INFORMATION DIGEST № 212
15 October, 2012
ECONOMY....................................................................................................................................................................................... 1
COMPETITIVENESS POLICY ............................................................................................................................................................ 1
UZMETKOMBINAT PRODUCES 575,400 TONNES OF STEEL IN 9M .................................................................................................... 3
INTERNATIONAL COOPERATION ........................................................................................................................................... 3
UZBEKISTAN’S MFA DEVELOPS E-VISA SYSTEM .......................................................................................................................... 3
SOCIETY .......................................................................................................................................................................................... 3
ECOLOGY AND PUBLIC CONTROL ................................................................................................................................................... 3
SPORTS ............................................................................................................................................................................................ 4
UZBEKISTAN AMPUTEE TEAM WINS WORLD CUP .......................................................................................................................... 4
ECONOMY
Competitiveness Policy
Uzbekistan eyes innovation, investment and efficiency
For the last twenty years Uzbekistan has significantly reshaped its priorities in national industrial
policy. Today, this policy is not just a basic set of programs and measures for the development of industries
for a time, but rather a road map for the development of highly competitive and high-tech productions, with
flexible combination of different forms of governmental support and attraction of foreign investment and
technology. Agricultural machinery takes a special place in the national industrial policy. What are its
prospects, UT correspondents found out during exhibition of agricultural machinery and equipment
Uzbekistan AGROTECHMASH EXPO-2012 held in Tashkent.
Uniting forces and capabilities
In Uzbekistan, agricultural machinery has always played leading role in the economy. The country
that possesses a huge experience and even greater potential in agriculture was simply bound to make special
emphasis on the development of domestic production of agricultural machinery and equipment. In the early
90's, Uzbekistan faced with the fact that it has to re-build the entire production chain in the manufacturing of
agricultural machinery. Those days’ plants used outdated equipment and therefore produced bad and noncompetitive machines that only staffed warehouses, and did not work in fields.
It was necessary to radically reconsider the approaches to the formation of the domestic agricultural
machinery industry. Technology, investments and an effective system for the marketing of products were
needed. Even then experts realized that sector’s reformation should be based primarily on the creation of
local conditions-oriented competitive products. There was much work to do.
After two decades, today’s figures clearly demonstrate that the chosen course proved to be the most
effective. Just last year, the volume of gross agricultural output exceeded 19.6 trillion soums (official
exchange rate 1USD=1945,94 UZS); overall GDP reached 77.7 trillion soums. These results could not be
achieved without modern, high-performance agricultural machines, including domestic ones.
How to make the results even higher, what machines should be produced today, and how modern
agricultural machinery should look like today in general - these questions were in the center of attention of
experts, engineering companies, representatives of small businesses and private entrepreneurship,
agricultural companies and farmers, municipal officials that gathered in Uzbekistan AGROTECHMASH
EXPO-2012.
This year, the exhibition has celebrated its debut. Time will tell us how effective and relevant the
exhibition will be. But even now, seeing all these stands of the leading international and domestic
manufacturers, one could say with certainty that machine builders liked the initiative. Representatives of
world brands, for instance, noted that the Uzbek market will only grow, as farmers get substantial support
from the government, that develops leasing and credit mechanisms in the country.
Main goals of the exhibition include: to supply agriculture households with modern, highperformance, meeting international standards and requirements, domestic made agricultural machineries and
technological equipment; to attract foreign investment, especially direct investment from leading foreign
companies for making modernization, technical and technological renovation of domestic enterprises of
agricultural engineering.
On the eve of the event, there was a large-scale advertising campaign to attract the participation of
leading international and domestic manufacturers of agricultural machinery and equipment. Uzexpocenter’s
exhibit spaces were made available to them on favorable terms. Also, the government has provided a
unique, exceptional opportunity for agricultural enterprises of Uzbekistan to purchase agricultural
equipment, machinery and technology under contracts signed at the show, without organizing tenders. After
the exhibition, proposals will be send to the Cabinet of Ministers to select the most appropriate contracts for
the production and supply of country’s agriculture sector with the latest high technology, relevant to world’s
best models and meet international requirements and standards.
Increasing competitiveness
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Industrial development can not stand still. It is important to keep abreast of the latest market
conditions and opportunities, and of course focus on farmers’ requests. With the adoption this year of the
Program of further modernization, technical and technological re-equipment of agricultural production in
2012-2016, Uzbekistan opened a new era in the development of its agricultural engineering industry. It
includes the forecast parameters of production and upgrade of the basic domestic made agricultural
machinery, and the lists of investment projects for the production of new types of agricultural and land
reclamation technologies, vehicles and technological equipment for the production and processing of
agricultural goods.
