American-Uzbekistan Chamber of Commerce
Week in Review:
July 27, 2012 - August 3, 2012

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In This Issue:
Uzbek Parliament approves bill on foreign policy
Pharmaceutical industry to implement projects for US$290.5m
Ashok Minda Group plans to enter CIS market via Uzbekistan
Uzbekistan plans to attract $100 mln ADB loan for project on household waste recycling
International workshop "Implementation of the AEM program in Uzbekistan, and International Experience

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.  

The Legislative Chamber of Oliy Majlis (lower house of the parliament) adopted the law On Approval of the Concept of foreign policy of the Republic of Uzbekistan at the next plenary session, the parliament told Trend on Wednesday.

The MPs adopted the law On Approval of the Concept of foreign policy of the Republic of Uzbekistan after the discussions at the plenary session on Tuesday.

As it was reported earlier the bill was submitted to the MPs by President Islam Karimov as a legislative initiative. Representatives of all factions of political parties and the parliamentary group of the Environmental Movement of Uzbekistan were participating in the discussions.

The preparation of the document was due to the need to further improve the conceptual foundations of Uzbekistan's foreign policy to provide timely and adequate response to threats and challenges in the region and the world as a whole, strengthening the national security of the country.

The concept of foreign policy of Uzbekistan is a separate legal document setting forth the integrity of the views system, defining the fundamental principles and strategic priorities for foreign policy, goals and objectives in the international arena, the mechanisms of progress in the medium and long-term national interests, as well as raising the legal basis for a new level of activity in the country in foreign policy.

The bill provides openness for cooperation, regardless of ideological views, maintain peace and security, equality, respect for territorial integrity, inviolability of borders and non-interference in internal affairs of States, non-use of force or threat of force, the priority of generally recognized norms of international law over internal law of the state.

At the same time Uzbekistan "reserves the right to make alliances, to enter the communities and other inter-state organizations and withdraw from them, guided by the best interests of the state, nation, its prosperity and security."

The concept focuses on the issues of diversification of trade, economic, technological, transport and other relations of Uzbekistan, increasing the process of attracting foreign direct investment and advanced technologies in the priority sectors of national economy, which are crucial for the growth potential, the country's power and competitiveness of the economy.

No integration should be imposed from the outside; it is unacceptable if affects the freedom, independence and territorial integrity of the country or dictated by ideological commitments.

According to some experts, the adoption of this law will serve to strengthen the state independence and sovereignty and to further strengthen the role of Uzbekistan as a full subject of international relations, the creation of a zone around the Uzbek security, stability and good neighborliness.

It is expected that the Senate will consider the bill On approval of the Concept of foreign policy of the Republic of Uzbekistan at the end of August this year.  

Pharmaceutical industry of Uzbekistan will implement 39 new investment projects for US$290.5 million in 2012-2013, the chairperson of the Board of the Uzpharmasanoat state joint stock concern Mirzanazim Dusmuratov said.

He said that 23 projects of them for US$157 million were included to the State Investment Programme for 2012.

Priority directions are projects directed at production of generic medicaments, thus highly demanded medicaments and currently imported to the country, he added.

Among such projects are project of Salibrus Vita with the cost of US$21 million on production of medicaments, normalizing intestinal microflora, Albifarma with the cost of US$8 million on production of victimized medicaments, Nika Farm with the cost of US$5.3 million on production of cardiology medicament, etc.

Dusmuratov said that 12 projects are implemented in Tashkent city, four in Tashkent region, two in Syrdarya region and one project in Navoi and Samarkand regions each.

Mirzanazim Dusmuratov stated that pharmaceutical industry plans to increase production by 40% and produce goods for 366 billion soums.

Dusmuratov said that the companies will manufacture 720 million units of pharmaceutical products in 2012. Share of local production in pharmaceutical market will close to 43%.

It is planned that Uzbekistan will launch production of new 30 medicaments, which are used in preventing and treating socially important and socially dangerous diseases.

In the first half of 2012, the volume of production made up 158.3 billion soums (+21.5% year-on-year). At the same time, production of medicaments made up 129.7 billion soums and goods of medical purpose - 16.9 billion soums, additional materials - 7 billion soums and other goods - 4.7 billion soums (+37.1%), he said.

The companies produced 272.1 million units of products, including 110.8 million units of medical products, 93.5 million units of goods of medical purpose, and 59.5 million units of additional materials. Jurabek laboratories, Radiks, Nobelfarmsanoat, Samo, Uzgermedfarm, Merrimedfarm, Elastikum and Aziya Trade achieved high growth tempo.

