Uzbekistan Commercial News Update

November 2007

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

INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2007. ALL RIGHTS RESERVED FOR USE OUTSIDE OF THE UNITED STATES.

ADB President visits Uzbekistan to strengthen cooperation

TASHKENT. November 1 (Uzreport) - The President of the Asian Development Bank (ADB) Haruhiko Kuroda arrived on October 31 in Tashkent for a two-day official visit as part of efforts to further strengthen ADB's relationship with Uzbekistan and to gain first hand perspective on the progress of ADB operations in country.

Mr. Kuroda met with President of Uzbekistan Islam Karimov to exchange views on major issues related to the country's and region's economic and social progress, strengthening cooperation in economic reforms, and the role of ADB in these processes.

"This is Mr. Kuroda's second visit to Uzbekistan as ADB President after he assumed office on February 1, 2005," said Hong Wei, Country Director of ADB's Uzbekistan Resident Mission. "It shows great importance ADB attaches to its partnership with Uzbekistan as one of its most important and valued clients in the region."

Mr. Kuroda signed a Loan Agreement for the Public Finance Management Reform Project. The US$20.7 million loan, approved by the ADB's Board of Directors on 28 June 2007, will improve planning and utilization of public resources and will promote efficiency and transparency in budget execution processes.

The project includes the establishment of a nationwide network of treasury offices that will serve budgetary organizations and revenue collection agencies; the modernization of treasury operations through the development of a government financial management information system and telecommunication networking; and project management, monitoring and evaluation through a central accounting system.

Mr. Kuroda will visit ADB-supported education projects in Samarkand to see the progress of ADB's assistance to country's education sector.

ADB has strong relationship with Uzbekistan in education and has now provided loans and technical assistance grants for more than US$260 million in the sector, including projects for the development of textbooks and the textbook rental scheme, policy reform, rural school development, and senior secondary education development since 1996.

Mr. Kuroda will leave for Dushanbe, Tajikistan on 1 November to participate in the 6th Ministerial Conference of ADB's Central Asian Regional Economic Cooperation Program (CAREC).

ADB is helping to improve the livelihoods of the poorest people of Uzbekistan. Since 1996 ADB have provided US$995.6 million for 24 loans and 69 TA grants totaling US$37.24 million for education, health, agriculture, water supply and transport sectors of Uzbekistan.

ADB is dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Established in 1966, it is owned by 67 members – 48 from the region. In 2006, it approved loans and grants for projects totaling US$8.5 billion, and technical assistance amounting to almost US$242 million.

Russian PM visits Uzbekistan for energy talks - report

TASHKENT. November 2 (RIA Novosti) - Russian Prime Minister Viktor Zubkov arrived in Tashkent, the capital of Uzbekistan, on November 1 with an official visit, RIA Novosti reported. During his two-day visit, Zubkov is expected to meet with Uzbek Prime Minister Shavkat Mirziyayev and President Islam Karimov to discuss bilateral trade and economic cooperation, mainly in the energy sphere.

The Russian premier will also take part in the session of the Council of Heads of Government of the Shanghai Cooperation Organization (SCO) on November 2. Premiers from the six SCO members (Russia, China and four Central Asian states) will discuss Russia's proposal to establish an energy alliance within the bloc, to more efficiently use energy resources and improve economic ties. The agenda for the meeting will also include transport, cooperation in emergency situations, education, health, and tourism.

UNDP, Microcreditbank sign agreement, launch microcredit component

TASHKENT. November 6 (Uzreport) - The United Nations Development Programme (UNDP) and Microcreditbank signed a cooperation Agreement on October 23 this year. The agreement was signed within the framework of Area-Based Development Programme initiated by UNDP with an aim to foster socio-economic development in the rural areas of Uzbekistan.

Microcreditbank was selected as a result of open competition launched by UNDP among financial and credit organizations as a partner for introduction products in target communities in Tashkent region. The microcredit products are targeted at increasing production of vegetables in greenhouses, fattening cattle and increasing the value of vinery crop, a press release of UNDP said. The products were developed within the framework of the microfinance component of the Area-Based Development Programme based on the previously conducted assessment of entrepreneurs' and farming entities' needs in microfinance services.

