Information digest 120

15 June, 2012

ECONOMY

Some 15% of automobiles use natural gas in Uzbekistan
Light industry of Uzbekistan plans to increase annual production by 20%, and exports by 10%

INTERNATIONAL COOPERATION

Plans for the Future
Uzbekistan to build new sugar plant

SPORT

Uzbek Gymnasts Rose to the Podium

ECONOMY



Some 15% of automobiles use natural gas in Uzbekistan

Currently some 15% of automobiles of Uzbekistan use methane as a fuel, Boriy Alikhonov, vice speaker – head of MPs’ Group of Ecologic Movement of Uzbekistan, said on Thursday at the opening of the Central Asian Natural Gas Vehicles Exhibition and Conference.

The organizers noted that number of natural gas vehicles in Uzbekistan grew from 5,000 to 300,000 units in recent years, which is favourable factor for expansion of the sector.

Boriy Alikhonov said that currently there are 210 gas fuelling points and this number will rose up to 400 by 2015.

He said that Uzbekistan developed a concrete plan on expansion of gas fuelling stations at highway in the territory of the country.

Boriy Alikhonov underlined that currently there are 350 large and small service centers, which serve vehicles, which use ecologic clean fuel. He said that the use of natural gas decreases emission to atmosphere by five times.

Chairperson of the Association “Enterprises of alternative fuels and energy” of Republic Uzbekistan Amir Urisov said that currently 1,771 cars fell to share of one gas fuelling station. He said this shows to increase number of stations.

The organizers said that some 40 companies from 30 countries participate at the event. The exhibition and conference is organized by the Association “Enterprises of alternative fuels and energy” of Republic Uzbekistan, NGV Transportation Magazine, Chamber of Commerce and Industry, Ecologic Movement of Uzbekistan and gas fuelling stations.

Cabinet of Ministers of Uzbekistan, Ministry of Economy, Ministry of Foreign Economic Relations, Investment and Trade of Uzbekistan, Ministry of Interior Affairs, Tashkent city administration, and Uzbekneftegaz national holding company rendered official support to the events.

Within the conference, which will be held till 15 June, the participants will discuss current state and perspectives of development of alternative fuel in Uzbekistan and Central Asia.

At three-day exhibition, foreign and local companies present equipment for vehicles and scientific-technologic development. (Source: UzDaily.com)



Light industry of Uzbekistan plans to increase annual production by 20%, and exports by 10%

Enterprises of SJSC O'zbekyengilsanoat charted to achieve annual production growth of 20%, and exports - 10%. This was informed by Deputy Chairman of the State Joint-Stock Company Shamsitdin Sultanov.

According to the company's data, last year the enterprises of SJSC O'zbekyengilsanoat produced goods worth more than 3.5 trillion soums (official exchange rate 1 USD= 1878,06 UZS) and consumer goods for 824 billion soums. The Company now produces 36 kinds of new products - ready-made fabrics, sewing and knitting and hosiery.

Within four months of 2012, the company exported products to the company worth more than $210.5 million. The goods have been delivered to more than forty countries around the world.

The analysis shows that cotton yarn with the share of 58% is the main exports of textiles from Uzbekistan. The share of finished products is 25%, cotton fabric - 7%, knitted fabrics - 5.2%, silk and silk products - 2.8%.

Steps to further expand the export ties are being taken, the company officials said. In particular, there were presentations of products in China, India, Indonesia, Malaysia, Singapore, Brazil, Spain, France and Italy.

In 2012-2014, the company plans to purchase more than 700 pieces of equipment for the production of garments, yarn, fabrics for $13.4 million. This, according to experts, will increase production capacity and product range, create new jobs.

Currently, the company includes more than 270 enterprises, of which 150 are enterprises with foreign investments. They manufactured a wide range of cotton yarn and fabrics, sewing, sewing and knitting products, as well as hosiery. In addition, the company provides needs of enterprises in medical products, special clothing, etc.

Enterprises of SJSC O'zbekyengilsanoat in 2015 will increase the production of cotton yarn by 1.8 times - up to 695 tons from 370 tons in 2010. The projected increase in output of cotton fabrics is 1.75 times - with an increase up to 400 million square meters in 2015. The highest increase in production over this period is planned for the production of sewing and knitted products with high added value - clothing - from 250 million to 600 million units. Production of hosiery will grow by 2.3 times - from 60 million pairs to 140 million pairs in 2015. The information was announced during the presentation of the industry in the first phase of the 6th International Industrial Fair and Cooperation Exchange.

Since independence, the industry has attracted $1.3 billion in foreign and $0.6 billion (in soum equivalent) of domestic investments (companies' own funds and bank loans). The main incentives for investments in the textile industry of the republic is the presence of basic raw materials - cotton fiber quality, skilled workforce, extensive network of communications, high-capacity regional markets for textile products.

As part of the development of the textile industry for 2011-2015, more than 55 investment projects worth $1.7 billion were implemented.

A large proportion of investments is aimed at ensuring the creation of deep processing of cotton fiber at textile complexes in Tashkent, Kashkadarya, Ferghana and Namangan regions. Creation of integrated structures, the so-called clusters, provides a closed production cycle - from fiber processing to finished garments.

Deepening of the level of processing of cotton fiber from the yarn production to production of finished products, according to the SJSC O'zbekyengilsanoat gives an opportunity to increase its value from 1.5 to 10 times.

