Uzbekistan – June 1-30, 2020

UZBEKISTAN – JUNE 1-30, 2020

Top News of the period ...... 2 Uzbekistan abolishes excise tax on imported cars 2 Quarantine in Uzbekistan extended until 1 August 2020 2 Politics and Law ...... 3 Uzbekistan plans to introduce a new type of immigrant visa 3 Uzbekistan is developing a low-carbon development strategy 4 Anti-Corruption Agency established in Uzbekistan 4 Special mobile software will be developed to inform on corruption. 5 MPE plans to create a National Freelancers Center 6 Gov't adopts digital tax administration strategy 6 Uzbekistan creates inter-parliamentary groups with France, Belgium 7 Economy and Finance ...... 7 Uzbekistan registers its first e-money system 7 Yandex.Money launches transfers to Uzcard cards 8 Uzbekistan is accelerating the transition to international financial reporting standards 8 Uzbekistan intends to issue Eurobonds in national currency 9 Business 10 Sales of Volkswagen and Škoda cars to begin in Uzbekistan from 2020 10 Coca-Cola Uzbekistan to be privatized 10 UzAssets investment company being set up in Uzbekistan 10 Uzbekistan's first Free Economic Zone boosts businesses 11 Humans enters the market of Uzbekistan 12 Digital Technology Training Center Opens in Ferghana Region 12 IFC talks development of solar photovoltaic parks in Uzbekistan 13 New products from sheep wool 14 New mobile operator to launch its activity in Uzbekistan 14 Ukrainian SkyUp Airlines eyes to launch flights to Uzbekistan 14 Uzbekistan to establish 350 food enterprises 15 Business Clinic – a consultant for entrepreneurs in a pandemic 15 Uzbekistan to establish one-stop shop for agricultural services 15 Food production enterprise to be built in Tashkent region 16 Uzbekistan launches new international tender for 3 hydropower plants 16 Tourism and Culture ...... 17 Uzbekistan to pay tourists who catch COVID-19 $4,370 as compensation 17 Special website developed to promote CBT tourism in Uzbekistan 18 Gov[ernmen]t is preparing to resume international flights - Tourism Develoment Committee chair 18 Uzbekistan guarantees safe travel 19 Saving tourism with tax breaks 19 Uzbekistan to host the International Festival of Oriental Handmade Carpets 20

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TOP NEWS OF THE PERIOD

Uzbekistan abolishes excise tax on imported cars

On 3 June, President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures to further streamline foreign economic activity and stimulate the development of the domestic vehicle market”. According to the resolution of the head of Uzbekistan, from 1 August 2020, the current import excise tax rates are canceled for:  tractors (HS code 8701);  motor vehicles for the transport of 10 people or more (HS code 8702);  cars of cars and other motor vehicles intended primarily for the transport of people (except for the HS code 8702), including utility vehicles and vans and race cars (HS code 8703);  motor vehicles for the transport of goods (HS code 8704); It should be noted that now the excise rate on import of cars is 30%. At the same time, the excise rate for new cars produced in Russia, Kazakhstan and Ukraine is 2% of the customs value. UzDaily – Uzdaily.com

Quarantine in Uzbekistan extended until 1 August 2020

By the decision of the Republican Special Commission for the preparation of the Program of measures to prevent the importation and spread of coronavirus, passenger railway and international air communications were also allowed. The division of districts, regions and cities into “red”, “yellow” and “green” zones, as well as enhanced sanitary and hygienic control will be maintained until 1 August. From 15 June, the following countries are allowed to fly to countries with a stable sanitary and epidemiological situation: - employees of diplomatic missions and consular posts of foreign countries and members of their families; - specialists of foreign companies and other organizations operating in the republic as part of investment projects; - persons who come (leave) for treatment; - persons with close relatives or seriously ill relatives abroad; - persons traveling (in transit) to other countries through Uzbekistan at the request of diplomatic missions and consular posts of foreign countries; - foreign citizens permanently registered in Uzbekistan, stateless persons permanently residing in the country, as well as Uzbek citizens permanently registered in a foreign state; - citizens of Uzbekistan to continue their studies and work. The following requirements are established for citizens of Uzbekistan arriving from abroad:

- Persons who have arrived from states with a stable sanitary and epidemiological situation - Japan, South Korea, China and Israel, and who have been in them for the past 14 days will not be quarantined; - Persons who arrived from the countries of the European Union, Malaysia, Thailand, Singapore, and who were in these countries over the past two weeks will be placed in 14-day home quarantine; - Persons arriving from countries where the number of cases of coronavirus infection has not decreased - the UAE, Turkey, Iran, Afghanistan, Russia and other CIS countries will be placed in quarantine centers for 14 days. Starting from 15 June, passenger rail service opens. Passenger trains are allowed to run on the following routes: Tashkent-Bukhara-Tashkent Tashkent-Termez-Tashkent Tashkent-Khiva-Tashkent Tashkent-Nukus-Tashkent Andijan-Khiva-Andijan Andijan-Bukhara-Andijan Andijan-Termez-Andijan Tashkent-Samarkand-Tashkent (Afrosiab train traffic) On trains all sanitary and hygienic rules must be strictly observed. State preschool educational institutions will be open only from 1 August. From 15 June, the activities of private kindergartens are allowed in the "green" and "yellow" zones. UzDaily – Uzdaily.com

POLITICS AND LAW

Uzbekistan plans to introduce a new type of immigrant visa

Uzbekistan plans to introduce a new type of ‘Uzbekistan Is My Second Home’ immigrant visa to attract people with high incomes and high academic knowledge. This was reported by the Uzbekistan 24 TV channel. The introduction of visas is planned to be carried out as part of the Presidential resolution “On Additional Measures for the Development of the Tourism Sphere with Strict Compliance with the Requirements of the Enhanced Sanitary and Epidemiological Safety Regime” from 19 June. It is expected that the new visa will be introduced from 1 January 2021. The President entrusted a new type of immigration visa within two months. The visa is being introduced to attract people of high income, with high academic knowledge, life skills, and abilities to Uzbekistan to live. They and their family members can live in the country and invest their knowledge. UzDaily – Uzdaily.com