The needs assessment was conducted in 2006 in two citizens' rural assemblies namely Zarkent (Parkent district) and Yonaryk (Kibray district). Till the end of March 2008 Microcreditbank will provide over 50 credits. The key feature of cooperation between UNDP and Microcreditbank within Area-Based Development Programme lies in targeted approach in identifying the users of microcredit products designed based on specific area and economic activity features. This approach allows improving financial sustainability of economic entities thus ensuring credit repayment.

Area-Based Development Programme was initiated in Uzbekistan in 2006 in Kashkadarya and Tashkent regions. The overall goal of the Programme is to contribute to improvement of living standards of population in rural areas through establishment of reciprocal cooperation and partnership mechanisms among communities, local governments, educational and research institutions, NGOs and private sector with an aim to increase efficiency and generate new incomes and employment opportunities for sustainable human and economic development.

Area-Based Development microfinance component covers piloting and development of a wide range of microfianance services beyond credits for short-term working capital for small traders. The component aims at contributing to improve access to microfinance services in rural areas for private and dehkan farmers, entrepreneurs and low-income households.

IMF sees growth boom continuing in the Caucasus and Central Asia

TASHKENT. November 8 (Uzreport) - The International Monetary Fund's October 2007 Regional Economic Outlook: Middle East and Central Asia (REO) sees continued strong growth in the Caucasus and Central Asia, but highlights the need to tackle rising inflation.

Senior Advisor in the IMF's Middle East and Central Asia Department David Owen presented the report's main findings for the region in Tbilisi, Georgia, on 7 November:

The Caucasus and Central Asia is one of the fastest growing regions in the world, with real GDP set to rise by an average of 13% this year. Both oil and gas exporters (Azerbaijan, Kazakhstan, and Turkmenistan) and non-oil exporters (Armenia, Georgia, Kyrgyz Republic, Tajikistan, and Uzbekistan) are doing well.

The region's strong performance reflects improved macroeconomic policies, reforms to improve the business environment, booming commodity exports, and large inflows of foreign direct investment and remittances.

However, strong foreign exchange inflows combined with the recent surge in international food prices have resulted in a sharp uptick in inflation in recent months, except in Armenia. Average annual inflation in the region increased to over 12% in September and is set to go higher before the end of the year. Even before the shock from higher food prices, inflation was rising steadily, as most central banks boosted domestic liquidity by purchasing foreign currency inflows, so as to limit the appreciation of their currencies.

Policy makers in the region could not have prevented the inflationary shock from higher food prices. But they should respond quickly to prevent this shock from passing through into other prices more generally.

In most countries there is room to tighten monetary policies, by raising interest rates and reducing foreign exchange market intervention to allow more exchange rate appreciation.

Plans in several countries to loosen fiscal policies by raising government spending should be put on hold. Fiscal restraint needs to be maintained, to reduce demand pressures and keep public debt on a downward path.

Moderate policy tightening to dampen inflationary pressures should allow the boom in the region to continue. While average growth in the region is likely to slow from this year's rapid pace, it is projected to remain in double digits in 2008 — high enough to keep the region on a path of rising income per head and declining poverty.

PRC Eximbank lends US$41.7m for construction of Dehkanabad potassium fertilizers factory

TASHKENT. November 8 (Uzreport) - Within the frame of the official visit to Uzbekistan, the Head of the People's Republic of China (PRC) Eximbank signed an Individual Loan Agreement with UzPromStroyBank (Uzbek Industrial Construction Bank) for the financing of the "Construction of Dehkanabad Plant of Potassium Fertilizers on the basis of the Tyubegata Potassium Mineral Deposit". The project on the construction of Dehkanabad Plant of Potassium Fertilizers was launched pursuant to the Presidential Resolution No. 632 of 1 May 2007 "On measures to organize the construction of Dehkanabad Plant of Potassium Fertilizers on the base of Tyubegata potassium mineral deposit".