There are also new important incentives to attract new technologies and investments. Agricultural
engineering enterprises are now being released for 5-years from paying income tax and property tax if they
develop a production of new types of equipment, components and parts, including through licensing
agreements with world leading manufacturers.
Among the new proposals, we note the creation of a specialized design office on the latest
agricultural technology. It will develop various technologies and equipments that will meet domestic
agricultural production’s specific features and technical demands asked from tillage, planting, harvesting
and serving machines that are being used in cotton growing, vegetable growing, gardening and viticulture.
Also as part of the program, a range of measures to support farmers in banking and leasing sectors is
being introduced. Commercial banks will provide loans and leasing services on modernization, technical
and technological re-equipment of agricultural productions at an interest rate not exceeding the rate of the
Central Bank. This exemption will affect only farms, machine and tractor fleets of the country, local
departments of the association Uzpakhtasanoat and SSC Uzdonmahsulot to finance the purchase of
domestic made agricultural equipment as well as to implement investment projects for reconstruction and
technological modernization of the service network through acquiring necessary equipment and tools.
Moreover, the soft loans at the refinancing rate of the Central Bank will be granted for augmenting
circulating capital of domestic producers of agricultural and drainage equipment, as well as to their dealer
and service centers, and to leasing companies that provide services to agricultural producers to purchase
leased domestic made agricultural equipment.
The next important issue arisen on the agenda is the establishment of an effective dealer system,
without which it is impossible nowadays to plan further development of the production, and to establish ties
between the suppliers and consumers. Therefore, this year, the country launched a pilot project in which the
Tashkent Tractor Plant (TTP) and other enterprises of agricultural machinery began to organize a
specialized network for selling and maintenance of agricultural machinery through signing an appropriate
agreement with main or regional distribution organizations.
Thus, TTP will sell its products in 2012-2014 through a distribution agreement with the official
distributor of Avtosanoat Agromashsavdo. In turn, the company will create appropriate infrastructure on the
basis of Agrotekhservis’ existing enterprises in the regions of the country. It will sell agricultural machines
and will demonstrate operating characteristics to potential clients, moreover it will train machine operators
how to maintain and repair the machines, provide it with spare parts and necessary technical and
technological equipment.
The introduction of a new order of agricultural machinery purchase is another very important step in
the country. In particular, now buyers of agricultural equipment should finish signing of purchase contracts
for the next year with domestic producers of agricultural equipment until October 1, specifying the terms of
payment and delivery. Advance payment for the domestic maid agricultural machinery must be carried out
not later than 3 months prior to the delivery date specified in the sales contract, and in amount not less than
70% of the total price. Enterprises of agricultural engineering since now will save up 1% of the produced
products’ cost for research and experimental-design activities; the funds will be accumulated in special
accounts.
In general, as part of the program, it is planned to produce in the country 18,470 tractors of various
types. Particular emphasis will be placed on the production of the most popular universal tractors up to 100
hp. At present, the number of new equipment with a service life of less than 10 years in this segment makes
up only 44%. It is also planned to produce 3700 tractors with up to 150 hp. Among the promising initiatives
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stands the production of special horticultural wheeled tractors 70-80 hp. Their release is scheduled for
2015, about 900 such tractors will be produced in two years. (Source: Uzbekistan Today newspaper)
Uzmetkombinat produces 575,400 tonnes of steel in 9m
Open joint stock company “Uzbek Metallurgy Combine” (Uzmetkombinat) produced goods for
720.2 billion soums (official exchange rate 1USD=1945,94 UZS) in January-September 2012 in current
prices and 614.4 billion soums in comparable prices.
The press service of the company said that the growth rate in comparable prices made up 1.5% yearon-year.
Uzmetkombinat produced 575,400 tonnes of steel in January-September (+0.6% year-on-year) and
556,100 tonnes of ready metal roll (+0.4%).
The enterprise increased production of consumer goods by 7.4% year-on-year to 26.9 billion soums
in January-September 2012.
In the reporting period, the combine produced localized goods for 116.203 billion soums as the
forecast was fulfilled with 21.7% surplus.
Execution of agreement, signed within the Cooperation Exchange, in nine months of 2012 made up
16.078 billion soums (+1.1% surplus to forecast).
