Uzbek ministry of ecology,environmental protection & climate change

01 May 2024
Uzbekistan, Uzbekistan Home, Uzbekistan Life & Culture, Uzbekistan International Affairs

Uzbekistan Opens New  Museum Commemorating WW2 Japanese POWs

On 30 April, Uzbekistan Minister of Ecology, Environmental Protection and Climate Change Aziz Abdukhakimov  joined by Ambassador of Japan to Uzbekistan Hatori Takashi, founder and director of the museum, Jalil Sultanov, and representatives of the Japan Society in Uzbekistan to celebrate the opening of a new museum in Tashkent commemorating Japanese prisoners of war.

Over 20,000 Japanese POWs captured by the Soviet Union during the second world war, were interned in Uzbekistan between 1945-1950. During this period, the prisoners were dispersed across the country to construct buildings, dams, and roads in regions including Angren, Bekabad, and Kokand, and in Tashkent, built the Alisher Navoi Opera Theatre, the Mukini Theatre, the Central Telegraph and Ministry of Culture, as well as barracks still in use today.

According to estimates, 817 died in the process.

The new premises, under construction since 2023, replace the original museum founded in May 1998.

Housing photographs, documents, and artefacts, such as prisoners’ workwear and a wooden crib made for the local market, the collections testify to the lives of Japanese POWs in Uzbekistan, and given a new lease of life, are expected to become a major draw for Japanese tourists visiting the country.

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01 May 2024
Central Asia, Environment, Kyrgyzstan Environment, Kyrgyzstan, Kyrgyzstan International Affairs, Business & Economy, Kyrgyzstan Business & Economy

ADB Allocates $56 Million for Sewage Treatment Plant to Protect Issyk-Kul

The Asian Development Bank (ADB) has agreed to allocate money for the construction of a sewage treatment plant in Cholpon-Ata, Kyrgyzstan’s main resort city on the northern shore of the high-mountain Lake Issyk-Kul, which is the crown jewel of the Kyrgyz  tourism industry. .

According to the State Agency of Architecture and Construction, the ADB will allocate $31 million in the form of a grant and $25 million as a soft loan for the construction of a sewage treatment plant with a capacity of 14,200 cubic meters per day. The funds will also be used to build 18 sewage pumping stations, 45km of main sewers, and 109km of intra-square sewage networks in the city of Cholpon-Ata.

“To date, the design and cost- estimate documentation for the sewage treatment plant, two main pumping stations and sewage collector in the city of Cholpon-Ata, and tender documents for them, [have been] sent for consideration by the Asian Development Bank,” reported the press service of the State Construction Committee.

The agency emphasizes that all local guest houses, sanatoriums and resorts will be able to connect to the central sewage system. Environmentalists have repeatedly warned of unfavorable ecological degradation of the waters of Lake Issyk-Kul, because of hundreds of hotels located in the coastal zone.

Today, most sewage treatment facilities in the coastal towns of Balykchy, Karakol and Cholpon-Ata are out of operation. Those sewage systems were put into operation in the 1960s or 1970s, and received little maintenance or upkeep.

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01 May 2024
Central Asia, Home, Uzbekistan, International Affairs, Kazakhstan International Affairs, Kazakhstan, Features, Uzbekistan International Affairs

Visit by UK’s Cameron Doesn’t Oblige Central Asian Countries to Do Anything, Expert Says

British Foreign Minister David Cameron’s grand tour of Central Asia last month was an attempt to remind those of us in Central Asia about investment and sanctions, Kazakhstani economist Aidarkhan Kusainov has told The Times of Central Asia.

Over several days in late April, Cameron visited the five countries of Central Asia, demonstrating the UK’s intentions to participate in developing economic ties with the region. The visit was closely monitored by the international media, which said Britain’s main motive was to reiterate its interests.

In the countries chosen by the head of the UK Foreign Office for the tour, the interest in his visit was not so acute. Cameron himself assured them that he was not going to force the leaders to choose between Russia and China on the one hand and the West on the other. However, experts believe that the geopolitical component was still present, as the war in Ukraine has sharply increased attention to the region — and not only on the part of British leadership.

“We are not saying to Kazakhstan or any other country that you have to make a choice, or that we are asking you not to choose to partner and trade with Russia or with China or with anyone else. We are here because we believe that you should be able to choose to partner with us in a way that reflects positively on both our common security and our common prosperity,” Cameron said before meeting with Kazakh Foreign Minister Murat Nurtleu. The British Foreign Secretary made a similar statement during his visit to Kyrgyzstan.