Uzbekistan is developing a low-carbon development strategy

Uzbekistan will adopt the National Low-Carbon Development Strategy, which is currently being developed by the country’s Ministry of Energy with the involvement of international experts. This was reported by the press service of the Ministry of Energy. The document will reflect the transition to the production of electricity with low greenhouse gas emissions that negatively affect the environment. In early May, the country adopted the "Concept of providing the Republic of Uzbekistan with electric energy for 2020-2030", which was developed with the participation of the Asian Development Bank and the World Bank. The concept envisages the modernization of existing power plants, the creation of new types of power generation through renewable energy sources and nuclear power plants. These measures will reduce greenhouse gas emissions by 10% by 2030 compared with 2010. Currently, on the basis of this document, the National Low-Carbon Energy Strategy of Uzbekistan is being developed, in the preparation of which experts from the European Bank for Reconstruction and Development are participating. A strategy is necessary to solve the problem of the country’s energy supply, on the one hand, and to reduce the negative impact on the environment, on the other. “The strategy for the transition to low-carbon energy is being developed using the method of modeling the country’s energy system and possible future development scenarios. This will be done by the international consulting company Corporate Solutions. In parallel, we are studying the experience of Germany, Japan, Spain. But you need to understand that existing foreign experience needs to be adapted for use in the conditions of Uzbekistan. An individual development plan with the maximum use of the best international experience will be selected for our country. The transition to low-carbon energy will make it possible to provide the country with electricity at a steadily high growth rate while improving the quality of life of the population,” said Minister of Energy Alisher Sultanov. The energy production system in the country that has existed for decades is largely physically and technologically obsolete; its efficiency does not meet modern requirements. This is largely due to the fact that it is almost completely dependent on natural gas and limited hydropower resources. The solution to the situation lies in the development of alternative types of power generation based on the energy of the sun, wind and water, which relate to methods for generating electricity with low emissions of carbon dioxide (carbon dioxide). Also, nuclear energy belongs to the group of energy production with minimal emissions of carbon dioxide, while it is able to provide the country with uninterrupted and high-quality electricity on an industrial scale. The strategy will reflect three scenarios of the transition to low-carbon energy, and to ensure the effectiveness of the document, special attention will be paid to the development of renewable energy generation, in particular, solar energy. Implementation of the plans will be carried out at the expense of investors. According to the plan, by 2030, Uzbekistan expects the appearance of wind power plants with a combined capacity of 3 GW, solar power plants with a combined capacity of 5 GW, as well as nuclear power plants with a capacity of 2.4 GW. UzDaily – Uzdaily.com

Anti-Corruption Agency established in Uzbekistan

The Presidential Decree “On Additional Measures to Improve the Anti-Corruption System in the Republic of Uzbekistan” was adopted. In accordance with the Decree, the Anti-Corruption Agency of the Republic of Uzbekistan was established. The Agency is a specially authorized state body responsible for the formation and implementation of state policy in the field of preventing and combating corruption. The agency obeys to the President and reports to the chambers of the Oliy Majlis. The decree defines the main tasks and activities of the Agency. In particular, the Agency provides a systematic analysis of the state of corruption in the country. The Agency conducts a comprehensive analysis of the results of the investigation of corruption crimes, primarily harmful to the national interests and international authority of Uzbekistan. The agency is also granted a number of the following rights: request, receive and research materials related to budget expenditures, implementation of state assets, public procurement, implementation of investment projects and implementation of government programs; consider appeals of individuals and legal entities on corruption issues and take measures to restore their violated rights and protect their legitimate interests; conduct administrative investigations of corruption offenses; to make binding orders on suspension of execution or annulment of decisions of executive authorities, economic management bodies and their officials if signs of corruption are detected in them. Agency warnings, representations and appeals are subject to mandatory review with a written notice of the results of the review within ten days. UzDaily – Uzdaily.com

Special mobile software will be developed to inform on corruption.

The Decree of the President “On additional measures to improve the anti-corruption system in the Republic of Uzbekistan” was adopted. According to the Decree, the staffing of the Agency is carried out on a competitive basis in the manner determined by the Agency in accordance with international standards. In 2020–2021, a system of internal anti-corruption control (“compliance control”) will be phased in in all bodies of state and economic administration. The decree introduces the following: electronic platform “E-Anticor.uz”, which allows monitoring and evaluating the effectiveness of public authorities and management in the fight against corruption, as well as state and other programs in this area; special mobile software to inform the Agency of corruption. The National Council of the Republic of Uzbekistan on Combating Corruption and its territorial councils have been formed.

UzDaily – Uzdaily.com

MPE plans to create a National Freelancers Center

The Ministry of Public Education of the Republic of Uzbekistan has developed a draft law aimed at improving the working conditions of freelancers. The project provides for the creation of the National Freelancers Center, the residents of which will be able to enjoy new benefits and preferences. The goals, procedure and criteria for registering freelancers as residents of the National Freelancers Center were set out in the draft resolution of the President of the country on measures to support the export of services via the Internet, presented for discussion on the portal on discussing draft normative- legal acts regulation.gov.uz. The draft law states that 20 billion UZS are needed to create the National Freelancers Center. It is planned to organize training courses at the center. An opportunity will be provided to learn web development and design, develop mobile applications. Residents of the center will be issued temporary labor certificates with the crediting of seniority and provided assistance in employment. They will be able to accept payments in foreign currency without paying a bank commission and provide their services based on a public offer. The draft law outlines the criteria that freelancers who wish to become residents of the center must meet. In particular, they should provide their services via the Internet, not have registration as an individual entrepreneur, and not use the services of hired employees. Uzbekistan National News Agency – uza.uz

Gov't adopts digital tax administration strategy

The Government of Uzbekistan by its June 5 resolution has approved the Development Strategy for the Information and Communication Technologies of the State Tax Committee, the press service of the Committee said. It provides for the tasks such as modernizing the data center and telecommunication apps, acquiring servers and software, transferring all information systems to a single platform, improving the quality of e- government services, and processing big data quickly. “As a result, additional revenues to the budget of up to 20 trillion soums are expected,” the statement said. The document is intended to solve a number of problems and targets, including:  insufficient size of available data base;  achieve server utilization by 90%;  increasing corporate network speed through increase in the number of electronic services by 3.8 times and electronic systems by 2.5 times;  dispose of a large database as a result of integration of various information systems;  lack of a single platform.

