American-Uzbekistan Chamber of Commerce
Business Newsletter


Week in Review:

March 30, 2012 - April 6, 2012  


In this issue
AUCC in Brief
IDB to allocate $37.3 million to upgrade oncological service in Uzbekistan
Georgia offers Uzbekistan transit opportunities
ADB financing brings commercial loans to Uzbekistan's natural gas sector
Tenders Opportunities for projects financed by IDB: Rehabilitation of irrigation and drainage networ
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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. 

IDB to allocate $37.3 million to upgrade oncological service in Uzbekistan of 4/5/2012      


The board of directors of the Islamic Development Bank (IDB) has approved the allocation of $ 37.3 million to enable the Uzbek government to modernise the oncological service in the country, a representative of the health ministry told Trend today.

The interlocutor said the funds will be given over 20 years, including a four-year grace period on Istisna terms which are non-interest futures, including the bank's commission. The agreement on the allocation of funds between the IDB and the Health Ministry will be signed in the first half of this year.

IDB funds will be used to purchase equipment for the remote and intra-cavitary radiotherapy in the country's oncological clinics.

In June 2011 the IDB and the Uzbek government signed a cooperation programme for 2011-2013, envisaging the allocation of loans totalling $ 655.5 million.

These funds will be spent to implement 11 projects in infrastructure development such as health, education and private business, worth about $1 billion.

Uzbekistan joined the IDB in 2003. During this time the bank allocated about $300 million for the country to implement 15 projects in the field of health, education, agriculture, energy, transport and support for private entrepreneurship.

Georgia offers Uzbekistan transit opportunities of 4/5/2012      


After a nine-year break, Tbilisi hosted a meeting of the Georgian-Uzbek intergovernmental commission.

The main areas of economic cooperation between Georgia and Uzbekistan, including those in the trade and economic sphere are transport, tourism, energy, and agriculture. Small and medium-sized businesses as well as investments were discussed at the committee meeting, the Ministry of Economy of Georgia told Trend on Wednesday.

The Georgian side at the meeting was headed by the Deputy Minister of Economy and Sustainable Development Mikheil Janelidze and for Uzbekistan, the Deputy Minister of Foreign Economic Relations, Investments and Trade Akmal Kamalov.
Following the meeting, a protocol was signed.

Tbilisi and Tashkent have pinned their hopes on bilateral investment, Janelidze told Trend on Wednesday.

"Special attention was paid to the transit of Uzbek goods and raw materials to Europe via Georgia, as we believe that this is a very promising area of our cooperation," he said.

The deputy minister expressed confidence that the resumption of the work of the intergovernmental commission will further develop bilateral relations.

Earlier, Uzbekistan used the transit through Georgia for the supply of its oil and cotton to Europe. In recent years, these supplies were reduced.

ADB Financing Brings Commercial Loans To Uzbekistan's Natural Gas Sector of 4/2/2012      


The Asian Development Bank (ADB) is providing a $100 million loan and $200 million political risk guarantee for the development of a natural gas field project in Uzbekistan's southwest.

"This deal marks the first commercial lending to Uzbekistan's crucial natural gas industry and should pave the way for further private sector participation in this key exporting sector," said Siddhartha Shah, Investment Specialist of ADB's Private Sector Operations Department.

Natural gas exports are a vital driver of Uzbekistan's economy, accounting for a significant share of gross domestic product. The project, located in the Bukhara-Hiva region, will also boost local employment and economic growth by providing thousands of jobs in a relatively poor rural area.

Lukoil Overseas Uzbekistan, part of the Lukoil Group, an international oil and gas operator, will use the $100 million loan to develop the Kandym gas field under a 35-year production sharing agreement with the state-owned Uzbekneftegaz gas company. Production of the field, which has proven gas reserves of 84 billion cubic meters, is due to start in 2015. The gas will be sold to a Russian exporter and, possibly, to the People's Republic of China, which will provide an attractive new source of revenue for the Uzbek government.

Since natural gas from the Kandym field has a high sulfur content, Lukoil will use state-of-the-art technology to extract gas in an economically viable and environmentally sound manner in line with ADB's environmental safeguards policy. As a condition of ADB's involvement, details of revenue paid to the government will be disclosed annually.

ADB's loan from ordinary capital resources has a maximum term of up to 8 years, with a grace period of 18 months and an interest rate still to be determined. The Islamic Development Bank will also provide $100 million in financing and the Multilateral Investment Guarantee Agency (MIGA) will provide a political risk cover of $100 million. The political risk guarantee being offered is in close cooperation with MIGA and private market. It will cover loans from commercial lenders including BNP Paribas, Crédit Agricole Corporate and Investment Bank, and Korea Development Bank.