Following a trip to Kazakhstan, where Cameron also met with President Kasym-Jomart Tokayev, it was stated that economic cooperation between the two countries has great prospects. In addition, it’s  worth noting that bilateral trade turnover between Britain and Kazakhstan exceeds the total bilateral turnover of all other countries in the region.

Furthermore, Cameron commented on British mining companies’ interest in Kazakhstan. “I think we can still do a lot more in the sphere of small business. We talked about how to remove bureaucracy and barriers for small- and medium-sized businesses to settle and work here. And I think in all areas, whether it’s education, whether it’s the economy, whether it’s energy, whether it’s climate change, there’s a whole range of things that we can do in partnership. And I want that to happen next year, in the coming years,” he said.

For his part, Kazakh Foreign Minister Murat Nurtleu noted the special role of the UK in Air Astana’s recent IPO and the creation of the Astana International Financial Center. “Given the recently adopted in London roadmap on fossil minerals, we considered the possibility of implementing advanced projects in the field of important raw materials, development of the Trans-Caspian International Transport Corridor and green energy. We agreed to work together to overcome global challenges, including the fight against climate change, environmental protection and effective management of water resources. We reaffirmed our interest in expanding trade and investment ties with London,” Nurtleu explained.

As for the visit to Tashkent, Cameron and Uzbek Foreign Minister Bakhtiyor Saidov signed a memorandum of understanding on regional and international ties and infrastructure, as well as a joint declaration on comprehensive cooperation — including joining forces to combat terrorism, climate change and expanding human rights.

Officials in Bishkek noted that Cameron believes it’s necessary to support environmental projects in the context of climate change. In this regard, Britain will create an investment fund to support small- and medium-sized businesses. Britain is also cooperating with Kyrgyzstan on private investment and even building sports facilities. Statements from Turkmenistan and Tajikistan were less informative, and concerned “prospects for bilateral cooperation, including in the political, trade and economic, investment, energy and transportation spheres.”

In addition to geopolitics, in Kazakhstan Cameron could discuss the Kashagan problem. Bloomberg recently reported that the amount of international arbitration claims by Astana against the international consortium of oil companies developing the Kashagan field exceeded $150 billion. The consortium includes the British-domiciled integrated oil & gas producer Shell.

As part of the growing interest of Western diplomacy in Central Asia, in September 2023, the heads of state of the region met with U.S. President Joe Biden within the framework of a six-party conversation. The leaders also met in Berlin with German Chancellor Olaf Scholz, and in November, French President Emmanuel Macron visited Kazakhstan and Uzbekistan.

Before Cameron’s tour, Britain’s Foreign Office announced a commitment to provide £50 million ($62 million) in aid to Central Asia, which “could help Britain increase its soft power and influence in the region.” As analysts note, these funds don’t amount to too much for a big country with energy and metals wealth like Kazakhstan.

According Kusainov, no revolutionary statements were made during Cameron’s visit. Kusainov, besides his work as an economist, is a former adviser to the chairman of the National Bank of Kazakhstan, and author of the book, Kazakhstan’s Economy: Myths and Reality. New Economic Policy. Information Space. National Idea.

“It is clear that the UK is trying, at the very least, not to lose influence in Central Asia, and at the most, to expand it. This is an important element of today’s geopolitics, as the region is sandwiched between China and Russia, as some believe. There is interest from Britain’s side; Biden has also held meetings. On the part of Kazakhstan and Uzbekistan, it is this: as long as it does not interfere with anything and does not get involved in any conflicts, why not? From this point of view, general agreements were signed, as I suspect, not binding on anything,” Kusainov told TCA.

Regarding the expected tranches of aid to the region, he noted that “to promise does not mean to marry. Why not add to what has already been invested?” he said.

“I do not think that Cameron’s visit was specifically timed to the problems at Kashagan, but these issues are on the agenda anyway — Kashagan, CPC [Caspian Pipeline Consortium], TCO [Tengizchevroil]. In general, the visit shows that there is influence, there are joint projects, investments in the countries. However, I do not consider the visit as a landmark. No decisive documents were signed, no loud statements were made. Perhaps there were behind-the-scenes agreements, but in general the tour was undertaken [as a reminder of] the influence, about large investments, and in between to threaten sanctions. To say that we want to cooperate, to which the Central Asian countries responded: ‘do we care?’,” concluded the economist.

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Image: TCA, Aleksandr Potolitsyn

01 May 2024
Central Asia, Lead Story, Home, Uzbekistan, Uzbekistan Lead Story, Business & Economy, Uzbekistan Business & Economy

What Will Uzbekistan’s Role in Central Asia’s Connectivity Be?