Modernization of the data center will increase the speed of data processing and analysis by 10 times, the level of confidentiality of database information - by 100%, the volume of the information database - up to 1 petabyte. One of the main objectives of the strategy is the introduction of Business Intelligence and Big Data technologies. It is expected that they will expand the big data processing and analysis systems, reduce the level of “shadow turnover” and increase the tax base. The transfer of information systems of tax authorities to a single platform will prevent the load on the database and facilitate the process of filing tax reports by 5-7 times, noted the State Tax Committee. An increase in the number of electronic services provided to taxpayers will reduce the human factor in relations with tax officials by 60%. “This will not only prevent corruption, but also drastically reduce paperwork,” the department concluded. Tashkent Times – tashkenttimes.uz

Uzbekistan creates inter-parliamentary groups with France, Belgium

The Legislative Chamber of the Parliament of Uzbekistan (Oliy Majlis) creates inter-parliamentary groups on cooperation with the parliaments of France and Belgium, Trend reports with reference to press service of the Legislative Chamber of Oliy Majlis. The Council (Kengash) of the Legislative Chamber of the Oliy Majlis considered the issue of creating the inter-parliamentary group between the Legislative Chamber of the Oliy Majlis and the National Assembly of France, as well as an inter-parliamentary group on cooperation with Federal Parliament of Belgium. It was noted that these inter-parliamentary groups are charged with the task to further develop relations with the parliaments of the two countries, to take necessary measures in social-political, economic, cultural spheres, as well as to attract foreign investments. The members of the council approved First Deputy Speaker of the Legislative Chamber of the Oliy Majlis, Akmal Saidov as the head of the two groups in the lower chamber of the parliament, which included deputies of political parties. Trend News Agency – trend.az

ECONOMY AND FINANCE

Uzbekistan registers its first e-money system

Brio Group registered the first electronic money system in Uzbekistan, the Central Bank reports. “In accordance with the requirements of issuing and circulating of electronic money in the territory of Uzbekistan, the payment organization LLC “Brio Group” has started activities as the operator of the electronic money system OSON,” the message reads. The private joint-stock commercial bank Turkiston became the issuer of the electronic money system. Data on the electronic money system was placed in the Register of the Electronic Money System of the Central Bank on June 16.

In May, the Central Bank approved the rules for the issuance and circulation of electronic money in the country. According to the requirements, they are issued only in the national currency. Electronic money can be used to purchase goods and services from individual entrepreneurs and legal entities within the system. The company has created special electronic wallets, which accept the electronic currency for the goods sold or services rendered, with the aim of further transferring the equivalent amount to the bank’s settlement accounts. kun.uz

Yandex.Money launches transfers to Uzcard cards

Users Yandex. Money can now send transfers to cards of the Uzbek payment system Uzcard. The service is useful when you need to send money to relatives in Uzbekistan or, for example, withdraw it from your electronic wallet to Uzcard. A new opportunity has become available thanks to the cooperation of Uzcard with the Russian payment system Mir. You can send a transfer to Uzcard on the website or in the Yandex.Money mobile application. To do this, enter the card number of the recipient, indicate the amount and confirm the transfer. The user can transfer money from an electronic wallet - they are sent in rubles, and come in sums. Thus, up to 36 thousand rubles can be transferred to Uzcard at a time, up to 72 thousand rubles per day. For transfer money from an electronic wallet to a Uzcard, Yandex.Money takes a commission of 3%, a minimum of 45 rubles. UzDaily – Uzdaily.com

Uzbekistan is accelerating the transition to international financial reporting standards

Representatives of the Ministry of Finance and other institutions from Uzbekistan participated in the II International online conference “IFRS in modern business and investment”. It is the largest platform for exchanging knowledge in the field of international financial reporting standards. The conference is held June 24-26 at the webpag www.msfoconf.com and unites 50 thousand specialists from 8 countries: Uzbekistan, Russia, Belarus, Lithuania, Kazakhstan, Georgia, Azerbaijan and Moldova. The issues of preparation, regulation, reliability and publicity of financial statements, the impact of the coronavirus pandemic on it and the conduct of a global study in the field of corporate reporting were discussed in the conference. The topic was very important for our country as since 2021, domestic joint-stock companies, commercial banks, insurance organizations and legal entities that are large taxpayers must switch to IFRS provided for by the decree of the President of the Republic of Uzbekistan dated February 24, 2020 “On additional measures to transit to international financial reporting standards”. One of the key topics of the conference was the introduction of IFRS in our country. Deputy Minister of Finance Dilshod Sultanov made a report “Reforming the accounting of Uzbekistan on the basis of IFRS”.

