NEWSLETTER 23/2011
Obsah R ...... 4
AFRICAEJSTŘÍK ...... KLÍČOVÝCH SLOV OBSAŽENÝCH...... VE ZPRÁVÁCH ...... 6
Building an African Infrastructure ...... 6 ...... 6 ...... 7 Politics at play ...... 7 Organizing a network industry ...... 8 TradeDifferential in East Africapricing ...... 10 Who will run the railway? ...... 11 The European Union further contributes to the sustainable development of Small Island Developing States in the EasternMembers and of Southern the East Africa African-Indian Community Ocean region ...... 12 Climate change blamed for dead trees in Africa ...... 13 Mining Conference to launch major report on Minerals and Development ...... 14 IMF Executive Board Completes Fifth Review Under ECF Arrangement for Ghana and Approves US$91.55 Million Disbursement ...... 14 USA / FACT SHEET: Supporting South Sudan’s Vision for the Future ...... 15 ...... 16 ...... 16 RECENT KEY U.S. GOVERNMENT COMMITMENTS TO SOUTH SUDAN ...... 17 Overseas Private Investment Corporation Has Initiated Process to Open for Business in South Sudan - ...... 17 USAID Focusing on Agricultural Development to Strengthen Economic Growth ...... 17 USAID Supporting High Quality Health Care Systems for the People of South Sudan - ...... 17 SwedenSupporting and UNDP the Participation unveil a $ 16 of million Women partnership in Political, ...... Social and Economic...... Spheres ...... 19 E RECENT ...... KEY CO SPONSOR...... COMMITMENTS...... TO SOUTH SUDAN...... 20
THIOPIAEthiopia signs 1.18b Birr construction agreement with Chinese company ...... 20 .... 20 Commercial Bank of Ethiopia Agrees $300 Million China Loan ...... 21 WindChina farm Civil fuels Engineering Ethiopia's and green Construction power ambitions Corporation ...... is the second...... biggest railway company...... in China...... 21 Ethiopian Airlines Joins the Star Alliance ...... 23 ETHIOPIA: Cross border public transport soon a reality ...... 24
ASIA ...... 25
Thailand: Key Issues and Policies ...... 25 ...... 26 EU bude spolupracovat s Afghánistánem i po odchodu zahraničních vojsk ...... 26 AFGHANISTAN Afghanistan Accepts Gold Mining Applications ...... 27 Carl Bildt to speak about Afghanistan post-2014 at Bonn conference ...... 27 What Kabul needs to hear from Bonn ...... 28 Laying the Groundwork for Afghanistan's New Silk Road ...... 29 M ...... 32
ONGOLIAErdenes Oyutolgoi LLC is established ...... 32 President of Kuwait receives Ts.Elbegdorj ...... 33
68 Thousand New Workers Registered this Year ...... 33 Xanadu granted Mongolian mining licence ...... 33 Mongolia and ADB sign loan deal for road construction ...... 34 Parliament passed the state budget 2012 ...... 34 ...... 35 Transport ministry needs to raise 20tr dong outer budget for infrastructure investment in 2012 ...... 35 VIETNAM 2012 to be Vietnam ODA disbursement year ...... 35 Vietnam’s per capita income in 2050 estimated at around $20,000: Goldman Sachs ...... 35 Vietnam’s economy in 2012: “I’m not too pessimistic,” says economist ...... 36 Economic restructuring is top 2012 priority: Vietnam PM ...... 37 Atomic power stimulates Ninh Thuan’s drive for investment attraction ...... 39 EVN invests nearly 45.2tr dong in Jan-Nov ...... 39 New terminal at Noi Bai Airport built ...... 40
EASTERN EUROPE ...... 40
EU jedná o volném obchodě s Moldavskem a Gruzií...... 40 ...... 41 EU announces new Belarus sanctions after activist's trial ...... 41 BELARUS Belarus-Ukraine trade to exceed $6bn in 2011 ...... 41 Germany ready to invest in Belarus’ tire recycling project ...... 42 Association of technology parks and business incubators may be set up in Belarus...... 42 Belarus to gang up with major European chemical companies ...... 43 ...... 44 2012 State Budget Approved ...... 44 GEORGIA 2 City Council approved the 2012 budget ...... 45 Petr Nečas: Gruzie láká české investory ...... 45 EU decides to start free trade negotiations with Georgia ...... 46 Georgia achieves observer status in African Union ...... 46 Telasi to not pay dividends for 2010 ...... 46 Czech co Energo-Pro to start building Georgian HPP in spring 2012 ...... 47 SOCAR to begin oil depot construction in Georgia in 2012 ...... 47 M ...... 48
OLDOVAEconomics Ministry says not to use environmental fee to protect Moldovan goods ...... 48 Moldova-Gazprom gas talks to be resumed after decision on EU energy package ...... 48 China to grant Moldova 9.5 million dollars for economic, technical development ...... 49 Moldovan economics minister says gas supply contract with Russia likely to be signed soon ...... 50 Moldovan parliament repeatedly adjourns considering budgetary-fiscal policy ...... 51 EBRD finances road network repairs in Moldovan capital ...... 51 Moldova launches energy efficiency campaign ...... 52 European Union open for talks on Free Trade Agreement with Moldova ...... 53 "Presidential elections" in Moldova's Transnistria likely to be cancelled ...... 55 IFC Helps Improve Healthcare in Moldova with Precedent-Setting Deal ...... 55 ...... 56 Most Attractive for Foreign Investment: Ukrainian Agriculture, Energy, Finance, Consumer Goods ...... 56 UKRAINE After closing doors, Ukraine opens window to investors...... 56 Kiev and Prague planning to discuss Azeri oil transit in February ...... 59 Czech industry and trade minister pushes for Ukraine-EU free trade ...... 59 Ukraine to Build a Brand New Tourist City by 2014 ...... 59
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Pak-Ukraine business forum - Pakistan pitches for trade, investment ...... 60 Nuclear Fuel state concern to build fuel plant near Kirovohrad ...... 61 Ukraine’s DTEK Wins Tender for 25% Stake in Kyivenergo ...... 61 Ukraine and Lebanon are interested in developing the energy sector ...... 61 Cabinet approves major Boryspil airport project cost increases ...... 62 Ekotechnik Praha to build Dnipropetrovk’s 1st solar plant next year...... 62 Ukraine businessmen ID taxes and corruption as biggest problems ...... 62 Gazprom close to new deal with Ukraine ...... 62 High-speed trains will cut travel time between major Ukrainian cities next year ...... 63 Poll: Ukrainian businessmen most often complaint about taxation policy, corruption ...... 64
BALKANS ...... 65
Chorvatsko vstoupí do EU v červenci 2013 ...... 65 EC provides EUR141m for financing Western Balkan SMEs ...... 66 Bulgaria, Austria Sign Agreement on Sale of Emission Units ...... 66 Unusual drought triggers alarm across Balkans ...... 67 ...... 68 CEZ Shperndarje Disputes Decision of Albania’s Energy Regulator ...... 68 ALBANIA German company to consult Albania in TAP talks ...... 68 Albanian Parliament Approves Privatization of Albpetrol ...... 69 Albania to Give on Concession Maintenance of Milot-Morine Highway ...... 69 OSCE Ambassador Urges Albania to Adopt Tougher Stance on Corruption ...... 69 Albania: 2012 Budget Supports Implementation of Major National Projects ...... 70 ...... 70 3 “Biomass in Bosnia and Herzegovina” association launched ...... 70 BOSNIA Bor Bank approved initial loan exposure to MKF Prizma, located in Bosnia and Herzegovina ...... 71 Czech Pragoimex will supply electrical equipment for the modernisation of Tatra KT8D5 trams in Sarajevo, Bosnia and Herzegovina ...... 71 Potential cooperation between Chinese company Shenzhen Sunlight and Bosnia's Republic of Srpska ...... 72 OMV invites Optima for Bosnia, Croatia takeover talks ...... 72 MoU on implementing pilot projects in Energy Efficiency between the EU and Bosnia signed ...... 73 The Government is open to all investors who have a vision and want to invest in Bosnia's Republic of Srpska, says PM Dzombic ...... 73 ...... 74 Russian aid still waiting to enter Kosovo...... 75 KOSOVO ...... 75 "Corridors 10, 11, renewable energy - priorities in 2012" ...... 75 SERBIA EBRD supports business in Serbia with €30 million loan to ProCredit Bank Serbia ...... 76 Serbia, Russia negotiate $800 mln rail system loan ...... 76 „Kolubara“ invests about 20 million Serbian Dinars (RSD) annually in environmental parameters measurement...... 77 More than 25.3 million tons of coal have been produced in the open pit mines of Serbia's Mining Basin ‘’Kolubara’’ .. 79 Comico Oil is interested in building an oil refinery in Smederevo, Serbia ...... 80 Ambassador: Azerbaijan, Serbia to reach strategic partnership level in coming years...... 80 D ...... 80
ÁRCIFinancování vnější činnosti EU čekají změny ...... 80 ...... 81
OSTATNÍStatement by IMF Managing Director Christine Lagarde on Iraq ...... 81 World Bank's Survey: Events in MENA negatively impact FDI ...... 82
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
New! Data on aid for climate change ...... 84
R bilaterální spolupráce BOR Bank ...... 72 EJSTŘÍKČína, BiH KLÍČOVÝCH ...... SLOV OBSAŽENÝCH 72 VE ZPRÁVÁCEZCH Shperndarje ...... 69 ČR, Gruzie ...... 45 Comico Oil ...... 81 Gruzie, Afr. Unie ...... 46 Coswick ...... 44 Kuwait, Mongolsko ...... 33 Energo-Pro ...... 48 Rusko, Kosovo ...... 75 Energo-Pro Georgia ...... 47 Srbsko, Ázerbajdžán ...... 81 Erdenes Oyutolgoi LLC ...... 32 Švédsko, Afghanistán ...... 32 Ethiopian Airlines ...... 23 Ethiopian Electric Power Corporation bilaterální vztahy EU, Balkán ...... 67 (EEPCO) ...... 22 EU, Bělorusko ...... 41 Ethiopian Railways Corporation .... 20 EU, Chorvatsko ...... 66 Export-Import Bank of China ...... 21 Henkel Bautechnik ...... 44 dárci EBRD ...... 51, 77 China Civil Engineering Construction World Bank ...... 18 Corporation ...... 20 Pragoimex ...... 72 Eastern Partnership Telasi ...... 47 Moldavsko, Arménie ...... 41 Xanadu Mines ...... 33 ekonomika Ghana ...... 14 hydroenergetika Gruzie ...... 47 Gruzie ...... 44 Irák ...... 82 infrastruktura Mongolsko ...... 34 Afrika ...... 7 Albánie ...... 70 ekonomika - hodnocení Vietnam ...... 36 BiH ...... 72 4 Gruzie, Tbilisi ...... 45 ekonomika - rozpočet Moldavsko ...... 51 infrastruktura - doprava Ukrajina ...... 64 ekonomika - rozvoj Vietnam ...... 37 infrastruktura - financování Mongolsko ...... 34 ekonomika 2012 Vietnam ...... 36 infrastruktura - investice Moldavsko, Kišiněv ...... 51 energetická spolupráce Vietnam ...... 35 ČR, Ukrajina ...... 59 EU, Moldavsko ...... 49 infrastruktura - strategie Afghanistán ...... 29 Rusko, Moldavsko ...... 51 Rusko, Ukrajina ...... 63 infrastruktura přeshraniční Ukrajina, Libanon ...... 62 Etiopie, Keňa, Súdán, Džibuti ..... 24 energetika instituce Albánie ...... 69 African Union ...... 18 Balkán ...... 67 Corporate Council on Africa (CCA) . 18 BiH ...... 73 IFC ...... 55 Moldavsko ...... 52 International Finance Corporation . 18 Srbsko ...... 76 International Monetary Fun ...... 15 Microcredit Foundation Prizma ..... 72 energetika - investice Tanzania Zambia Railway Authority .. 7 Vietnam ...... 40 investice energetika - privatizace BiH ...... 73 Ukrajina ...... 61 investice veřejné energetika - zásobníky Etiopie ...... 21 Gruzie ...... 48 energetika jaderná - výstavba investiční příležitosti Ukrajina ...... 61 Srbsko ...... 77 Vietnam ...... 39 klimatické změny - studie Afrika ...... 13 energetika solární Ukrajina ...... 62 letiště - nový terminál Vietnam, Hanoi ...... 40 firmy Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