The combine utilized investments for 49.7 billion soums, of which 49.1 billion soums were use
within the modernization programme. (Source: UzDaily.com)
INTERNATIONAL COOPERATION
Uzbekistan’s MFA develops E-Visa system
Ministry of Foreign Affairs of Uzbekistan initiated development of online system of processing visa
applications E-Visa, a press release of Jahon news agency said.
The system was developed within the implementation of the presidential decree “On measures on
boosting participation of Uzbekistan in revival of the Great Silk Road and development of international
tourism in Uzbekistan” and in order to simplify process of filling application and issue of visas.
The system of electronic processing of visa applications of foreign citizens is directed at improving
efficiency of consular activities, strengthen relations of Uzbekistan with foreign states, including contact
among business circles and diversification of tourism business in Uzbekistan.
Advantage of E-Visa system is that foreign citizens can apply for Uzbekistan visa, providing all
personal information. The release said that the system will avoid mistakes in application and increase
efficiency of interaction with state structures of Uzbekistan in process of visa issue.
The E-Visa system can be accessed at the website http://evisa.mfa.uz. The application can be filled
by applicant or person, who invites applicant to visit Uzbekistan. Special original bar code is assigned after
the application.
The system is part of the official website Ministry of Foreign Affairs of Uzbekistan and it works in
Uzbek, English and Russian. In future, it is planned to launch services in other languages.
The release said that Uzbekistan became the ninth country of the world, which introduced eVisa
system after Australia, Armenia, Bahrain, Great Britain, Cambodia, South Korea, United Arab Emirates and
the United States. (Source: UzDaily.com)
SOCIETY
Ecology and public control
The ecological movement of Uzbekistan held a round table discussion, devoted to increasing activity
of nongovernmental non-commercial organizations, civil self-governing bodies in ensuring ecological
control.
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The event was organized in cooperation with deputies group of the Ecological movement at the
Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan, the Committee of the Chamber on
the issues of ecology and environmental protection, independent institute of monitoring of formation of civil
society. Representatives of governmental and public organizations, scientists, specialists and journalists took
part at the event.
Deputy speaker of the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan,
chairman of the Executive committee of the Central Council of the Ecological movement of Uzbekistan
B.Alikhanov, deputy chairman of the State committee on geology and mineral resources A.Mavlonov, first
deputy chairwoman of the Central council of the "Kamolot" youth organization F.Muhamedjanova and
others noted that consistent reforms aiming at rational use of natural resources, reducing negative influence
to the environment and achieving sustainable development have been carried out in our country.
In the Concept of further deepening democratic reforms and formation of civil society, initiated by
President Islam Karimov, a proposal on adoption of the Law "On ecological control", directed at widening
participation of nongovernmental non-commercial organization in environmental protection. On the basis of
this, a draft law on ecological control has been developed by deputies together with representatives of
relevant governmental and public institutions, scientists and specialists.
Special attention is paid to raising awareness of general public, familiarizing them with the aims and
tasks of the draft law. A special video clip is made and uploaded to the web-sites of the Ecological
movement of Uzbekistan and "Kamolot" Youth movement. Conferences, talks and meetings and discussions
of the draft law have been organized in different regions. More than 90 proposals on amending the draft law
have been received.
The participants of the roundtable discussion exchanged views on further improving of the draft law
"On ecological control", increasing the role of nongovernmental non-commercial organizations in carrying
out ecological control, enhancing interaction of governmental and public organization in this sphere.
(Source: UzA news agency)
SPORTS
Uzbekistan amputee team wins World Cup
Uzbekistan national amputee team won its third World Champions title in a row in Kaliningrad,
Russia, on 14 October 2012.
In the final match of the tournament, the Uzbek team outplayed Russia with a 1-0 score. Haydarali
Tursunbaev scored only goal in the match at the end of the first half.
Russian team tried hard to score equalizer, but they failed. Uzbekistan national team scored the
second goal after powerful shot of Aziz Azimov. But the referee from Ukraine cancelled the goal.
Uzbekistan controlled the match and several times hit the woodwork, but could not score more
goals. The match ended with the 1-0 victory of the Uzbek team.
Uzbekistan won the World Cup and gold medals, as well as US$20,000.
After the match, Uzbekistan coach Mavzurkhodja Umarkhodjaev expressed gratitude to fans, who
supported his team despite cold and windy weather.
At the end of the ceremony, Uzbek team coach handed over Uzbek gold-embroidery robe to
Governor of Kaliningrad region Nikolai Tsukanova and mayor of Kaliningrad city Aleksander Yaroshuk.
(Source: UzDaily.com)
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