- The government is implementing a course to accelerate integration into the global economy. This goal can be achieved by creating a competitive economy, where one of the important components is the availability of high-quality financial information that foreign partners can trust. Such trust can be achieved by reporting on the basis of IFRS,”- D. Sultanov noted. - The Ministry of Finance has been designated as the authorized body for their implementation. The roadmap for the phased transition to IFRS and modern training methods in this area has been approved. Business entities that voluntarily prepare statements in accordance with IFRS are exempted from reporting in accordance with national accounting standards. The Ministry is working on bringing national accounting standards and other reporting forms in accordance with IFRS, translating IFRS texts and explanations into the state language. It was emphasized that this year is a transitional period for business entities preparing to apply IFRS. It is required to provide them with qualified specialists with appropriate training, and currently only 4 educational centers in the country have the necessary accreditation of the International Association of Chartered Certified Accountants (ACCA). The Ministry of Finance is conducting negotiations with ACCA on phased accreditation of other institutions and is considering the possibility of creating a special open access educational platform. A Memorandum of understanding including the implementation of a joint action plan is planned to be signed among the ministry, the Chamber of Auditors of Uzbekistan and ACCA,. The Ministry of Higher and Secondary Special Education has been instructed to improve the quality of training in accounting and auditing. In addition, the chairman of the board of directors of the Chamber of Auditors, Nematulla Karimov, and the chairman of the board of the National Association of Accountants and Auditors Minovar Tulakhodzhaeva took part in the conference. They elaborated on the prospects for implementing international standards. UzDaily – Uzdaily.com

Uzbekistan intends to issue Eurobonds in national currency

The Uzbek authorities plan to issue Eurobonds in national currency in the equivalent of $500 million this year. The Deputy Finance Minister Odilbek Isakov said about this in an interview with Bloomberg. According to him, Uzbekistan’s need for borrowing will increase due to the coronavirus pandemic. The decision to enter the debt market will depend on the market and budget deficit for the first half of the year. Eurobonds denominated in soums in the equivalent of $500 million can be placed this year and the same amount next year, Isakov noted. This will be done based on budget needs. Isakov also added that Uzbekistan could issue its first Islamic bonds (sukuk – the Islamic equivalent of bonds) next year to finance renewable energy projects. He pointed out that an increase in the share of public debt denominated in soums from 11.5% to 50% over 10 years is “ambitious, but achievable”. In 2019, Uzbekistan for the first time in its history placed two tranches of Eurobonds with a total volume of $1 billion. The maturity dates of debt bonds are set for February 2024 and 2029. Then, investor demand exceeded the placement volume by almost four times and amounted to about $3.8 billion from about 150 institutional investors on the eve of the book’s closure. kun.uz

BUSINESS

Sales of Volkswagen and Škoda cars to begin in Uzbekistan from 2020

President Shavkat Mirziyoyev signed a resolution on measures to implement a project to organize Volkswagen production in Uzbekistan. It should be recalled that in March, Uzavtosanoat and Volkswagen Group Rus signed an agreement on the production of light commercial vehicles in the Jizzakh free economic zone. The project is being implemented on the basis of the Jizzakh Automobile Plant LLC. According to the document, the project will be implemented in two stages. At the first stage, in 2020-2021, it is planned to import finished Volkswagen and Škoda cars. Dealer and service networks will also be created in Fergana, Tashkent and Jizzakh. Until November 2021, it was instructed to develop, coordinate and conclude an investment agreement on the transition to the second stage of the project. “The second stage will provide for the organization of a full production cycle (starting from 2022). Issues related to the volume of investments and export of automobiles will also be settled,” Oybek Ayubov, Director General of the Jizzakh Automobile Plant, said. In addition, under the decree, more than 40 gas filling stations will also be created in Uzbekistan, which will sell gasoline and diesel fuel of Euro-5 standard. kun.uz

Coca-Cola Uzbekistan to be privatized

Currently, the state owns a 57.1% stake in the authorized capital of the company. According to the press service of the State Assets Management Agency, Coca-Cola Ichimligi Uzbekiston Ltd. will soon be privatized. Reportedly, an open auction will be organized. “It is planned to involve representatives of reputable international financial institutions, foreign investment intermediaries and audit companies in this process,” the agency said. JV Coca-Cola Ichimligi Uzbekiston Ltd. was created in 1993. Now the company’s 57.1% controlling stake belongs to the state holding company Uzbekoziqovqatholding, 42.9% belongs to The Coca-Cola Export Corporation. The company owns three plants in Uzbekistan, which are located in Tashkent, Namangan and Urgench. The factories have ten production lines that produce soft drinks under the brands Coca-Cola, Fanta, Sprite, Bonaqua and Fuse Tea. kun.uz

UzAssets investment company being set up in Uzbekistan

UzAssets investment company is being created in Uzbekistan, the Cabinet of Ministers' June 15 Additional Measures To Improve Privatization Processes Resolution said.

The company is being set up in the form of a joint stock company, with the State Assets Management Agency (SAMA) becoming its founder. UzAssets authorized capital shall be formed from the Fund for the management, transformation and privatization of state assets under the SAMA worth 20 billion soums, US$2 million, as well as a state stakes in 7 joint-stock companies and 3 state unitary enterprises in face value. The main objectives of the company are the pre-sale preparation of enterprises with state’s stake, including increasing their investment attractiveness and organizing cooperation with international institutions and companies. UzAssets will conduct a comprehensive analysis of enterprises, create a short-list of investors, organize a road-show to attract investors and will perform other tasks. The supervisory board of the company will include the director of SAMA. At least 50% of the board members will be highly qualified specialists with international experience. SAMA said that at the first stage, government shares in 10 large enterprises shall be handed over to the company for sale, based on market conditions and the decision of the Supervisory Board. In 2021, it is planned to gradually expand the company's portfolio to 50 assets. Tashkent Times – tashkenttimes.uz