letiště - výstavba dárci, Afghanistán ...... 28 Ukrajina, Boryspil ...... 62 dárci, Jižní Súdán ...... 15 dárci, Vietnam ...... 35 obchodní spolupráce Čína, Etiopie ...... 21 EU ...... 81 EU, Gruzie ...... 46 EU, Afghanistán ...... 26 EU, Moldavsko ...... 53 EU, Jihovýchodní Afrika ...... 12 Ukrajina, Bělorusko ...... 42 Německo, Albánie ...... 69 Ukrajina, Pákistán ...... 60 Německo, Bělorusko ...... 42 USA, Afghanistán ...... 29 UNDP, Švédsko, Keňa ...... 19 podmínky investiční strategie rozvojová Bělorusko ...... 44 Albánie ...... 71 BiH ...... 74 těžba nerostů Afrika ...... 14 podmínky investiční - administrativa těžba uhlí Ukrajina ...... 57 Mongolsko ...... 33 Srbsko, Kolumbara ...... 78, 80 podmínky obchodní Moldavsko ...... 48 těžba zlata Afghanistán ...... 27 podmínky podnikání Ukrajina ...... 63 vodárenství, sanitace Balkán ...... 68 podmínky podnikatelské Albánie ...... 70 Ukrajina ...... 60 Bělorusko ...... 43 zahraniční obchod analýza Mongolsko ...... 33 Východní Afrika ...... 11 Srbsko ...... 77 zdravotnictví - rozvoj Ukrajina ...... 63, 65 Moldavsko ...... 55 podnikatelské prostředí zóna volného obchodu Thajsko ...... 25 Moldavsko ...... 53 politika železnice Moldavsko, Podněstří ...... 55 Afrika ...... 7 Srbsko ...... 77 5 politika - MENA Middle East and North Africa ...... 83 Ukrajina ...... 64 privatizace železnice - modernizace Albánie ...... 70 Etiopie ...... 20 příležitosti investiční životní prostředí Ukrajina ...... 56 BiH ...... 71 rozvojová spolupráce ...... 85 rozvojová spolupráce Čina, Moldavsko ...... 49
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
AFRICA PaulUILDING Collier AN FRICAN NFRASTRUCTURE BFinance & Development,A I OECD, December 2011, Vol. 48, No. 4
Key political decisions are needed to build critical rail networks for a continent well suited to them.
TAZARA train leaving Dar es Salaam, Tanzania.THE coming decade could be Africa’s opportunity for investment. Globally, there is a massive pool of investable private resources. Prospects in the advanced economies look bleak, and in the major emerging economies—the so-called BRICs: Brazil, Russia, India, and China—the future is looking more uncertain. Although Africa is not immune to global risks, its continued growth is likely to rest on the potential for further resource discoveries and for commercial cultivation of its vast, underused agricultural land.
New transportation infrastructure is vital to harness these two potential sources of growth. At the top of the list is the classic form of economic infrastructure: railways.
The continent is a huge landmass, well suited to railroads. Yet during the past half-century Africa’s rail network, never very extensive, has shrunk. Even the United States, a huge landmass with relatively low population density, has one kilometer of track for every 43 square kilometers of land. By contrast, Nigeria, home to one-fifth of the population of sub-Saharan Africa and one of its most densely populated countries, has but one kilometer of rail for every 262 square kilometers. Nigeria is not atypical: by radically reducing transportation costs, railways could open up vast tracts of Africa to economic opportunities, especially 6 in agriculture and mining, which many countries are relying on for future growth. The continent needs a decade of massive investment in rail networks.
Politics at play Railways are hardly technologically challenging. They represent the oldest continuous industrial technology. Africa’s lack of railways compared with other regions is primarily a consequence of politics. Although railways are technologically simple, they are politically complicated—for three fundamental reasons: • Railways are a primary example of a network industry. The key feature of a network industry is that its operations are so interconnected that it is more efficient to run it as a single entity. This presents an unavoidable role for public policy: how to manage a monopoly provider in the public interest. • They are a classic example of high fixed costs relative to operating costs. In the parlance of economics, the marginal cost—the cost of producing one more unit—is well below the average cost. For social efficiency, prices should be set around the marginal cost, but for an activity to be commercially viable prices must at least equal the average cost. This tension in pricing calls for a political solution: typically either a subsidy from the government or cross-subsidization from users who are not very price sensitive to those who depend on cheap rail service. • The mainland continent of Africa is split into so many countries that inevitably rail lines need to be international, especially because many of the countries that would benefit most are landlocked. Yet a transnational network investment is potentially at risk from each national polity. Indeed, each time rolling stock crosses borders a valuable asset moves into a new jurisdiction. Because African governments have yet to tackle these three political challenges, the African rail network remains inadequate.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Organizing a network industry Railways are not the only network industry. Telephone service and electricity are other important examples. In Africa phone networks are usually provided by the private sector but subject to regulation; electricity is usually in the public sector and run as a public monopoly. A rail network could be run under either of these models. However, in Africa public ownership and management of the rail network is unlikely to be the best approach. Governments have so many other pressing needs that they cannot afford to finance the huge cost of a rail network—new or rehabilitated. Furthermore, African governments’ resources are already stretched so thin from management of their core functions that peripheral tasks are best organized by the private sector.
The Tanzania Zambia Railway Authority (TAZARA), the rail link between Zambia and Tanzania built by China in the 1970s, offers a salutary lesson. TAZARA today barely functions. Building a line is not enough; it must be well managed and linked to potential commercial users. Currently, many African governments could get financing for more such Chinese-built lines in exchange for mineral concessions, but granting mineral concessions means mortgaging Africa’s limited wealth and should not be done lightly.
Africa’s particular needs suggest that a rail network should be a regulated private monopoly, with both financing and managerial expertise from a private company. But regulation poses difficulties that may be insuperable. It is not possible to anticipate all eventualities: presenting a public rail regulator with a set of agreed rules to be implemented is not enough. To cope with unforeseen circumstances, the regulator must have some discretionary room. But in African governance environments such discretion would likely kill private investment. With the region’s reputation for corruption, even an honest regulator’s decisions would be subject to allegations and expectations of bribery. Once a regulator is given the power to set prices that could bankrupt either the railway company or its customers, neither 7 group would be willing to risk investment.
Fortunately, there is a viable alternative to a domestic regulator with discretionary power—namely, an international dispute settlement board whose members are approved by governments, investors, and customers. This is a standard means of international contract enforcement, and indeed one commonly used both by foreign investors in China and by Chinese investors in Africa. The record of these boards is good. Despite frequent findings against governments, there is a high rate of compliance with decisions. Before investment, a government, an international rail investor, and commercial rail users can negotiate a mutually satisfactory agreement and lock it in by including a contract clause that refers disputes to such a procedure.
Differential pricing
As noted above, because the fixed costs of rail investment are so large, marginal costs are substantially below average. This would generally argue for public ownership, with government using tax revenues to subsidize the fixed costs of the network to keep the price to users around the marginal cost. The importance of such low pricing is not just hypothetical. Although rail networks can open up huge tracts of little-used land to commercially viable agriculture, the amount of usable land is likely to be highly sensitive to transportation costs.
While marginal cost pricing would be very helpful for opening up African agriculture, African governments are in no position to finance such a subsidy. Indeed, even if a government were to provide a subsidy, it might actually deter investors because of the government’s limited long-term credibility. Neither potential rail operators nor potential commercial farms would trust a government commitment to a long-term subsidy.
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As with regulation, there are feasible alternatives: price discrimination among users is one. Price-sensitive users can pay only marginal costs, if higher-profit industries less sensitive to transportation costs pay more. In Africa, rail networks have two principal potential users, mining and commercial agriculture.
Many natural resource discoveries will be far from coasts and will require lengthy rail links to move ore to ports. Without these rail links vast tracts of underused land would have no commercial value. The core economic challenge is to organize the rail network in a way that meets the needs both of the extraction industries and of agriculture.
Mining operations require railways and ports. Were there no agricultural users, the mining companies themselves could finance the rail network from some of the high profits generated by extraction. As long as these rail links serve agriculture and resource-extraction users, agriculture need pay only the marginal cost of operation. In effect, the differential profitability of mines and agriculture creates the potential for price discrimination between them.
Mining companies, eager to open up resource-laden lands, have offered to set up such railways, even though these companies are not likely to welcome or desire multifunctional use of the rail network. Mines are accustomed to dedicated services. With the price for agricultural users set close to the marginal cost, the hassle for the mining company of serving other users would far outweigh the benefit from the revenue. For governments, however, a multiuser rail network is very desirable. Especially in light of the uprisings in north Africa, the imperative across the continent is to generate jobs.
Modern mining, which is becoming increasingly capital intensive, generates few jobs and is often damaging to the environment. As a result, the local population may see few direct benefits from mining operations alone. But commercial agriculture can 8 generate both mass wage employment and opportunities for small farmers—a large constituency that will benefit from a rail network made viable by resource extraction.
Who will run the railway?
Such a multiuser rail infrastructure, while attractive, is organizationally demanding. Who will run it? As noted above, it would be beyond the core competence and natural interest of a mining company to run a railway that prices its service for farms at their marginal cost. As a result, even if a mining company were to provide such rail service, farms would likely mistrust it because of its peripheral nature for the mining company. Further, resource endowments are unlikely to be discovered all at once. A single rail company would, in effect, have acquired the exclusive right to any undiscovered minerals. Other resource-extraction companies would not be likely to explore if they had to depend on the single rail company to ship their ore. In that situation, the government would have radically less future bargaining power over mining concessions.
Yet, as already discussed, government control is probably not a good solution either. A third-party commercial operator with core competence in infrastructure but without mining interests appears to be the most credible option. All rail contracts would include an agreement with the government and commercial users—enforced by reference to a dispute settlement board—that builds in price discrimination. The agreement would ensure that the difference between average and marginal costs is covered by the high profits of natural resource extraction, with agriculture charged only the marginal cost.
