UZBEKISTAN COMMERCIAL NEWS UPDATE

May 2006

Prepared by Mr. Jahangir Kakharov,
BISNIS Representative, Tashkent, Uzbekistan

NOTE: THIS COMMERCIAL UPDATE IS DRAWN FROM THE UZBEK PRESS AND OTHER OPEN SOURCES AND SHOULD NOT BE INTERPRETED AS OFFICIAL U.S. GOVERNMENT INFORMATION

General Electrical products presented in Tashkent

TASHKENT. April 28 (Uzreport) - Dedeman Silk Road Hotel hosted a seminar entitled "Uninterrupted Power Supply. Diesel generator equipments" on April 26, 2006. The seminar discussed products of General Electric designed to provide with uninterrupted power supply to telecommunication and computer systems. Evgeniy Miheev, president of Moscow-based Industrial business technologies, said GE has been present in the Uzbek market for the last 10 years.

Regional Cooperation in Trade, Transport and Transit to Benefit Central Asia, says ADB Report

MANILA, PHILIPPINES, April 28 (www.adb.org) - The Central Asian republics (CARs) would reap considerable benefits from accession to the World Trade Organization (WTO) and regional cooperation in trade policy within the multilateral framework, combined with greater regional cooperation in transport and customs transit, a new ADB report says.

The report, which is part of ADB’s study on Central Asia regional cooperation in trade, transport, and transit, aims to inform policymakers and contribute to the ongoing dialogue on regional economic cooperation in Central Asia.

It seeks to show how Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan - five member countries of the Central Asia Regional Economic Cooperation (CAREC) Program referred to in the report as CARs - can increase the gains from participation in international trade through regional cooperation in trade policy, transport, and customs transit.

While the CARs have been able to expand trade considerably in recent years, they currently derive relatively little benefits from, and pay relatively high costs for, participation in international trade.

This is because their exports are dominated by a handful of primary commodities, they take very limited part in global production networks and related trade in manufactured products, and their trade is concentrated in a small number of countries.

The report blames the presence of numerous trade barriers related to trade policy, transport, and transit systems in the CARs, in their trading partners, and in transit countries for constraining the growth of trade in the CARs, skewing the structure of their exports towards primary commodities, and limiting their trade with countries in East and South Asia and Western Europe.

“Regional cooperation in trade policy, transport, and customs transit can help the CARs lower these trade barriers, increase the gains from participation in international trade, and reduce the associated costs,” the report says.

However, the report adds that regional cooperation in trade policy in the form of preferential trade liberalization under regional trade agreements is unlikely to do so in itself, mainly due to poor design and lack of implementation.

“Therefore, the CARs need to prioritize accession to the WTO and pursue regional cooperation in trade policy within the multilateral framework. To fully realize the benefits of WTO membership, they also need to improve regional cooperation in transport and customs transit.”

The report argues that increased regional cooperation in transport and customs transit would help the CARs reduce transport costs and make transport times shorter and more predictable for international shipments. This would in turn help the CARs expand trade, participate more in global production networks, and diversify trade in terms of both geographical distribution and commodity composition.

Quantitative estimates [or simulation results] presented in the report suggest that, if the estimated reductions in transport costs that would result from increased regional cooperation in transport and customs transit occurred in 2006, the cumulative increase in the Kyrgyz Republic’s real GDP in 2006-2015 would be US$2.1 billion (at 2002 prices) greater or 112.3% (relative to 2005) higher than in the baseline (“no-change”) scenario.

Oil and condensate production falls, gas production increases

TASHKENT. April 28 (Uzreport) - Uzbekneftegaz (Uzbek Oil and Gas) National Holding Company decreased the production of liquid hydrocarbons (oil, including gas condensate) by 13.5% in January-March 2006, compared to the same period of the preceding year. It now totals 1.284 million tons, according to the State Statistics Committee. In particular, the production of oil decreased to 798,200 tons (down 13.7%), and of gas condensate to 485,400 ton (down 13.1%). Meanwhile, in the reporting period the production of natural gas increased to 15.57 billion cbm (up 0.7%). In the first quarter of the year, Uzbekneftegaz produced 321,800 tons of petrol (down 14.6%), 87,500 tons of kerosene (down 12.8%), 228,600 tons of residual fuel oil (down 25.5%), 339,500 tons of diesel fuel (down 5.2%). On the other hand the production of dead oil increased by 4.4% to 60,600 tons, and of liquefied gas - by 8.1% to 56,000 tons.

