American-Uzbekistan Chamber of Commerce
BUSINESS NEWSLETTER
  
Week in Review:
 
July 31, 2015 - August 7, 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. 

 

Sincerely, 

 

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 info@aucconline.com.  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.

AzerNews

August 7, 2015 

 

Items produced under the "Made in Uzbekistan" brand name have taken a worthy place in the world market, impacting the country's competitiveness, and strengthening the position of its national products on the world market along with the export potential of its small businesses.

Uzbekistan's production attracted great interest among foreign partners for its quality, eco-friendly and natural properties at the second Silk Road International Food Exhibition Fair held in Urumchi, China, according to the Fund for export support of small businesses and private entrepreneurship.

Following the exhibition, 14 contracts on the export of Uzbekistan's agricultural products were signed totaling over $110 million.

The recent exhibition passed with the participation of 1500 companies from 40 countries with their products and services, including representatives from Canada, Germany, Italy, Spain, Austria, Hungary, Cyprus, Australia, the Philippines, Japan, South Korea, Malaysia, Singapore, Thailand, Jordan, Iran, India, Kazakhstan, Turkmenistan, and so on.

In turn, Uzbekistan was represented by 48 companies, the participation of which was organized by the Fund for Export Support of Small Businesses and Private Entrepreneurship.

Uzbekistan's 48 domestic enterprises exhibited agricultural products, wines and liquors products, processed fruits and vegetables, natural juices, pastries, medicinal teas, almond oil, honey, and so on.

The participation of Uzbekistan in international exhibitions presents the possibility to demonstrate the country's potential, showing how much socio-economic development increased for the first half of 2015.

The total volume of investments utilized for the reporting period came to 18 trillion soums (over $6.9 billion), an increase of 9.8 compared with the same period of 2014, according to a report by the Ministry of Economy and the Uzbekistan State Statistics Committee.

The total foreign investments and loans amounted to over $1.5 billion, or 21.3 percent, including $1.2 billion of foreign direct investment for the reported period.

The volume of funds utilized from the Fund for Reconstruction and Development to implement major investment projects in strategic sectors of the economy increased by 5.6 percent, amounting to $225 million.

The funds of economic entities, amounting to 32.3 percent of the total volume of investments, became the largest volume of utilized investments over the first half of current year, a growth of which was 31.8 percent compared to the same period of 2014. This reflects the process of the active implementation of sectorial programs of diversification and the increasing competitiveness of production, as well as regional programs for socio-economic development.

In comparison with the same period of previous year, the index of the funds of economic entities increased by 31.8 percent, which vividly illustrates the process of diversification and the increase of production competitiveness.

The Fund for export support of small businesses and private entrepreneurship, established under the National Bank of Foreign Economic Activity of Uzbekistan by the decree of President Islam Karimov, significantly contributes to the expansion small business exports, providing them with the necessary legal, financial, and organizational support.

The Fund provided supports services to 924 business entities for the promotion of goods and services to foreign markets over the first quarter of current year.

As a result, the export turnover of 315 business entities totaled $220.4 million.

During the aforementioned period, the Fund assisted 674 entrepreneurs in studying foreign markets, including 65 in finding foreign partners.

In addition, 157 businesses received legal, organizational and financial support for participation in international exhibitions, fairs, tenders, as well as the acquisition of international certificates, permits, and customs clearances.

Up until January 1, 2019, the Fund and its regional branches are exempt from all taxes, levies, fees, and mandatory contributions to state funds with the exception of a single social payment, according to the presidential decree titled "On additional measures to support exports of small businesses and private entrepreneurs."

 

Airport Technology

August 6, 2015 

 

The Uzbek Government will sign an agreement with Korea International Cooperation Agency (KOICA) next month to initiate a feasibility study on the construction of a new passenger terminal at Tashkent International Airport.

A KOICA team conducted preliminary studies for the feasibility study of the project last week, AzerNews reported.

Once the agreement is signed, the authorities will select the companies to execute the $4m study in early 2016

The two countries had signed the memorandum of understanding for the study during Uzbekistan President Islam Karimov's official visit to Seoul in May. The agencies had agreed to promote 11 grant programmes for three years between 2015 and2017.