Such contracts could provide the underlying security needed for a rail company to raise sufficient money to build a rail network, ensuring recovery of the initial investment from income generated by resource companies. Conversely, it would reassure resource-extraction companies of consistent railway service free from
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political motivation, and commercial farms would be assured low-cost transportation to market. An international rail line
In many cases the track of African railways must cross national borders. For example, South Sudan, Uganda, Rwanda, Burundi, Zambia, Malawi, and the eastern Democratic Republic of the Congo all need rail links to the coast of east Africa— through Kenya, Tanzania, and Mozambique. Similarly, the most efficient route to the coast from eastern Guinea, which has many valuable minerals, is through Liberia. Yet for the past half-century the governments of these countries have not sustained the necessary political cooperation to make such transnational lines work.
If a rail line is transnational, pricing issues become more complex. For example, the natural resource may be in one country (at the rail head), while most of the agricultural land to be opened up may be in another country. Moreover, because much of the output—ore or agricultural—is for export, the monopoly position of the port gives the government of the coastal country the ability to negate a pricing agreement confined to rail charges by inflating port charges. Another complication occurs because the rolling stock keeps crossing borders. Unless there is a coordinated approach to legal recourse, the engines and cars cannot be used as collateral for loans, which will make the financing cost unnecessarily high. Finally, because the goods transported by the railway cross borders, they are vulnerable to delays because of slow or predatory customs procedures. Hence governments must make credible commitments to maintaining the free flow of goods in transit.
For a transnational rail line to be commercially viable, the risks for investors and customers must be addressed at the start of negotiations. In effect, the governments involved must agree in advance to a limited but clearly specified degree of pooled sovereignty. An intergovernmental rail authority must be established that has 9 sufficient power to negotiate credibly with a rail company and its commercial users. Clearly, the decision to set up such authorities is beyond the realm of ministers of transportation and rests with presidents and parliaments. The way forward
After half a century of neglect, it is tempting to resolve the need for rail investment by succumbing to the offers of mining companies. While that would undoubtedly get railways built, it would come with two hidden costs. Once a particular mining company owns a rail network, other mining companies will be reluctant to be depend on it, which would give the network builder enormous bargaining power with respect to future resource discoveries. Governments tend to look at the short term, but mining companies have learned to consider the long term. Further, mining companies have little interest in multiuser railways. They are liable to regard low-value agricultural users as a nuisance. In contrast, governments have an overwhelming interest in ensuring that rail networks serve many users. During negotiations, mining companies will doubtless tout their willingness to provide comprehensive rail service to all, but afterward governments may be in a bind if a mining company finds so-called facts on the ground that it says prevent construction of a multifunctional railroad.
In the scramble to negotiate mining deals, African governments risk missing a historic opportunity to transform the transportation arteries of the continent. The past impasse over rail provision did not stem from a lack of financing, but from inadequate political design. Because railways are network industries, they cannot be kept in check by competition nor—because of deficiencies in African governance—by regulation. The solution is to write contracts subject to dispute settlement boards. Because railways have high fixed costs, social efficiency will require subsidies for price-sensitive users. Subsidies cannot come from cash-strapped governments, but can be achieved through price discrimination. In Africa, rail arteries must be transnational, which can lead to intercountry disputes and holdups that would deter private investment. Yet these risks can be addressed by subregional rail authorities with decision-making power.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Africa’s current generation of political leaders has the opportunity to open the physical geography of the region. The decisions they must make are complicated, and much is at stake for the economic well-being of the continent. But forewarned is forearmed.■
Paul Collier is Professor of Economics and Director of the Centre for the Study of African Economies at Oxford University. http://www.ted.com/talks/paul_collier_shares_4_ways_to_help_the_bottom_billion.html
T E
RADE IN AST FRICA Shelley WinstonA and Carolina Castellanos Finance & Development, OECD December 2011, Vol. 48, No. 4
Increased intraregional trade and lower tariffs are paving the way for faster growth OVER the past decade, lower tariffs within the East African Community (EAC) have boosted regional trade, offering the five member countries a route to faster growth. According to the IMF’s latest projections, growth in the EAC region is expected to reach 5.9 percent in 2011—a noticeably faster growth rate than in the rest of sub- Saharan Africa. Rising share
10
During 2000–10, intraregional exports between Burundi, Kenya, Rwanda, Tanzania, and Uganda tripled—from nearly $700 million to nearly $2 billion. Rwanda’s exports have grown the most during this period, from about $1.6 million to $156 million, but are still a fraction of those of the region’s largest economy, Kenya. Kenya’s exports to the other EAC members were about $1.2 billion in 2010. In contrast, export growth in Burundi—the poorest member—has remained constant and imports have declined, mainly because of civil war and inferior infrastructure, such as airports, roads, and docks, which is needed for trade. Rising share
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
At the same time, EAC countries have been exploiting new markets, including those within the region. Exports to other EAC countries are now as high as exports to the euro area, followed by exports to the rest of Africa and developing Asia.
Moreover, tariffs for EAC members in general have fallen substantially. Over the past 15 years, tariffs in the EAC region have been cut from an average of 26.1 percent in 1994 to an estimated 9.2 percent in 2011. But some members are reluctant to completely scrap tariffs because of the loss of tax revenue. Rising share
11
Given the substantial reduction in tariffs and the sizable increases in exports within the EAC, the region is set to achieve sustained higher growth. But to achieve middle-income status over the next 10 to 15 years—a goal of most countries in the region—the EAC must address a number of issues, such as strengthening of institutional reforms and reduction of nontariff barriers. Removing these remaining obstacles could facilitate faster growth and greater diversification of the region’s exports.
Members of the East African Community
The EAC was established in 2000 by Kenya, Tanzania, and Uganda, with Burundi and Rwanda joining in 2007. Its objectives are promotion of duty-free trade and free movement of capital and labor among its members. Despite a slow start, a common market for the region was established in July 2010. About the database
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The data for exports are from the IMF’s Direction of Trade Statistics database, which contains data on the country and area distribution of partner countries’ exports and imports for about 187 countries. The database is available at www.imf.org/external/data.htm Data on tariff rates come from the IMF’s International Financial Statistics database and country authorities.
Prepared by Shelley Winston and Carolina Castellanos of the IMF’s Statistics Department.
T E S D S E S - HE UROPEAN UNION FURTHER CONTRIBUTES TO THE SUSTAINABLE DEVELOPMENT OF MALL ISLAND EVELOPING TATES IN THE ASTERN AND OUTHERN FRICA NDIAN CEAN REGION BRUSSELS, Kingdom of Belgium, December 6, 2011/AfricanA I PressO Organization (APO)/ — Today, the European Union (EU) signed an agreement with the United Nations Department of Economic and Social Affairs (UN DESA) for a grant of 470 000 euros (approximately 19 million Mauritian rupees) to assist Small Island Developing States of the Eastern and Southern Africa-Indian Ocean region (ESA-IO) in implementing the Mauritius Strategy for sustainable development. Small Island States of the ESA-IO region, as in many other regions, are economically and environmentally vulnerable. Therefore, they need the appropriate institutional coordination mechanism to implement a sustainable development strategy.
“The SIDS Unit of UN DESA has a mandate to coordinate and monitor work related to the implementation of the Mauritius Strategy for all SIDS of the world, and is the logical partner of the EU and Indian Ocean Commission (IOC) for the design and implementation of a Monitoring & Evaluation system. The EU grant will reinforce the EU-UN-IOC partnership and enable us to continue joining forces for the sustainable development of the SIDS of the region”, said Mr. Alessandro Mariani, Ambassador, Head of the EU Delegation to Mauritius, for the Seychelles and for the Union of 12 Comoros.
The EU grant amounts to 470 000 euros (approximately 19 million Mauritian rupees) and covers the development of a Monitoring and Evaluation system for the implementation of the Mauritius Strategy for SIDS and its implementation at national, regional and international levels. The Mauritius Strategy, which was adopted in 2005, identified twenty priority areas for Small Island Developing States development ranging from environment, climate change, and disaster preparedness to transport and energy.
The Monitoring and Evaluation (M&E) system to be designed and implemented with the support of UN DESA will benefit the ESA-IO region and SIDS worldwide, and will therefore represent a central element for the monitoring of the implementation of the Mauritius Strategy. The EU grant will help in tracking progress of SIDS of the region towards sustainable development and assess the impact of policies. The SIDS Unit of the UN DESA, which is based in New York, will mobilise international experts and local experts to the region for activities, including pilot projects, which will span over 2 years.
The Agreement with UNDESA is part of an overall programme titled “Support for the Implementation of the Mauritius Strategy for SIDS”. The programme amounts to 10 million euros, is financed by the European Union and managed by the Indian Ocean Commission with which the EU already has a longstanding and very fruitful cooperation. The programme covers the islands of the ESA-IO region including Comoros, Madagascar, Mauritius, Seychelles and Zanzibar of the United Republic of Tanzania. Reunion Island (France) which is the 5th Member State of the IOC will participate in the programme but will not be a beneficiary of the programme funded by the European Union. The programme will pave the way for SIDS of the ESA-IO region towards the Rio+20 (Earth Summit 2012) for sustainable development. It will build on lessons learned from the Caribbean and the Pacific regions as well as on programmes
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implemented under the Global Climate Change Alliance, funded by the European Union, from which Mauritius and Seychelles already benefit. Apart from the M&E system, activities of the SIDS programme will focus on establishing best practices in mitigating vulnerability of SIDS in key areas such as coral reef, disaster insurance scheme, sustainable development and climate change as well as developing mechanisms to attract investment in the region. The actions will be coordinated by the IOC, with support of technical expertise, and will be closely monitored at national level by focal points and thematic working groups.
SOURCE European Union
LIMATE CHANGE BLAMED FOR DEAD TREES IN FRICA CBERKELEY, Cal., USA, December 12, 2011/A — Trees are dying in the Sahel, a region in Africa south of the Sahara Desert, and human-caused climate change is to blame, according to a new study led by a scientist at the University of California, Berkeley.
“Rainfall in the Sahel has dropped 20-30 percent in the 20th century, the world’s most severe long-term drought since measurements from rainfall gauges began in the mid-1800s,” said study lead author Patrick Gonzalez, who conducted the study while he was a visiting scholar at UC Berkeley’s Center for Forestry. “Previous research already established climate change as the primary cause of the drought, which has overwhelmed the resilience of the trees.” The study, which is scheduled for publication Friday, Dec. 16, in the Journal of Arid Environments, was based upon climate change records, aerial photos dating back to 1954, recent satellite images and old-fashioned footwork that included counting and measuring over 1,500 trees in the field. The researchers focused on six 13 countries in the Sahel, from Senegal in West Africa to Chad in Central Africa, at sites where the average temperature warmed up by 0.8 degrees Celsius and rainfall fell as much as 48 percent.
They found that one in six trees died between 1954 and 2002. In addition, one in five tree species disappeared locally, and indigenous fruit and timber trees that require more moisture took the biggest hit. Hotter, drier conditions dominated population and soil factors in explaining tree mortality, the authors found. Their results indicate that climate change is shifting vegetation zones south toward moister areas.
“In the western U.S., climate change is leading to tree mortality by increasing the vulnerability of trees to bark beetles,” said Gonzalez, who is now the climate change scientist for the National Park Service. “In the Sahel, drying out of the soil directly kills trees. Tree dieback is occurring at the biome level. It’s not just one species that is dying; whole groups of species are dying out.”
The new findings put solid numbers behind the anecdotal observation of the decline of tree species in the Sahel.
