NBU and Sberbank sign cooperation agreement for US$350 million; NBU and Vnesheconombank signed a cooperation agreement for US$200 million; Uzbekistan to create PPP Development Agency; Uzbekneftegaz develops cooperation with Rosgeology; Uzbekistan proposes to raise energy prices;
NBU and Sberbank sign cooperation agreement for US$350 million
The agreement envisages cooperation with the Russian Sberbank on financing of large projects, as well as projects in the field of small business and private entrepreneurship.
In addition, this agreement will allow NBU customers to use a wide range of Sberbank services such as financial structuring, trade financing, project financing, as well as using Sberbank databases to select reliable and proven suppliers of goods and services.
The advantage of this credit line is the possibility of financing the supply of high-tech equipment and services not only from Russia, but also from other countries of the world where the branch network of Sberbank is present (Belarus, Kazakhstan, Turkey, Switzerland, Czech Republic, Hungary, Serbia, Croatia, Slovenia, Bosnia and Herzegovina). The credit line of Sberbank is attracted under the insurance coverage of export credit agencies, without a state guarantee.
NBU and Vnesheconombank signed a cooperation agreement for US$200 million
The National Bank for Foreign Economic Activity of the Republic of Uzbekistan (NBU) and Vnesheconombank (Russia) signed an agreement worth US$200 million. The funds of the Russian bank will be used to finance the supply of equipment and services for implementation of strategic projects in Uzbekistan and implementation of joint projects in basic sectors of the economy, in the social sphere and in development of the infrastructure of the urban environment.
The agreement envisages attraction of credit resources at low interest rates to purchase of high-tech equipment. In the course of the meeting, NBU expressed proposals to expand Vnesheconombank’s presence in the financial market of Uzbekistan and to participate in implementation of programs to modernize urban transport and road facilities in the city of Tashkent.
In order to practically implement this proposal, the parties identified a project for the supply of special utility and road equipment of Russian production for US$100 million on leasing terms, with the signing of a tripartite agreement between the Tashkent city administration, Vnesheconombank and a VEB-Leasing subsidiary.
Uzbekistan to create PPP Development Agency
President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to organize an effective system of coordination and development of public-private partnership activities”.
According to the document, the agency will develop together with interested ministries and departments programs for development of public-private partnerships in priority areas of the economy, including the social sphere.
New body will develop the legal and institutional framework for public-private partnerships, methods for evaluating the effectiveness and comparative advantage of public-private partnership projects, as well as provide methodological support for the preparation, implementation and termination of the above projects.
Uzbekneftegaz develops cooperation with Rosgeology
Uzbekneftegaz and Rosgeology signed an agreement on cooperation in the field of geological study of subsoil of oil and gas, and development of scientific and technical partnership.
The document envisages involvement of Rosgeology to carry out joint geological exploration in the territory of Uzbekistan and neighboring states, including the territory of the Russian Federation.
The parties will exchange geological information and data of mutual interest for both sides in development of new methods of prospecting and exploration of hydrocarbon deposits, development of a joint program of geological exploration, exchange of experience in the field of geophysical work and drilling wells. The companies intend to hold joint consultations, meetings, negotiations and training of specialists of Uzbekneftegaz.
Uzbekistan proposes to raise energy prices
According to the document, from 16 November the Government of Uzbekistan offers to raise prices for gasoline brand of AI-80 from 3,800 to 4,000 soums a liter, AI-91 – from 4,300 to 4,500 soums a liter, diesel fuel from 4,600 to 4,800 soums a liter and ECO diesel – from 4,600 to 4,900 soums a liter.
The government of Uzbekistan also proposes to increase electricity tariffs from 16 November to 250 soums per kWh (now – 228.6 soums) and from 1 June 2019 to 280 soums. The price for 1 kWh of electricity for households equipped with electric stoves will rise from the current 114.3 soums from 16 November 2018 to 125 soums and from 1 June 2019 to 140 soums.
Gas prices will rise from 289.74 soums to 320 soums per 1 cubic meter from 16 November 2018 and to 350 soums from 1 June 2019 if there are gas meters. In the absence of gas meters, the price of gas from 16 November will grow to 320 soums for heating and 553 soums per 1 cubic meter for cooking and hot water. From 1 June 2019, tariffs will rise to 350 soums and 605 soums, respectively.