American-Uzbekistan Chamber of Commerce
BUSINESS NEWSLETTER
  
Week in Review:

October 4, 2013 - October 11, 2013
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2013 Marks AUCC 20th Anniversary

Since 1993 the American-Uzbekistan Chamber of Commerce has been at the forefront of advancing trade and business relations between the US and the Republic of Uzbekistan. AUCC prides itself in catering to the needs of our members, providing them with a platform to interact with policy makers in the US and the Republic of Uzbekistan and ensuring that bilateral commercial relations continue to be on the governments' top agenda.   

 

For the last twenty years AUCC has been a vigorous advocate of the views of the business community to ensure that private sector positions are considered during the development of policies that impact American businesses and the future of U.S.-Uzbekistan relations.    

 

We are delighted that today AUCC is a well-known organization that is recognized for its strength and ability to work closely with a great number of partner organizations. AUCC enjoys excellent working relations with the Embassy of the Republic of Uzbekistan in Washington, D.C., the Government of the Republic of Uzbekistan, Uzbek ministries, associations and organizations as well as the executive and legislative branches of the U.S. AUCC also coordinates its efforts with a great number of international financial institutions, business councils and other professional organizations.

If your company is interested in joining AUCC, please contact our office at 202-509-3744 or [email protected]  We invite you to be part of our organization and participate in our activities and events.   

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In This Issue:
AUCC IN BRIEF
Statement at the Conclusion of the IMF Staff Visit to Uzbekistan
Uzbekistan completes modernization of gold production worth $10 million
Chinese firm to construct Uzbek PVC complex for Navoiyazot
Presentation of manuals: "How to export", "Cold storage" and "Business plan writing"
International Exhibition and Conference on Gardening, Beekeeping and Floriculture: November 20-22, 2013

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.

www.imf.org  

 

October 9, 2013

 

An International Monetary Fund (IMF) mission led by Mrs. Veronica Bacalu visited Tashkent from September 25 to October 2, 2013 to discuss recent economic developments, government policies, and prospects for the economy of Uzbekistan. The discussions also focused on preparations for the next Article IV Consultation, tentatively scheduled for spring 2014. At the conclusion of the mission, Mrs. Bacalu issued the following statement:

"Despite the deterioration in the global environment, the economy of Uzbekistan continued to grow rapidly. Strong fiscal and external positions, a stable banking system, and low public debt continue contributing to robust macroeconomic performance. Real GDP growth was maintained at 8 percent in the first half of 2013, supported by the state-led modernization investment program. Exports of goods and services rose by 12 percent. Despite rapid import growth spurred by capital goods, the current account surplus increased marginally and international reserves remained high.

"The consolidated fiscal position was better-than-budgeted, benefitting from higher tax collection and expenditure in line with the state budget in the first half of 2013. Despite a drop in gold and copper prices, the Fund for Reconstruction and Development's revenue exceeded expenditure by 4.3 percent of semi-annual GDP.

"After peaking at 12.8 percent in May 2013, annual inflation, based on an alternative consumer price index (CPI) measurement by Fund staff, declined to 11.3 percent in August 2013.1 Inflation remains driven by regulated tariff increases aimed at cost recovery, exchange rate depreciation, and demand pressures stemming from general government spending.

"Monetary policy has been accommodative. Supported by directed lending and strong domestic activity, the growth of credit to the economy stayed at 30 percent year-on-year. The depreciation of the official exchange rate through September was higher than expected.

"The banking sector remained stable, well capitalized, and highly liquid. Financial deepening is progressing at a modest pace. The authorities continued to engage in IMF and World Bank technical assistance, focused on strengthening prudential regulations, on- and off-site supervision, and stress testing.

"The near-term economic outlook is favorable and the prevailing downside risks remain manageable. Despite deteriorating external environment, economic growth is projected to surpass 7 percent in 2013-2014, supported by the government's large-scale modernization investment program. The authorities are projecting higher GDP growth of 8 percent in 2013. This is based on their assessment of the possible limited impact of the external environment on the Uzbek economy, and planned contingency measures that would mitigate the negative impact. The current account for 2013 is expected to register a surplus of 3 percent of GDP (up from 2.2 percent in 2012). The draft 2014 budget envisages a deficit of 1 percent of GDP to support economic expansion. Under unchanged policies in 2014, inflation is projected to remain at the current level. A deeper-than-expected slowdown in emerging markets and the related lower exports and current account inflows present the main downside risks to the outlook. However, the impact of such developments is deemed to be limited for Uzbekistan given ample fiscal space and high foreign exchange reserves.

