American-Uzbekistan Chamber of Commerce
BUSINESS NEWSLETTER
  
Week in Review:
 
November 20, 2015 - November 27, 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.   

 

Our Members:
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In This Issue:
AUCC IN BRIEF
Invitation to Business Roundtable with Uzbek Ambassador Bakhtiyar Gulyamov: December 15, 2015 in Richmond, VA
Large thermal power plant to be commissioned in Uzbekistan
Uzbekistan adopts hydropower engineering development program
Uzbekistan to put up state shares of two banks for sale

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 27, 2015 

Organized by: 

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Uzbek Embassy
Hosted by:


WHEN:
10.00 AM - 11.30 AM 
Tuesday, December 15, 2015

WHERE: 
Board Room
Room 220
Virginia Department of Agriculture and Consumer Services
102 Governor Street
Richmond, VA 23219
 
RSVP: 
or 

RSVP DEADLINE: 
Friday, December 11, 2015

Roundtable Meeting with Uzbek Ambassador Bakhtiyar Gulyamov 

This event offers excellent opportunity for US companies  to develop new foreign market.  Located in Central Asia, Uzbekistan is home to almost 30 million people, has rich natural resources base, and enjoys annual GDP growth of 8%. The country's established infrastructure and well-skilled workforce are an attraction to AUCC members, including The Boeing Company, CNH Industrial, The Coca-Cola Company, FMN International, General Electric, General Motors, Honeywell, Indsur Stelcor, Inc., Lockheed Martin, Nukem Inc. (a subsidiary of Cameco Corporation), Rio Tinto, Solar Turbines, Sustainment Solutions, Inc., White & Case LLP and Zeppelin International AG (authorized Caterpillar's distributor), and many others. 
 
Please join our discussion with the Uzbek Ambassador on commercial opportunities and how to make the first step towards doing business in Uzbekistan.     
 
10:00 am
    
Networking and Registration
  
10:30 am
 
Welcome Remarks by Keith Long, Director, Office of International Marketing, Virginia Department of Agriculture and Consumer Services
 
10.35 am
 
Introduction by Elena V. Son, AUCC Executive Director 

10.40 am 
Overview of Uzbekistan's Economic and Business Potential by the Diplomatic Delegation
 
11.00 am 
 
Q&A
 
11.30 am
Conclusion

November 27, 2015 

The first phase of the Turakurgan thermal power plant (TPP) will be commissioned in Uzbekistan in 2017, Uzbek President Islam Karimov said, the National News Agency of Uzbekistan (UzA) reported Nov. 27.
President Karimov made this statement said at a meeting of the Namangan Regional Council of People's Deputies.
The president said that two steam and gas turbines with a capacity of 450 megawatts each are planned to be launched as part of the project for the construction of the Turakurgan thermal power plant in 2017.
He said that two more turbines are planned to be commissioned in 2020.
"We will be able to fully meet the electricity demand of the economy and the population not only in the Namangan region, but the whole Fergana Valley and organize new production facilities on this basis by implementing such ambitious projects," President Karimov said.
It was previously reported that Uzbekenergo JSC started constructing the first phase of the Turakurgan thermal power plant with a 900-megawatt in 2013. The thermal power plant will produce 6.8 billion kilowatt / hours of electricity after the first phase.
The project worth $1 billion is being financed at the expense of the loan of the Japanese International Cooperation Agency (JICA), the Fund for Reconstruction and Development of Uzbekistan and Uzbekenergo's own funds.
Uzbekistan and JICA signed a loan agreement in November 2014. Under this agreement, JICA allocates a preferential long-term loan worth 71.8 billion Japanese yens ($704 million) for the period of 40 years, including a 10-year grade period at a rate of 0.3 percent per annum.
Currently, 45 power plants with the capacity of nearly 13,000 megawatts, including 16 power plants of Uzbekenergo company operate in Uzbekistan's power supply system.
Up to 90 percent of the electricity is generated at 10 thermal power plants of Uzbekenergo. The total capacity of these plants is 10,600 megawatts.
In total, Uzbekenergo's power plants account for over 98 percent of the electricity production in the country.
The rest of the volume is generated by autonomous thermal power plants of industrial enterprises and small hydro power plants of Uzbekistan's Ministry of Agriculture and Water Resources.