Electric energy production grows, consumption declines

TASHKENT. April 28 (Uzreport) - In January-March 2006, the production of electric energy in Uzbekistan increased by 5.8% to 14.04 billion kW/h compared to the same period of the preceding year, the State Statistics Committee reported. Compared to January-March 2005, the delivery of heat energy to the population and companies in the reporting period decreased by 2.8% to 6.85 million Gcal. Thermoelectric power stations produced electric energy 7.6% more, raising the indicator to 12.71 billion kW/h. Meanwhile, hydroelectric power stations of general consumption and switching stations produced energy 8.8% less than in the first quarter of the last year. Their production totaled 1.33 billion kW/h. In the first quarter of 2006, electric power stations of Uzbekenergo state company increased the production of electric energy by 7.1% to 13.54 billion kW/h, which makes up 96.5% of the total volume of electric energy produced in the country. The remaining portion of electric energy was produced by the autonomous thermoelectric power stations of industrial plants and small hydroelectric power stations operating in the structure of the Ministry of agriculture and water management. Today, the total estimated capacity of the electric power stations of Uzbekistan exceeds 12.3 million kW/h. Its structure includes 11.5% of hydroelectric and 86% of thermoelectric power stations, which produce a major part of the total volume of electric energy in the country. Only 2.5% of electric power stations function under other structures.

Uzbek Copyright Agency, Microsoft to sign memorandum of cooperation

TASHKENT. May 1 (Uzreport.com) - Uzbek Copyright Agency is planning to sign Memorandum on understanding and cooperation with Microsoft within 2006, director of the agency Alisher Khafizov said. According to Khafizov, the memorandum directed at the adoption of joint measures on fight against pirated software and transfer of state computer fleet to licensed software. Khafizov said that the agency offered to Microsoft to develop Uzbek version of software. He said that the agency in cooperation with corresponding ministries and organizations developed changes and amendments to Crime and Administrative Codes, which expands and toughens sanctions against violation of intellectual property.

Uzbektelecom, Multiregional TransitTelecom sign agreement in Tashkent

TASHKENT. May 3 (Uzreport.com) - Uzbektelecom, Uzbek telecommunication operator, and Multiregional TransitTelecom, largest transit network operator of Russia, signed agreement on inter-network cooperation on May 2. The agreement allows the Russian company to optimize tariffs on Russia-Uzbekistan route and increase volume of traffic between countries. It is expected that calls to fixed and mobile networks of Russia and Uzbekistan will be cheaper and the quality will improve. Multiregional TransitTelecom OJSC was established in 1994 for the integration of individual regional operators' cellular mobile communication networks into one common telecommunications environment in Russian Federation. Uzbektelecom is the largest telecommunication operator of Uzbekistan. The company offers wide range services, including internet, data transfer, mobile communication on CDMA standard and others.

Uzbektelecom's net income makes up 1.6bn soums in 1Q

TASHKENT. May 3 (Uzreport.com) - Uzbektelecom's net income made up 1.6 billion soums in the first quarter of 2006 and the capital investment of the company reached 7.8 billion soums. On April 28, the board of directors of Uzbektelecom held a session to sum up activity of the company for January-March 2006. Revenues from main activity of the company increased by 15% to 34.8 billion soums. The growth of services on data transfer and internet grew by 58.6%. The share of international and distance communication services made up 73.8% in total volume of revenues. Branches of Uzbektelecom provided 54 million international and distance calls and delivered over 114,000 telegrams. The growth of calls made up 28% year-on-year and the volume of export increased by 14.9%. Number of telephones on local network of Uzbektelecom increased by 6,300 (including joint ventures – 8,800), which is more than 148.5% (including JVs 152.4%) compared to forecasted.
The coefficient of use of capacities of automatic telephone system made up 87.1% (including JVs – 87.5%) and the coefficient of digitalization comprised 47.1% (including JV – 48.6%).