According to the Resolution of the Cabinet of Ministers of Uzbekistan No. 338 dated 19 July 2004 "On measures to further develop cooperation with the People's Republic of China", this project is included in the list of projects intended for implementation through the financing of the PRC's Government – a soft credit line from the SCO member state.

This project was included in the Investment Programme of the Republic of Uzbekistan for 2007, namely the address programme of investment projects being implemented with the financing of the Reconstruction and Development Fund.

Of the total capital investments of US$123.7 million the Chinese party's contribution makes up US$41.7 million. The turn-key construction of the processing complex will be implemented by the CITIK Company for International Cooperation. The loan was issued under the guarantee of the Government of Uzbekistan at the interest rate of 2%. The funds are being lent for 20 years including 5-year no-interest period.

Nokia Siemens gets Uzbek upgrade order

TASHKENT. November 12 (Reuters) - Nordic telecoms operator TeliaSonera will buy US$150 million worth of equipment from Nokia Siemens Networks to expand services in Uzbekistan, Reuters reported quoting TeliaSonera's Uzbek subsidiary.

"The contract has been signed with Nokia Siemens Networks. It costs about US$150 million," said Aleksei Minin, spokesman for TeliaSonera's subsidiary, Coscom - Uzbekistan's third-largest GSM operator. The new equipment will help to expand Coscom's network and launch GPRS and EDGE data transmission technology in the Central Asian state in 2008.

TeliaSonera paid US$292 million for US-based MCT Corp, Coscom's parent company, in July. Earlier, Coscom said TeliaSonera would spend US$160 million to upgrade its network in Uzbekistan, the Cental Asian nation of 27 million people.

Coscom services 10% of Uzbekistan's 4.57 million mobile subscribers. Its main competitors, Russian cell phone operators Mobile TeleSystems and Vimpelcom, control 50.1% and 35.6% of the country's telecom market respectively.

Russia Vimpelcom unit gets 3G licence in Uzbekistan

TASHKENT. November 14 (Reuters) - Russia's second-largest mobile phone operator, Vimpelcom, has received licenses for third-generation (3G) mobile services in Uzbekistan, Reuters reported quoting Vimpelcom's Uzbek subsidiary. Unitel, acquired by Vimpelcom in 2006, said in a statement the Uzbek communication regulator had awarded it the licenses to construct and use a 3G network and provide services across the Central Asian state. The company did not say when it planned to launch the new network and start providing the services, which allow faster downloads of music, video and data on mobile phones.

Vimpelcom controls 35.6% of the Uzbek mobile service market. Its main rival, Russia's largest cell phone operator, Mobile TeleSystems (MTS), controls 50.1%. MTS subsidiary Uzdunrobita was awarded 3G licenses in April.

Lukoil Overseas, Uzbekneftegaz start supply of gas from Khauzak area

TASHKENT. November 14 (Uzreport) - Lukoil Overseas and Uzbekneftegaz national holding company have started the supply of gas from the Khauzak area (Bukhara region of Uzbekistan) within the framework of implementation of the PSA for the Kandym-Khauzak-Shady-Kungrad project.

The start of the gas supply is the most important stage of the implementation of the Khauzak gas field development project. As of today, five wells have been commissioned in the field, a gas treatment unit has been started, gas-refining facilities at the Mubarek gas plant and the gas transportation via the Central Asia-Center Pipeline have been prepared, according to a press release of Lukoil.

Starting from November 8, continuous supply of feedstock from the wells to the Dengizkul-Mubarek pipeline is being ensured. All equipment that has passed the necessary inspection, start-up and commissioning and pilot operation is working in a normal mode.

The field is fully staffed; the engineering and technical personnel underwent relevant training at the professional training centers of the gas industry of Uzbekistan and Russia. Marketing services started commercial operations for selling the marketable gas, the release said.

At the same time, further drilling and additional exploration of the area are carried out using three drilling rigs. All construction, assembly and commissioning operations are carried out at the highest technical, technological and organizational level with obligatory observance of the strictest environmental and industrial safety requirements.