“People in the Sahel depend upon trees for their survival,” said Gonzalez. “Trees provide people with food, firewood, building materials and medicine. We in the U.S. and other industrialized nations have it in our power, with current technologies and practices, to avert more drastic impacts around the world by reducing our greenhouse gas emissions. Our local actions can have global consequences.” Other co-authors of the study are Compton J. Tucker, senior earth scientist at NASA’s Goddard Space Flight Center, and Hamady Sy, country representative for Mauritania at the Famine Early Warning Systems Network. Funding from NASA and the U.S. Geological Survey helped support this research.
Distributed by the African Press Organization for University of California, Berkeley. Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
CONTACT: Sarah Yang | Media Relations [email protected], +1510 6437741
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ADDISINING ABABA, ONFERENCE Ethiopia, TO LAUNCH December MAJOR 15, REPORT 2011/African ON INERALS Press AND Organization EVELOPMENT (APO)/ — On the sidelinesC of the on-going Conference of Ministers Responsible for Mineral Resources Development, jointly organised by the African Union and the United Nations Economic Commission for Africa (ECA), a major new report titled: Minerals and Africa’s Development will be launched on Thursday. The Report was compiled by a team of 20 experts – the International Study Group (ISG) – drawn from the United Nations, universities, Civil Society and the mining research community in Africa, Europe and North America. The experts were identified by the United Nations Economic Commission for Africa (ECA) in collaboration with the African Union Commission.
The Report, which runs to over 200 pages includes numerous case studies and data on all aspects of mining in Africa – and indeed frequently makes reference to experience outside the continent.
Wilfred Lombe, Chief, Infrastructure and Natural Resources Development at the Regional Integration, Infrastructure and Trade Division of the ECA says: “This Report concludes that one reason that mineral wealth has not led to development in Africa is that mining has until now often been treated as a separate issue. Most of the time policy decisions have been dominated by questions of how best to tax mining companies and then how to spend the revenue and this is a reflection of the enclave status of much mining in Africa.”
Lombe adds: “The ISG Report is different because it examines how mining could become 14 the motor of development. It puts mining centre stage and argues it can be a catalyst for development rather just a revenue generating opportunity”.
The Report and the experts who compiled it are serving as a major resource for the Conference, whose theme is: ‘Building sustainable future for Africa’s extractive industry, from vision to action’.
Each chapter of the Report identifies the policy implications that come out of its detailed analysis of Africa mining regimes. Further it emphasises that there is a need to revisit the major issues one by one; but this must be done each time from a development perspective.
The experts and senior officials are currently reviewing an Action Plan for consideration by the Ministers responsible for Minerals on Thursday and Friday this week. It is expected that the Ministers will adopt the Action Plan for implementation.
SOURCE Economic Commission for Africa (ECA)
E R M D IMF XECUTIVE BOARD COMPLETES FIFTH EVIEW UNDER ECF ARRANGEMENT FOR GHANA AND PPROVES ILLION ISBURSEMENT AACCRA, Ghana,US$91.55 December 15, 2011/African Press Organization (APO)/ — The Executive Board of the International Monetary Fund (IMF) today completed the fifth review of Ghana’s economic performance under the program supported by the Extended Credit Facility (ECF). The completion of the review will enable the disbursement of an amount equivalent to SDR 59.58 million (about US$91.55 million), bringing total disbursements under the arrangement to SDR 268.31 million (about US$412.28 million).
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The Board also approved a modification of a performance criterion related to Ghana’s nonconcessional borrowing limit to provide additional room for scaled-up infrastructure investment.
The three-year ECF arrangement was approved on July 15, 2009, with access equivalent to SDR 387.45 million (about US$595.35 million or 105 percent of quota). Following the Executive Board’s discussion on Ghana, Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair, issued the following statement:
“Ghana’s economy has improved significantly since the start of the government’s Fund-supported program in 2009. The fiscal and external current account imbalances have been greatly reduced, growth has strengthened, inflation has declined to single digits, and international reserves have recovered.
“Pursuit of prudent macroeconomic policies and structural reforms will help preserve the stabilization gains. The government has made great strides in boosting tax revenues and repaying arrears, and has progressed in its structural reform agenda. Remaining fiscal challenges relate to further revenue mobilization, containing current spending, and improving spending efficiency to create space for critical infrastructure investments. The 2012 budget is consistent with making progress in these areas.
“The government’s plans for scaling up critical infrastructure investments translate into significant financing needs. While the debt sustainability analysis suggests scope for higher nonconcessional borrowing, and some of the planned projects promise significant returns, a further strengthening of debt management and project appraisal capacities is critical to keep the debt burden manageable.
15 “While energy pricing has improved, decisive action is needed to tackle the reemergence of costly and poorly targeted subsidies on petroleum products. Following an initial increase, maintenance of prices at cost-recovery levels will be essential.
“Monetary policy implementation has been consistent with the authorities’ inflation target, and the Bank of Ghana should stand ready to adjust policy rates as signs of rising price pressures emerge. To manage liquidity effectively, the Bank of Ghana should continue refining its policies and communication on foreign exchange market interventions.
“Financial sector reforms should focus on making further progress on enhancing supervisory capacity, strengthening banks’ risk management, resolving vulnerable institutions and addressing deficiencies in Ghana’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime,” Mr. Shinohara added.
SOURCE International Monetary Fund (IMF)
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UPPORTING OUTH UDAN S ISION FOR THE UTURE WASHINGTON,USA FACT SHEET:December 16, 2011/African Press VOrganization F(APO)/ — The United States hosted the International Engagement Conference for South Sudan to welcome the new country to the international community and provide a forum for the Republic of South Sudan (RoSS) to highlight its development priorities and opportunities for engagement with public and private sector partners. From the involvement of ten co- sponsors to the participation of over 25 countries, this conference demonstrated the continued commitment of the United States and international community to South Sudan. As part of this effort, agencies across the United States government have examined the tools they can bring to bear to propel development and investment in South Sudan. This was a far-reaching effort, ranging from discussions on a possible new Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Peace Corps program, to the Department of Commerce facilitating follow up with private sector participants through a webinar series, to ongoing support to assist the government of South Sudan to manage its oil sector transparently and take steps towards joining the Extractive Industries Transparency Initiative.
Progress is ongoing and will continue after the conference, but significant steps in a range of areas are moving forward. The United States, along with the co-sponsors, commit to continued support to South Sudan in order to: Promote sound management of national resources and accountability to benefit the people of South Sudan.
Create a climate for investment and promote trade to facilitate economic integration and growth. Strengthen education, health and agricultural sectors as the foundations for growth and long-term development of the South Sudanese people. Encourage the participation of women and youth and respect the diversity of the people of South Sudan.
RECENT KEY U.S. GOVERNMENT COMMITMENTS TO SOUTH SUDAN
Department of Treasury Has Issued General Licenses to Help South Sudan Stimulate Investment
Existing U.S. sanctions on Sudan were identified as a barrier to greater investment in the Republic of South Sudan (RoSS). In order to encourage U.S. investment in the RoSS, OFAC has issued two general licenses that authorize, to the extent otherwise prohibited, (1) activities and transactions relating to the petroleum and petrochemical industries in the RoSS and related financial transactions and (2) the transshipment of goods, technology, and services through Sudan to and from the RoSS 16 and related financial transactions. These licenses are expected to enable greater investment in South Sudan.
U.S. Office of the Trade Representative Launches Review of South Sudan Eligibility for Trade Benefits and African Growth and Opportunity Act
Expanding trade between the United States and the RoSS is a critical element of our engagement strategy. The Administration has launched a review of South Sudan’s eligibility for trade benefits under the Generalized System of Preferences. If it is determined that South Sudan meets the eligibility requirements, up to 4,800 different products would become eligible for duty-free treatment by the United States. The United States is also starting the process of considering South Sudan’s eligibility under the African Growth and Opportunity Act (AGOA). AGOA gives duty free treatment to a broader variety of products than GSP, including apparel, footwear, and certain agricultural products. By enabling greater access to the U.S. market and providing tangible incentives for African countries to open their economies and build free markets, GSP and AGOA together play an important role in sustainable economic development throughout Africa.
Overseas Private Investment Corporation Has Initiated Process to Open for Business in South Sudan
U.S. private sector investment will be critical to the Republic of South Sudan’s economic development. The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, has initiated the process to open for business in South Sudan. OPIC can provide financing and risk mitigation tools to small businesses, large corporations, and NGOs to catalyze private investment in South Sudan. OPIC has experienced considerable demand from U.S. companies interested in investing in the country, particularly in infrastructure and agriculture. In order for OPIC to provide its programs in a new country, the country must first meet
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a set of criteria. Once eligible, OPIC-supported private equity funds will also be able to make investments in South Sudan.
USAID Focusing on Agricultural Development to Strengthen Economic Growth
Through Feed the Future, President Obama’s food security initiative, the United States has focused on agricultural development to drive broad-based economic growth in the RoSS. USAID is working with a range of partners on this effort including John Garang University, Alliance for a Green Revolution in Africa (AGRA), and the International Fertilizer Development Center (IFDC). Goals include increasing agricultural resiliency, supporting high-quality agricultural inputs and services and building an enabling agricultural infrastructure.
As part of this focus, USAID also recently designed the first-ever credit guarantee in the newly independent South Sudan to support local lending to the country’s agriculture sector. Working with AGRA, the Development Credit Authority guarantee will mobilize $7 million in private financing for agriculture lending from Equity Bank and Finance Sudan. Negotiations are underway to include an additional commercial bank. The six-year guarantee will provide partial risk protection for bank lending to key agricultural aggregators, input suppliers, entrepreneurs, and other small-scale businesses in the agriculture value chain.
USAID Supporting High-Quality Health Care Systems for the People of South Sudan
USAID is partnering with the RoSS, the World Bank and the donors of the Health Pooled Fund to expand essential primary health care services. These international development partners will support the RoSS’s Basic Package of Health Services, including primary health care facilities and community-level health providers to offer high-quality life-saving interventions aimed at reducing maternal, newborn and 17 child morbidity and mortality, as well as decreasing the burden of critical communicable diseases.
Supporting the Participation of Women in Political, Social and Economic Spheres
The U.S. Government is taking a closer look at areas for increased engagement with women, as well as the diverse constituency of individuals that strengthen South Sudanese society. We welcome initiatives such as:
The inclusion of South Sudan in the U.S.’s National Action Plan (NAP) on Women Peace and Security Initiative. The goal of the NAP is to empower half the world’s population as equal partners in the pursuit of lasting peace and security.
The participation of South Sudanese women entrepreneurs in the African Women’s Entrepreneurship Program, which seeks to engage African businesswomen, equip them with the tools and opportunities to accelerate the growth of their businesses to become leaders in their communities and drive further social and economic progress in Africa.
RECENT KEY CO-SPONSOR COMMITMENTS TO SOUTH SUDAN The United States welcomes the ongoing efforts of our co-sponsors to help South Sudan achieve its immediate and long-term goals. As one of the objectives of this conference, international coordination is imperative, and we welcome the continued collaboration and coordination. Many of the co-sponsors involved have been supporting South Sudan in a variety of ways for a long time. Below are examples of some of the renewed commitments they are making in conjunction with the conference:
Norway is working collaboratively with the U.S. and others from a transparency perspective to include all the principles behind the EITI in petroleum revenue Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
management legislation. The Bill currently in the process of being approved comprises a broad range of measures to ensure transparency including regular disclosure of key information including payments. In addition, Norway will work together with the Republic of South Sudan to provide an EITI-aligned report. As a result, South Sudan will be as transparent as any EITI country once the Bill is adopted and implemented.