Uzbekistan's first Free Economic Zone boosts businesses

The creation of the Navoi Free Economic Zone (FEZ) in Uzbekistan gave impetus to business activity in the region, Director of Navoi FEZ Habib Abdullaev told Trend. "The special feature of the Navoi free economic zone is that it covers the entire Navoi region, while usually, only projects physically located within the FEZ can receive resident status. In our case, FEZ can accept projects from anywhere in the region, and this is especially important for companies that are linked to sources of raw materials, such as deposits. Secondly, FEZ retains great privileges such as exemption from income tax and customs duties on raw materials and components. Finally, Navoi FEZ is strategically located in the geographical centre of Uzbekistan," said Abdullaev. He added that the largest multimodal logistics hub of Uzbekistan will start operating in Navoi FEZ this year. "To date, 41 projects worth $202.2 million have been realized in the Navoi FEZ, and 55 projects worth $495.3 million are being implemented. In total, $298.4 million has been invested in the zone so far, and the volume of foreign direct investment is $84.8 million," noted the director. Abdullaev added that in the near future, a number of new enterprises will be built on the FEZ territory including two plants for the production of hydrogen peroxide with the involvement of British and Turkish investors allocating $12 million and $27 million respectively; a plant for the production of float glass worth $107 million (with the participation of Uzbek investor with German credit); a plant for the production of ammonium sulfate under the investment of $11 million from Turkish investor; and a plant for the production of composite stone and architectural products with $38 million provided by Austrian investor. Recently, the Navoi Free Economic Zone announced the commencement of Navoi Motors car manufacturing plant construction, with a designed production capacity of 30,000 cars per year.

The plant, worth $12 million, is expected to start operations activities by the end of 2020, and Austrian company Parsalpine Management GmbH is involved in the construction process, Abdullaev said. The new plant is expected to supply vehicles primarily to the Uzbek market while exporting about 30 per cent to neighbouring countries. Navoi Free Economic Zone (the first in Uzbekistan) was established in 2008. Today, about 30 enterprises with foreign investors operate in the region, and their number is growing every year. AzerNews – azernews.az

Humans enters the market of Uzbekistan

Today, on 16 June 2020, the international group of companies Humans presented the first version of its mobile application in Uzbekistan, combining finance, mobile operator services and a storefront of goods and services. Humans will combine in one application an honest mobile operator, a convenient financial service and online shopping with a cashback for each purchase. Now, residents of Uzbekistan can pay for the services of Humans partners throughout Uzbekistan and each time receive cashback to their account. The launch of the mobile operator and financial service Humans is scheduled for 18 August 2020. We released the first version of the HUMANS.uz mobile application two months before the start of the mobile operator and the bank in order to enable each Uzbek to participate in our bonus program and accumulate bonuses by which it will be possible to pay for Humans unique services, said Humans founder Vladimir Dobrynin. “We strive to make the impossible possible, which is why we have combined an honest mobile operator and convenient financial service in one application.” “From 18 August 2020, users in Uzbekistan will be able to buy a beautiful phone number in installments, connect the tariff that they need, or use a completely free connection. Any resident of the country will be able to get a bank card in our sales office in two minutes and transfer money without a commission,” said Vladimir Dobrynin. UzDaily – Uzdaily.com

Digital Technology Training Center Opens in Ferghana Region

The President of the Republic of Uzbekistan declared 2020 the Year of the Development of Science, Education and the Digital Economy. This is very symbolic, because for further development it is more important than ever to possess digital knowledge and modern information technologies. In accordance with the third direction of the Five Initiatives put forward by the President of the Republic of Uzbekistan - the creation of conditions for the wide and effective use of computer technology by the population and youth, attracting young people to entrepreneurship in the field of information technology, the Ministry for the Development of Information Technologies and Communications, together with state authorities, continues to be created throughout Training centers for digital technologies.

In order to implement the Five Initiatives and strengthen the ideological immunity of young people, create conditions for the realization of their creative and intellectual potential, further popularize computer technologies, programming and robotics, computer games and e-sports among young people, improve the educational system in this area, the next in the Information Library Building Center in the Dangarinsky district of the Ferghana region was opened a Training Center for Digital Technologies in compliance with all sanitary and epidemiological requirements. The center has spacious and comfortable classrooms equipped with modern computer equipment. The main goal of this training center is to educate local youth in the basics of information technology and programming, robotics, modern digital technologies and to train specialists in this industry, covering about two thousand people a year. In addition, the center provides for involving young people in computer sports (e-sports), teaching them the rules of e-sports, organizing team games, and conducting competitions throughout the country. In general, in the period 2020-2021 in the region it is planned to open 19 such training centers. In particular, this year they will be opened in Baghdad, Rishtan regions, in the cities of Fergana, Kokand and Kuvasay. UzDaily – Uzdaily.com

IFC talks development of solar photovoltaic parks in Uzbekistan

International Financial Corporation (IFC) supports the government of Uzbekistan to structure public- private partnerships (PPPs) that will best attract qualified private-sector investors to participate in transparent and open bidding processes to develop various projects, Regional Manager for Central Asia of IFC Cassandra Colbert told Trend. "We are working on this closely with the World Bank, which is assisting the government to implement a broad range of reforms in the power sector," she said. As Colbert noted, IFC is advising the government on a PPP for construction of two photovoltaic power plants of capacity of 200 MW each in Samarkand and Jizzakh regions. The project received 84 expressions of interest (EOIs) before the March 21, 2020 deadline. The companies that submitted EOIs and satisfy all criteria of request for qualification (RFQ) document, will be invited to request for proposal (RFP) stage. "In addition, IFC is working with the government to plan future projects. In March, we organized a workshop on structuring of PPPs to develop solar photovoltaic (PV) parks with battery energy-storage systems; this was for officers from the ministries and state agencies working to attract investment in the energy sector. The workshop provided insights into - and discussed - the PPP structure for the proposed stations, which will generate a total of 500 MW of power. The new power stations will be the first of their kind in Uzbekistan as they will combine solar PVs with battery energy-storage systems," Colbert stated. She stressed that IFC is also helping the government structure and tender a PPP to develop a 1,200-1,500 MW gas-fired power plant in the Syrdarya region. "This is an important project for both IFC and Uzbekistan. This large-scale PPP will help modernize Uzbekistan's aging power infrastructure and supply both residents and businesses with steady electricity. It will also significantly increase efficiency of the use of gas, contributing to reduction of greenhouse-gas