November 23, 2015

The Uzbek government has approved the hydropower engineering development program in 2016-2020 with a preliminary cost of nearly $890 million.
The program envisages the construction of new hydroelectric power plants and the modernization of existing ones.
Nine new hydropower plants are planned to be built and 15 existing hydropower plants are planned to be upgraded with a total capacity of 1,014 MW as part of the program. Uzbekenergo JSC is implementing 15 projects with a preliminary cost of over $576 million and a design capacity of 943 megawatts.
The company implements four projects for the construction of new hydroelectric power plants worth $69.5 million and a capacity of 23.5 megawatts. Eleven projects worth $507.11 million are directed to modernize the capacity of the existing hydroelectric power plants. As a result, the capacity of the hydroelectric power plants will increase by 919.9 megawatts.
Uzbekistan's Ministry of Agriculture and Water Resources will implement nine projects in the coming five years. The preliminary total cost of these projects is $312.8 million.
The ministry will construct new hydro power plants with design capacity of 70.9 megawatts as part of five projects. The preliminary total cost of these projects is $174.1 million.
Another four projects totaling $138.7 million will provide modernization of operating hydro power plants. As a result, the capacity of these plants will increase by 465 megawatts.
The program will be financed with the own funds of the Ministry of Agriculture and Water Resources and Uzbekenergo JSC ($478.16 million) and borrowings worth $411.25 million.
It is expected that the implementation of projects included in the program will ensure additional electricity generation in the volume of 5.253 billion kilowatt-hours annually by 2021.
Currently, 45 power plants with the capacity of nearly 13,000 megawatts, including 16 power plants of Uzbekenergo with the total capacity of 12,040 megawatts, operate in Uzbekistan's power supply system.
Up to 90 percent of electricity is produced by 10 thermal power plants of Uzbekenergo with the total installed capacity of 11.6 million kilowatts. The company's 29 hydropower plants with the installed capacity of 1.4 million kilowatts are mostly united within hydropower plant cascades.
The rest of the electricity is generated by autonomous thermal power stations of the industrial enterprises and small hydroelectric power stations belonging to the Ministry of Agriculture and Water Resources.

November 26, 2015

The State Committee of Uzbekistan on Privatization, De-monopolization and Development of Competition will put for sale the state shares in two large joint-stock banks - the Turonbank JSCB and the Alokabank JSCB with a total starting price of $72.63 million.
The shares of the banks will be put up for sale in early December at the Tashkent Republican Stock Exchange (RSE), the state committee said.
In particular, some 63.1 percent of shares in the Turonbank JSCB with a starting price of $29.9 million and 47.6 percent of shares in the Alokabank JSCB with a starting price of $42.72 million will be put up for sale at the RSE.
It was previously reported that in May, the president of Uzbekistan approved a list of 68 companies the assets of which were offered for sale to strategic foreign investors.
Alokabank, a medium-size bank, was established according to the Cabinet of Ministers' resolution in 1995. The bank specializes in issuing credits to telecommunications facilities.
The bank's founders are the enterprises and organizations of the State Committee for Communication, Information and Telecommunication Technologies.
The bank's stock is shared among over 3,000 shareholders. The bank's biggest shareholders are the Information and Communications Technologies Development Center and Electromagnetic Compatibility Center, which are part of the UTIA and hold 19.99 percent each, as well as the Tashkent Information Technologies University (14.71 percent).
Currently, the bank's assets amount to nearly 900 billion soums, the authorized capital of the bank is formed at a rate of 99 billion soums and consists of 882 million common and 18 million preferred shares with a nominal of 110 soums each.
Turonbank was established in October 1990 in Uzbekistan. The bank's founder is the Uzbek Ministry of Agriculture and Water Resources and its departments. The large shareholders of Turonbank are Energokimyomarkaz LLC with 19.4 percent, Tabiat Mehri farm with 16.1 percent and Infrastruktura LLC with 14.35 percent.
The bank's assets at the end of the first quarter of 2015 exceeded 620.24 billion soums. The bank's authorized capital has been formed in the amount of 46 billion soums and consists of 27.06 million securities, including some 23.269 million common and 3.791 million preferred shares with par value of 1,700 soums each.


CONTACT INFORMATION:aucc logo
The American-Uzbekistan
Chamber of Commerce 
1030 15th Street, N.W.,
Suite 555W 
Washington, DC 20005 
phone: 202.509.3744 
info@aucconline.com
www.aucconline.com