The United Kingdom, on behalf of the Troika (the U.S., the U.K., and Norway) has been discussing with the Government of South Sudan the steps that could be taken to establish a high-level dialogue on transparency and accountability issues. The dialogue could review progress against government and international commitments in these areas, as well as trends in and public perception of corruption and actions taken in response to allegations against corruption.
Turkey, as a key player in ensuring sustainable economic and social development, is encouraging its private sector to increase business-to-business cooperation between the two countries for higher trade and investment targets. Turkey is also prepared to evaluate and support development projects in South Sudan in areas where the Turkish International Cooperation Agency is particularly active throughout Africa, including irrigation, energy, health and education.
The United Nations (UN) Country Team will assist the Government to take bold steps to reinforce core governance functions, build service delivery systems, improve food security, and reduce community conflict in an equitable way across all ten states. In doing so, they will give special focus to addressing the acute needs of women in the South Sudan.
The World Bank will build upon and extend its ongoing work with the Government of South Sudan to support sustained growth and development, including by organizing a donors’ conference in 2012. In addition, the World Bank, African Development Bank 18 and IMF are assisting South Sudan’s acceptance as full members of the financial institutions.
International Finance Corporation (IFC) supported South Sudan during the CPA period with advisory services in the Ministry of Investment that helped put in place the basic legal framework for business. IFC will continue this support on a larger scale going forward to help the government promote financial sector development and investments in key sectors like agriculture and infrastructure. The IFC is establishing a field office in Juba to facilitate this engagement.
The European Union (EU) has committed to substantially expand its support of the rural development sector in South Sudan, building on the EU’s existing programs supporting rural development and food security. To help fulfill the priority needs outlined by South Sudan, the EU will sponsor an event on agriculture and food security in Juba during the first half of 2012, working in coordination with the U.S.
The African Union (AU), together with NEPAD Coordinating Agency, will work to support the Government of South Sudan in developing a country Comprehensive Africa Agriculture Development Program (CAADP) Agenda. CAADP focuses on improving food security, nutrition, and incomes by raising agricultural productivity by at least 6% per year and increasing public investment in agriculture to10% of national budgets per year.
Corporate Council on Africa (CCA) will coordinate its Working Group on Sudan for the private sector and invited guests from the U.S. Government and the private sector. In coordination with others, CCA will work to convene a Doing Business in South Sudan workshop, as a follow-up meeting for the private sector in Juba to further connections and to explore the potential for doing business in South Sudan. CCA will also work with Books for Africa, the nation’s largest supplier of books to Africa, to supply South Sudan with a container of approximately 22,000 books for use by schools and libraries and in law development.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Interaction, in coordination with many of its members and other aid agencies, totaling 38 organizations working in South Sudan, released the briefing paper: “Getting it Right from the Start.” The report highlights key lessons to follow for promoting development success in South Sudan.
Together, the actions of the United States Government and its co-sponsors are providing the support needed to help build a bright future for the new nation of South Sudan. SOURCE The White House
S
NAIROBI,WEDEN AND Kenya, December UNVEIL A 16, 2011/African MILLION PARTNERSHIP Press Organization (APO)/ — Sweden and the UNDP have unveiledUNDP a USD 16$ 16 million umbrella agreement to support UNDP Kenya programme activities. Under this umbrella cost sharing partnership Sweden contribute 16 million dollars to the UNDP Kenya programme. The contribution will be effected over a three year period and is aligned to the UNDP Kenya Country Programme Action Plan being implemented in line with the Government Vision 2030.
Sweden believes that UNDP has a unique role and platform working closely to both the Government of Kenya and with civil society. Its role in coordinating and harmonizing the UN System working as one and as a development agent in its own capacity places UNDP at the heart of the development process here in Kenya. That is why my country has decided to engage with UNDP as one of our strategic partners in our cooperation. By signing this novel umbrella cost sharing agreement and by assisting with additional human resources capacities, UNDP will strengthen its work and thereby its ability to contribute to economic, democratic and human development in Kenya.
19 The partnership will enable UNDP Kenya to scale up programme activities in the areas of human rights, gender equality, democracy and good governance as well as peace building and conflict prevention. “We are pleased with this partnership which will enable UNDP scale up implementation of programmes at an important phase in the history of Kenya. This support will boost UNDP support the people of Kenya as they implement the new constitution and go through the first election under the new constitutional dispensation.” Commented the UNDP Resident Representative Mr. Aeneas C. Chuma during the signing ceremony.
He further thanked the Swedish Government for supporting UNDP and being a long standing strategic development partner to the people of Kenya and for its high credibility and legitimacy in the areas of human rights, gender equality, democracy and good governance. UNDP values Sweden’s moral voice in these governance related areas, he concluded.
The overall goal of Swedish development cooperation with Kenya is “a Kenya in which all poor people have the opportunity to improve their living conditions, and where their human rights are realized.”
Sweden’s cooperation strategy emphasizes a rights-based approach and poor people as actors. This means that in all programmes, people’s human and political, as well as social, economic and cultural rights need to be protected and enhanced and government’s duty towards its citizens acknowledged. Sweden’s development cooperation with Kenya focuses on three areas, democratic governance, natural resources management and urban development.
The mission of the United Nations System in Kenya is to support the Government in its efforts to create and sustain an enabling environment for the promotion of human rights, good governance and the improvement of the quality of life and the well- being of the people of Kenya. To achieve this, UNDP works with partners to implement programmes in the following areas democratic governance, poverty reduction, peace
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building and conflict prevention, energy environment and climate change, disaster risk reduction as well as policy advisory.
SOURCE United Nations Development Programme (PNUD)
E E THIOPIA TheTHIOPIA Capital SIGNS Ethiopia, B IRR December CONSTRUCTION 18 AGR EEMENT WITH HINESE COMPANY (Abate Hailu) 1.18In a Bbid to keeping the current growthC momentum and providing modern and reliable railway service, Ethiopia is in due process of revitalizing its railway transport sector.
As part of the effort, Ethiopian Railway Corporation is working to construct 5000km- long railway line in the country over the coming ten years, of which 2300km would be built until 2017.
The Corporation on Friday cncluded over 1.18b Birr agreement with China Civil Engineering and Construction Corporation for the construction the 339km-long Mi’eso –Dawale railway line.
Mi’eso –Dawale railway project is part of the Addis Ababa-Djibouti railway project. General Manager of Ethiopian Railway Corporation, Dr. Engineer Getachew Betru told ERTA that surveying of the project has been done by local companies.
He said the railway facility would help boost trade exchange between Ethiopia and other countries. President of China Civil Engineering and Construction Corporation, Mr. Yuan Li for his part said he is confident that the Corporation would complete 20 the project on time.
China Civil Engineering and Construction Corporation is the second biggest railway company in China. Dec 17 (Reuters) - Ethiopia signed an agreement with a Chinese state-run firm to build the final section of a railway line that will link its capital Addis Ababa to the tiny Red Sea state of Djibouti, an official said.
The deal signed late on Friday with the China Civil Engineering Construction Corporation (CCECC) covers a 339-kilometre line that will join another project to connect the capital with Djibouti.
"This agreement is a contract to construct between Mieso, which is half way from Addis Ababa, to the Djibouti border," Getachew Betru, general manager of the Ethiopian Railways Corporation, told Reuters.
Ethiopia and Djibouti's economies are reliant on each other with about 70 percent of all trade through Djibouti's port coming from its land-locked neighour.
CCECC and China Railway Engineering Corporation (CREC) have won tenders for other sections of the 656-kilometre build. Those companies have brokered loans for Ethiopia from China's EXIM Bank, Development Bank of China and the Industrial and Commercial Bank of China (ICBC), Getachew said.
Ethiopia, which aims to construct 5,000 kilometres of railway lines in the huge country by 2020, says companies from BRIC nations have shown an interest in other projects.
The Horn of Africa country has posted high economic growth rates over the past five years and hopes to exploit growing business ties with China, India and Turkey to boost its expanding economy.
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Under a five-year development plan launched last year, Ethiopia aims to boost infrastructure with a plan to increase power production from 2,000MW to 10,000MW and ambitions for 2,600 kilometres of railway lines by 2015.
"We have called on companies from the BRIC countries to be involved in the other projects. They have shown a considerable interest to get into tenders," Getachew said.
Getachew said Ethiopia will use some of its own funds to cover costs of the projects alongside loans secured from banks.
Ethiopia is looking for long-term loans that could either be on preferential or commercial terms, he said. It also plans to construct an inter-city light rail system in Addis Ababa. (Editing by Barry Malone, John Stonestreet)
E M
OMMERCIAL ANK OF THIOPIA GREES ILLION HINA OAN TheC Capital BEthiopia, 15-12-A2011 $300 C L The Commercial Bank of Ethiopia signed a memorandum of understanding with the Export-Import Bank of China for a $300 million credit facility, Ethiopia’s state- owned lender said. “The amount is to be used by the CBE whenever it needs it in the future,” Chief Business Development Officer Yishak Mengesha said in an e-mailed response to questions yesterday.
The terms of the loan and interest rate will be negotiated later, he said. The money will help fund projects as part of the country’s five-year growth plan, according to 21 Ethiopia’s Addis Ababa-based Foreign Ministry. The Horn of Africa nation plans to invest about $33 billion in industry and infrastructure by mid-2015. Projects include 10 sugar factories and a $4.8 billion hydropower plant on the Blue Nile river. The loan takes EXIM Bank’s lending to Ethiopia to more than $1.8 billion, according to the Foreign Ministry.
The Chinese bank also plans to lend the government 1.7 billion birr ($98 million) for water-supply projects for the capital, Addis Ababa, the ministry said in an e- mailed statement on Dec. 9. Source: http://www.bloomberg.com/
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TheIND Capital FARM FUELS Ethiopia, THIOPIA 16-S 12GREEN-2011 POWER AMBITIONS ASHEGODA, December 15, 2011 (AFP) - Villagers in Ethiopia's arid north live as they have for centuries surrounded by cattle and donkeys; only the rows of towering white wind turbines look out of place. It is not the first place one might expect to find the sleek new structures. The unpaved roads around the site are lined with donkey-drawn carts lugging firewood and bushels of wheat.
"It's a little bit anachronistic to see the turbines in a rural zone where peasants are working like they were centuries ago," says Gerard Damongeot of the French-run Ashegoda wind farm.
But, he says, it is "very, very windy" making it the perfect location for the turbines.
Wind farm fuels Ethiopia's green power ambitions The path towards green power, however, is strewn with obstacles. The land taken up by the turbines was once used by local farmers. Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Around 700 growers have lost either some or all of their land, according to the Ethiopian Electric Power Corporation (EEPCO) site manager Fisseha Gebremichael.
Local government provided compensation to affected farmers, but some say the payment was inadequate. "We are not happy, we had good income from this land," said farmer Abraha Woldu.
He was given $4,000 for his one hectare of land, which he said is not enough to lease another plot.