By Robert M. Cutler

A new World Bank report on Central Asian connectivity published in April 2024 highlights the importance of the Middle Corridor, a trade route spanning Central Asia, the Caspian Sea, and the Caucasus, connecting China and East Asia with Georgia, Turkey, and Europe. This corridor is seen as a critical alternative to Russian-controlled routes, especially in light of recent geopolitical tensions. The World Bank identifies ten steps to address bottlenecks in the Middle Corridor, aiming to increase trade volumes by tripling them by 2030. This would significantly reduce travel times and increase trade volumes to 11 million tons, with proper investment and efficiency measures in place.

 

Uzbekistan and the Middle Corridor

The report emphasizes the need for a “holistic” approach to improving transport connectivity in Central Asia. By this, it means a comprehensive and integrated strategy that combines improvements in infrastructure and logistics improvements with a reduction in border delays and tariffs, along with the harmonization of standards across countries.

This includes improving both physical and digital infrastructure, enhancing governance and efficiency and addressing productivity issues amongst the state-owned enterprises that dominate the transport sectors in the region. The World Bank notes that Uzbekistan would profit from better rail connections with Kazakhstan; yet it does not identify any potentials for such projects.

That is likely because a report by the Bank identified the Trans-Caspian International Trade Route (TITR) through southern Kazakhstan as the preferred program for international support.  Uzbekistan’s participation in the Middle Corridor is still in a developmental stage. Tashkent has an active interest and a strategic geographic location, but concrete actions and project details are still emerging. There have been no public announcements about specific infrastructure projects or investments that Uzbekistan is undertaking within the Middle Corridor framework. It can be foreseen, however, that railway modernization should be high on the list of programs.

There is, however, a new railway project – the Darbaza–Maktaaral line – currently underway in Kazakhstan that could be extended to improve connectivity with Uzbekistan. It is projected for completion in 2025. A second phase including an extension to Kazakhstan’s Syrdarya station could then facilitate a further branch line from Syrdarya to Zhetysai, on the border with Uzbekistan. This project would reduce congestion at the existing Saryagash border crossing between the two countries and thus increase the capacity for transporting goods between the two countries by as much as 10 million tons per year.

 

The Middle Corridor and improvements to digital connectivity

At present, the region has only limited connectivity.  The Central Asian countries have heavily invested in infrastructure since the turn of the century, but the region still lags behind middle-income countries in both investment and maintenance. Most areas continue to suffer from insufficient infrastructure and expensive services. These in turn hinder the potential for internal and external trade.

The World Bank’s report also provides a comprehensive analysis of the challenges and opportunities for enhancing connectivity in Central Asia. For this purpose, it focuses on both physical and digital infrastructure, underscoring the significance of digital connectivity. The World Bank aims to help enhance digital governance in the region in order to overcome low internet penetration rates and slow download speeds.

The hope is that improving these indicators should foster the private retail telecom sector, facilitating internet access and the provision of services through the renovated networks. The report therefore includes initiatives to set up Earth stations hosting integrated internet exchange points and data centers in the region. Finally, the report highlights the importance of co-operation amongst countries and stakeholders, and the need to create appropriate forums for this, in order to improve the region’s trade and economic prospects.

In this connection, the Asian Development Bank (ADB) — treating Central Asia together with the South Caucasus — recently published its projection that the region’s economy will fall from its 5.3 per cent growth rate in 2023 (thanks to a boost from re-exports and Russian migrant inflows) to 4.3 per cent in 2024, before rebounding to 5.0 per cent in 2025. In implicit co-operation with the World Bank, the ADB has also published a guide to the design, establishment and operation of logistics centers, including the policies that would be necessary to support them.

 

Conclusion

Revitalization and expanding the Middle Corridor will provide Central Asia an opportunity for Central Asia to enhance its geopolitical leverage and economic resilience. Although Uzbekistan is not at the center of international attention to the Middle Corridor, Tashkent looks to capitalize on its strategic location to continue fostering substantial economic growth.

Collaborative efforts encouraged by the World Bank and the Asian Development Bank promise to transform Central Asia into a more dynamic, interconnected economic landscape. Although Uzbekistan participates widely in discussions for such intensified co-operation, platforms that “drill down” to focus especially on Uzbekistan still seem to be mostly lacking.

 

Robert M. Cutler has written and consulted on Central Asian affairs for over 30 years at all levels. He was a founding member of the Central Eurasian Studies Society’s executive board and founding editor of its Perspectives publication. He has written for Asia Times, Foreign Policy Magazine, The National Interest, Euractiv, Radio Free Europe, National Post (Toronto), FSU Oil & Gas Monitor, and many other outlets. He directs the NATO Association of Canada’s Energy Security Program, where he is also senior fellow, and is a practitioner member at the University of Waterloo’s Institute for Complexity and Innovation. Educated at MIT, the Graduate Institute of International Studies (Geneva), and the University of Michigan, he was for many years a senior researcher at Carleton University’s Institute of European, Russian, and Eurasian Studies, and is past chairman of the Montreal Press Club’s Board of Directors.

