American-Uzbekistan Chamber of Commerce
Week in Review:
November 16, 2012 - November 23, 2012

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In This Issue:
Uzbekistan plans to attract ADB loan for modernization of municipal waste utilization system
Chinese Inroads into Central Asia: Focus on Oil and Gas
S&P affirms ratings of National Bank of Uzbekistan
Uzbekistan, Canada to enhance investment cooperation
Red Mountain Energy modernizes oxygen station at AGMK
ADB can provide US$90m loan to solar project in Uzbekistan

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.   


Uzbekistan intends to raise a loan of Asian Development Bank (ADB) in the amount of $ 400 million for the modernization of municipal waste utilization system, a source in the government circles of the country told Trend on Friday.

The project with an estimated cost of about $500 million is provided for the modernization of solid waste management in Tashkent and in eight regions of the country.

Uzbekistan will provide $100 million in the equivalent at the expenses of the state budget.

Waste processing companies are planning to refresh garbage trucks fleet and equipment, build new protected areas for differentiated waste collection in the frame of the budget.

ADB has provided a grant of $700,000 for the feasibility study of the project in December 2011. Currently, representatives of the ADB and the government discuss the project details. At the conclusion of the negotiation process, presumably in the spring of next year, the project will be sent to the leadership of the ADB, the source said.

More than 100 million tons of industrial waste and 35 million tones of household waste formed annually. There are more than two billion tones of industrial, construction and domestic waste are at rubbish storage on site, occupying a total area of ??12 hectares.

Currently the Legislative Chamber of the Uzbek Parliament is considering amendments to the Law On Waste.

In particular, we plan to make the provisions of the law on the promotion of the implementation of activities related to the collection and recycling of waste.   


[Excerpt] Uzbekistan holds an estimated 1.84 trillion cubic meters  of proven natural gas reserves. Russia's  Lukoil has significant investments in the country and has plans to export gas to China. China and Uzbekistan signed an agreement in June 2012 to sell an annual 10 bcm of Uzbek natural gas to China. Uzbekistan is also a transit country for Turkmenistan's gas exports to Russia and China. At the same time, China's Eximbank agreed to provide $74 million to modernize Uzbekistan's gas distribution network to facilitate the flows to China. CNPC established the Sino-Turkmenistan Gas Pipe Corporation to construct a 1,140-mile gas export pipeline from Turkmenistan's eastern fields through Uzbekistan to western China and the interconnection with China's West-East pipeline.  Turkmenistan is designed to be the key contributor of gas to China through this pipeline,  but after Uzbekistan country finalized a gas supply deal with China at the end of 2011, it started exporting its own gas earlier this year. The agreement with Beijing allows the ex-Soviet republic to break away from Moscow's orbit of influence.  Uzbekistan is fully aware of the cost of dependency on Russia when it refused to buy gas from Turkmenistan, contributing to an economic crisis in that country; hence Uzbekistan is seeking to increase its cooperation with China and other countries looking to tap into its vast energy resources.  Read full report here   


Standard & Poor's has affirmed the international credit ratings of the National Bank for Foreign Economic Activity of Uzbekistan (NBU), the largest commercial bank in the country, at the level of B+/B with a "stable" forecast, the bank said today.

As previously reported, S&P raised the long term counterparty rating of NBU to B + from B and affirmed the short term rating at B in accordance with updated methodology of assigning ratings in December.

According to the agency, assigned ratings reflect an adequate business position, an adequate position on risk, performance above the average level of funding and adequate liquidity of the bank.

The NBU was founded in September 1991 as a government agent in international financial markets. Today, it acts as a universal commercial bank.

The Bank is wholly owned by the state.

The bank has approximately 100 branches and offices, and the subsidiary AsiaInvestBank in Moscow. The bank serves about 2.5 million physical and legal entities. Correspondent relations have been established with 650 foreign banks.

In 2011, the assets of the NBU, calculated by international financial reporting standards (IFRS) increased by 13.3 percent compared to the same period in 2010 - up to 7.876 trillion soum, credit portfolio - by 17.9 percent to 4.686 trillion soum, liabilities - by 13.7 percent to 7.104 trillion soum, own capital - 10 per cent, to 771.57 billion soum.

Net profit of the NBU in 2011 decreased by 4.5 percent - to 67.598 billion soum.

Official exchange rate on November 20 is 1966.36 soum/$ 1.   


A wide range of issues of bilateral relations, including in the political, trade and economic, investment, cultural and humanitarian spheres was discussed during Uzbek-Canadian political consultations held in Ottawa, Foreign Ministry of Uzbekistan said.

The negotiations were attended by delegations of Uzbek Foreign Ministry and Canadian Department of Foreign Affairs and International Trade.

The parties reaffirmed the importance of enhancing parliamentary contacts. In particular, the Uzbek side stressed that establishing Canada - Uzbekistan Friendship Group in the House of Commons in October 2012 is seen as further evidence of the interest of the two countries' legislators in deepening ties.

The parties paid special attention to the state and prospects of development of bilateral trade and investment cooperation. They also emphasized interest in institutionalizing the relations in this area, including through expanding the legal framework.

Proposals on mutually beneficial projects in various sectors of the Uzbek economy, including the Navoi free industrial economic zone and Angren special industrial zone were drawn to the Canadian side's attention.   


Red Mountain Energy Corporation (USA) will conduct modernization of oxygen station of the Almalyk Mining and Metallurgy Combine (AGMK).

Red Mountain Energy Corporation and AGMK signed a contract on modernization of oxygen station on "turnkey" basis with the cost of US$19 million.

Within the project, it is planned to install additional equipment, which will allow to increase production volume by 20% to 131.4 million cubic meters of tonnage oxygen a year.

AGMK will carry out construction works within the modernization project with its own forces. The project will be implemented within two years.

The project cost is US$26.2 million. Fund for Reconstruction and Development of Uzbekistan will issue loan for US$19 million and AGMK will direct US$7.2 million of own resources to the project.

The project is conducted within the modernization of copper-smelting capacities of the AGMK.

The Asian Development Bank (ADB) can issue a loan for US$90 million to construction of solar power station in Uzbekistan.

It is expected that the loan will be issued due to resources of the Asian Development Fund. The bank can consider allocation of funds in the end of 2013.

As reported earlier, Russian oil company Lukoil prepared preliminary project on construction of solar power station in Uzbekistan with estimated cost of about 250 million euros.

Lukiol developed a proposal on construction of solar power station with the capacity of 100 megawatt in Navoi city.

In the end of 2011, the company developed preliminary project of solar power station with estimated construction price of about 250 million euros. The company said that after the governmental approval, the detailed project will be developed.

Uzbekistan has great potential for development of alternative energy. Uzbekistan has more than 300 sunny days, which can be used effectively.

According to some calculations, opportunity of renewable energy in Uzbekistan can be equal to 51 billion tonnes of oil. Current technologies will allow Uzbekistan to produce energy equal to 179 million tonnes, which exceeds the volume of produced energy in Uzbekistan three times and allows to cut emission of 447 million tonnes of carbonic acid gases, various sulphureous compounds, nitric oxide, etc.

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