Uzbekistan Business & Economy - The Times Of Central Asia

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Kyrgyzstan, Uzbekistan to Unite Their National Card Payment Systems

Kyrgyzstan's national payment system, Elkart, and Uzbekistan's Humo payments platform intend to launch a project on mutually acquiring, or guaranteeing payment security and authorizations according to Kyrgyzstan's Interbank Processing Center (IPC). The agreement was reached at a meeting in Tashkent. "We are going to develop payment systems and create an ecosystem in our countries. This project will open new horizons for the development of not only financial infrastructures of Kyrgyzstan and Uzbekistan, but will also give impetus to the development of many spheres of activity of the two states," said Kanykei Zhamangulova, Chair of the Board of the Kyrgyz IPC. Payment organizations of the two countries have been negotiating a mutual acquiring framework since last summer. At the last meeting in Bishkek, the parties agreed on money transfers and internet payments. "An agreement was reached to start a joint project for step-by-step realization of the set goals and mutual exchange of experience in acquiring, issuing and combating fraudulent transactions," Shukhratbek Kurbanov, director of the Humo payment system, said at the time. Citizens of Uzbekistan and Kyrgyzstan will be able to pay with their cards in the other of the two countries without additional commissions, he said. However, the exact launch date of mutual acquiring services wasn't announced. The cross-border payments plan is advancing as relations between Bishkek and Tashkent were further warmed by the demarcation of the two states' international border. This key step put an end to decades of border disputes that had persisted since the end of the Soviet period.

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Tashkent Investment Forum Focus on Kyrgyzstan’s Kambarata HPP-1

The construction of the Kambarata hydroelectric power plant (HPP)-1 on Kyrgyzstan’s Naryn River was at the forefront at the Third Tashkent International Investment Forum attended by Uzbekistan’s Prime Minister Abdulla Aripov and representatives of international organizations and financial institutions. At the panel session on energy, on 2 May, Chairman of the Cabinet of Ministers of the Kyrgyz Republic Akylbek Japarov, outlined the master plan behind Kambarata HPP-1, investment indicators, and its potential benefits to water resources management and Central Asia’s electricity market. Japarov explained that generated by hydropower, almost all electricity in Kyrgyzstan is green, but stated, “We have so far used only about 13% of our existing potential. Taking into account global challenges and trends in the development of green energy, the Cabinet of Ministers of the Kyrgyz Republic has actively begun to implement infrastructure energy projects. The large-scale construction of Kambarata HPP-1, strategically important for the entire region, will up the pace of development in this field.” Kyrgyzstan, Kazakhstan, and Uzbekistan recently signed a Roadmap for joint construction of Kambarata HPP-1. If completed, Kambarata HPP-1 will have a capacity of 1860 MW and will generate 5.6 billion kWh of electricity per year. A forum for further discussions on foreign investment in the project is scheduled for early June in Vienna . Turning to plans for hydroelectric power plants elsewhere in the country, Kyrgyzstan’s Prime Minister, stated, “Work is underway to implement projects for the construction of a cascade of hydroelectric power plants on the Chatkal River, as well as a cascade of Kazarman hydroelectric power plants on the Naryn River. Our country needs foreign investment to develop energy, which is the main sector of the economy. We invite foreign companies to consider the possibility of participating in the construction of small and medium-sized hydroelectric power stations and renewable energy sources in Kyrgyzstan.”

Central Asia Uzbekistan International Affairs Business & Economy Uzbekistan Business & Economy Uzbekistan International Affairs