The KOICA representative office said: "At the request of the Uzbek Government, for the speedy implementation of the project, the Korean side will comprehensively prepare for its implementation, develop a feasibility study, which differs from the earlier developed ones, approve the necessary funding for the project and develop a master plan."

Currently, Tashkent International Airport has three passenger terminals with the international terminal 2 having a capacity to handle 1,300 passengers an hour.

Opened in 2011, terminal 3 has the capacity to handle 400 passengers from local flights every hour, while terminal 1 is primarily used for state visits and VIP services.

According to previous media reports, Uzbekistan Airways plans to construct the fourth terminal by 2019, to have a a capacity to handle 1,500 passengers an hour.

The project will have an estimated cost of $300m, and is expected to be financed with the air carrier's own funds, as well as loans from local and foreign financial institutions.

 

AzerNews

August 7, 2015 

 

Completion of Ustyurt Gas Chemical Complex (GCC) construction in Uzbekistan is scheduled for September 2015, Korean Ambassador to Uzbekistan Lee Wook-heon said in an interview with the Uzbek National News Agency (UzA).

He said that the joint construction of Ustyurt GCC on the base of the Surgil field worth $4 billion is one example of fruitful Uzbek-Korean cooperation.

As previously reported, in February 2008 Uzbekneftegaz and a consortium of Korean companies Kor-Uz Gas Chemical Investment established on a parity basis JV Uz-Kor GasChemical for the project for the construction of Ustyurt GCC on the Surgil field. The consortium of Korean companies currently includes Kogas, Honam, and STX Energy.

The complex will annually process 4.5 billion cubic meters of natural gas and produce up to 4 billion cubic meters of marketable gas, 387,000 metric tons of polyethylene, 83,000 metric tons polypropylene and 102,000 metric tons of pyrolysis gasoline.

The project is financed through the investments of founders of the joint venture and credit resources of commercial banks in Asia, Europe and Uzbekistan in the amount of $2.54 billion.

 

AzerNews

August 5, 2015 

 

The use of effective energy management, which provides the process of monitoring, controlling, and conserving energy in a building or organization, became a kind of requirement in a global economy.

Being a part of profitable business, the efficient energy use helps organizations save money, as well as help to conserve resources and tackle climate change.

The O'ZDST ISO 500001:2011"Energy Management System. Requirements with guidance for use" standard was recently developed and approved in Uzbekistan, in order to save and reduce energy consumption in the country.

This ISO 500001 standard will be carried out within the Program of measures to reduce energy consumption, implement energy-saving technologies in the field of economy and social sphere for 2015-2019, according to the Ministry of Economy and the State Statistics Committee of Uzbekistan.

Implementation of the new energy management standard in the sphere of construction work will provide houses and industrial buildings with new level of quality in the country.

To achieve the positive results of the ISO 500001 implementation, the great attention is paid to train qualified professionals familiar with international practices in the sphere of energy saving.

Thus, a new educational direction for Energy audits and energy survey of industrial enterprises specialty was created in the Tashkent State Technical University and the Bukhara engineering-technical institute.

The large international five-year energy project on energy saving implemented jointly with the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF) was completed in Uzbekistan this year.

The total cost of the project is worth more than $13.4 million, including GEF's investments in the amount of $2.91 million, UNDP's contributions for over $724,600 and Uzbekistan's government for $10.2 million.

The basic aim of the project was reduction of energy consumption and greenhouse gases emission in both new and existing public buildings (hospitals and schools) of the country.

Earlier, Kahramon Usmanov, the project manager, mentioned in his presentation that 49 percent of total energy consumption and 39 percent of total greenhouse gas emissions of the country are attributed to the buildings.

He made this statement during the International Conference on Improving the energy efficiency of social facilities in Uzbekistan on June 18.

World's energy efficiency indicator is expressed in annual heat consumption per square meter in kilowatt-hours(kWh).

This figure is higher by 2-3 times in Uzbekistan than in the EU countries, where the value of the heat energy consumption is 100-120 kWh per square meter for existing buildings.

Over the five-year period, 3 state educational standards, 11 training modules and 8 programs on energy efficiency and energy management were developed and implemented in Uzbekistan.

