American-Uzbekistan Chamber of Commerce
Week in Review:
January 23, 2015 - January 30, 2015
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Dear AUCC Members and Friends:


Happy Holidays and best wishes for a prosperous New Year! 


We would like to express our gratitude to all AUCC members who, through all these years, have proven to be Uzbekistan's true allies and have been nothing but dedicated, reliable, honest and most conscientious business partners inspired to expand the bilateral relationship, business climate and promote development to enhance the lives of the people of Uzbekistan and the US.  


Our companies recognize that despite the global economic slowdown, Uzbekistan has managed to secure successfully greater macroeconomic stability and growth.  We applaud the Government of Uzbekistan for their continuous process to improve the operating business environment that US companies benefit from and fiscal discipline that has enhanced economic growth.  We greatly appreciate our own US Government for their continuous dialogue with their Uzbek counterparts on how to use trade and investment engagement as a pillar of the bilateral relations.


We stand ready to use our business acumen to facilitate the Uzbek and US Governments' efforts to attract more American companies and helping those who are already here generate even more success stories for the world to hear. We hope for the US and Uzbek Governments' support in helping us multiply our achievements and generate more projects and contracts that will make our nations achieve greater prosperity, stability and higher rates of development. 


Happy Holidays!  May 2015 bring greater prosperity to the American and Uzbek people. 




Carolyn Lamm, AUCC Chairperson

Timothy McGraw, AUCC President


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:

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.


January 29, 2015 


International Business Center of Uzbekistan hosted an Uzbek-Japanese joint seminar on "Coverage of issues of further spread in Uzbekistan Japanese cogeneration gas turbine technology on the basis of turbines class H-25".

According to the "Uzbekenergo", the event was held jointly with the Japanese Organization for Development New Energy and Industrial Technology (NEDO) with assistance of Ministry Economy of the Republic of Uzbekistan.

The seminar was attended by representatives of the Embassy of Japan in Uzbekistan, companies ITS Nippon, Itochu, Mitsubishi corporation and others.

During the workshop, it was noted that during the implementation of programs of modernization, technical and technological re-equipment of electric power industry an active and leading role played by Japanese investment and technology, in order to attract that, all the necessary conditions.

So, with technical assistance from NEDO, together with the Japanese company Tohoku Electric Power in a short time was completed with the commissioning of a unique object - a modern gas turbine power cogeneration plant capacity of 27 MW at Tashkent thermal power station.



January 29, 2015 


The Agency on Intellectual Property held a board meeting on the results of activity in 2014 and the main objectives for 2015, according to the information service of the agency.

Thus, last year the volume of work carried out by agency was 20.9 billion soums. Higher than the previous figure of 14.2%. During the year, the services are provided 1.2 billion Soums (growth compared with 2013 year was 84.3%).

It was noted that in the past year, work on the further introduction of information and communication technologies in the activities of the agency In particular, the works on the automation of internal documentation and implementation in 2015, an automated system for the adoption of documents from applicants electronically.

In order to inform the general public about the work being done on the legal protection of intellectual property rights, the benefits of such protection, as well as increasing the knowledge of scientists, inventors, entrepreneurs agency in 2014 in the regions conducted 15 seminars organized 15 appearances on television and radio, published dozens of articles in the media.

Based on the most important directions and priorities of economic development for 2015, announced at the meeting of the Cabinet of Ministers, the Agency identified the problem and approved a work plan for 2015.

Its planned an implementation of concrete measures on issues such as the expansion of outreach aimed at raising public awareness in the field of legal protection of intellectual property, the creation of an enabling environment to entrepreneurs in preparation of documents related to the provision of legal protection of intellectual property, with a view to preventing unnecessary barriers and limitations, the widespread introduction of information and communication technologies and their effective use.



January 26, 2015 


The Cabinet of Ministers of Uzbekistan adopted a resolution. According to the resolution, the country's industrial enterprises must reduce the production cost by 10 percent in 2015.  The resolution on "Additional measures of reducing the manufacturing costs and a production cost in the industry" was published in the Uzbek media Jan. 26. These parameters are planned to be achieved by reducing the energy consumption, improving the energy efficiency of production.