Uzbekistan’s President Guarantees Protection of Foreign Investors’ Rights

Addressing the Tashkent International Investment Forum, Uzbekistan President Shavkat Mirziyoyev remarked that in recent years, his country had attracted more than $60 billion in foreign investment, in over 300 joint industrial projects. Regarding the goal to attract further foreign partnerships, he continued, "Our state guarantees development of market relations, reliable protection of investors' rights, improvement of favorable investment and business environment, creation of wider opportunities and conditions for fair competition, ensuring inviolability of private property and independence of [our] judicial system." To achieve its aims, Uzbekistan has adopted a new version of the law "On Investments" in accordance with World Trade Organization (WTO) standards. Despite not yet ratified by Uzbekistan, the International Commercial Court (ICC), is already operating in the country, and the terms of land lease for foreign investors have been increased from 25 to 49 years. Uzbekistan's head of state also announced plans to introduce new approaches to the system of industrial zones, the management of which will involve experienced foreign companies. Drawing attention to the country's wealth of natural reserves, the president noted, " Our country has colossal resources of gold, copper, tungsten, silver and uranium. Along with rare and unique minerals, we have deposits of more than 30 rare earth metals such as lithium, magnesium, molybdenum, germanium, vanadium and indium. " He emphasized Uzbekistan's ongoing negotiations with the U.S. and the UK on cooperation in the field of critical raw materials (CRMs) and extended an invitation to leading companies to develop projects concerning the deep processing of strategic raw materials and the creation of a value-added chain of refining and processing. Mirziyoyev mentioned the forthcoming construction of the Trans-Afghan railroad and upgrades to existing international airports in Tashkent, Bukhara and Urgench planned with the cooperation of foreign investors, and with reference to improved logistics, stated, "These strategic projects will radically change the geo-economics situation in the region and turn Central Asia into a global transit centre connecting North and South, East and West." This year's Tashkent Investment Forum was attended by 2,500 delegates including government leaders, heads of major companies and representatives of the United Nations (UN), European Bank for Reconstruction and Development (EBRD), the Organization of the Petroleum Exporting Countries (OPEC) and the Shanghai Cooperation Organization (SCO).

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OPEC Fund to Allocate $500 Million for Tourism, Logistics Development in Uzbekistan

A delegation of the Organization of the Petroleum Exporting Countries (OPEC) International Development Fund headed by President Abdulhamid Alkhalifa participated in the events of the Tashkent International Investment Forum. The OPEC Fund and the Government of Uzbekistan signed agreements on joint activities and financial commitments worth $500 million. The funds will be used for the development of tourism, logistics, pharmaceuticals, ecology, support for women's entrepreneurship, and youth initiatives. The OPEC delegation will visit the facility of water supply and wastewater disposal in the Samarkand region, which was financed by the organization. This project provides the basic tools to improve health and living conditions for 70,000 local residents. For 25 years, the OPEC Fund has been working with Uzbekistan, providing it with $760 million in loans. This financial support has helped provide drinking water to remote areas and modernize Uzbekistan's energy sector. This year's Tashkent Investment Forum was attended by 2,500 delegates - government leaders, heads of major companies and representatives of the United Nations (UN), the European Bank for Reconstruction and Development (EBRD), the Organization of the Petroleum Exporting Countries (OPEC), and the Shanghai Cooperation Organization (SCO).

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Uzbekistan Raises Its Poverty Line Due to Increases in Gas, Electricity Prices

Uzbekistan has updated its minimal poverty-defining level of consumer spending for the population to $51 from $48.9 dollars per month. This is already the second increase in the indicator since the beginning of the year, which is explained by rising gas and electricity prices. Minimum consumer spending is calculated in Uzbekistan based on the daily neds of citizens on means spent on food and non-food products and services. According to Picodi.com, Uzbekistan is among the top ten countries with the highest spending on food, with citizens spend 46.5% of their earnings on edibles. Overall, annual food inflation in the country reached one of its lowest levels in recent years in 2023, totaling 9.7% annually. In March 2024, food inflation contracted even more, to 7.8% annually, according to international data portal, Trading Economics. The Center for Economic Research and Reforms says that the country managed to lift more than a million Uzbeks out of poverty in 2023. This was due to higher wages, social payments, benefits, and increases in income from agriculture.

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American Company Launches CO2 Production in Uzbekistan

The American company Air Products is planning to open a carbon dioxide (CO2) production project in Uzbekistan. The corresponding agreement, worth $15 million, was signed with Navoi Nitrogen (Navoiazot) chemical complex. The plant will be the first and so far the only one of its kind in Uzbekistan, and will use untreated CO2 captured at the ammonia production line. Production of high-purity carbon dioxide will allow its use in beverage production, food packaging, welding mixtures, for blast freezing of food products, the agro-industrial complex, greenhouses, water purification, dry ice production, and more. The plant, which will have a capacity of 120 tons of CO2 per day, will reduce the consumption of natural gas, which is currently the main source of CO2 generation. "Using CO2 in greenhouses allows farmers to harvest 20-40 percent more crops. For example, in Holland and Spain, 60 percent to 90 percent of greenhouses use carbon dioxide to enrich the atmosphere. Uzbekistan's agriculture has great potential, and competent use of CO2 will allow it to achieve excellent results," believes Kirill Korotkov, commercial director for Air Products Uzbekistan. Air Products began operations in Uzbekistan in 2019, and to date has implemented a number of projects in the oil & gas and chemical industries. In September 2023, during a working visit of Uzbek president Shavkat Mirziyoyev to New York, he met with Air Products's chairman Seifi Ghasemi. The parties considered the expansion of their strategic partnership -- with investments totaling up to $1 billion.