Moreover,48 masters and 600 bachelors have got specialty on energy management of buildings, as well as more than 19,500 students have completed the program on energy management, and more than 2,000 practitioners, architects and designers have been trained on the energy efficiency of buildings.

ISO 50001 is based on the management system model of continual improvement, that makes it easier for organizations to integrate energy management into their overall efforts to improve quality and environmental management.

According to the International Standard Organization's official site, ISO 50001:2011 provides a framework of requirements for organizations to develop a policy for more efficient use of energy, fix targets and objectives to meet the policy, use data to better understand and make decisions about energy use, measure the results, review how well the policy works, and continually improve energy management.

The International Standard Organization introduced a new accreditation for the establishment and certification of energy management systems in 2011.

Implementation of associated ISO 50001 standards and best practices has grown dramatically across the globe, since that time.

Obtaining ISO 50001 accreditation can play a key role in helping companies stay competitive, particularly in energy intensive industrial processes, as well as significantly success company's financial savings.

Moreover, some countries as Germany, for example, are even offering tax breaks for companies, that gained the ISO 50001 accreditation.

 

ETurbonews

August 4, 2015 


 

Uzbekistan has initiated work to lay down another railway track to further boost its already high-ranking tourism industry.

According to details, JSC, "Uzbekistan Railways," plans to construct a new railway line "Navoi-Kanimekh-Misken" with a length of 396.9 kilometers, an official statement of JSC Uzbekistan Railways stated.

This railway line will be created for a more complete and efficient use of the potential of the Bukhara, Khorezm, and Navoi regions as well as the Republic of Karakalpakstan.

The project will be implemented in two phases. The first phase, worth of $283.1 million, covers the years 2016-2017. It will be implemented at the expense of internal sources. Within the framework of it, a corresponding site for the movement of diesel motive power will be built.

The second phase contains work on electrification of the site, with regard to further energy supply of the region.

The given site connects to the railway line "Navoi-Uchkuduk-Sultanuizdag-Nukus" at the station "Misken." According to experts, it will also intensify the flow of goods from Uzbekistan to the north.

The total length of railways in Uzbekistan is 4,200 kilometers. They account for about 60% of cargo within the country and almost 80% of the total volume of cargo export and import.

 

AzerNews

August 3, 2015 

 

Uzbekistan can start exporting grain to Azerbaijan already this year, Zhahongir Aminov, the counselor of Uzbekistan's Embassy in Baku on economy and politics said at a round table dedicated to the Independence Day of Uzbekistan in Baku on August 4.

Commenting on the questions of journalists, the counselor said that a list of nearly 200 types of products has been submitted to the consideration of the governments of the two countries.

"Uzbekistan and Azerbaijan enjoy great prospects for expansion of mutually beneficial ties. In particular, a strong demand in the Uzbek carpets and textiles would be in Azerbaijan," he noted.

The diplomatic relations between two countries were established in October 1995. The two countries have signed over 100 bilateral documents.

The trade turnover between Azerbaijan and Uzbekistan stood at $61.512 million ($23.612 million - import, $37.9 million - export) in 2014, according to Azerbaijan's State Customs Committee.

Uzbekistan mainly exports cars, buses, spare parts, equipment and agricultural products to Azerbaijan. Azerbaijan, for its part, exports chemical and oil industry products and equipment to Uzbekistan.

 

AUCC

August 7, 2015 


 

 INVITATION TO ATTEND

 

2015 U.S.-UZBEKISTAN ANNUAL BUSINESS FORUM 

 

8.30 am - 4.00 pm

Tuesday, October 13, 2015

 

Pavilion Room

The Ronald Reagan Building and International Trade Center

1300 Pennsylvania Avenue NW

Washington, DC 20004

 

UZBEKISTAN KEYNOTE SPEAKER:

Mr. Elyor Ganiev, Minister of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan (confirmed)
 
PARTICIPANTS FROM UZBEKISTAN

Uzbekneftegaz (oil and gas industry)
Uzbekimyosanoat (chemical industry)
Uzfarmprom (pharmaceutical industry)
Uzbekenergo (energy)
Uzavtosanoat (automobile industry)
Uzeltechsanoat (electromechanical industry)
Uzstroimateriali (building and construction industry) 
Oziq-ovqatsanoat(food industry)

This list is tentative and there might be changes.   
 
