INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 155 August 8, 2016

Отправлено 16 авг. 2016 г., 8:05 пользователем Webmaster Ambasciata
INVESTMENTS
Uzbekistan – China: Demand Creates Supply

FINANCE
Moody's keeps stable for banking system of Uzbekistan

INTERNATIONAL COOPERATION
The German automobile concern MAN Truck&Bus AG and the “Uzavtosanoat” will launch the production of cabins for heavy vehicles this coming September in Samarkand

OLIY MAJLIS OF REPUBLIC OF UZBEKISTAN
Senate to hold sixth plenary session on 24-25 August
Deputies discuss draft law "On internal affairs bodies"

OLYMPICS-2016
Diyorbek Orozboyev is a medal winner of the Olympic Games 4

investments

Uzbekistan – China: Demand Creates Supply

The Uzbek-Chinese Joint Venture “Titan-Cement” has put into operation a large cement plant in Karakalpakstan.

At the initial stage the Chinese side had planned to commission into exploitation a plant with a capacity not more than 60 thousand tons of output per annum; however, in the course of construction activities it was found out that there was a heightened demand for a high quality and the best price cement in this northernmost region of the Republic. Hence, the initial capacity of the plant was increased more than threefold already at the stage of the plant construction.

The overall cost of the project exceeded $25 million and more than 200 new jobs were created. The modern Chinese equipment installed at this enterprise provides an opportunity to produce high quality cement in full compliance with international standards. Hence, one of the trends is to find access to the markets of Kazakhstan, Turkmenistan and Afghanistan. Such a narrow range of potential foreign buyers is explained by the fact that the majority of the enterprise’s output will remain in the country for filling in the internal market.

The share of building materials production in Karakalpakstan is about 12% of the regional GDP, but this indicator is going to dynamically grow up within feasible future. It is planned to carry out construction and repair work at 108 social facilities of the region to the total amount of more than 95.3 billion soums (currency rates of CB RU from 08.08.2016, 1$= 2969.43 soums) by the end of this year alone. The significant portion of these resources will be used for the procurement of buildings materials manufactured by local enterprises.

The construction of social facilities alone in Karakalpakstan will require more than 3 million tons of cement by the end of this year, to say nothing of the industrial sector, which implements dozens of major projects at the national level, according to specialists. Here the volumes of required construction materials will grow up significantly. Thus, 200 thousand tons of output for a new cement plant is by far not a limit, it’s only a starting point.

There are a number of other promising projects at the stage of elaboration in Karakalpakstan. This region is located far away from other major cement manufacturing centers in Uzbekistan, so the cost of transportation increases its price. The emergence of new local producers will exclude this transportation margin, which will turn local cement into a more competitive product.

’’There are eight cement plants with a total capacity of more than 8,6 million tons of output per annum operating in this country. By the end of 2020, Uzbekistan plans to almost double its cement manufacturing capacities, when the annual cement production will reach 16.7 million tons, among them about 12.2 million tons will be produced by the “dry method.”

(Source: «Uzbekistan Today» newspaper)

FINANCE

Moody's keeps stable for banking system of Uzbekistan

International rating agency Moody's Investors Service has kept stable outlook on the banking system of Uzbekistan. The outlook reflects expectations that the operating conditions for the activities of Uzbek banks will remain favorable.

"A growing economy with well-diversified export earnings creates a favorable environment for the activities of the Uzbek banks - said senior vice president of Moody's agency Olga Ulyanova, - so the banking sector of Uzbekistan to some extent is protected from the volatility that is typical for the CIS countries".

Moody's expects that in the favorable operating environment conditions, the share of problem loans of Uzbek banks during the forecast period (12-18 months) will remain stable: 4% -5% of total loans. In addition, the rating agency predicts that in the next year and a half credit losses on an annual rate will not exceed 1.5% of the annual average amount of all loans.

"Banks of Uzbekistan have a high level of capital, which allows to absorb losses, as evidenced by the banking sector's core capital adequacy ratio at 14.7% at the end of 2015, - explained Olga Ulyanova. – The ratio of the first level’s capital to assets is also high, amounting to 9.7% at the end of 2015".

In addition, indicators of funding and liquidity of Uzbek banks remain stable and are supported by customer deposits and long-term funding from the state side. Deposits of legal entities and individuals in banks of Uzbekistan rated by Moody's make up only about 56% of the funding base. Two other important sources of funding are a stable and long-term funding from the Government of Uzbekistan (20%) and loans from international financial institutions (15%).

According to Moody's, the Uzbek banks' revenues over the forecast period are also likely to remain high as demand for loans remains high, contributing to the growth of interest income and commission income also remains at a high level.

(Source: UzReport.uz)

International cooperation

The German automobile concern MAN Truck&Bus AG and the “Uzavtosanoat” will launch the production of cabins for heavy vehicles this coming September in Samarkand

The production capacities will be installed on the basis of the Joint Uzbek-German enterprise “JV MAN Auto Uzbekistan”. Modern technological equipment has been purchased from German and Italian manufacturers.