Integra Mining, NGMK form tungsten slag-processing venture

TASHKENT. May 3 (Uzreport.com) - Australia's Integra Mining has formed a joint venture with Uzbekistan's Navoi Mining and Smelting Combine (NGMK) to produce tungsten concentrate near Samarkand, Uzbekistan. Each side will invest US$10 million in the Uzbekistan-based project, which will be called Ingichki Metals, with Integra controlling 51% and NGMK 49% of the tungsten slag-processing venture. Tungsten is used in electrical elements such as lamp filaments.

President decrees to create Fund on Reconstruction and Development of Uzbekistan

TASHKENT. May 11 (Uzreport.com) - President of Uzbekistan Islam Karimov signed decree "On creation of Fund on Reconstruction and Development of Uzbekisan" on Thursday, 11 May. The decree aimed to ensure realization of projects on modernization and technical re-equipment of leading, first of all basic sectors of economy, achieve dynamic, sustainable and balanced social-economic development of the country, as well as to carry out effective structural and investment policy. The fund is created under Cabinet of Ministers of Uzbekistan and has legal status. The charter capital of the fund will be US$1 billion. The document entrusted Cabinet of Ministers to develop and approve regulation on fund within a month. The decree said the Fund would accumulate financial means of the government, economic entities, commercial banks, foreign funds and investors and other interested structure. The fund will finance important projects, which will have great impact in realization of priority tasks in development of economy, structural reforms and modernization of production. The fund will also credit programmes on modernization and technical re-equipment of strategic important enterprises, first of all basic sectors of economy. The fund will ensure financing modernization and re-equipment of enterprises in fuel-energy complex, chemical industry, machinery and nonferrous metallurgy. The fund will finance realization of national socially significant state programmes and projects on formation of production and non-production infrastructure in perspective, but undeveloped regions. Financing of modernization and development of transport and telecommunication networks will be also among priorities of the fund. The fund will organize joint financing of the projects with international financial institutions, credit establishments in Uzbekistan and foreign countries. The decree said international and foreign funds and investors, interested in realization (co-financing) important investment projects in Uzbekistan, can be added to structure of founders of the fund with decision of the government. At the same time, they will join Council on Fund Management. The main sources for formation of the fund will be additional receipts, formed in the result of favourable conjecture of world prices to strategic resources and taxes and payments from economic entities, set by the Cabinet of Ministers during adoption of state budget for coming year. Assets of the government in foreign currency, incomes from realization of product-sharing agreement with foreign partners, funds received from realisation of state property to foreign investors in hard currency in excess of set volumes in state budget's income, investment incomes from management of assets of the fund and other receipts and incomes will be used in formation of the fund's assets. Cabinet of Ministers was entrusted to form assets of the fund at the volume of US$1 billion at the account of the fund at the Central Bank within 2006/09. The document set that the supreme body of the fund is Council on Fund Management. The decree approved its structure and set the council's tasks. In particular, the council will develop main directions of the fund's activities, allocate funds to commercial banks to refinancing (co-financing) enterprises, set interest rates on loans and others. The council will control over targeted and effective use of funds and timely allocation of credit lines to commercial banks and repayment of loans. The presidential decree exempted fund from all types of taxes, duties and obligatory payments, except single social payment.

Uzdunrobita increases client base by 6.7% in April

TASHKENT. May 11 (Uzreport.com) - Number of subscribers of Uzdunrobita increased by 6.7% in April to 720,000 people, largest shareholder in Uzbek company said in its release. Mobile TeleSystems (MTS) said the growth compared to 30 April 2005 made up 93.4% or 350,000. As of 1 April 2006, the Uzbek mobile operator has 670,000 users. Mobile TeleSystem owns 74% stake in Uzdunrobita in Uzbekistan and has option to purchase remaining share in the company. MTS is the largest mobile phone operator in Russia and the CIS.