Like many Ethiopians, Abraha feels ambivalent about the wind farm. He welcomes progress, but is disappointed to have lost his main source of income.
"I am happy to develop my country, but I am not happy about the payment I received," he said.
The Ashegoda wind farm, sub-Saharan Africa's largest, is part of Ethiopia's ambitious strategy to become the region's leading producer of renewable energy.
The country is aiming for a seven-fold increase in renewable energy production in the next five years.
Ethiopia's Prime Minster Meles Zenawi, the African Union's special representative on the environment, pushed this month for countries to commit to green policies at UN climate talks in Durban, South Africa.
As part of Ethiopia's ambitious $150 billion, 20-year green growth strategy, diesel power stations will be replaced by hydro, solar, geothermal and wind energy by 2015.
22 It is a bold plan. More than half of all Ethiopians do not have access to electricity and critics say the scale of the plans is unfeasible.
And while the majority of power produced at Ashegoda and elsewhere will connect to the national grid, it is even hoped to produce surplus, with some 10 percent sold to neighbouring Djibouti, Kenya and Sudan, as well as to Egypt.
Run by France's Vergnet Groupe, Ashegoda is the first of six planned wind farms in the country.
With 30 of 84 wind towers erected since construction began in 2009, the plant expects the first megawatt of electricity to be produced by the end of December.
Damongeot said the decision to work in Ethiopia was a fairly easy one. Corruption is much less of a problem then elsewhere on the continent, and there is a genuine commitment to renewable energy.
And of course, there is an abundance of wind, the result of a varied terrain and access to Red Sea winds from the east, with the company constructing two more plots of turbines by mid-2012.
But the company does not expect to turn a profit from Ashegoda due to escalating costs. The $282 million plan was financed by a loan from several French banks and the French development agency.
"We've lost a lot of money and we don't expect to make any money," Damongeot said, laughing.
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But he maintains it is a good opportunity for the company to establish itself in Ethiopia, where they may expand into hydro projects in the future.
For the EEPCO's Fisseha, renewable energy is a key investment for a developing country like Ethiopia. They can avoid the environmental damage seen in Western countries and boost exports at the same time, he said.
"Ethiopia is developing -- and investing in such a way to be environmentally friendly and not make the mistakes of the developing world," he said. "We are trying, we are trying hard," he added.
Water and Energy Minister Alemayehu Tegenu is optimistic the effort will pay off in a matter of years. "You'll find that all Ethiopians will have access to electricity -- you'll find every industry has a good supply of green, renewable energy," he said. "And wind farms everywhere, of course." Source: http://www.mysinchew.com/
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TheTHIOPIAN Airlines IRLINES and D estinationsOINS THE TAR, 14LLIANCE-12-2011 At a ceremAony held at Addis Ababa’sA Bole International Airport on December 13, the Star Alliance Chief Executive Board has welcomed Ethiopian Airlines as the alliance’s third carrier based on the African continent.
EgyptAir and South African Airways are the two other Star Alliance carriers based in Africa.
23 “Today we have taken a large step forward in completing our Africa strategy,” said Jaan Albrecht, CEO of Star Alliance. “With Ethiopian Airlines now part of the Star Alliance network, we offer our customers the widest choice of flights connecting to, from and within Africa. Moreover, Ethiopian Airlines will bring the Star Alliance customer benefits to more markets across Africa, a region of the world in which air travel is enjoying steady growth rates.”
With the addition of Ethiopian Airlines, the Star Alliance network in Africa grows to cover many of the continent’s major commercial and political cities, particularly in East, Central and West Africa. In total, the 16 Star Alliance member carriers serving Africa offer more than 750 daily flights to more than 110 destinations in 48 countries on the continent, with Addis Ababa, Cairo and Johannesburg serving as the main hubs.
“It is another historical milestone for Ethiopian to join this most prestigious and longest serving Alliance in the world,” said Tewolde Gebremariam, CEO Ethiopian Airlines. “This day will remain colourfully marked in our history book. It is in line with our efforts to lay a strong foundation for the airline to achieve its vision 2025 objectives.”
Ethiopian Airlines Joins the Star Alliance With Ethiopian Airlines as a member, the Star Alliance network now counts 28 airlines, offering a choice of more than 21,000 daily flights to 1,290 destinations in 189 countries.
Through its Star Alliance membership, Ethiopian Airlines ShebaMiles participants can now earn miles when flying on any Star Alliance member carrier, with the collected miles counting towards achieving ShebaMiles Silver Club or Gold Glub status. All collected miles can be redeemed for flights operated by any Star Alliance member carrier.
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In addition, all ShebaMiles Silver Club and Gold Club customers will receive the respective Star Alliance Silver and Gold benefits every time they travel on a Star Alliance member carrier.
By the same token, Ethiopian Airlines will be extending the alliance’s Silver and Gold benefits to status customers from all other Star Alliance member carriers when they fly on Ethiopian Airlines.
Ethiopian Airlines will also participate in and sell the various Star Alliance fare products. On the corporate side, Ethiopia is an important destination for meetings and conventions, with its capital city Addis Ababa often being referred to as the “political capital of Africa”.
Addios Ababa is home to organisations such as the African Union and United Nations Economic Commission for Africa. By participating in both Star Alliance Conventions Plus and Meetings Plus, Ethiopian Airlines will now be able to offer worldwide flight connections at special rates for delegates and participants.
On the leisure side, Ethiopian Airlines will begin participating in the various Star Alliance fare products as of January 1. The airline’s African routes will be added to the offer of the Star Alliance Africa Airpass, a special fare designed for those wishing to criss-cross the continent by air. At the same time Ethiopian Airlines will also become part of the Star Alliance Round the World fare, opening the airline’s network for globetrotters.
The Capital ROSSEthiopia BORDER, 2 -PUBLIC12-2011, TRANSPORT SOON A REALITY 24 ETHIOPEthiopiaIA: isC in the process of launching cross border public transportation with three neighbouring countries Djibouti, Kenya and Sudan. The Ministry of Transport, has been working on the project since last year.
Diriba Kuma, Minister of Transport, told Capital that the Ethiopian government has signed the agreement with Kenya to begin shared cross border public transportation. “After we finish making the asphalt road we will begin public transportation between the two nations,” the minister said.
The two countries have recently secured hundreds of millions of dollars from the African Development Bank to build the road.
Diriba said, Ethiopia is in the process of signing an agreement with north Sudan and they already have agreed on the general framework. “Currently the document is in the draft stages and we think the deal will be finished by early 2012,” he explained.
Sudan and Ethiopia are already connected through a high quality road. That highway is used mainly to import fuel from Sudan. The agreement allows for mass transportation; to utilize the road to transport citizens. Previously, most use small cars or airplanes to commute. For now, most people using the highway appeared to be from Sudan, according to sources. Bus transportation will reduce costs, making it easier for the general public to travel between the two nations.
According to the minister, the deal with Djibouti is expected to be finalised when ministers from the two nations meet in the next few months.
Currently, buses from Ethiopia transport travellers to Djibouti from the eastern part of Ethiopia. However Djibouti buses do not travel to Ethiopia . There is a passenger rail between the two countries but it is highly unreliable, very slow and sometimes non-existent. Most use air to travel between Ethiopia and Djibouti.
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According to Diriba, the Ethiopian government wants to expand cross country road transportation with other neighbouring countries as well; like the newly formed South Sudan and Somaliland. Currently two asphalt road projects are being constructed by Ethiopia to connect the country with South Sudan on two sides, while the road construction that connects Ethiopia with Somaliland has been completed on the Ethiopian side up to Togochale; a border town. Recently the Somaliland authority has secured loan from an external financial source to complete an asphalt road from Togochale to the capital of Somaliland, Hargessa.
According to the minister, the agreement contains many details, including the standard of vehicles, tariffs and other issues.
Most other African countries have road public transportation with their neighbouring countries For instance from Kenya you can travel by bus to Tanzania and Uganda easily. Since Eritrea separated from Ethiopia 19 years ago, road public transport has not been allowed from either side. By Muluken Yewondwossen
SIA T A S OECDHAILAND Studies EY onSSUES SMEs AND and OLICIEEntrepreneurship OECD Publishing: K I 14 Dec 2011P ISBN: 9789264121768 http://www.oecdbookshop.org/oecd/display.asp?K=5KG84GS7188W&lang=en&sf1=seriesidenti fier&st1=SER- 01461P1&sort=sort_date/d&ds=OECDStudiesonSMEsandEntrepreneurship&m=2&dc=5&plang=en 25 This book offers policy guidance to Thailand for fostering entrepreneurship and strengthening the performance of SMEs and their contribution to growth and development. It provides evidence-based analysis and policy recommendations on thematic issues such as access to finance for SMEs and entrepreneurs, SME participation in global markets, intellectual assets and innovation, high-growth SMEs and women’s entrepreneurship. Table of contents:
Acronyms and Abbreviations Basic Statistics about Thailand Executive Summary Chapter 1. SME and Entrepreneurship Performance in Thailand -Introduction -Size and structure of the SME sector -SME sector performance -Entrepreneurship -Regional and local variations -Conclusion -References -Annex 1.A1. Size Class Tables Chapter 2. SME and Entrepreneurship Framework Conditions and Business Environment in Thailand -Macroeconomic overview: economic trends and prospects -Economic policies -Deepening integration into regional, emerging markets -Human development -Tax and social security system -Product market conditions, competitive strength and competition policy -Sources of financing -Labour market conditions -The rule of law and transparency Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
-Barriers perceived by SMEs and entrepreneurs -Research, development and innovation -Conclusion -References -Annex 2.A1. Definition of Non-Performing Loans (NPLs) in Thailand Chapter 3. SME and Entrepreneurship Policy and Programmes in Thailand -The strategic policy agenda -Policy delivery structures -Major SME and entrepreneurship projects and programmes -A framework for portfolio management of policy and programmes -A portfolio assessment of SME and entrepreneurship policy -Conclusion -References -Annex 3.A1. Guidance on Policy Evaluation, Cost-benefit Analysis and Economic Appraisal -Annex 3.A2. List of SME and Entrepreneurship Projects and Agencies in Thailand, 2009 Chapter 4. SME and Entrepreneurship Policy in Thailand: Future Policy Directions -The context for SME and entrepreneurship policy -Policy recommendations -Possible policy implementation initiatives -References -Annex 4.A1. Learning Models
AFGHANISTAN 26 Stálé BUDE zastoupení SPOLUPRACOVAT ČR v SBruselu, FGHÁNISTÁNEM 16.12.2011 I PO OD CHODU ZAHRANIČNÍCH VOJSK EUKdy: 05.12.2011 , Kde: BonnA Konference v Bonnu přinesla ujištění, že Unie se bude v těžce zkoušené zemi angažovat i po roce 2014. Téměř na den přesně deset let od první mezinárodní konference k Afghánistánu se do bývalé německé metropole Bonnu opět sjely desítky státníků a stovky diplomatů, aby diskutovaly vyhlídky této těžce zkoušené země. Českou republiku na konferenci zastupoval místopředseda vlády a ministr zahraničních věcí Karel Schwarzenberg. Atmosféra obou setkání se přitom dosti lišila.