Production of cabins for German trucks will be split into three stages - welding, painting and assembly. At the first stage it is planned to purchase metal panels from the Chinese company Sinotruk Import & Export Co Ltd and then weld them to the frame. At the next stage the frame will be covered by special corrosion-resistant substance and finally painting will be done at the Samarkand automobile plant. Then the cabins will be delivered to the joint venture, where they will be given their final internal and external appearance.

Up to 3,000 heavy vehicle cabins will be produced annually at the plant. Unique technologies and know-how handed over by the German side will be used in manufacturing the output.

The organization of cabin production in Uzbekistan will enable to make a significant step forward in the expansion of export deliveries of the enterprise, since expenses for manufacturing the end product will be reduced, and that means, its price. German specialists will monitor the quality of output.

A number of surveys and test trials of production of cabin elements at some enterprises of Uzbekistan had been carried out prior to initiation of such a large project. The German side wanted to be convinced that the quality of their product would not differ from those manufactured in Europe. Some test samples had been sent to MAN German laboratories, where they underwent necessary inspections and verifications and proved their compliance with quality requirements and standards. 

This is not the only localization project for MAN in Uzbekistan. The company plans to master the production of stamped, metal and plastic and a number of other automobile parts by the end of 2018, while by the end of 2020 this country will launch the production of interior and exterior of the cabin, propeller shafts, radiators, fuel tanks, steel wheels and other components.

(Source: «Uzbekistan Today» newspaper)

Oliy Majlis of republic of Uzbekistan

Senate to hold sixth plenary session on 24-25 August

The Kengash of the Senate of the Oliy Majlis of the Republic of Uzbekistan held a meeting on August 5, 2016, in the course of which it adopted a resolution on the convening of the sixth plenary session of Senate of Oliy Majlis of the Republic of Uzbekistan on 24-25 August 2016 in the city of Tashkent.

The senators emphasized the importance of including the report on results of activities of the Senate of Oliy Majlis of Uzbekistan over the past period and priorities for the coming years in the agenda of the plenary session of the Senate of Oliy Majlis. It is worth to note that the session will be under way on the eve of the 25th anniversary of the state independence of the Republic of Uzbekistan.

The plenary session will consider a number of laws aimed at the consistent reforming and liberalizing all spheres of public-political and socio-economic life of the country, the realization of the objectives set out in the report of the President of the Republic of Uzbekistan at the solemn meeting dedicated to the 23rd anniversary of the Constitution, including the laws "On state youth policy", "On internal affairs bodies", "On labor protection" (new edition), "On protection and use of fauna" (new edition), as well as other laws.

(Source: UzReport.uz)

Deputies discuss draft law "On internal affairs bodies"

The Legislative Chamber of the Oliy Majlis held meetings of factions of political parties and the deputy group of the Ecological Movement of Uzbekistan. Experts, specialists, representatives of civil society and the media attended the meeting.

Draft laws "On state youth policy", "On internal affairs bodies" and a number of other draft laws were under scrutiny at the meeting.   

The draft law "On state youth policy" has been developed in order to achieve the objectives set out in the approved by the Head of our state the State program "Year of a healthy mother and child". The law is aimed at further strengthening the legal foundations of the state youth policy in the country. At present, particular attention is paid to the development of sports, culture, arts, spiritual and other spheres of social life with the aim of educating physically healthy and spiritually mature younger generation.

The draft law "On state youth policy" is aimed at the development of youth policy, including the creation of conditions for the support of potential of youth in the society, the definition of socio-economic and legal measures.

Another draft law under scrutiny was "On internal affairs bodies".         

The President of our country, in his report at the meeting dedicated to the 23 anniversary of the Constitution of the Republic of Uzbekistan, emphasized the need to define the status, forms and methods of work of the internal affairs bodies, first and foremost, to ensure the rule of law, reliable protection of the rights and freedoms of citizens. In accordance with this task, the responsible authorities with the assistance of experts and representatives of the general public developed relevant draft law, which was introduced to the discussion by the Oliy Majlis.

As was noted, the adoption of this law will play an important role in defining the main objectives and directions, principles and other aspects of the law-enforcement bodies in the single legislative act, will contribute to enforcement of laws in the country.

Factions of political parties and the deputy group of the Ecological Movement conceptually supported the draft laws and approved their adoption in the first reading.

(Source: UzReport.uz)

Olympics-2016

Diyorbek Orozboyev is a medal winner of the Olympic Games

In the XXXI Olympic Games taking place in the Brazilian city of Rio de Janeiro, Uzbek judo wrestler Diyorbek Orozboyev has won the first medal for the Uzbekistan sporting delegation in the competitions.

In this prestigious sporting event’s judo competition among men in the weight category of up to 60 kilogrammes, this talented Uzbek sportsman defeated members of the Australia, Switzerland, Brazil and Georgia national teams and won a bronze medal.

(Source: UzA)

 

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