Oxus increases holding in Marakand to 85.78%

TASHKENT. May 12 (Uzreport.com) - Oxus Gold plc has acquired an additional 2,906,407 ordinary shares of Marakand Minerals Limited, mainly from individual shareholders. The company said following the acquisition, Oxus has increased its shareholding from 83,753,577 to 86,659,984 ordinary shares representing an increase from 82.91% to 85.78% of the ordinary issued share capital of Marakand. As consideration for the purchase of the shares, application has been made to the London Stock Exchange for 968,800 new Oxus shares to be admitted to the AIM Market. Dealings are expected to commence in the new ordinary shares at 17 May 2006. The new ordinary shares will rank pari passu with the existing shares of the company. Following the allotment the total issued share capital of the Company will be 298,107,972 ordinary shares. The Oxus group was established in 1996 and listed on the Alternative Investment Market (AIM) in London in 2001. Oxus' Amantaytau gold mine in Uzbekistan was built in a record ten months. Having poured first gold in December 2003, the oxides operation is currently ramping up to full production of 190,000 oz/pa at a cash cost of US$106/oz. The company has also started a feasibility study for the Amantaytau sulphide mining project which has a current resource of 7.15Mt at an average grade of 11.7g/t. A drilling programme is planned with the objective of greatly increasing the resources over the year. Marakand is developing the Khandiza deposit, a volcanogenic massive sulphide deposit that contains zinc, lead and copper sulphides and associated sliver and gold. Khandiza is located in southeast Uzbekistan in the Surkhandarya region. The deposit was identified in 1957 and was well explored during the Soviet era. By the end of 1974, 77,000 meters of core drilling and 19,000 meters of underground exploration development had been completed, together with a considerable amount of metallurgical testwork on bulk samples, enabling a Soviet Feasibility Study to be prepared. The project was evaluated by Oxus Resources Corporation from 1996 until the formation of Marakand in November 2003. A confirmation drilling programme (30 holes totaling 3,776 meters) was completed by Oxus in 2001. Marakand completed its feasibility study in September 2004, which confirmed the project is financially and technically robust.

Uzbekistan to revoke "indefinite tax breaks" for foreigners

TASHKENT. May 15 (Uzreport.com) - Uzbekistan will revoke as of July 2007 any tax holidays for foreign investors that were set to run indefinitely, the resolution of the Uzbek government said. A government resolution said the tax breaks would be revoked on any previous agreement if they had been agreed for an indefinite period and that from now on tax and customs breaks would be offered "only for exactly defined periods". The government formed a working group to hold talks with the affected companies, the document said, without naming any firms.

Uzbekistan offers 2.5 million cotton bales at subsidised rate

TASHKENT. May 17 (Uzreport.com) - Uzbekistan has offered Pakistan's textile manufacturers 2.5 million surplus cotton bales at 20% subsidised rates over Liverpool cotton rates, sources told Pakistan's Business Recorder on Monday. They said that a delegation of industrialists would leave for Uzbekistan shortly to negotiate the offer, eliminating some intricacies. "We may face hurdles in opening LCs," said a leading industrialist, and added that "there is no direct link between banks of the two countries". He said that the Uzbek government has asked for 15% down payment, and this issue would also come under discussion in the meeting. He said that an official of Uzbek textile ministry had recently approached some leading textile exporters here to get Uzbek cotton at subsidised rates. "We will offload our stocks at Bandar Abbas (Iran) and are considering to acquire a warehouse at Export Processing Zone (EPZ) in Karachi, where we will bring the commodity from Bandar Abbas," the Uzbek official told industrialists during a meeting recently. However, the industrialists who are interested to avail this opportunity would suggest to the Uzbek officials to bring this commodity directly to Multan or any other warehouse near Lahore, since there is no duty on importing cotton. "Some 300 units are situated in Punjab against 80 in Sindh. So, the industrialists are trying to get the Uzbek cotton to Punjab directly," sources said. "If the Uzbek cotton is brought to EPZ warehouse, then the transportation cost from Karachi to Punjab would cost Rs 50 per maund," sources said, adding that if the consignments reached Pakistan through Bandar Abbas, then the estimated time of arrival could be two months. "Therefore, we would suggest to them to acquire a warehouse in the Punjab region and would offer them our support to resolve this issue in the forthcoming meeting," industry sources said. Leading exporters are of the view that locally produced cotton contains moisture rate of around 9% to 12%, while the Uzbek cotton has the moisture rate of 5%, maximum. "Due to less moisture rate and modern ginning process, their (Uzbek) crop size and quality is of world class and contains very little trash, as compared to our country''s crop," an exporter commented. Since cotton arrivals for the current season could be delayed due to inadequate water supply, some industrialists are considering Uzbekistan''s offer seriously.