Tenders Opportunities for Projects Financed by IDB: Rehabilitation of Irrigation and Drainage Networks in Djizzakh and Syrdarya Provinces - deadline: 4/17/2012


The Republic of Uzbekistan has received financing from the Islamic Development Bank (IDB), OPEC Fund for International Development and Kuwait Fund for Arabic Economic Development toward the cost of Rehabilitation of Irrigation and Drainage Networks in Djizzakh and Syrdarya Provinces Project (RIDNDS), and it intends to apply part of the proceeds of this financing to payments under the contract for "Reconstruction of Interfarm Irrigation Canals K3-5 and RBC/PVK", Contract No: RIDNDS/ICB/SYR-5 of which a summary of works are given below.

The Ministry of Agriculture and Water Resources of the Republic of Uzbekistan now invites sealed bids from eligible bidders for RIDNDS/ICB/SYR-5. The project, in general, covers construction and rehabilitation works for existing irrigation and drainage networks. The eighth civil works contract under the project, RIDNDS/ICB/SYR-5, mainly covers, inter alia, the following:

The main works in the scope of Contract shall consist of Reconstruction of K 3-5 Canals and Right Branch (RBK) inter-farms canals.

K-3-5 interfarm canal is 15.85 km in length which crosses territories of WUA Tashkent, WUA Beruniy and WUA Mustakillik having 3 616 ha irrigated land in Mirzaabad region.

 Demolishing of existing structures
 The main works for K 3-5 interfarm canal shall consist of, inter alia, the following:
* Increasing the flow capacity of canal by concreting,
* Construction of hydraulic structures - 59 nr. (Check structures, ground pass, water discharge, motor road bridge, pedestrian bridge etc.).
 The estimated approximate quantities of work for the rehabilitation are as follows:
* Earthworks for the collector: 465 000 m3,
* Concrete works:17 000 m3,
* Earthworks for hydraulic structures: 55 000 m3,  

* Concrete for hydraulic structures: 850 m3,

* Precast reinforced concrete: 1 150 m3 .

Right Branch Canal (RBK) starts from the main canal, YGK at PK 145+000 and goes up to PK 70+00 in north and up to PK 90+00 in west. The main works of RBK Canal consists of, inter alia, the following:  

o Cleaning works on the canal from PK 48+00 to PK 54+00,

o Qualitative embankment dam and slopes with soil from borrow pit,
o Strengthening of slopes with stone, d=0.2¸0.3m.
The estimated approximate quantities of work for the rehabilitation are as follows:
o Earthworks of the canal: 370 000 m3,
o Strengthening of slopes with rock: 46 000 m3.

The Bidders shall be subjected to post-qualification and those who only meet the qualification criteria shall be considered for award. The construction period is 17 months.

Bidding will be conducted through the international competitive bidding procedures specified in the Guidelines for Procurement of Goods and Works under IDB Financing, May 2009 and is open to all bidders from eligible source countries as defined in these Guidelines. This bidding will be an ICB/MC (International Competitive Bidding/Member Countries), where the bidding will be open to firms from IDB member countries. Association of firms from non-member countries with firms from member countries may be accepted, subject to that the firm from member country will perform at least 50% of the works.

Interested eligible bidders may obtain further information from The Ministry of Agriculture and Water Resources of the Republic of Uzbekistan Project Management Unit and inspect the bidding documents at the address given below from 09:00 to 18:00 Tashkent time.

A complete set of bidding documents in English may be purchased by interested bidders on the submission of a written application to the address below and upon payment of a nonrefundable fee US$ 300 (Three hundred US Dollars) or in equivalent amount in UZS at the exchange rate of Central Bank of Republic of Uzbekistan at the payment date. The method of payment will be through bank transaction to the following bank accounts:

"Agrobank" Main branch, Tashkent, Uzbekistan  

Bank code: 00394


Bank ID No.: 201200124


Client's ID No.: 301386089


Local currency account: 20210000104816050005

USD account: 20210840804816050008

In payment details indicate "Payment to PMU for Rehabilitation of irrigation and drainage systems in Djizzakh and Syrdarya regions for obtaining the bidding documents"

For obtaining the bidding documents please contact to the address below.

Bids must be delivered to the address below at or before 17 April 2012 at 15:00 Tashkent time. All bids must be accompanied by a bid security of US$ 50 000 (Fifty thousand US Dollars) or an equivalent amount in a freely convertible currency. Late bids will be rejected. Bids will be opened in the presence of the bidders' representatives who choose to attend at the address indicated in the Bidding Documents at 17 April 2012 at 15:00 Tashkent time.


The Ministry of Agriculture and Water Resources of the Republic of Uzbekistan


Postal address: 4, Navoi street


Tashkent city, 100004, Uzbekistan


Conference hall, 2nd floor


Attn: Shavkat Primov, Project Manager


Tel: + (998-71) 241-90-10; + (998-71) 241-90-97


Fax: + (998-71) 241-90-07



[email protected]; [email protected]

Notice: Potential tenderer desiring additional information on the procurement in question or the project in general should, unless indicated otherwise, contact the project agency and not the IDB.

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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
[email protected]  






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