ECONOMY



Private banking law

Last week President Islam Karimov signed The Private Banking, Financial Institutions And Safeguards Act. The new law allows private banks and financial institutions to independently set prices on financial services they provide, except cases restricted by law. Moreover, it is prohibited for government officials to hold a paid work position at private banks and financial institutions.

According to the new document, the term private banking and financial institutions includes banks and other credit and insurance organizations, as well as other entities that provide financial services whose authorized capital (share capital) is composed by individual person- the founders (participants) by no less than 50%.

Uzbekistan is going to construct and reconstruct 526 km of roads that are part of Uzbek state highway

The Investment Program for the construction and reconstruction of national roads will allocate, in 2013, more than 921.5 billion sums (official exchange rate $1=1984 UZS) at the expense of the National Road Fund of Uzbekistan.

According to the National company Uzavtoyul, it is planned to construct and reconstruct 526 km of roads across the country next year. There will be 440 km of new roads. 86 km of roads will be repaired so they could withstand axle load up to 13 tons. In particular, in Karakalpakstan and Khorazm works will be carried out at more than 170 km of roads; in the Bukhoro and Qashqadaryo roadwork will pass on 115 km of roads. More than 71 km of roads will be repaired at Qamchiq Pass - this road connects the central part of the country with Farghona Valley.



Uzbekenergo to implement 26 projects in 2013

Uzbekenergo state joint stock company is planning to implement 26 investment projects with total cost of US$3.832 billion soums in 2013.

In particular, Uzbekenergo is planning to commission 18 objects with total cost of US$215.3 million. The company will complete construction of gas tribune facility at Tashkent thermal power station, electricity supply objects in southern Uzbekistan, modernization of Syrdarya thermal power station. The company in cooperation with South Korean EG Lighting will create joint venture on production of LED lamps at Angren special economic zone. Uzbekenergo and Hangzhu Zhongau Electronic Meters Company Ltd (China) will launch production of electronic electricity meters at Navoi free industrial and economic zone.



Uzbek Light Industry to launch 21 new businesses in 2013

Total sum of investments into these projects made up US$180.8 million. These enterprises will create 3,730 new jobs.

New enterprises will be able to produce 37,700 tonnes of cotton yarn, 2.9 million running meters of fabrics, 4,000 tonnes of stockinet, 23.8 million pairs of hosiery products, 16.5 million units of ready products and 120 tonnes of raw silk. New enterprises can produce 60,500 tonnes of cotton yarn, 7.5 million running meters of fabrics, 6,200 tonnes of stockinet and 3.7 million units of knit work.

28 enterprises were launched in 2012 with total cost of US$194.8 million, which created 3,726 new jobs. (Source: UzDaily.com)

Project financing of Ustyurt gas chemical complex named as intl deal of the year

A project financing of the project Ustyurt gas chemical complex has been named as international deal of the year, the press service of Uzbekneftegaz said.

Thomson Reuters publishes Project Finance International (PFI), which analyses global project financing market. In December 2012, Project Finance International 2012 Year Book announced the winners of annual award for 2012. The book also analyses global project financing deals.

Projects from Australia, Great Britain, Germany, France, Norway, USA, Malaysia, Uzbekistan and Russian Federation in energy, oil and gas mining, oil and gas chemistry and transported entered to Top 10 projects.

A package of financial documents worth US$2.54 billion was signed in May 2012 and the documents will be effective for 16 years. Korean Export-Import Bank issued US$1 billion to project financing, China Development Bank – US$250 million, Asian Development Bank – US$125 million, and National Bank of Uzbekistan – US$100 million.

Korea Trade Insurance Corporation provided insurance coverage for US$800 million, EKN (Sweden) – US$140 million and Hermes (Germany) – US$124 million.

Nine commercial banks participated in financing of the project. They are Korean Financial Corporation, Korean Development Bank, ING Bank, Siemens Bank, Credit Suisse, Bayern LB, KfW IPEX, Nordea and Swedish bank SEK.

Uzbekneftegaz said that the awarding ceremony will be held on 30 January 2013 in London, Great Britain.



Uzbekistan creates a system for the collection and recycling of waste industrial oil

Two joint ventures - Uz-Ecoprotect and Uz-Prista Recycling – are being established in the special industrial zone Angren. The enterprises will specialize at collection, storage and processing of used industrial oils (UIO).

Uz-Ecoprotect will collect, store and transport the used industrial oils. Stock company Uznefteprodukt will posses 49% of the new enterprise, while the Bulgarian company Prista Recycling will own the remaining 51%. The joint venture’s authorized capital will be $1 million. Uz-Prista Recycling Company will recycle the used industrial oils. Its authorized capital will reach $15 million. Its two shareholders are the same two companies – Uznefteprodukt (49%) and Prista Recycling (51%).



Embassy of the Republic of Uzbekistan Washington, D.C.