American-Uzbekistan Chamber of Commerce
Business Newsletter


Weeks in Review:

September 10, 2011 - September 30, 2011 


In this issue
AUCC in Brief
Gigawatt-producing solar plant coming to Uzbekistan
Uzbek, Malaysian business circles intend to expand cooperation
Bilateral trade between Uzbekistan and China to reach $5 billion
ADB keeps economic development forecasts for Uzbekistan
Contact Us
AUCC Members
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AUCC in Brief 

Established in 1993, the American-Uzbekistan Chamber of Commerce (AUCC) is a private, non-profit trade association representing interests of U.S. businesses ranging in size from small private enterprises to large, multinational corporations conducting business in Uzbekistan.

Our Mission: To advocate the views of the business community to ensure that private sector positions are considered during the development of key policies that impact American businesses and the future of U.S.-Uzbekistan relations.

Our Objective: To serve the needs of its members by strengthening commercial relations between the United States and Uzbekistan. 

Gigawatt-producing solar plant coming to Uzbekistan of 9/30/2011
Tashkent's rising interest in solar power generation may be backed by serious investors and project applications. Uzbekistan, jointly with Russia's Lukoil and the Asian Development Bank (ADB), will build a solar power plant with the capacity of one gigawatt.

A breakthrough project

In mid-September, Vagit Alekperov, the President of Russia's Lukoil, said that the Russian oil giant will build a solar power plant in Uzbekistan with the designed capacity of one gigawatt.

"Now, the company, in cooperation with the Uzbek government and ADB, is working on designing the solar energy plant. The capacity of the first unit will be 100 megawatts, and in the future it will reach one gigawatt," said Alekperov, without mentioning the price and terms of the project's implementation. Thus, one of the most powerful solar power plants in the world may be built in Uzbekistan.

Power plants on renewable energy sources (RES - sun, wind and water) are regarded as the most promising field of world energy development. In particular, Germany, according to DENA (the government's consultant on energy issues), may be faced with overproduction of electricity generated by solar panels. However, it can hardly happen with Uzbekistan. Currently, oil and gas make 97% of the country's energy resources, coal makes 2.3%, and hydropower 0.7%.

According to Uzbekistan's Center for Economic Research, if current trends and resources consumption volume continue, Uzbekistan will have enough natural gas and coal only for the next 20-30 years, while oil reserves are almost depleted.

However, by the end of this year the Uzbek government will develop a national concept on renewable power sources, aimed at the widespread introduction and development of alternative energy sources. According to the concept plans, by 2015, 2.5% of the country's electricity should be generated by renewable energy sources, and by 2020 this rate should reach 5%.

The potential of solar energy in Uzbekistan is equivalent to 50.9 billion tons of oil. During the year, Uzbekistan averages 300 sunny days, and the energy produced from each kilometer of horizontal surface is about 2,000 kilowatt hours, which suggests that the solar energy industry has significant potential for growth, believes analyst Anvar Jumayev.

According to the Uzbekenergo State Joint Stock Company, in December 2011, ADB will allocate a grant worth $1.5 million for Uzbekistan to develop a feasibility study on solar energy development in Uzbekistan by the end of 2012. The project includes the construction of two experimental and two commercial power plants, running on solar energy.

"Given that the technology of solar electricity production at the initial stage requires substantial investment and is used in the countries with subsidies, there is still much to be done in this direction," said Timur Khakimov, a consultant on solar energy projects at Uzbekenergo. According to him, the introduction of these technologies largely depends on social factors and their application will affect consumers. "Nevertheless, the technical potential exists," said the expert.

Uzbek, Malaysian business circles intend to expand cooperation of 9/28/2011
Business circles in Uzbekistan and Malaysia confirmed their intent to strengthen bilateral trade and economic and investment cooperation at the Uzbek-Malaysian business forum in Kuala Lumpur, "Jahon" news agency at the Uzbek Foreign Ministry reported on Tuesday.

The forum was attended by business circle representatives of Uzbekistan, major Malaysian associations, and private companies.

