May 14, 2015
IMF: economic growth in Uzbekistan to remain strong in 2015. 3
The national airline Uzbekistan Airways is planning to implement 12 investment projects. 4
Exhibiton “OIL & GAS UZBEKISTAN 2015”. 5
Uzbekistan to implement 54 projects in oil and gas sector by 2020. 5
POLICY
On May 12, President of the Republic of Uzbekistan Islam Karimov reviewed the construction and beautification works spearheaded in Tashkent
Wide-ranging creative and improvement works are undertaken in all the regions of Uzbekistan. All this has been transforming cardinally the appearance of our urban centers and rural areas, and helps uplift the living standards of the population even further.
Immense construction and beautification efforts have been in progress under the leadership of President Islam Karimov also in the capital city. Preserving its historical appearance, Tashkent has been renewing and advancing steadily. Such unique facilities as the International Business Center, Uzbekiston Palace of International Forums, the Marifat Markazi Complex, Poytakht Business Center, Bunyodkor Sports Complex, erected on the basis of harmonic synergy of traditions of the national architecture art and those of contemporary solutions in the sphere, have come to be a true adornment of the city. The modern hotels, residential houses, social facilities, roads and bridges, beautiful parks and alleys create favorable conditions for the locals and guests of the capital.
Grand construction and repair works were undertaken in 2013 at the Khadra Square. With the aim of creating comfort and convenience for people and vehicles, the transport underpass linking Furkat Street with Zarkainar and Sebzar streets was reconstructed. As an extension of these endeavors, a new overpass has been built along Sebzar Street.
The President of our country Islam Karimov visited May 12 that modern bridge.
Earlier, two broad roads used to intersect here, which resulted in jams leading to loss of time by drivers, passengers and pedestrians, as well as environmental pollution.
At the initiative of the head of our state, a modern 26 meter-wide and 500 meter-long bridge has been erected here. Abdulla Kadyri Street has been broadened and became a four-lane road in both directions.
The load capacity of Sebzar Street used to be 3,200 autos an hour, and now, as a result of building this six-lane bridge, the indicator has went up to 9,800. The same can be said of Abdulla Kadyri Street, too, where the transportation capacity has risen from an earlier 2,400 cars an hour to 5,600. This diminishes the tension not only on this intersection, but also it will positively effect on the traffic along the Nurafshon, Abai, Almazar, Zulfiyakhonim, Korasaroi, Saghbon, Zarkainar, Navoi, Sakichmon streets.
What is noteworthy about this is that there are no traffic lights here. Both pedestrians and automobiles can move without stops and safely.
The new facility has been built by ToshkentboshplanLITI State Unitary Enterprise and the Kuprikqurilish Trust under Uzbekiston Temir Yullari State Stock Railway Company. State-of-the-art foreign technologies and local-origin construction materials were applied.
Getting familiar with the works undertaken here, the head of our state highly appreciated the labor of road builders and construction workers.
In the past, when we planned to build a facility or bridge, we used to think over and over again as to who to engage to this or that project, Islam Karimov reflected. Erection of a bridge used to take two to three years. Now, a system of modern urban planning and construction has been formed in our country to the fullest extent possible, and we have garnered enough expertise in road and bridge building. Construction of such a modern and magnificent overpass within eight months is indicative of the dynamically development rates of our country and the high accomplishments being made by our people.
(Source: Press-service of the President of the Republic of Uzbekistan)
finance
IMF: economic growth in Uzbekistan to remain strong in 2015
An International Monetary Fund mission led by Mr. Raja Almarzoqi visited Tashkent on 29 April – 12 May 2015 to hold discussions on the 2015 Article IV consultation.
At the conclusion of the mission, Mr. Almarzoqi issued the statement. “The economy of Uzbekistan has been resilient in an increasingly difficult external environment, characterized by weak economic activity in Europe and Russia and low oil prices. Following solid growth performance—8.1 percent—in 2014, growth remained robust and GDP increased by 7.5 percent in the first quarter of 2015. Strong public investment and a strategic re-orientation of gas exports from Russia toward China have shielded the economy, so far, from the slowdown experienced by other countries in the region. The external position continues to be strong, but the current account surplus has narrowed. Annual inflation, based on an alternative consumer price index (CPI) measurement by IMF staff, declined to a single-digit around 9 percent through March 2015,” the statement reads.