"Going forward, reducing inflation remains a key priority of macroeconomic policy. Lowering inflation sustainably to single digits requires coordinated efforts in the conduct of monetary, fiscal, and foreign exchange policy. The authorities should tighten monetary policy, avoid fiscal loosening, and increase the exchange rate flexibility. The materialization of downside risks would warrant less tightening.

"The authorities should take advantage of their current strong position to accelerate reforms aimed at increasing productivity, promoting economic diversification, and enhancing competitiveness, while ensuring sustainable and inclusive growth. The recently adopted set of measures to simplify foreign trade regulations and reduce customs controls, licensing, and permission requirements is welcome. Success in improving the business environment and governance hinges on the authorities' determined implementation of these measures in practice as planned.

"Recent progress with strengthening monetary and fiscal statistics is welcome. The mission encourages the authorities to open a country page in International Financial Statistics, disseminate fiscal data in the Government Financial Statistics Yearbook, and advance their work for participating in the General Data Dissemination System. The authorities are also encouraged to develop further their macroeconomic statistics with emphasis on the real (national account and prices) and external sectors. The Fund stands ready to help the authorities enhance the quality and dissemination of macroeconomic data.

"The mission would like to thank the authorities for their cooperation, productive discussions, and warm hospitality."

1 Fund staff's estimates are based on the authorities' source data and use international methodology. By the authorities' methodology, annual inflation was reported at 7.1 percent in May 2013 and 6.8 percent in August 2013. 

en.trend.az  

 

October 7, 2013

 

Almalyk Mining and Metallurgical Complex (AMMC, Almalyk city, Tashkent oblast) has commissioned Uzun site of Kochbulak mine ahead of schedule, the Complex' representative told Trend on Friday.

According to the agency's interlocutor, within the framework of the project a modern transformer substation worth $9.5 million was built and the necessary equipments were purchased. These equipments include Caterpillar excavator, CHETRA-250 bulldozer, Dressta autoloader - 534, electric locomotives, SBU-100 drilling rigs and four various brands compressors to them, loader machines, electrical and ventilation equipments, and equipments for pumping station.

The project was financed with AMMC's own funds. The site's productivity will be 40,000 tons of ore per year, some 25,000 tons of which will account for underground works, 15,000 tons - for open mountain mining works. The term of site's existence with the development and decay of mountain mining works is six years.

According to AMMC, commissioning of new sites for development will allow to compensate Kochbulak field's retired capacities and support gold production at current levels in the next six years.

It was previously reported that, in 2003 the AMMC was named the winner of the tender for the development of Kyzyl Olma and Kochbulak gold deposits, with the general forecasted gold reserves of 300 tons. The project involved the renovation of the construction of the existing mines at these fields.

In 2007, AMMC completed the reconstruction of the existing ores at the Kyzyl Olma and Kochbulak fields in Tashkent oblast with a total value of $49.4 million. The project was financed with AMMC's own funds.

AMMC plans to intensify its work on opening up new horizons for operating mines, building new capacities, as well as to reconstruct the Angren gold recovery plant in 2011-2015.

This is carried out in line with the gold production modernization program, adopted to maintain the capacities of the enterprise at the current level, as well as compensate the enterprise's ore base that retires during its operation process.

Currently, AMMC also conducts construction of Samarchuk underground gold mine on the basis of the existing Kyzyl Olma ore with capacity up to 200,000 tonnes per year, located in the Tashkent oblast and worth $ 78.1 million.

AMMC is also constructing a new Kairagach underground mine based on the field of the same name which has the capacity up to 80,000 tons of ore per year, and worth $48.4 million. 

www.plasticsnews.com  

 

October 4, 2013

The China National Chemical Engineering Group Corp. (CNCEC) has won the contract to construct a new 350 million euro ($476 million) PVC complex at the site of the Uzbekistan chemical company Navoiyazot.