US GOVERNMENT SPEAKERS
(as of 7/17/2015):

Mr. Michael Delaney, Assistant US Trade Representative, USTR (confirmed) 

Mr. Michael Lally, Executive Deputy Assistant Secretary, Europe, Middle East and Africa, US Department of Commerce (confirmed)

Mr. Raymond Ellis, Vice President & Manager, Global Business Development Division, Export-Import Bank of the United States (confirmed)
 
Mr. Daniel Rosenblum, Deputy Assistant Secretary for Central Asia, Bureau of South and Central Asian Affairs, US Department of State (confirmed)

The event will be followed by a reception to welcome members of the official Uzbek delegation and the forum's participants
 
More information about the forum's speakers and agenda to follow.

 

Organized by the American-Uzbekistan Chamber of Commerce

 

Sponsored by The Ronald Reagan Building and International Trade Center

 

 

For more sponsorship opportunities, please contact AUCC at 202-509-3744 and info@aucconline.com

 

AUCC would like to invite all interested parties to participate in the 2015 US-Uzbekistan Annual Business Forum and hear the Uzbek Government plans and opportunities for our members' increased trade and investment engagement in the market that can help US become a leading business partner.  AUCC members will also share their success stories to encourage more US companies to do business and invest in Uzbekistan.    
AGENDA:

 

The American-Uzbekistan Chamber of Commerce (AUCC) is the only trade association in the United States and Uzbekistan that exclusively represents the business interests of U.S. companies active in the Uzbek market. Established in 1993 and based in Washington, D.C., AUCC is the first bilateral trade organization that successfully promotes trade and investment ties, cultural exchanges and bonds of friendship between the United States and the Republic of Uzbekistan.

 

In performing its functions, AUCC places primary emphasis on serving the needs and interests of its members, namely:  
The Boeing Company, Case New Holland Industrial, The Coca-Cola Company, FMN International, General Electric, General Motors, Harris Corporation, Honeywell, Indsur Stelcor, Inc., Lockheed Martin, Nukem Inc., Rio Tinto, Solar Turbines, Sustainment Solutions, Inc., White & Case LLP and Zeppelin International AG. These companies are united by one common cause: promotion of trade and investment ties, cultural exchanges and bonds of friendship between the United States of America and the Republic of Uzbekistan.

 

Today, Uzbekistan represents the largest market in the Central Asia region with a population of almost 30 million people, an annual GDP growth of 8% and a well-established and diversified economy. American companies invested more than $500 million in the Uzbek economy during the period 1992 to 2012.  In addition, U.S. exports to the Republic of Uzbekistan amounted to more than $3.3 billion. The year 2012 is a good example when US exports to Uzbekistan totaled more than $285 million compared to $100 million in 2011 and $101 million in 2010.  In 2013, the trade levels continued to increase reaching a record $386 million.  During the first nine months of 2014, the US-Uzbekistan trade turnover amounted to $281 million.  While this is good news, the volume of U.S. exports and investments in this largest Central Asian market is lower than those of Uzbekistan's near neighbors, including Russia with its' 2013 exports to Uzbekistan reaching more than $7.1 billion; Сhina - $5.2 billion and Korea - $2.1 billion.  

 

To register and learn more about the forum, please click here.  Seating is limited.  

 

Please respond by Monday, October 5, 2015 to confirm your participation.

 

Admission Fee:

 

$00.00 - AUCC members ONLY and the US Government offices

 

$100.00 - All other companies and organizations

 

Cancellations received within 48 hours of the event are non-refundable. 

 
Click on the link below to register or RSVP.
Register Now!
For more information about the event, please contact AUCC office at info@aucconline.com or call us at 202-509-3744.  

 

Thank you for your attention and response.  We look look forward to seeing you on Tuesday, October 13, 2015. 
 
Sincerely,

 

The American-Uzbekistan Chamber of Commerce
202-509-3744

CONTACT INFORMATION:aucc logo
The American-Uzbekistan
Chamber of Commerce
 
1300 I Street, N.W.,
Suite 720W
 
Washington, DC 20005
 
phone: 202.509.3744
 
info@aucconline.com

www.aucconline.com