Gazprom, Uzbekistan to sign long-term gas deal

TASHKENT. May 18 (Uzreport.com) - Uzbekistan and Russian gas company Gazprom plan to sign a more flexible long-term gas supply deal with a price formula that will reflect global gas prices, a senior Uzbek energy official said on Thursday. "We plan to start using it from next year. The whole world is using this scheme, so that's why we're doing this," said Irkin Vagapov, deputy head of Uzbekneftegaz, state oil and gas company. So far Gazprom and Uzbekistan have used gas supplies deals with a fixed yearly price. Gazprom has pushed Uzbekistan to agree to a more flexible scheme. Uzbekistan produces about 60 billion cubic metres of gas a year. It exported 8.15 billion cubic metres to Gazprom last year for US$44 per 1,000 cubic metres. This year's supply plan is 9 billion cubic metres for US$60 per 1,000 cubic metres. As earlier reported, Gazprom's deputy chairman Alexander Ryazanov proposed this scheme during the oil and gas conference on Wednesday, 17 May.

Uzbekistan offers ten hydrocarbon blocks to investors

TASHKENT. May 18 (Uzreport.com) - Uzbekneftegaz, Uzbek national holding company, is offering ten new oil and gas blocks with total forecast reserves of 1.476 billion tonn to foreign investors for joint exploration and development, Umidjon Isroilov, head of the company's foreign investment department, said at an international oil and gas exhibition in Tashkent. He said that this list includes four blocks in Ustyurt region, three blocks in Bukhara-Khiva region and two in Surkhandarya region, and also one block in Fergana region. The total area of the 10 blocks is 19,500 square km. Isroilov said that the exploration maturity of the blocks is very low and practically no deep drilling has been carried out. He said that at the moment, of 41 investment blocks highlighted by Uzbekneftegaz, 17 blocks have been handed over to foreign investors. Companies involved in prospecting and exploration work in Uzbekistan include Gazprom, Lukoil, CNPC, Cinopec, Petronas, KOGAS and KNOG. Uzbekistan is the second largest natural gas producer in the CIS and is one of the top-ten gas producing countries in the world. A total of 187 hydrocarbon fields have been discovered in the republic, including 91 gas and gas condensate fields, and 96 oil and gas, oil and gas condensate and oil fields. Of the fields discovered 47% are being developed, 35% are being prepared for development and exploration work is continuing at the remaining fields.

Uzbek president speaks out against privatizing NGMK

TASHKENT. May 22 (Uzreport.com) - Uzbekistan's President Islam Karimov spoke out against privatizing the country's largest plant, Navoi Mining and Metallurgical Plant, or NGMK. Karimov was speaking at a meeting with the employees of the company within his visit to Navoi region. Karimov also said that it would be cheaper for NGMK to use Belarusian BelAZ trucks in its operations, instead of the U.S.' Caterpillar trucks. Karimov suggested creating a joint venture in Uzbekistan to produce BelAZ trucks. NGMK and Caterpillar concluded a US$21.3 million in 2002 on the supply of trucks. BelAZ trucks are produced by state-owned Belarusian Automobile Plant (BelAZ). NGMK is Uzbekistan's largest gold producer and holds a monopoly in the country on the production and export of uranium. He also said that the Uzbek government allocates US$200 million-US$250 million to support enterprise. Uzbek leader said that the support of the government will not decrease in future.