Ambassador Richard Norland visited Andijon province for the first time.

TASHKENT. November 15 (US Embassy in Uzbekistan) - On November 15, 2007, Ambassador Richard Norland visited Andijon province. He received a warm welcome from the region’s Hokim, Akhmadjon Usmanov, who described progress in the province since the tragic events in 2005.

Ambassador Norland also visited Asaka’s GM-Uzbekistan auto plant, which is the largest Uzbekistan-US joint venture in the Ferghana Valley and the largest car manufacturing company in Central Asia. First Deputy Director of GM-Uzbekistan Akhmedjanov Isroil and Deputy Hokim Ketmonov Hatamjan escorted Ambassador Norland on a tour of this dynamic plant. Ambassador Norland was pleased with the hospitality the people of Andijon showed him during the course of his visit and plans to return in the future.

UzAvtoSanoat, SamAvto, Isuzu Motors and Itochu ink cooperation agreement

TASHKENT. November 19 (Uzreport) - A delegation of the representatives of Japanese companies headed by the Chairman of Isuzu Motors Ida Yoshinori and the head of Itochu corporation Furuta Takanobu met with the Deputies Prime Minister of Uzbekistan Rustam Azimov and Kuvondik Sanakulov on November 16.

During the negotiations, the sides exchanged opinions on the issues of strengthening ties between the Samarkand automobile plant (SamAvto) and Isuzu Motors, expansion of joint production of vehicles, development and implementation of mutually beneficial projects.

Isuzu Motors is the word's largest enterprise producing busses, trucks and diesel engines. The company sells its vehicles to more than 130 countries. Itochu corporation is largest trade company working virtually in all spheres of economy, in particular, motor-car construction, textile and food industries, as well as financial sector.

SamAvto and Isuzu Motors signed an agreement on technical assistance in January 2007. In line with the document, the Uzbek plant launched production of two bus models – city and urban type, and three models of trucks. The Samarkand plant manufactured over 1,000 Isuzu vehicles in the first ten months of 2007.

On results of the talks in Tashkent on 16 November, UzAvtoSanoat (Uzbek automobile industry) joint-stock company, SamAvto, Isuzu Motors and Itochu signed an agreement on strategic cooperation.

UzACI Licensing Commission sends warning to Unitel

TASHKENT. November 20 (Uzreport) - On November 14, 2007 during the period from 8.30 am till noon the Unitel Company's network experienced technical downtime, as a result of which mobile services were not provided in the city of Tashkent, and Tashkent and Syrdarya regions, according to State Communication Inspectorate.

Earlier similar system crashes took place in the city of Samarkand, as well as Samarkand, Kashkadarya, Surkhandarya and Jizzakh regions.

Moreover, the number of calls received by the hotline of the State Communication Inspection from the subscribers of the mobile company dissatisfied about the quality of local and international communication services increased. The claims mainly concern the low reach rates, and the quality of connection.

In view of these, the State Communication Inspectorate directed letters to Unitel LLC in October and November 2007 stating the emerging dissatisfaction about the situation, and urging the company's management to eliminate the shortcomings as soon as possible.

Moreover, the Expert Commission for Licensing of the Uzbek Agency of Communication and Information (UzACI) has sent a warning to the Unitel LLC stating the unacceptability of such breaches of contractual obligations with the clients, the Agency's website says.

If the company repeats the violations, UzACI will consider the issue on suspending the license according to the provisions 8 and 9 of the "Regulation on Licensing the Activity in the sphere of Telecommunication", approved by the Resolution of the Cabinet of Ministers of Uzbekistan of November 22, 2000 No.458.

Number of resident population in Uzbekistan makes up 27 million

TASHKENT. November 22 (Uzreport) - As of October 1, 2007, according to the preliminary data of State Statistics Committee, the number of the resident population in the Republic of Uzbekistan was 27 million people and this indicator increased from the beginning of the current year by 298,800 or 1.1%.

The natural increase was 345,400 persons. Out of them 249,600 persons (72.3%) are rural inhabitants. According to the preliminary data, the balance of migration in January-September 2007 was minus 46,600 persons.