Beijing-based CNCEC is reported to be due to sign the deal with Navoiyazot, part of the Uzbek state-owned industrial conglomerate Uzkimyosanoat, in October or November this year.

Navoiyazot, one of the Central Asian country's biggest chemical enterprises, has planned to establish a PVC operation at its site in Navoi City, 248 miles from the Uzbek capital Tashkent, since 2010. But the project has been delayed several times, in part because it was awaiting a formal government green light.

The production complex was initially due to be completed by 2012 with a PVC capacity of 110 million pounds per year and caustic soda capacity of 71 million pounds per year. But now, according to regional reports, it has been doubled in size to reach 220 million pounds per year of PVC output and caustic soda production of 141 million pounds per year, and will produce up to 661 million pounds per year of methanol.

Financing of the project will include a loan from Uzbekistan's Fund for Reconstruction and Development, and from international financial institutions including Exim Bank of China as well as Navoiyazot's own resources. Completion of the complex is now being scheduled for 2016, the reports state.

The fertilizers and chemical company also produces methylacrylate and polymethylacrylate, and operates two packaging converting lines producing up to 20 million polypropylene sacks a year for its own use.

www.undp.uz  

 

October 3, 2013

Manuals on "How to export", "Cold storage" and "Business plan Writing" were presented in the framework of UNDP project "Support to Foreign Trade and Investment promotion in Uzbekistan" being jointly implemented with the Ministry for Foreign Economic Relations, Investment and Trade. Presentation of above-mentioned manuals was organized in cooperation with the with export promotion company "Uztadbirkoreksport" to support export activities of small and private businesses.

The presentation of manuals was devoted for start-ups as well as for experienced entrepreneurs. During the presentation of the manual "How to export" participants were familiarized with information about existing state regulations, the key procedures and necessary for their processing documents with the samples and explanation on filling them out. Arranging all procedures into 12 steps and providing illustration saves time, generates interest and stays in memory.

The manual "Cold storage" is devoted to the correct handling and storage of product. It covers such issues as planning of harvesting, cold storage, preparations of products, various fruits and vegetables for storage, and their compatibility with each other. It also provides recommendations on pre-cooling cooling practice and storage schema for various products. Presentation of "Business plan writing" manual highlighted the most essential ways of preparing of a business plan. 

"We hope these manuals could be useful for businesses and entrepreneurs and enable them to acquire better skills and knowledge on business plan preparation, storage of fruits and vegetables and matters related export of products", said Jakhongir Imamnazarov, project manager of UNDP.  

ssp-expocontact.uz  

 

October 4, 2013

It is known that Uzbekistan has a great potential in the development of business in the area of horticulture, beekeeping and floriculture. Entering the market of Uzbekistan, you can get to the Central Asian market.

Main objective:

Creating the opportunity to get knowledge of the local and foreign modern scientific developments in the field of horticulture, apiculture and floriculture; providing a choice of means of mechanization, equipment, and other resources for the care, treatment and storage in the field of horticulture and floriculture.

Main sections:

 Consumables for horticulture and floriculture:

* Plants, Seeds and Seedlings;

* Soils of, composts, fertilizers, the means of of protection of plants and other agrochemicals;

* Mechanical means, tools and other materials for the care of gardening and floriculture

Honey and honey products;

* Honey, pollen (Ambrosia), propolis, royal jelly, wax;

* Equipment and beekeeping;

* The bees, beehives, apiary;

Processing, storage, packaging and transportation:

* Engineered construction of facilities for the processing and storage,

* Technology, refrigeration and other equipment for the processing and storage;

* Raw materials for processing, storage, packaging of fresh and processed products;

* Installation and maintenance;

* Transport and aids;

* Accessories for flower arrangements and flower arranging;

Fresh and processed products:

* Fresh fruits, berries, flowers;

* Recycled Products: juices, jams, etc;

* Consulting and brokerage services in the field of horticulture, floriculture, apiculture, landscape design, as well as sales.

 Visitors and participants of the exhibition - farms, the enterprises, organizations, of the company, firms, scientific institutions, associations, working in the  sphere of Horticulture and floriculture, interested layers of the of the population.


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

www.aucconline.com