V prosinci 2001 se první bonnská konference konala těsně po skončení operace Trvalá svoboda, ve které mezinárodní vojska pomohla svrhnout islamistické hnutí Taliban. V následujících letech se mezinárodní společenství soustředilo na podporu civilní vlády a vojenské potírání terorizmu. Toto úsilí se neobešlo bez značných lidských ani materiálních ztrát na obou stranách. Nicméně pozorovatelé se shodují, že přes všechny problémy má dnes Afghánistán lepší vyhlídky do budoucna než tomu bylo před deseti lety. Světová banka pro letošní rok odhaduje, že afghánská ekonomika poroste tempem 9 % ročně.
Mottem druhé mezinárodní konference o Afghánistánu, která se uskutečnila v Bonnu 5. prosince 2011, se stala tzv. dekáda transformace. Odhaduje se, že ze současný cca 130 tisíc vojáků by po roce 2014 mělo v zemi působit maximálně 20 tisíc vojáků, většinou jako poradců či logistických expertů pro afghánskou národní armádu. Jak se z Afghánistánu budou postupně stahovat zahraniční vojenské síly, měla by odpovědnost za bezpečnost a politickou správu země přejít plně do rukou volených afghánských institucí. Afghánský prezident Hamíd Karzáí se v Bonnu dočkal ujištění, že i na této nelehké cestě může počítat s podporou mezinárodního společenství, výměnou za pokračující pokrok v demokratizaci země a zlepšování správy veřejných financí.
Evropská unie na konferenci v Bonnu ústy vysoké představitelky pro zahraniční politiku Catherine Ashton oznámila, že je připravena se v Afghánistánu angažovat i
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
po roce 2014. Jako výraz této dlouhodobé spolupráce hodlá EU s Afghánistánem vyjednat Dohodu o partnerství a spolupráci. Unie především poskytuje rozvojovou pomoc zaměřenou na rozvoj školství a zdravotnictví, posilování kapacit správy a budování infrastruktury. Celkové závazky Evropské komise a členských států EU na rozvoj Afghánistánu v období 2002-2010 dosáhly téměř 8 miliard eur. Evropská unie také hraje nepostradatelnou roli při výcviku afghánských policistů prostřednictvím své mise EUPOL, která v současnosti sestává ze 300 mezinárodních školitelů a 175 místních expertů.
Účastníci bonnské konference se rovněž shodli, že vedle úsilí samotných afghánských institucí a podpory mezinárodního společenství je klíčové, aby se do stabilizace Afghánistánu zapojili také jeho bezprostřední sousedé. Tento proces začal v říjnu tohoto roku v Istanbulu, kdy byla diskutována řada iniciativ na podporu regionální spolupráce, včetně projektu Nové hedvábné stezky na oživení tradičních obchodních a kulturní vazeb uvnitř regionu. V této souvislosti zůstává jedinou skvrnou na bonnské konferenci neúčast Pákistánu, který svou účast odvolal v reakci na zabití 24 pákistánských vojáků během nedávného zásahu NATO na hranicích mezi oběma zeměmi.
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VietnamFGHANISTAN Business CCEPTS News, OLD 11.12.2011 INING PPLICATIONS AAfghanistan hasA begunG accepting Aapplications to explore and produce gold and copper in four areas, the country’s Ministry of Mines said Tuesday.
The process is expected to result in granting mining agreements with associated exploration licenses and the requisite exploitation licenses.
The ministry, which did not disclose how long its tender process would be open, is using Canaccord Genuity, SRK Consulting and Mayer Brown as transaction advisors.
27 The projects are: Badakhshan in Badakhshan province, a gold prospect; Zarkashan in Ghazni province, a gold and copper prospect; Balkhab in Sar-I-Pul and Balkh provinces, a copper prospect; and Shaida in Herat province, a copper prospect.
“The government of Islamic Republic of Afghanistan is undertaking a privatization and licensing program for four of its mineral prospects,” the ministry said in a statement.
“The country has a favorable regulatory and fiscal regime designed in accordance with best practices, and has security in place in designated provinces. The country’s rich mineral resources have the potential to transform the nation’s economy and provide early investors with substantial upside.” – IBTimes Tags: Afghanistan Gold Mining
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MinistryARL ILDT for TO SPEAKForeign ABOUT Affairs FGHANISTAN of Sweden, POST 02 December AT ONN 2011 CONFERENCE COn MondayB 5 December, MinisterA for Foreign2014 AffairsB Carl Bildt will take part in the International Afghanistan Conference in Bonn. The conference is an important opportunity for the international community to confirm its long-term commitment to Afghanistan, with a focus on the period after 2014.
Progress on the transfer of security responsibility to the Afghans, the need for an intensified peace and reconciliation process and regional cooperation will also be on the agenda.
"Our commitment to Afghanistan is long-term and the conference in Bonn will be an important opportunity to confirm this. This is especially important when we make the gradual transition to a mainly civilian commitment. On the initiative of Sweden, the EU has agreed to begin negotiations on a partnership agreement with Afghanistan, which will pave the way for long-term European commitment," says Mr Bildt.
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"Prior to the conference, Sweden has stressed the importance of not undermining the progress made in the area of human rights, especially women's rights," says Mr Bildt. The conference will be chaired by Afghanistan's president, Hamid Karzai. Some 90 countries will be represented, of which around 70 at foreign minister level. UN Secretary-General Ban Ki-moon will also be taking part. In connection with the conference, a major meeting will take place between Afghan and foreign NGOs that are involved in Afghanistan.
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ChinmayaHAT ABUL R. NEEDSGharekhan TO HEAR - FKarlROM F.ONN Inderfurth The Hindu,K December 4, 2011 2 B It's about ‘closing the Afghan playground.' Bonn II, which begins today, could be an important moment to remove Afghanistan as a pawn from the region's chessboard.
On December 5, 85 countries and 15 international organisations will gather in Bonn, Germany, to mark the 10th anniversary of the international conference that convened after the overthrow of the Taliban government. If seized, this could be an important moment to remove Afghanistan as a pawn from the region's chessboard.
A decade after the 2001 Bonn I conference, Bonn II will serve as a ‘reality check' for where things stand today in Afghanistan, including the progress, or lack thereof, on security, economic development, and the on-again, off-again Afghan reconciliation process with the Taliban. Bonn II is also intended to signal a long- term international commitment to Afghanistan, extending beyond the looming 2014 withdrawal of U.S and North Atlantic Treaty Organisation (NATO) military forces.
Equally important, the conference should focus on what kind of structures to leave behind to assure at least a semblance of stability for Afghanistan and the region. 28 The international community did not do this after the Soviet withdrawal in 1989, with disastrous, destabilising consequences that continue to this day.
The participants at Bonn II would do well to remind themselves of the Bonn Agreement of 2001, which contains a request to the United Nations from all the Afghan groups represented at the conference to “take the necessary measures to guarantee the national sovereignty, territorial integrity and unity of Afghanistan as well as the non-interference by foreign countries in Afghanistan's internal affairs”.
The Afghan groups knew what they were asking for, since they realise better than any non-Afghans that the root cause of most of their troubles has been the rivalries, intrigues, and ‘great games' played by outsiders in their affairs. It is of equal importance for Afghanistan to solemnly undertake not to permit its territory to be used to destabilise another country. ‘Heart of Asia' conference
Belatedly, a start in this direction was made at the recent “Heart of Asia” regional conference in Istanbul. For the first time all the major countries of the wider region surrounding Afghanistan were in attendance — from China to Iran, Russia to Saudi Arabia, and others in between, including Pakistan and India. One report said this grouping read like a ‘who's who' of potential rivals if Afghanistan descends further into civil wars backed by outsiders. The fact that Pakistan, which has had a strong aversion to sitting with India around a table to discuss Afghanistan, agreed to the regional format in Istanbul was notable.
The result of the conference was a document establishing “The Istanbul Process.” It acknowledges that the only way to work toward Afghanistan's stability is through the commitment of all of them not to interfere in the internal affairs of Afghanistan. It included a statement of principles of regional cooperation listing political, economic and other confidence building measures to combat terrorism, control drug trafficking, and pursue enhanced trade and commerce across the region.
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Now for the harder part, which has become harder still because of Pakistan's recent decision not to attend the Bonn conference in protest of the NATO bombing of two border posts that killed 24 Pakistani soldiers. Hopefully, the efforts of several countries to persuade Pakistan to attend the conference at some level will bear fruit.
While an indispensable first step, the “Istanbul Process” will not, by itself, solve Afghanistan's meddling problems. It needs to be followed by concrete steps, especially a mechanism to monitor the implementation of the commitments assumed by the 13 countries that signed the Istanbul document.
Other issues will need to be addressed: who will deal with complaints of violations? Should there be peacekeeping of some sort?
How to settle, once and for all, the definite boundary between Pakistan and Afghanistan, because an un- or ill-defined and unrecognised (by one side) border is a breeding ground for suspicion and temptation for further interference and intervention.
Here the United Nations can play a crucial role. The “Istanbul Process” rightly emphasises the central role of the U.N. in the area of maintenance of international peace and security. It is the only organisation with the requisite credentials, experience and expertise to undertake this task.
The upcoming Bonn II conference should take this U.N. endorsement one important step further. After welcoming the establishment of the “Istanbul Process” and offering its full support for this regional initiative, Bonn II should call on the U.N. Secretary General to appoint an international facilitator to consult with all the parties about the best possible, and widely acceptable, way to finally respond to what the Afghans themselves called for 10 years ago at the first Bonn conference, 29 namely “to take the necessary measures to guarantee … the non-interference by foreign countries in Afghanistan's internal affairs.”
The Afghans have another way of putting this. At their 2010 national peace jirga, (or grand gathering), they said Afghanistan did not want to become again “a playground for regional conflicts.” Now is the time to work with the Afghans to close that “playground,” for good.
(Chinmaya R. Gharekhan served as India's special envoy for the Middle East and is a former U.N. Under Secretary General. Karl F. Inderfurth served as U.S. Assistant Secretary of State for South Asian Affairs and is a senior adviser at the Center for Strategic and International Studies.)
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CouncilAYING THE on ForeignROUNDWORK Relations FOR FGHANISTAN, December S5, EW2011 ILK OAD L G A N How Washington and Kabul Can Turn a Vision Into a Plan Andrew C. Kuchins ANDREW C. KUCHINS is a Senior Fellow at the Center for Strategic and International Studies in Washington, D.C., and the Director of its Russia and Eurasia Program.
Over the past year, the United States, as part of its broader transition strategy in Afghanistan, has embraced the promotion of regional trade and transportation as a way of fostering sustainable economic growth in the country. More broadly, this strategy would also lead to greater economic and political interdependence between Afghanistan and its neighbors. As its proponents -- myself included -- see it, Afghanistan would serve as a crossroads for rapidly developing overland trade in Eurasia, a situation that would bring along with it a measure of development and stability.
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Such infrastructure would allow Afghanistan's agricultural products and mineral wealth to reach regional and global markets. Indeed, Afghanistan served this role from the ancient Silk Road period up until about 500 years ago, when sea trade and other factors diminished overland trade. But today the burgeoning emerging Eurasian economies, including China, India, Russia, and Turkey, are increasing their demand for such trade routes. It is now essential for Afghanistan's economic development, as well as its political and military security, that this role be renewed in a New Silk Road.