In January-September 2007, the number of births was 451,800 persons and increased by 37,800 persons or 9.1% as compared to the corresponding period of 2006. The birth rate increased from 20.9 per mille in January-September 2006 to 22.4 per mille in January-September 2007.

The increase in birth rate was marked in all regions of the republic. The significant increase is observed in Ferghana region (from 19.7 to 23.2 per mille), Namangan region (from 20.2 to 22.6 per mille) and Tashkent region (from 19.1 to 21.5 per mille). The lowest birth rate remains in the city of Tashkent (18 per mille). As compared to January-September 2006 the number of dead in January-September 2007 increased by 1,900 persons or 1.8%.

The increase of death rate was observed in Kashkadarya region (from 4.1 per mille to 4.4 per mille), Navoi region (from 5.1 per mille to 5.3 per mille), Samarkand region (from 4.9 per mille to 5.1 per mille) and Jizzakh region (from 4.1 per mille to 4.3 per mille). The highest death rate remains in the city of Tashkent – 7.9 per mille.

Out of the total number of dead 59% died of cardiovascular diseases, 7.3% - respiratory diseases, 6.6% - accidents, poisonings and traumas.

According to the preliminary data, 6,200 children died at the age under one year in January-September 2007. The infant mortality rate decreased from 15.1 per mille in January-September 2006 to 14.3 per mille in January-September 2007.

Out of the total number of children died at the age under one year 39.7% died of respiratory diseases, 39% - states occurring in perinatal period, 8.5% - congenital anomalies and 6.3% - infectious and parasitic diseases.

In January-September of the current year 166,300 marriages and 13,100 divorces were registered, there are 8.3 marriages and 0.7 divorces per 1,000 population versus 7.3 and 0.6 respectively in January-September 2006.

Uzbekistan to invest US$48 million in UzDaewooAuto - report

TASHKENT. November 22 (Uzreport) - State-owned Uzavtoprom, enterprise which unites companies of car industry of Uzbekistan, will invest US$48 million in the production of Chevrolet Lacetti at UzDaewooAuto, the resolution of the Uzbek government said.

The document said UzDaewooAuto will receive US$48 million loan from Uzavtoprom to expand production of Lacetti sedans in 2008, according to Uzbekistan Daily. The interest-free loan issued to six years.

Currently, the Uzbek carmaker produces Lacetti in small amounts. In future, the plant will produce 30,000 Lacetti cars. The plant will export 5,000 Lacetti. UzDaewooAuto now produces Matiz, Nexia and Damas cars.

UzDaewooAuto, located in Asaka city of Andijan region, was launched in 1996 with the participation of South Korean Daewoo Motors and the Government of Uzbekistan. The capacity of the plant is 200,000 cars per year. After bankruptcy of Daewoo Motors, General Motors of the USA created GM DaewooAuto & Technology (GMDAT) on the base of the South Korean firm.

The government of Uzbekistan took over control over UzDaewooAuto in 2005 for undisclosed sum. In October 2007, GM and Uzavtoprom announced that they are creating the joint venture GM Uzbekistan on the base of the Uzbek plant. The new venture will produce 250,000 cars per annum.

GM Uzbekistan will produce Chevrolet Epica, Chevrolet Captiva and Chevrolet Tacuma and modernize current models of UzDaewooAuto and include them to Chevrolet brand.

The Uzbek carmaker produced 140,080 cars in 2006, of which 82,500 were exported. This year, the plant plans to manufacture 170,000 cars and direct 112,000 to export.

MTS-Uzbekistan increases subscribers' number by 5.1% in Oct

TASHKENT. November 22 (Uzbekistan Daily) - MTS-Uzbekistan increased the number of its subscribers by 5.1% in October compared to September, according to Uzbekistan Daily quoting the Russia's Mobile TeleSystems OJSC.

Mobile TeleSystems OJSC owns 100% share in MTS-Uzbekistan, which formally worked under Uzdunrobita brand. MTS-Uzbekistan is the largest mobile operator in Uzbekistan in terms of the subscribers' number.

