UFRD signed an agreement with BPI France for 300 million euros; Uzbekistan plans to attract EBRD preferential loan for the construction of hotels; Uzbekenergo and the World Bank discuss reforms in electricity sector; Uzbek, South Korean businesses discuss development of ties; Ministry of Finance and Deloitte & Touche discuss development of the draft Tax Code; Tashkent strengthens cooperation with Germany’s Bosch;
UFRD signed an agreement with BPI France for 300 million euros
Uzbekistan Fund for Reconstruction and Development (UFRD) and the French state investment bank BPI France have signed a cooperation agreement. The document provides for the provision of financial support to projects in Uzbekistan for a total amount of 300 million euros.
In addition, Uzbekistan has concluded two financial contracts with the European Investment Bank for projects in the field of energy efficiency and water supply, totaling 200 million euros.
Another important document signed is the Partnership Agreement between the Government of Uzbekistan and the French Development Agency (AFD) on the implementation of the cooperation program for 2018-2021. The objectives of this agreement are to identify promising areas of cooperation in the field of investment activities and the improvement of the investment climate between AFD and the government of Uzbekistan. The program provides funding for projects at 600 million euros in the period from 2018-2021.
Uzbekistan plans to attract EBRD preferential loan for the construction of hotels
“The Uzbek side proposed to consider the possibility of starting a separate credit line with a minimum interest rate for the long term. This is due to the fact that the hotel business requires a long payback period. Therefore, although foreign investors and local entrepreneurs are interested in building hotels, they need support and loans with minimal possible interest and the longest possible payment period for the loan, that will allow to take into account the possible influence of the seasonality factor ” note State Tourism Committee.
Jean-Marc Pieterschmitt, managing director of the industrial and agro-industrial department of the bank, confirmed interest in cooperation and participation in investment projects, as well as support for small and medium-sized businesses. The EBRD is ready to consider projects involving the privatization of facilities.
Representatives of the State Tourism Committee invited guests to take part in the upcoming Investment Forum, which will be held November 19-21 in Tashkent. It is important to note that at this forum, more than 100 projects will be presented for implementation in the regions of the country, and it is planned to organize presentations directly at the sites.
Uzbekenergo and the World Bank discuss reforms in electricity sector
Representatives of Uzbekenergo and the World Bank Group held a meeting to discuss reforms in the electricity sector of Uzbekistan. The parties discussed a plan to expand generating capacity at the lowest cost, research on tariffs, institutional reforms in the power sector (sector restructuring), and renewable energy development.
The delegations of Uzbekenergo and the World Bank agreed on the main directions for defining a plan for expanding generating capacity for the electricity sector in order to meet the growing demand for electricity and achieve the strategic goals of diversifying the energy balance and ensuring the sustainability of the industry:
- identifying the main shortcomings in the methodology for the formation of tariffs, and recommendations for its improvement;
- preparing a tariff model for the power sector of the Republic of Uzbekistan;
- supporting Government initiatives to restructure the electricity sector, aimed at improving the efficiency of the energy sector, switching to a market approach and improving the efficiency and sustainability of the sector; supporting government initiatives to expand the introduction of renewable energy through the identification of policies, regulatory and institutional frameworks.
Uzbek, South Korean businesses discuss development of ties
More than 150 representatives of business circles of both countries attended the event, organized in cooperation with the Ministry for Foreign Trade, Chamber of Commerce and Industry of the Republic of Uzbekistan and the Embassy of the Republic of Korea in Uzbekistan.
Minister for Foreign Trade of the Republic of Uzbekistan – J.Khodjayev, Chairman of the Chamber of Commerce and Industry of the Republic of Uzbekistan – A.Ikramov, First Deputy Chairman of the State Committee for Investments – L.Kudratov, Chairman of the Association for Promoting Small and Medium Business and Shingdon Resources company of the Republic of Korea – Kim Yong-ku, and others addressed the opening ceremony of the forum.
At the forum, participants were informed about opportunities created in free economic and small industrial zones of Uzbekistan, tax and customs benefits. Parties discussed possibilities of developing joint projects in energy, agriculture, tourism, communications, and financial services. During the forum, “Uzqurilishmateriallari” JSC offered South Korean entrepreneurs cooperation in production of sanitary ware and ceramic granite plates. In addition, several bilateral trade-economic and investment agreements were signed within the framework of the forum.
Ministry of Finance and Deloitte & Touche discuss development of the draft Tax Code
At the initiative of the Ministry of Finance and with the support of the auditing company Deloitte & Touche, a videoconference was held between experts of the Working Group to develop the draft Tax Code of the Republic of Uzbekistan and experts on global tax policy and administration of Deloitte. Deloitte was represented by the Leader of Tax and Legal Practice in the Caspian region, the company of Mr. Anthony Mahon.
The main purpose of the videoconference was to obtain professional advice from international experts on taxes and law on certain tax issues, in particular, especially the calculation and payment of VAT, the information service of the Ministry of Finance said in a statement.
This meeting is the first of a series of meetings scheduled by the Ministry of Finance. So, on 12 October 2018, a similar meeting is planned with the experts of the Big Four – large international professional companies providing consulting and auditing services – on topical issues of taxation of non-residents.
Tashkent strengthens cooperation with Germany’s Bosch
Tashkent city administration hosted a meeting with representatives of Bosch. The delegation takes an active part in activities on strengthening and developing Germany – Uzbekistan relations. At the meeting, it was noted that with direct participation of Bosch Thermotechnology, such facilities as boiler houses for Bunyodkor stadium, the University of Westminster, and Nestle factory were built.
The parties agreed to jointly prepare a separate meeting for determining the volume of reconstruction of boiler rooms, their feasibility, and discussed necessary capacities. Issues of using renewable energy sources, including solar collectors for heat supply, were discussed.
In February 2018, Germany’s Bosch company opened its representative office in Uzbekistan.