American-Uzbekistan Chamber of Commerce
BUSINESS NEWSLETTER
  
Week in Review:
 
November 6, 2015 - November 13, 2015
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Dear AUCC Members and Friends:

 

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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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.
November 12, 2015

The Japanese Kawasaki Heavy Industries will upgrade Ferghana combined heat and power plant in Uzbekistan worth $80 million until 2019, the leadership of Uzbekenergo JSC told Trend.
The power plant modernization project involves the construction of a gas turbine unit with a capacity of 57.7 megawatts, which provides for heat and electricity production, as well as the reconstruction of the boiler room. The project will be implemented during 2016-2018.
The representative of the energy operator of Uzbekistan said that currently Kawasaki started developing the feasibility study of the thermal power plant modernization project. Feasibility study preparation is scheduled for completion in mid-2016. After that, contracts for the supply of equipment and its installation will be concluded.
Financing of the project will be carried out by grants of the Japanese New Energy and Industrial Technology Development Organization (NEDO) in the amount of $50 million and equity of the Uzbek side.
Ferghana thermal power plant is the only power plant in the Ferghana Valley. It was commissioned in 1979, and its installed capacity is 305 megawatts.
In October 2015, the government of Uzbekistan and the NEDO signed a protocol of intent on cooperation, within the framework of which the Japanese organization plans to assist the country in upgrading a number of thermal power plants.

November 12, 2015

The Legislative Chamber of Uzbekistan's Oliy Majlis (parliament) has approved the state budget, the budgets of state trust funds, as well as the main vectors of the tax and budget policy for 2016, said the message from Uzbek parliament's lower house.
The parameters of the state budget and the budgets of trust funds have been worked out by the government taking into account the planned GDP growth of 7.8 percent for 2016, industrial production - 8.2 percent, agricultural production - 6.1 percent, the volume of capital investments - 9.6 percent.
The budget deficit is expected to reach one percent of the forecasted GDP volume, the revenues of the state budget - 18.4 percent of GDP, expenditures - 19.4 percent of GDP.
The tax policy concept for 2016 envisages reducing the tax burden on economy from 20.7 percent in 2015 to 19.1 percent.
It is planned to spend 59.2 percent of the total volume budget expenditures on financing the social sphere, compared to 58.7 percent in 2015. Moreover, the expenditures on education is planned to account for 6.8 percent of GDP, health care system - 2.8 percent.
Furthermore, it is planned to increase the expenditures by 1.16 times on maintenance of cultural institutions and sports events and by 1.36 times - on science sphere.
The expenditures on economy are planned to account for 2.1 percent of GDP, while the centralized investments financed from the state budget will account for 1 percent of GDP.

November 11, 2015 

Uzbekistan plans to construct 16 combined-cycle power plants by 2020 to increase the country's energy capacity.
The construction of eight 500MW combined-cycle power plants has already begun, Finance Minister Rustam Azimov announced at the International Financial Forum in Tashkent last week.
The minister highlighted the importance of the new high-efficiency cogeneration plants in the growing demands of industry and other areas of the country's economy, improving reliability and efficiency, and reducing the country's environmental burden.
In addition, the growth of energy capacity in the country will adequately supply the population, Azimov added.
Home to approximately 29.3 million people, Uzbekistan has the largest population of any country in Central Asia.
As many as 10 thermal power plants, located around the country, supply some nine-tenths of Uzbekistan's power supply, which drives the nation's economy. It is essential to improve this power supply and its reliability in regions such as Tashkent, where the capital city of Tashkent is located, as its demand for power is high.
Access to hot water and steam, supplied to factories and residences, is of vital importance in major metropolitan areas such as Tashkent. But heat supply facilities have markedly deteriorated in the country. Therefore, the power and heat supply capacity for Tashkent have dropped along with the reliability of supply. Meeting the demand for power has become a priority for the Uzbek government.
Uzbekistan has made efficient and stable use of energy by upgrading existing power plants and cogeneration facilities, as well as developing new power sources that utilize the country's plentiful natural gas resources.
The process of upgrading production capacity is managed with the participation of the world's leading equipment suppliers such as Hitachi, Kawasaki, and other Japanese companies, receiving financing from the Japan International Cooperation Agency (JICA), the minister noted.
The JICA signed a loan agreement with the Uzbek government to provide a Japanese Official Development Assistance loan of up to 12 billion yen (some $97 million) for the Tashkent Thermal Power Cogeneration Plant Construction Project on October 25.
The project aims to provide an efficient and sustainable supply of heat and power in Tashkent, thereby contributing to the country's sustainable economic growth.
The loan funds for the project will be allocated to the construction of the plant and related facilities and to consulting services, such as design work, assistance with bidding, and construction supervision.
The JICA continues to cooperate to boost economic development in Uzbekistan and advance projects in the power sector.
Increasing export
The volume of Uzbek exports will increase by 1.5 times, reaching $25 billion by 2020, according to the minister.
This will be the result of the integration of reforms in the country's economy by 2020, including the modernization and diversification of industries, development of private property, re
duction of the state's role and place in the country's economy, the deepening of the localization of production, upgrade of communications and road networks, and reduction of the economy's dependence on energy.
He also noted that the reforms would provide average annual GDP growth of at least 8 percent, including industrial production of no less than 9 percent with the increase of industry shares from 24 percent to 30 percent by 2020.
The reforms are expected to develop the industries of oil and gas, mechanical engineering, petrochemicals, electrical products, textiles, food, pharmaceuticals, and building materials by 2020, Azimov added.
In addition, more than 1,000 new industrial products for almost 100 commodity groups will be developed for the reported period.

November 11, 2015 

Uzbek president Islam Karimov received the president of the LUKOIL oil company Vagit Alekperov Nov.10, said the country's national news agency (UzA).
The president noted vigorous activity of the company on the implementation of joint projects in the oil and gas sector of Uzbekistan.
Currently, LUKOIL operates in Uzbekistan on the implementation of three projects - Kandym-Khauzak-Shady-Kungrad, mining of Southwestern Hissar, as well as conducts exploration of the Uzbek part of the Aral Sea as part of an international consortium. The total investment volume of the company in the implementation of projects in Uzbekistan has exceeded $5 billion.
In November 2014, President Islam Karimov approved a contract between LUKOIL Uzbekistan Operating Company Ltd. (operator of the projects of LUKOIL in Uzbekistan) and South Korea's Hyundai Engineering Co. Ltd. for the construction of a gas processing plant and arrangement of Kandim group of deposits worth $2.662 billion.
Currently, LUKOIL has started construction of Kandym gas processing plant on the basis of attracting world's most advanced technologies, which will ensure deep processing of 8 billion cubic meters of natural gas annually.
During the meeting, Alekperov said that the implementation of this project, which is envisaged to be commissioned in 2018, is being carried out within the framework of further reformation, structural transformations and diversification of economy for 2015-2019 aimed at expanding industrial base of Uzbekistan.
He went on to add that the LUKOIL company will certainly ensure full and timely implementation of all commitments undertaken within the framework of investment projects carried out in the oil and gas sector of Uzbekistan.
During the meeting the sides exchanged views on the current situation in global and regional markets of hydrocarbons, as well as discussed key promising areas of further expansion of long-term and mutually beneficial cooperation.
Earlier it was reported that by 2016, LUKOIL plans to produce in Uzbekistan for at least 18 billion cubic meters of gas per year and to bring production to 17-18 billion cubic meters of gas annually by 2020.
Accumulated gas production in the oil fields of the company in the country currently stands at about 30 billion cubic meters.


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