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01 May 2024
Central Asia, Uzbekistan, International Affairs, Uzbekistan Business & Economy, Business & Economy, Uzbekistan International Affairs

Uzbekistan and EU to Increase Extraction of Rare Earths, Critical Metals

Uzbekistan is launching a slate of promising projects focused on mining rare earth elements (REEs) worth $500 million. The country has a large stock of REEs that are needed for industrial uses, and with the involvement of foreign partners, it plans to ramp up production. Among the critical raw materials (CRMs) targeted for production are molybdenum, tellurium, selenium and graphite.

Uzbekistan recently signed a memorandum of understanding with the European Union in the field of CRM development. The memorandum seeks to ensure a diversified and sustainable supply of CRMs for the world’s economic transition to green energy and a more heavily digitalized existence for humankind, including 5G connectivity, the Internet of Things (IoT) and artificial intelligence (AI).

“This agreement with resource-rich Uzbekistan will help the EU secure much-needed access to critical raw materials. It is part of our wider global work with partners to secure the supply of materials for the future. It will be a major boost for Uzbekistan to realize its ambitions to diversify its economy and sustainably develop its extractive industry,” said European Commission Executive Vice-President Valdis Dombrovskis.

Experts note that Uzbekistan has the second largest reserves of critical raw materials in the region, including deposits of various minerals such as copper, molybdenum and gold. Investing in CRM development will help spur economic growth in Central Asia and increase competition with China.

“China is creating very closed mining and supply chains for rare earth elements. Today, rare earth metals and their production are almost completely monopolized by the People’s Republic of China (PRC). 80-90 percent of rare earth element processing is controlled and carried out directly inside the Middle Kingdom. Beijing hopes that it will be able to use this advantage in international relations, that it will be able to play a dominant role in the emerging new energy and economic architecture of the world economy, which will determine in the future everything from energy to geopolitics,” said Wesley Hill, manager of the international program  called “Energy, Growth and Security” at the International Tax and Investment Center.

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01 May 2024
Central Asia, Local Politics, Kyrgyzstan, Business & Economy, Kyrgyzstan Local Politics, Kyrgyzstan Business & Economy

National Bank of Kyrgyzstan Slashes Its Key Lending Rate, Explains Move Amid Weaker Inflation

Kyrgyzstan’s national bank has lowered its discount lending rate by 200 basis points to 11%, from 13% previously.

As reported by the Kyrgyz National Bank’s press service, its monetary policy since the beginning of 2022 has focused on limiting the growth of inflationary pressures and ensured stabilization of price dynamics in the country, which led to slower price growth and bringing current inflation within the medium-term target and reducing the level of inflationary expectations of economic entities. Under these conditions, the National Bank decided to reduce the size of the discount rate to 11%.

“Inflationary processes in the Kyrgyz Republic continue to weaken. The indicator of annual inflation in April 2024 amounted to 5.2 percent, down from 7.3 percent in December 2023, and is near the lower boundary of the medium-term monetary policy target of 5-7 percent. [Within] the structure of inflation, a pronounced slowdown in price growth is observed in the food group of goods (to 1.1 percent in April 2024 from 3.4 percent in December 2023), which is also influenced by the decline in prices in world food markets. The growth rate of prices for non-food goods and services is decreasing, with more restrained dynamics,” explained the bank.

In Kyrgyzstan economic activity is robust. Real GDP growth in the first quarter (January-March) of 2024 amounted to 8.8%. As before, the main contributions to economic growth came from the services sector, construction and manufacturing industries. Domestic consumption remains elevated, including at the expense of growth in consumer lending, and is helped along by an increase in net inflows of remittances into the country as Russia’s acute worker shortage due to its war in Ukraine helps Central Asian migrant laborers.

Despite the persistence of uncertainty in the external economic environment, there is a decrease in the intensity of the influence of external  inflationary factors, the National Bank said. “The country’s banking sector remains stable and demonstrates growth of key indicators. In general, commercial banks have sufficient liquidity, which creates the basis for further lending to the real sector of the country. In the money market, short-term interest rates continue to be formed within the interest rate corridor set by the National Bank. The domestic foreign exchange market is stable. The adopted decision corresponds to the course of the National Bank’s monetary policy, aimed at maintaining price stability in the country and creating conditions for macroeconomic stability,” the central bank’s press service summarized.
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