American-Uzbekistan Chamber of Commerce
Week in Review:
October 26, 2012 - November 2, 2012

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In This Issue:
Central Asia linkages to receive $23B boost
Hydroelectric power station modernization to be launched in Uzbekistan in December
UzIndoramaGasChemical to start construction of gas chemical complex in 2014
Uzbekistan to begin developing tungsten deposit in 2013
Uzbekistan to develop gas condensate fields early in 2013
Request for Proposal: USAID Regional Economic Cooperation Project
Procurement and Development: A Case Study from Central Asia

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.   


On Oct. 30, ministers from the Central Asia Regional Economic Cooperation Program member countries endorsed an action plan that sets out priority projects for the region's transport infrastructure, energy and trade sectors.

Under the Wuhan Action Plan, CAREC member countries will benefit from $23 billion worth of projects supported by the Asian Development BankEuropean Bank for Reconstruction and DevelopmentInternational Monetary Fund, Islamic Development Bank, U.N. Development ProgramWorld Bank, and bilateral donor agencies from France, Japan, the United Kingdom and the United States.

The bulk of the budget will go to 68 medium-term transport initiatives that will help create six major corridors to link ports in eastern China with Caucasus and beyond. The rest goes to trade facilitation, and includes provisions for technical assistance and investments in border services, customs information technology systems and logistics centers.

The plan also outlined action items for the energy sector, such as resolving regional energy dispatch issues, managing energy and water linkages, mobilizing funds for building energy assets, and knowledge management. Trade policy actions were also endorsed to enable CAREC countries to "adopt more open trade regimes and facilitate intra-and interregional trade."

Unveiled at the 11th gathering of CAREC ministers in Wuhan, China, the plan also highlights the "critical role" of a 2013-17 work plan and sets out sector operational priorities. The plan is instrumental in tracking the region's progress toward CAREC 2020 - a development road map that aims to expand trade and improve competitiveness in Central Asia.

Afghanistan, Azerbaijan, China, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan and Uzbekistan are the 10 countries comprising CAREC.   


Uzbekenergo company will begin modernizing the Charvak hydropower station, the largest hydroelectric power station in the Chirchik Bozsu cascade of hydropower plants.

The project cost is $53.9 million. It is planned to modernize four hydroelectric generating units of Charvak hydropower station to increase the power of each unit from current 155 MW to 175 MW till 2016. The project implementation will ensure additional power generation with a volume of 120 million kWh.

The general contractor of the project is Russian company "Power Machines".

Unitary Enterprise Cascade-Orta Chirchik HPP, part of the State Joint-Stock Company Uzbekenergo and Russian Power Machines signed a contract for the modernisation of the Charvak hydroelectric generating units in the Tashkent region of Uzbekistan.

Under the contract, the Russian company will work on the upgrading of three hydroelectric power plants with a capacity of 155 MW, replace the stator winding and install a new excitation system. Power machines will produce three working wheels of hydraulic turbines for the first, second and fourth generating units.

In addition, modernisation of the hydro part of the regulators and the oil pressure systems and reconstruction of hydroelectric system of automatic control system with the creation of visual monitoring and control at the level of HPS will be implemented at all four hydroelectric stations.

Charvak HPP is the leading and most powerful hydroelectric power station in the Chirchik-Bozsu group of hydropower station complexes on the river Chirchik in Uzbekistan. Hydroelectric power is 620 MW; the average annual generation is two billion kW / h.

According to official statistics, Uzbekistan increased electricity production by 1.3 per cent up to 52.416 billion kilowatt-hours in 2011 compared to 2010.   


UzIndoramaGasChemical JV is planning to launch construction of gas chemical complex in Kashkadarya region in southern Uzbekistan in 2014, RIA Novosti reported quoting source in the government.

The report said that the working group was entrusted to speed up work on development and approval of pre-project documentation on construction of complex by the end of 2012.

According to the source's assessment, it is planned to complete preliminary feasibility study of the project and optimal financing schemes in 2013.

The governmental representative said that this will allow to start construction of complex in the beginning of 2014.

Uzbekneftegaz national holding company and Singapore's Indorama Group created a joint venture on creation of gas chemical complex on parity terms in May 2012.

The preliminary project of the cost is US$2.5 billion. The capacity of the plant will be 500,000 tonnes of polyethylene a year. The project will be implemented within three years.

The project will be financed due to resources of Indorama, loan of Fund for Reconstruction and Development of Uzbekistan and own resources of Uzbekneftegaz.

Uzbekneftegaz and Indorama signed a memorandum of cooperation in 2010, which envisages technological and financial participation of Singaporean company in creation of production of diversified products (polymers and polyethylene) on the base of Mubarek gas processing plant.