According to a report, during the business forum the Uzbek side provided data on economic growth of the republic and measures undertaken within the state program,

"Year of small business and private entrepreneurship," for the development of the economy's business sector.

Malaysian businessmen were presented with prospects and benefits of doing business within "Navoi" FIEZ, opportunities for cooperation in the pharmaceutical, electrical, chemical, automobile, oil and gas, light industry, education, and tourism spheres. 

Representatives of the Malaysian side in their speeches at the business forum stressed the serious intention to develop trade, economic and investment cooperation with Uzbekistan, and enhancing participation of their capital in joint ventures in various spheres of the economy, the report said.

According to the Uzbek State Statistics Committee, the Uzbek-Malaysian trade turnover grew by 2.3 times in 2010 as compared to 2009, and amounted to $72.3 million, including exports totaling $37 million, while imports totaled $35.3 million.

At present, 20 facilities with participation of Malaysian investments operate in Uzbekistan, three of which are operating with one hundred percent Malaysian capital.

Bilateral trade between Uzbekistan and China to reach $5 billion by 2015 of 9/27/2011 

Uzbekistan and China schedule to increase bilateral trade volume to $5 billion in 2015.

This was stressed by Chairman of the Standing Committee of the People's National Representatives of China U Bango in his speech to the deputies of the Legislative Chamber and members of the Senate of Oliy Majlis of Uzbekistan, September 22.
According to U Bango, since the establishment of diplomatic relations between Uzbekistan and China bilateral ties are getting strengthened in many areas such as energy, trade, economy, investment, transport and telecommunications, parliamentarism, and culture.
In 2010 the trade turnover between our countries reached $2.48 billion, while the investment of China in Uzbekistan's economy made $1.65 billion.

ADB keeps economic development forecasts for Uzbekistan of 9/14/2011

The Asian Development Bank (ADB) maintained its April GDP growth forecasts of Uzbekistan for 2011 and 2012, the bank's Asian Development Outlook 2011 Update said. The Asian Development Outlook 2011 Update (ADO Update) said that the economy of Uzbekistan will grow by 8.4% in 2011 and 8.5% in 2012 respectively. The publication said that the economy grew by 8% in the first half of 2011, on a par with first half 2010 growth. The ADO Update maintains its April GDP growth forecasts for 2011 and 2012, on the back of projections of a continued increase in exports and workers' remittances, hikes in public sector wages and social benefits, and a sustained large public sector investment program.

Inflation, reported at 6% for the first 6 months of 2011, did not exceed the official target of 7%. But as higher global commodity prices, augmented by a steady depreciation of the local currency, have heightened inflationary pressures, the Update lifted the 2011 forecasts for inflation from 8.8% to 10% and 2012 forecasts from 8.5% to 9.5%. The budget posted a small surplus in the first half of 2011. With significant surpluses from the national Fund for Reconstruction and Development underpinned by strong earnings from energy exports, the consolidated budget surplus is expected to be close to 4.0% of GDP. The government's industrial modernization program continued to support increased infrastructure spending, helping to sustain high growth. Moreover, investment was bolstered by $1.2 billion of foreign direct investment in the first half of 2011, the majority going into energy and chemicals. Export performance was strong in the first 6 months of 2011. Economic recovery in the Russian Federation, the major trade partner, and favorable international prices for precious metals and cotton, as well as stronger manufactured exports (especially automobiles) led to merchandise export growth of 18.7%. Merchandise imports concurrently grew by 22.0%, mainly on account of rising prices for food, increased demand for consumer goods, and larger imports of capital goods and materials for infrastructure and other investments. As economic developments closely track prospects outlined in April, the Update maintains its forecasts for the current account surplus in both years - 16.3% of GDP in 2011 and 12.6% of GDP in 2012.

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Contact Information


The American-Uzbekistan Chamber of Commerce
1300 I Street, N.W., Suite 720W
Washington, DC 20005
phone: 202.509.3744  








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