “in Tashkent, the complex” Sultan Soadat “and the museum and park” Alpomish “in Termez and others will be built.

Decree establishes that from September 1, 2015 operation of CNG filling stations (CNG) included in the address list of the regulations is not allowed, if they are not equipped with an operating on 24-hour-basis sanitary units of the standard project. This requirement will be applied to other CNG from April 1, 2016. In addition, the visitors will be charged for the use of sanitary units, developed in accordance with this decision.

In this regard, “Uzbektourism” and the State Committee of the Republic of Uzbekistan for Architecture and Construction are charged within a month to develop a standard project of modern sanitary facilities in accordance with the town planning regulations.

In addition, the State Committee for Construction and Architecture entrusted to make changes to the planning regulations and rules providing mandatory presence of CNG filling stations for sanitary unit, as well as the requirements for such sites, taking into account the standard project, developed in accordance with this decision.

Effective implementation of this resolution will increase the tourism attractiveness of the country and the promotion of national tourist product on the global tourism market.



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