“Fiscal policy remains prudent. Following a small fiscal surplus on a consolidated basis in 2014, the budget execution in the first quarter of 2015 registered a balanced outturn, owing to lower-than-budgeted spending. Investment remains an important component of public spending,” the document added.
“Monetary policy remains accommodative. The Central Bank of Uzbekistan has cut its policy rate, the refinance rate, from 12 to 9 percent since January 2014. The growth of credit to the economy remains strong. The depreciation rate of the official exchange rate of the Uzbek sum has been slower than currencies of the trading partners,” the IMF specialist said.
“The banking sector remains stable, well capitalized and highly liquid. A centralized collateral registry system was launched in 2014, which contributed to broadening access to finance,” the statement added.
“Looking ahead, economic growth is expected to remain strong in 2015, supported by newly adopted modernization programs for industry and infrastructure and programs for privatization and corporate governance which would contribute to structural reform and reduce the state’s role in economy. However, near-term risks are tilted to the downside, related to a larger-than-expected slowdown in major trading partners. These vulnerabilities are likely to be limited by large buffers: ample foreign reserves, fiscal buffers, and a low level of public debt. An appropriate policy mix including a moderate loosening of fiscal policy, tighter monetary policy and a more flexible exchange rate would also help mitigate negative shocks to the economy in the short term,” the statement reads.
“Sustained and inclusive growth hinges on the promotion of a dynamic private sector. Improving the business environment and strengthening governance and transparency remain critical. The authorities recognize the importance of accelerating private sector development. They have indicated that they will implement additional pragmatic measures to stimulate private sector expansion by easing foreign exchange control, improving access to key infrastructure and raw material resources, ensuring protection of private owners’ rights, reducing the number, time and cost of licenses and permits, and supporting private exporters. Decisive measures in these areas could help provide new momentum to support private sector development. In this context, the mission welcomes the authorities’ strategy to improve energy efficiency and reduce implicit energy subsides by gradually raising administered prices, and the authorities’ recent resolution to strengthen corporate governance and privatize more than 1,500 state-owned assets,” the statement noted. “The authorities’ move to improve transparency by publishing fiscal statistics is commendable. Further improvements in the availability and quality of key economic and social data would strengthen evidence-based policy making. To this end, the mission welcomes the authorities’ plan to engage in technical assistance on national accounts statistics,” the IMF official noted.
“The mission would like to thank the authorities and other counterparts for their hospitality and constructive dialogue,” the statement concluded.
(Source: UzDaily.com)
investments
The national airline Uzbekistan Airways is planning to implement 12 investment projects
The announced plans on the modernization of the Tashkent international airport will likely be the most interesting news for travelers from Uzbekistan and other countries. The national airway company (NAC) is implementing concurrently two special projects on the expansion of the capacity and quality of passenger service, and on the reconstruction of the country’s major air harbor.
The issue has been repeatedly placed on the agenda. The airport’s design no longer meets the requirements of the time. Many passengers have to spend much time for various procedures as they arrive at the capital’s airport. As repeatedly pointed out by NAC representatives, there are all conditions to unload passenger flow – qualified staff, up-to-date equipment and well-established workflow, but, unfortunately, there is a lack of time. To change this situation, Uzbekistan Airways has been implementing certain projects on unloading the Tashkent airport during peak hours. For instance, the old terminal building for local lines and the adjacent area will be used for unloading the major terminal.
This is just a part of the vast scope of the company’s activities. The Tashkent international airport is a huge and complicated mechanism with the annual capacity of over three million passengers. The air harbor is the Central Asia’s largest air company. It has an advantageous geographical location at the intersection of air routes from CIS countries to Southeast Asia, the Middle East, Europe and the US.
In the short term perspective, NAC is planning to implement 12 investment projects. They envisage the development of airport infrastructure, construction of a hangar for Boeing 787 maintenance, fleet renewal, and fitting out airports with special equipment and control devices. Seven projects have been included int the Investment Program of Uzbekistan for 2015.