emissions. The new equipment will make the power sector more flexible, creating a better environment to introduce intermittent renewable-energy sources," she said. The International Finance Corporation, a member of the World Bank Group, is the largest global institution dedicated to supporting the private sector in emerging markets. The corporation works with more than 2,000 private enterprises around the world. In fiscal year 2019, the company provided more than $19 billion in long-term funding to developing countries. In doing so, the corporation has attracted the strong potential of the private sector to eradicate extreme poverty and improve global prosperity. Recently, IFC and Ipak Yuli Bank of Uzbekistan signed an agreement allowing the bank to better manage currency risks and increase local currency financing for small and medium-sized enterprises, which play a key role in the economic development of Uzbekistan. "The agreement shows that IFC is standing by its partner banks and is ready to support them in all circumstances. Ipak Yuli Bank can better manage its currency risk and continue lending in local currency to firms that need funding. This is critically important at a time when businesses are suffering currency vulnerabilities due to the global impact of the COVID-19 crises," Colbert stated. Trend News Agency – trend.az

New products from sheep wool

New enterprise for production of unique raw materials for pharmaceutical and perfume industry – lanolin, has been built in Surkhandarya region’s Boysun-Pharm FEZ. Boysonlano LLC has spent 17.5 billion UZS for the implementation of this project. New enterprise, equipped with advanced technology, will employ 50 people. It is planned to process 500 tons of wool annually and produce import-substituting products worth $1.4 million and export excess. Uzbekistan National News Agency – uza.uz

New mobile operator to launch its activity in Uzbekistan

This year, another mobile operator will start operating in Uzbekistan. It is created by Humans international group of companies, which plans to invest about $15 million in this project. New jobs will be created for various telecommunications professionals. Due to quarantine, the new operator will begin its activities only on August 18. Along with the mobile operator, Humans will open a mobile bank in Uzbekistan, which will work in collaboration with local partner banks. Plastic cards of the new bank will allow not only to pay for services and goods, but also to transfer money without paying a commission. It is also planned to create at least 800 thousand Internet ports of broadband communication and lay 12 thousand kilometers of fiber-optic communication lines. Uzbekistan National News Agency – uza.uz

Ukrainian SkyUp Airlines eyes to launch flights to Uzbekistan

Ukrainian low-cost air carrier SkyUp Airlines has applied for the operation of flights to Uzbekistan, follows from the data of the State Aviation Administration of Ukraine. The airline wants to operate flights twice a week from Kyiv to Tashkent. In the application, SkyUp Airlines indicated that it wants to be granted the right to operate flights from July 1, 2020, for an unlimited period. Regular flights from Tashkent to Kyiv were suspended in 2015 due to the lack of agreements between the aviation authorities of the two countries. Ukraine International Airlines has also suspended flights in this direction. kun.uz

Uzbekistan to establish 350 food enterprises

Despite the consequences and impact of the coronavirus pandemic in Uzbekistan, work is ongoing to implement investment projects in the food sector and increase the volume of production of import- substituting and export-oriented products. In January-May, 50 regional projects worth 268.2 billion UZS were involved with the support of Uzbekoziqovqatholding company, investors, local khokimiyats. The capacity is 168 thousand tons. According to Uzbekoziqovqatholding company, it is planned to launch almost 350 food enterprises on the basis of regional projects by the end of the year. Uzbekistan National News Agency – uza.uz

Business Clinic – a consultant for entrepreneurs in a pandemic

The Business Clinic project was introduced in practice in May this year. It is aimed at supporting business in Uzbekistan during and after the pandemic. The project is implemented by the Chamber of Commerce and Industry together with UNDP. Its goal is to mitigate the negative consequences in business activities arising from the COVID-19 pandemic. For this, the Chamber of Commerce and Industry through a single call-center at a short number 1094 provides free legal and business consultations on the benefits and preferences for entrepreneurs provided for within the framework of Presidential decrees and government resolutions. It also provides for the preparation of webinars and videos with participation of specialists for a wider explanation of the essence and significance of these documents. As of June 5, 210 calls from entrepreneurs were received on the hotline 1094. Specialists gave timely advice on these requests. Business Clinic, with the involvement of domestic and foreign experts, conducted 10 online webinars, during which practical assistance was provided in matters related to supporting the activities of entrepreneurs in the current conditions. Uzbekistan National News Agency – uza.uz

Uzbekistan to establish one-stop shop for agricultural services

A one-stop shop for agricultural services is being established in the Fergana region of Uzbekistan, Trend reports with reference to Ministry of Agriculture and Water Resources of Uzbekistan. It will serve over 500 agro-industrial complexes under public-private partnership terms. More than 40 types of services of the Center will be provided on the basis of innovative technologies: geo-information systems and drone service. Also, 15 scientists from agricultural research institutes and more than 30 representatives of local and foreign agribusinesses will work in the Center on a permanent basis. The Center's modern laboratory has passed international accreditation and provides services to 9,000 farms and 500 representatives of agribusiness. It conducts five types of research: check of safety of agricultural products, seedling nursery, soil, water and phytosanitary analyses. “The Agro Services Center of Fergana region will provide employment for 133 workers with modern knowledge and experience. Of these, 40 specialists have completed advanced training in the US, Turkey, Israel, Netherlands, Germany, China and Latvia, while the rest will undergo training in international agricultural centers by the end of the year,” the report says. To organize the Center's activity, government plans to use loans of World Bank, European Union grants and funds of private investors. According to the message, in the near future similar centers will appear in other regions of the country. AzerNews – azernews.az

Food production enterprise to be built in Tashkent region

A joint venture specializing in food production is being built in Tashkent region’s Qibray district jointly with Filipino investors. The cost of the project is $10 million. The company plans to produce one thousand tons of food products annually and export them for $1 million. The project of the joint venture is developed by Philippine’s LIWAYWAY LTD GROUP. The company will employ 300 people. It is planned to launch the project by September 30 this year and create 50 jobs at the first stage. Uzbekistan National News Agency – uza.uz