EurAsEC may introduce single currency at final integration phase

TASHKENT. May 22 (Uzreport.com) - The member-countries of the Eurasian Economic Community EurAsEC may eventually introduce a single currency, however at the final phase of economic integration, Kazakhstan's Prime Minister Danial Akhmetov has told the media after the 15th meeting of the EurAsEC Interstate Council. The introduction of a single currency would be evidence of the highest level of integration possible, still to be achieved, he said. "The implementation of this decision would mean the participating countries have delegated their national rights (to a supra-national body) and each individual country must be prepared for this," he said. Russian Prime Minister Mikhail Fradkov has said that the question of introducing a single currency has been studied extensively within the framework of building a Russia-Belarus Union State. "This question is not so easy, because it reflects the ongoing economic processes in the countries and their readiness for integration within a union state," he said, adding that the introduction of a single currency would be far easier to achieve in a union state than in the EurAsEC. Fradkov believes that the implementation of this decision would require multi-phased integration processes, such as the creation of a customs union and the mutual adjustment of economic legislation. Belarussian Prime Minister Sergei Sidorsky believes that creation of equitable terms of operation for economic entities would be the main pre-condition for introducing a single currency. "It would be possible to consider the introduction of a single currency at the final phase," he said. Eurasian Economic Community (EurAsEC) is economic union and unites Belarus, Russia, Kazakhstan, Kyrgyz Republic, Tajikistan and Uzbekistan.

Lukoil starts preparation of equipment, materials for drilling operations on Khauzak block

TASHKENT. May 24 (Uzreport.com) - Lukoil Overseas has started preparation of equipment, accessories and materials for drilling development wells in accordance with the field development plan of the Khauzak contract area located in the Alatsky District of the Bukhara Region (southwestern part of the Republic of Uzbekistan). Development of this field makes part of the large project, Kandym-Khauzak-Shady-Kungrad. The PSA on the project was signed on June 16, 2004 in Tashkent in the presence of the Presidents of Russia and Uzbekistan and came into force on November 24, 2004. The project is implemented by the consortium of investors, which includes LUKOIL Overseas (90%) and Uzbekneftegaz (10%). The consortium's share in the profit production is 50%. The duration of the PSA is 35 years. The volume of approved original gas in place in the contract area totals 329 billion cubic meters. Commercial production is scheduled to start in the last quarter of the year 2007. The peak annual production of natural gas will reach approximately 10 billion cubic meters, while the cumulative production under the project could reach 207 billion cubic meters of gas. The operating company LUKOIL Uzbekistan Operating has been created for the project management purposes. In the future LUKOIL Overseas will also create a marketing company for joint sales of products (including the share of the Uzbek party). By now, a 3D field seismic survey was completed on the Khauzak block, group design for construction of development wells was prepared and construction of power lines, access road and preparation for the workover of three wells are in progress. Drilling of the first well on the Khauzak block will start in June 2006. In total, 37 new development wells will be drilled here. In total, Kandym-Khauzak-Shady-Kungrad project calls for drilling of more than 180 development wells and construction of over 1,500 kilometers of pipelines. Two compressor stations, gathering points, shift camps, high-voltage power lines, 40-kilometer railway line, highways and access roads will also be constructed. The project also provides for construction of a modern gas-processing plan in the Kandym area with a capacity of 8 billion cubic meters of gas per year. As for May 1, 2006, the volume of investment in development of the block reached US$45 million.

Uzbekistan plans to collect 5m tonnes of grain in 2006

TASHKENT. May 24 (UzA.uz) - Uzbekistan is planning to collect 5 million tons of grain in 2006, UzA reported quoting Uzbek Agriclture and Water Management Ministry. The report said some 1.296 million hectares of land were allocated under wheat and of them over 1 million hectares are irrigated lands. It is expected that Surkhandarya and Kashkadarya regions will start harvesting campaign in early June and other regions will join them from June 10. Some 3,529 harvesters will be used in collection of grain crops.