The company said MTS-Uzbekistan attracted 120,000 new subscribers in October 2007 and their total number reached 2.41 million.

MTS' market share in Uzbekistan was at 54% in 3Q 2007 - report

TASHKENT. November 22 (Uzbekistan Daily) - MTS' market share in Uzbekistan was at 54% at the end of the third quarter of 2007, Uzbekistan Daily reported quoting the Russia's Mobile TeleSystems OJSC.

Approximately 347,000 new customers were added in Uzbekistan in the reporting period. Total number of the report made up 2.29 million users. During the quarter mobile penetration in Uzbekistan increased from 13% to 16%.

MTS said its third quarter revenues increased by 77% year-on-year to US$66 million and the third quarter OIBDA up 85% year-on-year to US$41 million. The company said OIBDA margin was 62.5%. The third quarter net income grew by 143% year-on-year to US$25 million.

Operating income before depreciation and amortization (OIBDA) represents operating income before depreciation and amortization. OIBDA margin is defined as OIBDA as a percentage of net revenues.

The MOU increased sequentially in the third quarter from 549 minutes to 565 minutes. Average monthly minutes of usage per subscriber (MOU) is calculated by dividing the total number of minutes of usage during a given period by the average number of our subscribers during the period and dividing by the number of months in that period.

ARPU decreased sequentially from US$10.4 to US$10.3 in the third quarter. Average monthly service revenue per subscriber (ARPU) is calculated by dividing service revenues for a given period, including interconnect and guest roaming fees, by the average number of our subscribers during that period and dividing by the number of months in that period.

SAC increased sequentially from US$3.7 to US$4.4 in the third quarter. Subscriber acquisition cost (SAC) is total sales and marketing expenses and handset subsidies for a given period. Sales and marketing expenses include advertising expenses and commissions to dealers. SAC per gross additional subscriber is calculated by dividing SAC during a given period by the total number of gross subscribers added by us during the period.

MTS' expenditure on property, plant and equipment in the third quarter totaled US$4 million in Uzbekistan.

Uzbek telecom sector attracts over US$1bn in 1991-2007 - report

TASHKENT. November 22 (Uzbekistan Daily) - Uzbek telecommunication sphere attracted over US$1.083 billion in 1991-2007, Uzbekistan Daily reported quoting the Uzbek Agency for Communication and Information's (UzACI) website.

The report said some US$384 million were attracted under the guarantee of the Uzbek government and US$699 million were foreign direct investments.

Over 1.8 million telephone capacities were digitilized. The installed capacity of local telephone stations reached over 2 million.

Over 10,000 km of fibre optic and microwave lines. The number of mobile communication users comprised 5 million.

GDP production in Uzbekistan grows by 9.8% in Jan-Sep 2007

TASHKENT. November 23 (Uzreport) - The gross domestic product (GDP) produced in the Republic of Uzbekistan in January-September 2007 is estimated at 18.23 trillion soums. The increase of its real volume was 9.8% as compared to January-September of the previous year.

According to the State Statistics Committee, in January-September 2007 the GDP index-deflator was 118.7% as compared to January-September 2006.

78.7% of the total GDP volume was produced in the non-state sector (1.5% more than in January-September 2006), 21.3% - in the state sector.

The increase in growth rates of value added in industry – 106.6%, communication – 116% and trade – 122.2%, the share of which reached 42.4% of GDP in the reporting period, exerted determining influence (5.3%) on the increase in GDP.

Small business entities produced 43.1% of the total volume of GDP, which is 4.1% more than in the corresponding period of the previous year (39%). Out of the produced GDP 25.3% belong to small enterprises and microfirms, which exceeds the analogous indicator of January-September 2006 by 5.2%.

The significant growth of the real volume of the gross regional product has been achieved in the Republic of Karakalpakstan (112.2%), the city of Tashkent (114.6%), Samarkand region (112.9%), Andijan region (110.1%), Bukhara region (110%) and Kashkadarya region (109.1%).