Currently, some 129 enterprises produce medicaments and medical goods and they produce 1,130 medicaments.

Pharmaceutical industry today achieves high tempo of growth. The growth of the industry made up 25% or 296.4 billion soums. Share of enterprises of Uzpharmsanoat in pharmaceutical market makes up 89%.

In recent years, some 200 medicaments and medical goods were registered in foreign countries. Uzbek pharmaceutical enterprises export goods to 11 states, among them are Azerbaijan, Armenia, Afghanistan, Georgia, Kazakhstan, Kyrgyz Republic, India, Turkmenistan and Russia. Currently, necessary measures are undertaken to start exports to South Korea, Mongolia, China, South Africa, European states.

In 2011, the industry attracted investments for US$70 million, of which 74% were used to create new capacities, 26% to modernize exisiting capacities. The construction works were completed on 12 projects. In the result, new capacities on production of syringes, ampule, tablet and infusion medicaments, bottles, and others were launched.
Ashok Minda Group (India) plans to become direct supplier to automobile companies of Russia and Ukraine through its plant in free industrial and economic zone "Navoi".

Ashok Minda Group created UzMinda LLC at FIEZ Navoi, which specializes on production of automobile components. All products of the enterprise is supplied to GM Uzbekistan and exported to abroad.

Today, UzMinda LLC is one of the largest partners of Asaka automobile plant on supply of spare parts to various modifications of cars, Pravda Vostoka reported.

The company produces over 12 types of products, including speedometers, external door-knobs, electronic clocks, speed sensors, voice models, etc. The paper said that all products undergo testing. 

Uzbekistan before the end of 2012 plans to raise a loan of Asian Development Bank (ADB) in the amount of $ 100 million for the project of sorting and recycling of solid household waste in Tashkent, a representative of Tashkent administration told Trend on Friday.

According to the representative, Tashkent administration together with its subordinate department 'Special transport' specializing in the export of waste, agreed with ADB on a loan of $ 100 million for the purchase of necessary transportation and equipment for modernization of solid waste management.

In January 2012, ADB provided Tashkent administration with a grant of $750,000 to develop a feasibility study. ADB plans to consider an application for a loan in late 2012.

Under the project in 2012-2016 it's planned to update the fleet of garbage trucks, to open 520 new protected areas for garbage collection, as well as to deliver about seven thousand 750-liter containers.

According to the city administration, the current fleet of garbage trucks has been used for more than 14 years with a 10-year average period of their operation. Specialized machinery in Tashkent annually on average remove about 550-600 thousand tons of waste.

From 1 August Tashkent introduced new rules for sorting, collection and orderly removal of waste. The rules require sorting of household waste by five species. Place for the collection and storage of waste must comply with sanitary standards and requirements and shall be equipped with the necessary number of containers for different waste types.

At the same time, from August 1, the Special transport company " increased on average 1.3 times the rates for waste collection to the public, organizations and enterprises of Tashkent. In particular, the cost of services for the removal of solid waste for the capital's population grew by 36.4 per cent - up to 1,500 soums per person per month.

The official exchange rate is 1904.90 soums to $ 1. 

The World Bank supported International Workshop "Implementation of the AEM Program in Uzbekistan, and International Experience", August 17-18, 2012, Tashkent, Uzbekistan.

Pursuant to the Decree of the President of the Republic of Uzbekistan No. УП-4058 dated November 28, 2008 "On the program of activities to support the real economy enterprises, ensure their stable business operation, and increase export potential", a Decree of the Cabinet of Ministers No. 150 "On additional measures to improve electricity metering system" was issued on June 5, 2009.

 As per the Decree of the President of the Republic of Uzbekistan No. ПП-1442 "On the Republic of Uzbekistan Industry Development Priorities in 2011-2015" dated December 15, 2010, and the Decree of the President of the Republic of Uzbekistan No. ПП-1668 "Investment Program of the Republic of Uzbekistan for 2012" dated December 27, 2011, the Government of the Republic of Uzbekistan and SJSC Uzbekenergo have attracted funds of the Asian Development Bank (ADB) and the World Bank to implement the Advanced Electricity Metering Program (AEM). A loan of the Islamic Development Bank is expected to be attracted as well.

 SJSC Uzbekenergo, jointly with the World Bank, will conduct the workshop under the Program to promote the project idea, exchange advanced experience and best practices, and attract potential suppliers of services and equipment.

Main topics of the workshop are: Concept of the AEM implementation in Uzbekistan; international experience of mass scale AEM implementation; smart metering and communication; and billing system, data management and customer relations.

The American-Uzbekistan
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