The technological processes and the consumption rates of raw material resources, operational and overhead expenses must be rationalized by introducing the information and communication technologies (ICT) and optimizing the number of administrative and industrial personnel.

Moreover, the summary parameters of reducing the manufacturing costs and a production cost in economic associations and large enterprises by an average of 10 percent, as well as by nine percent - by reducing the manufacturing costs are approved in accordance with the resolution.

Uzbekistan's industrial enterprises will have to reduce the production costs by 2.22 percent by saving energy resources, by 0.78 percent by reducing the technological losses, 3.34 percent - optimization of expenditures on raw materials and supplies, 0.31 percent - optimization of the manpower.

It is planned to reduce the cost price by 13.6 percent at the enterprises of Uzbekneftegaz National Holding Company, 13.8 percent - Uzbekenergo State Joint-Stock Company, 7.2 percent - Almalyk Mining and Metallurgical Complex, 6.7 percent - Navoi Mining and Metallurgical Combine and 11.1 percent - at the enterprises of Uzkhimprom (Uzbek Chemical Industry).

It is planned to reduce the cost price by 6.9 percent at the enterprises of Uzavtoprom in accordance with the resolution, 10.4 percent - Uzeltekhprom Association, 10 percent - Uzbeklegprom, 10.3 percent - Association of Food Industry Enterprises, 10.1 percent - Uzbekistan Railways and 10 percent in Uzpharmprom.

The parameters on reducing the cost price of the industrial products are set by Uzbek government every year. It was planned to reduce the cost price of the industrial products by 11 percent in 2012, 11.2 percent in 2013 and 10 percent in 2014. 


Silk Road Reporters

January 27, 2015 


Electricity is the foundation upon which modern civilization rests. However, not all of mankind has access to this invaluable resource - the International Energy Agency estimates that 20 percent of the world's population still remains unconnected to the grid.

In oil and natural gas rich post-Soviet Central Asia, governments are increasingly interested in a prolific yet underutilized resource - solar power. The last decade has seen rising global interest in renewable energy, with many nations seeking to exploit their natural resources to produce power. International Energy Agency data note that the solar power industry has been expanding for the last six years with unprecedented annual growth rates of 60 percent amid the average growth rate in the production of electric power around the world at 3.4 percent.

During the summer, according to a study by the U.S. Department of Energy's National Renewable Energy Laboratory, the kilowatt hour generating potential of a single square meter in Central Asia approaches 8 kilowatts.

One of the post-Soviet Central Asian nations with the greatest solar power potential is Uzbekistan. The country's solar energy resources are immense, as the sun shines an average of 8-10 hours per day, resulting in an average duration of sunshine of 2,700-2,800 hours per annum. According to data developed by the U.S. government's Oak Ridge National Laboratory, Uzbekistan's gross potential of solar energy, if fully utilized, is the equivalent of 50.973 billion tons of petroleum fuel annually.

Besides a climate suited to solar power, Uzbekistan brings advantages to the table, including a longstanding interest in generating power from sunlight, an advanced industrial base and a highly literate, hard-working population.

Government policy is also directed towards alternative energy, as on March 1, 2013 Uzbek President Islam Karimov issued a decree calling for energy self-reliance. To encourage investment, the government has also extended tax breaks for foreign direct investment (FDI) in the country's renewable power sector.

A secondary asset that Uzbekistan has is that it was the center of solar research in the USSR. In 1965 the Uzbek Academy of Sciences began publishing the "Geliotekhnika" ("Applied Solar Energy") quarterly journal, the former Soviet Union's sole scientific publication devoted to solar power. Topics covered ranged from solar radiation, photovoltaics and solar materials to direct conversion of solar energy into electrical power. This translates into 50 years of primary research to tap into. Geliotekhnika is still published today in Russian and now English. It places a strong emphasis on applications such as solar devices for home and industrial uses, solar heating and cooling systems, solar power systems and units, and agricultural uses of solar energy.