Uzbekistan launches new international tender for 3 hydropower plants

Uzbekistan’s state hydropower producer and developer, Uzbekhydroenergo, announced on June 4 a tender for the design and construction of the Rabat, Chappasuy and Tamshush Hydropower Plants on the Aksu River in the Kashkadarya Region of Uzbekistan. “We are pleased to announce a tender for the design and construction of three new hydropower plants on the Aksu River,” a spokesperson from Uzbekistan’s Energy Ministry said. “These new plants will make a significant contribution to our goal of increasing our power generation capacity. They will also reduce

our carbon emissions and grow our clean energy sources. We would also like to thank the Asian Development Bank for its support on this project,” the spokesperson added. The construction of the three hydropower plants is part of Uzbekistan’s Sustainable Hydropower Project, which is part-financed by the Asian Development Bank (ADB), Uzbekistan’s Energy Ministry said in a press release. The wider context to the tender is Uzbekistan’s ambitious national energy strategy which aims to meet increasing demands for energy and to generate a quarter of all electricity from renewable sources by 2030. The strategy will see the deployment up to 30 GW of additional power capacity by 2030, including 3.8 GW of hydro energy along with 5 GW or solar energy and up to 3 GW of wind energy. This is also a part of Uzbekistan’s growing role in the regional and international energy markets. In October 2019, it was announced the ADB had approved $60 million in financing for the construction of hydropower plants, with a total generation capacity of 25MW, in Uzbekistan, the energy ministry said, adding that he total cost of the project is $75.3 million dollars and completion is expected by the end of 2023. The three hydropower plants will have a total capacity of 24 MW (6 MW Rabat, 8 MW Chappasuy and 10 MW Tamshush) with an associated transmission line (35-110 kV and 22 km in length) and mini-hydro units with aggregate capacity of 1 MW. According to the energy ministry, international competitive bidding for the project will be conducted in accordance with the ADB’s ‘One-Stage, Two-Envelope’ protocol. The tender is open to all bidders from ADB eligible countries. New Europe - neweurope.eu

TOURISM AND CULTURE

Uzbekistan to pay tourists who catch COVID-19 $4,370 as compensation

As Uzbekistan opens its borders to travellers for the first time since March, its government has pledged to compensate tourists who catch Covid-19 while holidaying there. Those who contract the virus within the Central Asian country could be granted $4,370 to cover the costs of medical care in an Uzbek hospital. "We want to reassure tourists they can come to Uzbekistan," said Sophie Ibbotson, Uzbekistan's tourism ambassador to the UK. "The government is so confident that the new safety and hygiene measures being implemented across the tourism sector will protect tourists from Covid-19 that the president is prepared to put money where his mouth is: if you get Covid-19 on holiday in Uzbekistan, we will compensate you." However, the offer only applies to visitors who are part of a tour group which is being led by a local guide. Uzbekistan has managed to avoid the worst of the coronavirus pandemic, recording 7,177 cases and just 20 deaths among its population of 33 million.

The country, famous for its ancient cities lining the Silk Road, has now fully opened its borders to visitors from China, Japan, South Korea and Israel; tourists from the UK are allowed to visit, but must self-isolate for 14 days on arrival (as well as on their return to Britain). Tourism businesses in Uzbekistan have been asked to sign up to a national certification scheme for safety and hygiene in an effort to boost confidence in returning visitors. While not compulsory, any businesses that do not meet the scheme's cleanliness standards could be obliged to compensate coronavirus sufferers if they are identified as the source of infection. As the world steadily starts to reopen from lockdown, other countries are offering similar guarantees in a bid to lure back wary tourists. The government in Cyprus has declared that it will pay the holiday costs of anyone infected with coronavirus while visiting the country. Traveller - traveller.com.au

Special website developed to promote CBT tourism in Uzbekistan

CBT tourism (Community based tourism) is becoming more and more popular among tourists who want to get acquainted with the traditions and lifestyle of local residents, enjoy the view of nature, feel a different atmosphere of life. For the effective implementation of the European Union Project “Strengthening rural and ecotourism through business associations for sustainable economic development in Central Asia”, a set of measures has been developed in the Republic of Uzbekistan aimed at marketing promotion of CBT Uzbekistan. The range of prepared information products turned out to be very wide: a logo, a website, brochures, dictionaries and a guide for family guest house owners. A special website, www.cbtuzbekistan.uz, has been developed for promotional advertising of CBT, which provides detailed information about guest houses with a demonstration of their location on an interactive map. User-friendly logistics and a comfortable ecosystem of the website allow to find the best option for a vacation in rural areas of Uzbekistan. The site is developed by the Association of private tourism agencies of Uzbekistan (APTA). CBT routes developed by leading tour operators of the country will also be included on the website. Uzbekistan National News Agency – uza.uz

Gov[ernmen]t is preparing to resume international flights - Tourism Develoment Committee chair

According to the chair of the Tourism Develoment Committee Aziz Abdukhakimov, the government of Uzbekistan was gradually preparing to resume international flights. “We are now preparing for this. International flights will open soon. Japan, some European countries have already decided on this. Turkey will open borders soon too. As you know, the public transport will resume on June 8. Other public transport will be launched soon. In addition, in order to promote tourism and bring it to the previous rate, each tourist who arrives in Uzbekistan will get 15 US dollars. It turns out that if an average of 200 tourists arrive on one plane, then

we will pay them about $ 3,000. We will reimburse 10 percent of expenses for hotels, and by the year-end - 30 percent of transportation costs, that is, the state will subsidize,” Abdukhakimov noted. We remind you that Uzbekistan plans to organize “red”, “yellow” and “green” flights. Earlier Aziz Abdukhakimov said that the Government was planning to introduce a system of Red, Yellow and Green flights as part of the Uzbekistan. Safe travel GUARANTEED. “From countries with serious epidemiological situation, only Red flights will be operated only for evacuation of Uzbek citizens. Yellow flights will be operated from countries with average level of epidemiological danger. Flights may be operated on a more regular basis, but all passengers will still be quarantined,” the head of the State Committee for Tourism said. Tashkent Times – tashkenttimes.uz