UzDaewooAuto plans to produce 142,000 cars this year

TASHKENT. May 29 (Uzreport.com) - Asaka-based UzDaewooAuto Joint-Stock Company (Andijan region, Uzbekistan) increased the production of automobiles to 37,596 in January-April 2006 thereby increasing production volume by 7.9% against the same period of 2005. UzDaewooAuto Joint-Stock Company was set up by the government of Uzbekistan and Korean Daewoo Motor Company. In 1996 the company launched an automobile production plant in Andijan region with the production capacity of 200,000 cars a year. In October 2005, Uzbekistan bought out 50% of the Daewoo Motor's shares in the joint venture due to the bankruptcy of the co-founder. Uzautoprom (Uzbek Automobile Industry) open joint-stock company is the sole holder of UzDaewooAuto. In 2005, UzDaewooAuto increased the production by 44% against the 2004 level – to 101,010 automobiles. According to the information provided by the State Statistics Committee of Uzbekistan, during the first four months of the present year, the plant produced 22,079 Nexia cars (up 8.2% against 2005), 10,977 Matiz cars (up 21.5%), 4,455 Damas cars (down 10.8%), and 85 Lacetti cars (down 78.7%). In 2006, the plant plans to produce 142,000 cars.

Coscom plans to increase subscribers' base threefold in 2006

TASHKENT. May 29 (Uzreport.com) - Coscom, third largest GSM operator of Uzbekistan in terms of subscribers, plans to increase number of subscribers threefold to 750,000 by the end of 2006, a head of company said on Friday, 26 May. Coscom's director-general Alexey Stepanov gave press conference on Friday in Tashkent dedicated to 10th anniversary of the company. The subscribers' base of Coscom has 250,000 users now and till the end of the year the company plans to increase number of subscribers to 750,000, Stepanov said. Stepanov said some 80,000 users joined Coscom only in May due to new tariff policy and engineer-technical solutions. Coscom head said the company installed some 40 new stations in various regions of Uzbekistan and he added that the work on installation of new stations is underway. Stepanov said Coscom started to expand its network in the regions after ensuring quality and reliable network in Tashkent with cooperation with Motorola and Alcatel. Richard Seney, President and Chief Executive of MCT Telecom Corp (USA), owner of Coscom, said the company invested over US$100 million to Uzbekistan to develop own network during its operation in the country. He said this is largest investment of MCT Telecom Corp to Central Asian region. He also said this investment and fruitful cooperation with equipment suppliers – Motorola and Alcatel – allowed expand coverage network and subscribers' base of Coscom. Coscom started its work in Samarkand and later expanded its operations to Navoi and Bukhara regions. Currently, the company is testing equipment of ZTE (China) in Surkhandarya region. The company has stations near borders with Kazakhstan and Tajikistan, which gives opportunity to communicate using cell phone for those traveling on the Great Silk Road. The company is working on expanding capacity in Fergana Valley and in the mid of 2006, subscribers in Khorezm and Karakalpakstan regions will have access to the services of the company. The company said important factor for development of company became new communicators Alcatel LM-9, which were installed in Tashkent and Samarkand. The company became first Central Asian company, which purchased modern equipment Soft Switch, which is expected to launch in June 2006.

Cotton-fibre production rises in Uzbekistan

TASHKENT. May 29 (Uzreport.com) - In January-April, Uzbekistan increased the production of cotton fiber by 1.5% compared to last year's showings to 539,679 tons, according to the State Statistics Committee. Uzbekistan is the fifth in the world in the production and second in the export of cotton-fiber. Every year, the country produces around 3.5 million tones of raw cotton, and 1-1.2 million tones of cotton fiber. Over 75% of the processed cotton-fiber is exported. In 2005, Uzbekistan produced 1,188 million tones of cotton-fiber, which exceeded 2004 results by over 21.6%.

For more information on Uzbekistan, visit BISNIS online at: http://www.bisnis.doc.gov/bisnis/country/Uzbekistan.cfm

BISNIS (www.bisnis.doc.gov) is part of the U.S. Commercial Service (www.export.gov).