In the first quarter, the airline carried 574,000 passengers, which is 0.4 percent increase YOY. NAC transported 188,000 passengers on far abroad routes, and 261,000 passengers on the CIS routes. 125,000 passengers used NAC services on domestic flights, which is 10,000 more YOY.
The passenger load factor was 70.97%, commercial load – 53.58%, remaining at the same level. The number of flights has reached 5,549 with an increase by 55, of which 1,394 flights in far abroad countries with an increase by 61 flights. 1,998 flights were performed to the CIS countries, 2,157 flights – on the domestic routes with an increase by 104 flights.
As part of its commercial activity, NAC has developed and launched new routes, increased frequency of flights on existing routes. The airline presented its services at international tourism exhibitions in different countries. There are agreements with foreign partners. The company has negotiated on the launch of passenger flights on the route Tashkent-Minsk-Tashkent. It was decided to open ticket sales on the route as of July 2, 2015.
Another interesting news is related to the launch of two Boeing-767-300ER in the first quarter of 2015 to carry out regular and charter flights from the Tashkent and Navoi airports, which has allowed building its own fleet of ‘freights’ that would have no restrictions on flight operations at all world’s international airports, and also terminate the lease of two A-300-600R. In January-March the company performed 98 flights, and transported 2,600 tons of cargo. The Navoi airport is scheduled to transit 37,700 tons of cargo in 2015, as well as expand the route network of freight traffic through the use of routes of NAC interline partners.
(Source: «Uzbekistan Today» newspaper)
INFRASTRUCTURE
In Uzbekistan 288.8 billion soums to be allocated for major repairs and construction of roads in 2015
A Programme of capital repair of automobile roads of international and national importance for 2015 approved in Uzbekistan. The corresponding Decree of the Cabinet of Ministers was signed by the Prime Minister of the Republic of Uzbekistan Sh. Mirziyoyev on May 1 of the current year (currency rates of CB RU from 14.05.2015 1$= 2522.73 soums).
The program includes works on major repairs and construction of roads, bridges, platforms for short vehicle stops, pedestrian underpasses, tunnels, viaducts and other facilities throughout the Republic.
In particular, in the Tashkent region it is planned to repair and construct 20 projects, including the overhaul of the road “Tashkent ring road”, “Ring of Charvak reservoir”, “Tashkent – Chirchik – Chimgan”.
Financing of capital repair of the objects included in the program will be implemented at the expense of the Republican Road Fund under the Ministry of Finance of the Republic of Uzbekistan.
Hereby LLC “Yul-loyiha byurosi” has been defined as a general project organization for the development of design and budget documentation on major repairs of roads.
At that, Gosarhitektstroy entrusted with responsibilities for carrying out the state expertise for construction documentation and the establishment of architecture and construction state supervision over the quality of construction and installation work.
(Source: UzReport.uz)
Exhibiton “OIL & GAS UZBEKISTAN 2015”
Uzbekistan to implement 54 projects in oil and gas sector by 2020
Uzbekistan will implement 54 projects with total cost of US$18.65 billion in oil and gas industry in 2015-2019, chairperson of the board of Uzbekneftegaz Shokir Fayzullaev said at Oil and Gas Uzbekistan 2015 conference on Wednesday.
He said that President of Uzbekistan Islam Karimov approved a programme on modernization, technical and technologic renovation of production in oil and gas industry till 2020.
Fayzullaev said that the programme includes 54 projects for US$18.65 billion. The projects are directed at diversification and modernization of oil and gas industry.
The targeted part of the programme includes 39 projects with total cost of US$7.1 billion, he noted.
The programme includes projects on construction of gas processing plant and construction of gas fields at Kandym (US$2.7 billion), GTL-plant (US$3.98 billion), as well as two new gas chemical complexes (US$4.4 billion).
Implementation of the projects, included to the programme, will allow to create new capacities on mining 8.55 billion cubic meters of gas, 71,700 tonnes of oil and 161,000 tonnes of gas condensate, as well as production of 361,200 tonnes of liquefied gas, 742,000 tonnes of polyethylene, 500,000 tonnes of polypropylene, 863,000 tonnes of petroleum and 304,000 tonnes of kerosene.
(Source: UzDaily.com )
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