Uzbekistan guarantees safe travel

According to the Embassy of Uzbekistan in the United States, within the framework of promoting a positive image of Uzbekistan and supporting tourist interest in the country abroad, the Embassy organized a briefing with participation of Deputy Chairman of the State Committee for Tourism Development Ulugbek Azamov for the United States and Canada travel agencies. Among the participants are the leaders of leading travel companies of the United States and Canada, which specialize in organizing tours to Uzbekistan and Central Asian countries, as well as representatives of cultural and humanitarian circles and the media. Everyone was informed about the pandemic situation in the country and the measures taken to normalize the epidemiological situation, the work of the government in preparing the entire complex of necessary infrastructure for tourists. The leadership of the State Committee for Tourism Development made a detailed presentation on stimulating international tourism in a pandemic, prospects for the resumption of tourist flows from the United States and Canada, recommendations to foreign travel agencies and tourists, conditions for ensuring the safety of tourists, as well as priority areas for further development of the domestic tourism industry in Uzbekistan. Participants of the event showed interest in the measures taken to support the tourism industry, in particular in the project “Uzbekistan. Safe travel guaranteed”, which is a new system of sanitary and epidemiological safety for tourists, developed on the basis of world standards. It was emphasized that uniform requirements of sanitary and hygienic standards were introduced at all tourist facilities to ensure the safe stay of tourists in Uzbekistan. Following the event, an agreement was reached to continue regular consultative negotiations in order to resume tourist flow to Uzbekistan as soon as possible, to organize a special joint study tour of travel agencies of the United States and Canada to Uzbekistan as the epidemiological situation stabilizes, as well as expand the package of proposed tourist destinations. Uzbekistan National News Agency – uza.uz

Saving tourism with tax breaks

Many sectors of the economy suffered during the coronavirus pandemic. The tourism sector suffered enormous damage: air communications were stopped, borders were closed, and movement between cities was limited. The government has taken urgent measures in support of tour operators, travel agents and accommodation facilities. One of the latter is aimed at accelerating the restoration of tourism as the sanitary-epidemiological situation in the country improves. This was reported by the press service of the State Tax Committee. On 28 May 2020, the Decree of the President “On urgent measures to support the tourism sector to reduce the negative impact of the coronavirus pandemic” was adopted. In accordance with the document, from 1 June to 31 December 2020, income tax rates are reduced for tourism entrepreneurs. State assistance in this case is about 15.2 billion soums. This means that hotel owners, as well as tour operators and travel agents, leave at their disposal this amount, which is formed in June-December as a result of a reduction in the tax rate by 50%. There are 184 hotel enterprises and 267 tour operators and travel agents registered in Uzbekistan. Hotels are located in all areas of the country. In Tashkent, their number is 80, in Samarkand region - 17, 13 in Tashkent and Khorezm regions, 12 in Bukhara region, 8 in Andijan and Kashkadarya regions, 7 in Navoi and Ferghana regions. From them, on average, for the month the budget received the amount of income tax in the amount of 968.2 million soums. And the amount that, according to the reduced rate, remains at their disposal, is equal to 3.5 billion soums. For 267 tour operators and travel agents, the average monthly income tax rate was 3.4 billion soums. After applying the benefits in June-December, namely, reducing the tax rate by 50%, they have at their disposal an amount equal to 11.8 billion soums. Tax breaks are designed for the period from June to December of the current year and are designed to reduce the negative impact of the coronavirus pandemic, preserve jobs and qualified specialists, support their income and the tourism sector as a whole. UzDaily – Uzdaily.com

Uzbekistan to host the International Festival of Oriental Handmade Carpets

A resolution of the President “On measures to develop the hand-made carpet weaving industry in the republic” was adopted. In accordance with the resolution, from 1 January 2021, subsidies in the amount of two thousand soums for each kilogram of wool of merino sheep and goats of the Angor breed, realized by artisans and organizations, are allocated to the enterprises producing livestock products at the expense of the State budget. specializing in hand-made carpet weaving. Moreover, the allocation of subsidies is carried out by Uzbekchorvanasl Agency. The initiators of projects for grazing Merino sheep and Angor goats, processing and dyeing of wool, as well as manual carpet weaving, guarantee is also provided along with compensation. When exporting handmade carpets, a subsidy mechanism is used to compensate up to 50 percent of transportation costs by road, air and rail.

According to the resolution, farms for raising sheep of the Merino breed and goats of the Angora breed will be allocated grazing land in the Jizzakh, Kashkadarya, Namangan, Samarkand, Surkhandarya and Tashkent regions. Until 1 January 2021, primary seed production of drought-resistant forage crops for foothill pastures will be organized. Frin 15 July 2020, people engaged in manual carpet weaving and silk weaving as part of the Uzbekipaksanoat Association are given subsidies to cover the costs of acquiring carpet and silk weaving machines - 10 times the amount of basic estimated value (2 million 230 thousand soums) for each machine. Starting from 2021, once in every two years in October, Tashkent will host the International Festival of Oriental Carpets (Hand-made Oriental Carpets). Until the end of 2020, on the territory of cultural heritage sites visited by tourists in the cities of Samarkand, Bukhara, Khiva and Shakhrisabz, trade and exhibition rows (shops) of handmade carpets will be organized. Also, mobile applications on the history of carpets (“The history of carpet”) will be developed using QR codes, which include information on the manufacturing process of each carpet, women embroiderers, their working conditions, and other similar information. UzDaily – Uzdaily.com