Uzbekistan's solar power potential is now attracting the interest of foreign investors. In early 2013 Suntech Power (STP), one of China's largest solar firms, invested roughly $10 million in a joint venture with Uzbekistan's Uzbekenergo state energy company to construct a solar panel manufacturing facility. As a corollary to rising Chinese investment in Central Asia, STP had been affected by rising trade barriers, subsidy cutbacks in key markets and a chronic global oversupply of solar panels. STP's move was unique as it involved building manufacturing capacity in an emerging solar market, giving the firm a head-start in a largely under-tapped market while providing the company an opportunity to diversify its revenue stream. Misunderstanding the global market however forced STP into bankruptcy in Feb. 2014.

Uzbekenergo intends to build a total of around 2 gigawatts (GW) of solar power plants over the next few years with a portion of the financing for the projects coming from the Asian Development Bank (ADB); a pilot project for the construction of a 100 megawatt solar photoelectric station is now underway in the Samarkand region.

Other foreign investors such as Russia's Lukoil have also shown interest in Uzbekistan's solar sector. The ADB has already shown its commitment to Uzbekistan's solar initiatives. In Feb. 2012 the Uzbek government and ADB signed a memorandum on cooperation in implementing solar energy projects, according to which in 2012-2015 the ADB allocated $200 million in loans to Uzbekistan for the implementation of these projects. One immediate outcome of the loans was the establishment in Feb. 2012 of Uzbekistan's International Solar Energy Institute (ISEI), to conduct applied research intended to foster innovation, promote technology transfer and promote efficient and economic solar technology use.

Utilizing such expertise has its shortcomings, however. While Uzbekistan has considerable scientific and technical potential and Uzbek researchers have produced many engineering and technological developments in the design and use of solar energy, Uzbek Academy of Sciences Presidium employee Nurmuhammad Iulchev observed, "However, we must recognize the fact that many experts are of a very advanced age, and talented young people prefer to conduct research abroad."

The country's introduction of solar power will benefit some previously overlooked citizens. In Uzbekistan there are almost 1,500 remote and hard-to-reach rural communities that are not connected to the national electricity grid. Micro solar projects to provide electricity for lighting, heating, pumping water and solar cooking are now beginning to percolate into the countryside. In Sept. 2014 Uzbekenergo announced that a facility for producing solar collectors has opened in the Jizzakh Special Industrial Zone (SIZ). The $3.34 million Quyosh Issiqlik Energiyasi (Solar Thermal Power), was jointly commissioned by Uzbekistan and China and will produce manufacture 50,000 solar water heaters annually.

Growing international interest in Central Asian renewable energy is evident in the rising number of international forums devoted to the subject. On Nov. 6, 2014 the European Commission organized a one day conference in Brussels to promote sustainable-energy-policy developments in Central Asia, which focused on the private business opportunities for renewable energy production in Central Asia, including wind, solar and hydroelectric power.

In the region, the upcoming "Development of the solar energy industry in the South Caucasus, Eastern Europe and Central Asia" CISOLAR-2015 will be held in Baku on April 16-17 covering solar energy industry development, legislative framework, regulatory policy, investment attraction and regional technical peculiarities of solar energy project development.

Another regional event will be held in Tashkent May 12 -14. The 10th Uzbekistan International Specialized Exhibition "Energy, Energy saving, Electrotechnical & Power equipment, Information and measuring equipment, Cables, Lighting, and Modern technologies in electric energy" - Power Uzbekistan 2015. The exhibition's website states, "Power Uzbekistan 2015 is an important exhibition for Central Asia's power industry, and a key energy event in Uzbekistan. It brings together senior representatives from the entire spectrum of the power and energy industry, including energy, energy saving, power electronics, heat-power equipment and alternative energy." Among the Exhibition sections is "Alternative Energy: Wind & Solar Energy Technologies."

While funding remains an issue, given Uzbekistan's expertise and technological talent, solar power's future in Uzbekistan seems bright. As Karimov told participants in the Sixth Meeting of Asia Solar Energy Forum in Nov. 2013, "As the Asian and World Bank assessments indicate, the gross potential of solar power in Uzbekistan exceeds 51 billion tons of oil equivalent. These resources, experts suggest, allow for the production of electric power 40 times as much as the annual consumption of power in our country this year." Given Tashkent's interest in solar power, alternative energy's future in Uzbekistan seems assured.


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