According to the company, in 2011 O'zbekyengilsanoat received 42.8 million soums of net profit. Total assets increased from 12.4 billion soums in 2010 to 17.6 billion in 2011. The authorized capital increased from 9.7 billion soums at the end of 2010 to 17.6 billion soums in 2011. (Source: UzReport.com)



INTERNATIONAL COOPERATION



Plans for the Future

New gas pipeline to expand export opportunities in Uzbekistan

President of Uzbekistan has approved the mechanism for the implementation of the project of the third leg of Uzbekistan-China pipeline. The pipeline is planned will be fully operational in January 2015.

Construction of the first phase of the third leg pipeline (318 km from Gazli to the Uzbekistan and Kazakhstan state border) and gas flow metering unit UKMS started in April 2012 and is to be completed in March 2014. In April 2014 the operators plan to complete construction and commission the compressor station UCS3. Construction of the second stage of the third leg pipeline (212 km from the border of Turkmenistan-Uzbekistan to Gazli), compressor station and related facilities UCS1 is scheduled to complete in January 2015.

Uzbekneftegaz together with UzLITIneftegaz, design institute CPPE (China) and other stakeholders will develop by April 1, 2013 and submit for the approval of the Cabinet of Ministers the feasibility of the project. In this regard, a joint venture Asia Trans Gas, on an exceptional basis, has received permission in the period up to April 1, 2013 to carry out construction of the third thread along with the development of design documents.

As part of the project, Uzbekistan has released companies from taxes on corporate income – income from foreign banks and financial institutions that received from loans and the income of foreign companies received from the execution of works, rendering of services. In addition, the work and services performed by non-residents of the republic are exempt from value-added tax. Services provided by Asia Trans Gas for transportation of Uzbek natural gas are also exempt from value-added tax for the maturity term of attracted foreign loans.

The specially created joint venture Asia Trans Gas since December 2009 provides an international transit of Turkmen natural gas through Uzbekistan-China pipeline. Later, the governments of Uzbekistan and China agreed to expand the design capacity of the Uzbekistan-China pipeline by the construction of the third leg of the pipeline. Also, on April 28, 2011 the Uzbek government approved the agreement on the basic terms of the natural gas sale contract, signed April 19, 2011 between Uzbekneftegaz and the China National Petroleum Corporation. In addition, on October 25, 2011 Uztransgaz and PetroChina International Company Ltd (China) signed a natural gas purchase agreement.

Experts believe the third leg will play an important role in the diversification of Uzbek gas exports. The pipeline with total length of 1,840 km, along with the existing first and second lines, will annually export from Turkmenistan, Uzbekistan and Kazakhstan to China 25 billion cubic meters of gas. The new line will make it possible to increase the overall throughput of the Turkmenistan-China pipeline to 55 billion cubic meters of gas. The total project cost exceeds $2.2 billion. (Source: “Uzbekistan Today” newspaper)



Uzbekistan to build new sugar plant

The Government of Uzbekistan adopted a decision on construction of new sugar plant at the Angren special industrial zone with the capacity of 1,000 tonnes of sugar per day.

The project with the cost of US$108.5 million will be implemented in cooperation with Singapore’s and Welton International Enterprises Pte. Ltd. and Kito Investment Pte. Ltd., as well as Austrian SЕID Handelsgesellschaft m.b.H.

Investors will create foreign enterprise Angren Shakar with the charter capital of US$20 million, which will be formed due to resources of founders, re-investment of income, received from current activities in Uzbekistan.

The founders will provide US$55 million as fees for the charter capital and direct loans to implement the project. Singaporean Oriental Singapore Capital Pte. Ltd. will also issue US$53.45 million of loan under guarantee of the founders.

The government of Uzbekistan also provided tax and customs breaks till 1 July 2013. The company will be exempted from payment of income tax, property tax, and other payments for seven years.

Khorezm Shakar JV OJSC is an only sugar producer in Uzbekistan. Khorezm Sugar Plant was commissioned in 1998. The cost of the plant is US$83.25 million. Preliminary plant was designed for processing sugar-beet, which was planned to plant in Uzbekistan. The capacity of the plant was 3,000 tonnes of sugar-beet a day. But low crop pushed to conserve the plant.

Shakar Investment, an Uzbek-Austrian-US joint venture, carried out project on transfer of the capacity to processing of cane sugar with the cost of US$2 million in 2002. Currently, the plant can process 1,000 tonnes of cane sugar a day.

Shareholders of the company are Motril Investments (Panama, 69.43%), KITO Investments (Singapore, 20%), SEID Handels GmbH (Austria, 10%) and employees (0.57%). (Source: UzDaily.com)



SPORT



Uzbek Gymnasts Rose to the Podium

Uzbek athletes have won two gold and one bronze medals in Russia, at the international tournament in rhythmic gymnastics.

The competitions of the International Federation of Gymnastics, except owners, was attended by more than 300 athletes between the ages of 5 and 20 years from Uzbekistan, France, Luxembourg, Belarus, Estonia, Turkmenistan.

In competitions among girls born in 1997, talented gymnast Valeriya Davidova has scored the highest number of points – 102.3 and occupied the first step of the podium.

In the all-around competitions among girls born in 1998, Uzbek athlete Samira Amirova, who has scored the largest number of points among the same age and won the gold medal.

The third place among the gymnasts under the age of ten years went to Asal Ikromova. (Source: UzA news agency)