Gross agricultural output in Uzbekistan exceeds 6.3 trillion soums in 3Q

TASHKENT. November 23 (Uzreport) - In January-September 2007 the gross agricultural output in Uzbekistan made up 6.36 trillion soums or 103.5% to the corresponding period of 2006, of which 3.43 trillion soums (101.4%) – the output of plant-growing and 2.92 trillion soums (106.1%) – the output of animal husbandry.

In the total volume of gross agricultural output the share of plant-growing was 54% and that of animal husbandry – 46%, according to the State Statistics Committee.

According to the preliminary data, the total area under crops for the yield of the current year in farms of all types was 3.54 million hectares.

As compared to January-September 2006 the area under grains decreased by 86,300 hectares of which 65,900 hectares belong to wheat and 16,300 hectares – to rice. The area under melons and forage crops also decreased by 2,300 and 12,300 hectares respectively.

As of October 1, 2007 farms of all types threshed 6.38 million tons of grains in weight before treating (1.6% more in comparison with the corresponding period of 2006), of which 6.18 million tons (1.2%) – spiked grain crops, including 6.05 million tons (0.7%) of wheat.

As compared to January-September of the previous year farms of the most regions have increased the production of spiked grain crops with the exception of Syrdarya region (89.3%) and Tashkent region (90.8%).

In the structure of grain production the greatest share falls upon wheat (94.9%), corn for grain (2.1%), rice (0.6%) and others (0.4%). Harvesting of rice and corn for grain is going on.

The state was provided with 2.42 million tons of spiked grain crops, including 2.38 million tons of wheat. 263,900 tons of grain for seeds were stored up for the yield of the next year.

Farms of all types produced 921,800 tons of potatoes (9.4% more than in the corresponding period of the previous year), 3.5 million tons of vegetables (11.9%), 570,000 tons of melons (11.9%), 798,100 tons of fruit and berries (10.3%), 529,200 tons of grapes (12.2%).

The share of dekhkan farms in the production of potatoes was 90%, vegetables – 74.2%, melons – 56.8%, fruit and berries – 63.2% and grapes – 50.1%.

As of 1 October 2007, in comparison with the same period of the previous year, the population of cattle increased by 446,000 (by 6.5%) of which cows by 144,000 (4.9%), sheep and goats – by 564,500 (4.6%), poultry – by 1,494,200 (by 6.6%).

The main number of livestock and poultry is concentrated in dekhkan farms. The share of cattle in them was 93.2%, cows – 94.8%, sheep and goats – 75%, poultry – 71.3%.

In January-September 2007, farms of all types produced 872,000 tons of meat in living weight (6.3% more than in the corresponding period of the previous year), 3,733,100 tons of milk (6.2%), 1.64 billion eggs (1%), 18,200 tons of wool (5.3%), 732,000 Karakul pelts (10.3%).

The output of livestock products both by the republic and regions has mainly increased at the expense of dekhkan farms. Their share in the total volume of production of meat was 95.3%, milk – 97.2%, eggs – 64.5%, wool – 80.1%, Karakul pelts – 63%.

As of October 1, 2007, the number of operating private farms was 214,400. Their number increased by 28,900 as compared to the corresponding period of the previous year.

The total area of lands allotted to private farms was 5.75 million hectares, on average 26.8 hectares per farm. The number of workers was 1.6 million persons, 463,200 of them were hired workers.

As of the beginning of October, private farms had 403,500 heads of cattle, including 131,700 heads of cows, 903,100 heads of sheep and goats, 1.07 million heads of poultry. As compared to the corresponding period of the previous year the population of cattle increased by 11.2%, cows – by 12.2%, sheep and goats – by 46%, poultry – by 26.8%.

In the current year 21,466 tons of silkworm cocoons were produced (106% to the level of 2006), of which 2.7 tons are of prime quality.

Industrial output up 11.9% in 3Q

TASHKENT. November 23 (Uzreport) - In January-September 2007 the output of industrial products in Uzbekistan was 13.16 trillion soums or 111.9% to the level of January-September 2006, according the State Statistics Committee.