Mubarek gas processing plant has been commissioned in 1971. Currently the capacity of the plant is about 30 billion cubic meters of natural gas and over 570,000 tonnes of gas condensate a year.

In 2001, Uzbekneftegaz launched Shortan Gas Chemical Complex on the base of Shortan gas condensate field in Kashkadarya region with the cost of US$985 million. The project capacity of the complex is 3.9 billion cubic meters of gas. It produces 125,000 tonnes of polyethylene, 100,000 tonnes of liquefied gas, and 100,000 tonnes of instable condensate a year.

Currently, Uzbekneftegaz in cooperation with Korean consortium led by Kogas are implementing a project on construction of Ustyurt Gas Chemical Complex on the base of Surgil deposit in northern-western Uzbekistan. The complex will be able to process 4 billion cubic meters of gas a year and produce 400,000 tonnes of polyethylene and 100,000 tonnes of polypropylene a year. The project cost is US$4.2 billion.   


Uzbekistan plans to begin developing the Sautbay tungsten deposit in the Navoi region (central part of Uzbekistan) in 2013, a government source told Trend on Monday.
According to the source, it is planned to develop the field with the participation of the Korean Shindong Resources Co. Ltd.
The Uzbek State Committee for Geology and Mineral Resources and Shindong Resources Co. Ltd. signed an agreement to prepare a feasibility study of the project at a preliminary cost of $150 million in September 2012.
It is planned to complete a feasibility study in May 2013. After its approval, it is planned to sign constituent documents to establish a joint venture.
As reported in August 2011, the Korean Shindong Resources Co Ltd and Uzbek State Geology Committee signed an agreement on establishing a joint venture called Uzbekistan-Korea Tungsten to develop Sautbay tungsten deposit.
The project which is worth $120 million, envisages carrying out exploration work as well as construction of a mining and processing complex with an annual design capacity of 1500 tons of high tungsten concentrate per year.
The explored reserves on the Sautbay deposit have hit four million tons of ore containing tungsten trioxide to the aggregate of 19,900 tons.
Moreover, the programme of development of mineral resources of the country's tungsten deposits for the next six years was developed in Uzbekistan in 2006.
According to the programme it was planned to construct a mining and processing complex with the development of the north site of the Yakhton field in the Samarkand region.
It was planned to launch the development in 2010-2012 with an annual production of tungsten concentrate to the amount of 1260 tons.   


Uzbekneftegaz will start developing gas condensate fields on the border with Turkmenistan in the first quarter of 2013, a source in the government circles told Trend on Tuesday.

According to the source, the feasibility study of a project with an estimated cost of $320 million has been completed.

The project provides for the accelerated development of the 7 fields, including the largest Samantepa, Girsan and Taylyak, which have been discovered in the early 90's, but have not yet been developed.

The field's reserves are not disclosed.

Drilling of wells using new technologies, as well as construction of the associated infrastructure are planned within the project. The field development will allow production of up to 3.5 billion cubic meters of gas per year by 2017.

The project is financed through Uzbekneftegaz's own funds.

It is expected that by late 2012, the feasibility study of the project will be reviewed and approved by the government, and tenders for the purchase of necessary materials and equipment will be announced early in 2013.

Uzbekneftegaz, which provides over 90 percent of the hydrocarbon production in the country, is the monopolistic operator of the oil and gas sector in Uzbekistan. Uzbekneftegaz was established in 1998 and brings together six joint stock companies.

The holding can provide natural gas production in the volume of 70 billion cubic meters and liquid hydrocarbons in the amount of 9 million tons a year.

The USAID Regional Economic Cooperation (REC) Project is issuing a tender to identify the most suitable project partner to support the implementation of Uzbek focus activities to increase export capacity, improve trade policies, procedures and regulations and increase firms' sales in Uzbekistan. The Request for Proposals (RFP) document contains all the necessary information for interested bidders.

Companies or organizations should indicate their interest in bidding on this subcontract by writing to Dmitriy Andreyev by November 9th, 2012. We realize that you may have additional questions after reading the attached RFP tender documents. You are invited to submit questions in writing to [email protected] by October 31st, 2012.   

For more information about this Request for Proposal, please visit the project's website.

In support of the Department of Defense's broader strategy to improve efficiencies within its global supply chains, the U.S. General Services Administration (GSA) has contracted Theodor Wille Intertrade (TWI) to locally source common consumables used by U.S. Forces in Afghanistan. Identifying and sourcing from vendors throughout the Central Asia region, TWI supplies over 100 of the top products used by GSA customers in Afghanistan. Leveraging TWI's long history of managing supply chains, GSA seeks to improve the purchasing and delivery of their products while at the same time bolster the capacity of local vendors through their acquisitions.

Video of the event organized by the Center for Strategic & International Studies can be viewed here.  

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