In the reporting period consumer goods were produced to the amount of 3.82 trillion soums (119.8% to January-September 2006). Out of them food products (including spirits) were produced to the amount of 1.43 trillion soums or 113.5% to the level of the previous year, non-food products – 2.38 trillion soums and 124% respectively.

Labor force accounts for 56.2% of resident population

TASHKENT. November 26 (Uzreport) - The number of labour force in Uzbekistan in January-September 2007, according to estimation, increased by 2.6% as compared to January-September 2006 and made up 15.1 million persons or 56.2% of the average number of the resident population.

The growth of employment occurred due to increase of the number of employed in branches of material production – by 3%, in non-production sphere – by 3.5%.

The share of employed in the non-state sector increased from 77.4% in January-September 2006 to 77.8% in January-September 2007.

In January-September of the reporting year 406,300 persons applied to labour agencies for employment, which is 34.7% (104,800 persons) more than in January-September 2006. The level of persons applied to labour agencies for employment is the highest in Ferghana region (12.6% of all persons applied to labour agencies for employment), Samarkand region (10.3%), Kashkadarya region (9.7%) and Namangan region (9.2%).

Out of the total number of citizens who applied to labour agencies 351,100 persons (86.4% of total persons applied for employment) were placed in a job, which is 4.5% more than in the corresponding period of the previous year. Out of the total number of persons who were provided with employment 51% are persons at the age from 16 to 30 years old.

As of the end of September 2007, the number of citizens registered through labour agencies as those who are looking for a job was 30,500 persons (as of the end of September 2006 – 30,600 persons).

As of the end of September 2007, the greatest number of citizens registered through labour agencies as those who are looking for a job was marked in Kashkadarya region – 3,600 persons (or 11.9% of the total number of persons who applied to labour agencies for employment as a whole by the republic), the city of Tashkent – 3,000 persons (9.7%), the Republic of Karakalpakstan – 2,900 persons (9.6%).

As of the end of September 2007, out of the total number of citizens registered through labour agencies as those who are looking for a job 25,900 persons (84.7% of total persons applied for employment) were recognized as unemployed.

Tashkent aircraft company to join RF United Aircraft Corporation by year end

TASHKENT. November 29 (Uzreport) - The Tashkent Chkalov Aircraft Company will join the United Aircraft Corporation (UAC) before the end of this year, Itar-Tass reported quoting an official from the Uzbek enterprise.

Speaking at a national exhibition titled "Russia and Uzbekistan: Strategic Partnership" in Tashkent on 28 November, the official said a memorandum on the Tashkent Aircraft Company's accession to the UAC would be signed at the 9th meeting of the inter-governmental commission on economic cooperation between Russia and Uzbekistan.

"All documents are prepared and initialed, and the Uzbek side has done its share of work. The Russian side is experiencing some technical delay but the memorandum sets a concrete deadline for signing the agreement of accession before the end of 2007," the official said.

The Uzbek government has decided to exchange 50% plus one share of the aircraft plant for a package of UAC shares. "The size of this package will be determined after the current valuation of the plant, and the UAC has to prepare a business plan determining the workload for the plant by March 2008," the official said.

In Soviet times, Chkalov Aircraft Company was the only plant that made wide-bodied aircraft. It was created in 1932 in Khimki outside of Moscow and transferred to Tashkent in 1941.

The UAC plans to build 400 aircraft within four years, which will require "serious financial investments" in the modernisation of serial aircraft plants.

UAC head Alexei Fyodorov said earlier, "It is planned to use US$1 billion for this aim till 2015."

The planes, to be produced by the corporation, will vary by their size and the number of seats. They will include long-range, medium-range and regional planes, specifically, Il-96, Il-76, Tu-204, Tu-214, Tu-334, An-148 and Superjet-100, produced by the Sukhoi Firm.

"We realise we shall have to stand tough competition with foreign producers, but we do not want to lose the Russian market, and we shall do our best for the Russian air companies to have at their disposal reliable and comfortable air liners," Fyodorov stressed.

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