This vision, which has its roots in Afghanistan's own development strategies going back to 2002, was articulated by Secretary of State Hillary Clinton in July. It was reaffirmed by the UN General Assembly in September and again by the participants in last month's Istanbul Conference, who issued a statement that endorsed "Afghanistan's role as the land bridge in the 'Heart of Asia' connecting South Asia, Central Asia, Eurasia, and the Middle East."
At the heart of the New Silk Road strategy lies the promotion of trade liberalization between Afghanistan and its neighbors, with special a focus on reducing bureaucratic and administrative inefficiencies at border crossings and on improving transit and energy infrastructure. Such a focus makes sense for Afghanistan for a number of interrelated reasons.
For starters, Afghanistan is a landlocked country, which means that it has historically had reduced access to global markets. Promoting Afghanistan's connectivity to its neighbors as well as to the rest of the world is the obvious first step in beginning to think about raising the country's growth potential. Sustainable economic growth, together with improved security and political reconciliation, is an essential component of Afghanistan's stability after 2014.
Beyond that, the rapid economic growth of large emerging economies is fueling rising 30 levels of economic trade between East Asia, South Asia, the Middle East, and Europe. For example, between 1991 and 2008, Chinese-Indian trade grew from $265 million to $51.8 billion; over about the same period, Chinese-Russian trade grew more than tenfold, to nearly $60 billion; and China's imports from Central Asia went from a little more than $160 million to almost $7 billion.
An increased demand for natural resources in China and India has driven up prices for energy, metals, minerals, and rare earth elements. The revenue potentially created by these exports is changing the political calculations in supplier and consumer countries, creating stronger commercial justifications for projects that were previously deemed unfeasible. For example, Afghanistan, India, Pakistan, and Turkmenistan are now showing greater interest in building the TAPI gas pipeline to deliver Turkmen gas to energy-hungry customers in South Asia.
Afghanistan can take advantage of these regional changes by continuing to improve its transit infrastructure. Even more important, it should reduce the bureaucratic and institutional obstacles at its borders. For this reason, the effective implementation of the Afghanistan-Pakistan Trade and Transit Agreement is especially important.
At the same time, promoting greater connectivity between Afghanistan and its neighbors is not just an economic strategy but also a political one. If Afghanistan's neighbors benefit economically from and have a stake in the country's economic development, they will have incentives to support the long-term stabilization of Afghanistan as well. As set forth in Istanbul last month, economic incentives should reinforce and support the political process.
It should be noted that a focus on economic growth is not a call for more aid projects. In fact, it is the reverse: Washington should move away from propping up an expensive and unsustainable aid-based economy in Afghanistan and instead carry out a realistic assessment of how the country can build up trade and investment within the region.
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In many ways the United States is late in embracing this idea. Afghan officials have been telling Washington from the beginning of the U.S. intervention that development of transit infrastructure is an essential priority. Back in April 2002, when he was interim chair of Afghanistan's transitional administration, Hamid Karzai said, "If the international community is really serious in seeing Afghanistan secure, it must help begin reconstruction of infrastructure projects -- the first of which is roads. When we speak about these projects, no one is interested." Since then, Kabul has persistently highlighted its potential as a regional trade and transit hub; this idea was the leading concept of the Afghan government at the Kabul conference in July 2010, when the international community endorsed the transition to full Afghan sovereignty by the end of 2014.
As such, for public relations and political reasons, the United States should emphasize that the New Silk Road is a plan hatched not in Washington but in Kabul. Emphasizing the strategy's indigenous roots not only has the virtue of being true but would also help allay the suspicions of other regional players (Iran and Pakistan to name two obvious ones) that the United States seeks to subvert their interests by advancing its own strategy. Iran and Pakistan are skeptical of the New Silk Road strategy to the extent that they view it as a U.S. plan. Both Tehran and Islamabad have an interest in seeing improvements in Afghanistan's energy, trade, and transit infrastructure. (Iran, in particular, has developed port, road, and rail infrastructure to improve connections with western Afghanistan and the city of Herat.) Strengthening Afghanistan's trade and transit infrastructure is one area of common interest between Washington and Tehran.
Another criticism argues that these plans are naïvely optimistic and do not take into account the predatory, rent-seeking nature of many regional governments, an especially acute problem in Central Asia. After all, leaders in the region often act less out of national interest and more out of a desire to protect the interests of a 31 very narrow elite.
But that does not mean that the New Silk Road project is inevitably doomed. Powerful economic forces are driving the reconnection of Eurasia, and any leader who chooses not to make his territory more attractive and efficient for the booming trade of goods will be bypassed. For example, consider the recent progress between India and Pakistan: the two countries' commerce ministers met earlier this year for the first time in 35 years. Delhi and Islamabad have granted most-favored-nation status to each other and have begun taking measures to open the Wagah border crossing to overland trade.
Another set of criticisms of the New Silk Road strategy in Washington is that the benefits of many of its projects -- such as building of rail lines and the TAPI pipeline -- will come about long after the 2014 deadline for U.S. and NATO troops to withdraw from Afghanistan, if ever. But this criticism overlooks the fact that rail lines are already opening (the first line opened earlier this year, on the Uzbek- Afghan border linking Hairatan with Mazar-i-Sharif) and a national ring road is nearly completed.
True, some of these projects will be completed after 2014 -- but if that deadline is the critical landmark for developing an economic strategy, the international community might as well throw in the towel now. It is unrealistic to expect that any set of policies will be able to fully address Afghanistan's challenge of promoting sustainable economic growth in such a short period of time. What both Kabul and its Western allies need is a more fully developed road map of the short-term, mid-term, and long-term goals.
In the short term -- say, the next three years -- the focus of the United States and its partners should be to mitigate the potential impact on Afghanistan's economy that will come from downsizing the foreign military presence. Over the last ten years, the demand for goods and services created by the foreign soldiers and contractors has contributed to Afghanistan's annual ten percent growth rate. Many of
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the fruits of enhanced regional connectivity of the Afghan economy will accrue in the mid-term, as these measures will support the development of Afghanistan's considerable mineral resources, manufacturing sector, and agriculture.
What Afghanistan needs now is a far more detailed and credible economic and cost- benefit analysis of what projects should be prioritized to provide the greatest payoff for business development, job creation for young men, and increased revenue for the Afghan government. First up should be reducing bureaucratic obstacles at Afghan and regional border crossings.
Critics are indeed correct in pointing out that the New Silk Road is more of a vision than a strategy, since it lacks adequate analysis to guide its development and implementation. But this work is currently underway, and more analysis will be rolled out over the next six months in preparation for the meeting of NATO ministers in Chicago in May, when the Afghan government will likely formally launch a more developed New Silk Road strategy. Before that, the Fifth Regional Economic Cooperation Conference on Afghanistan in Tajikistan in late March will be an ideal opportunity to table a draft New Silk Road Strategy, including priority infrastructure projects and how they will accelerate regional integration, reduce barriers to trade, and foster private sector investment.
Although these multilateral intergovernmental gatherings are essential, any economic development strategy for Afghanistan and the region needs more involvement from private sector actors to be successful. In the long run, the private sector will be the real arbiter of success. Private sector engagement, guidance, and support will be essential for the development of trade and transit infrastructure. Indeed, these are the forces that are the backbone of the ongoing reconnection of Eurasia -- a geostrategic and economic phenomenon that is relevant to, but much larger than, the U.S. campaign in Afghanistan. Copyright © 2002-2010 by the Council on Foreign Relations, Inc. 32 All rights reserved. To request permission to distribute or reprint this article, please fill out and submit a Permissions Request Form. If you plan to use this article in a coursepack or academic website, visit Copyright Clearance Center to clear permission. Return to Article: http://www.foreignaffairs.com/articles/136714/andrew-c- kuchins/laying-the-groundwork-for-afghanistans-new-silk-road Home > Snapshot > Laying the Groundwork for Afghanistan's New Silk Road Published on Foreign Affairs (http://www.foreignaffairs.com)
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PostedRDENES by YUTOLGOIBadrakh on December IS ESTABLISHED 7, 2011 0 Comment O LLC At the Cabinet meeting the members decided to form the state-owned company Erdenes Oyutolgoi LLC as a subsidiary of Erdenes MGL LLC.
Erdenes Oyutolgoi will own state shares of Oyutolgoi LLC, which owns the special exploitation license for the Oyutolgoi deposit mine. Members decided that Erdenes MGL LLC will finance the formation of Erdenes Oyutolgoi LLC, and that the State Property Committee will pass company rules.
The Government has also decided to establish subsidiaries of Erdenes MGL for all strategic deposit mines. The first subsidiary of Erdenes MGL was Erdenes Tavantolgoi LLC. Erdenes Oyutolgoi LLC becomes the second.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
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PostedRESIDENT by OFBadrakh UWAIT on RECEIVES December 6,LBEGDORJ 2011 0 Comment P K .E His Highness the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah accompanied by His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah received Monday at Bayan Palace the President of Mongolia Tsakhia Elbegdorj and his accompanying delegation, on the occasion of his visit to the country.
His Highness the Amir also headed official talks, which took place later, along with His Highness the Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah and Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah on behalf of Kuwait and on behalf of the Mongolian side represented by President Elbegdorj and visiting high ranking officials. Deputy Minister of Amiri Diwan Sheikh Ali Jarrah Al-Sabah said the talks highlighted bilateral relations and ways to boost them in various fields, and to the interests of the two peoples’ countries. The two sides also discussed, in a friendly atmosphere, issues of mutual concern, Sheikh Ali added.
Source: http://www.kuna.net.kw
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Posted HOUSAND by Ayush EW on ORKERSDecember EGISTERED5, 2011 0THIS Comment EAR 68 N Y As a result of the project “A Year for Support of Employment” established by the Government of Mongolia, 68071 mongolians – 29 thousand of which are female, have been registered as employed as of December 2nd this year.
33 Number of new workers by region is as follows:
Western Provinces: 8424
Eastern Provinces: 4855
Khangai region: 11423
Central region: 11281
Ulaanbaatar city: 32088
Khovd province registered the most new workers among the Western Provinces with 1898. Dornod led the Eastern provinces with 2031. Arkhangai province lead the Khangai region with 2293 while Tuv province lead the Central area with 2349 new workers. Majority of the new workers (12602) have been employed in the construction industry.
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PostedANADU byGRANTED Badrakh ONGOLIANon December MINING 3, LICE2011NCE 0 Comment
The Mongolian Mineral Authority has granted a mining licence to ASX-listed Xanadu Mines for its Khar Tarvaga coal project.
The project covers some 83.5 km2 in the Tov Province in eastern Mongolia. The Khar Tarvaga project mining licence has been granted for an initial 30 year term, with an option for two 20-year extensions, providing for a total of 70 years of mining operations.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Drilling at the project has previously identified a significant sub-bituminous coal resource in excess of some 327-million tons, of which more than half is in indicated status and described as being amendable to mining by opencut methods.
Xanadu chairperson Brian Thornton noted that the company had completed an extensive technical scoping study as part of its development strategy and to assist in identifying potential developers and end-users for the project.
“Now with the certainty of a 30-year mining licence and Mongolia’s growing annual fuel deficit of more than $800-million, Xanadu will redouble its efforts to engage potential technical and equity partners to develop the project.”
Xanadu currently has three coking coal projects in a joint venture with the Noble Group, and has two wholly owned thermal coal assets. In addition, the company was also progressing exploration of its highly prospective suite of licences for gold in the south east Gobi and copper at its Sharchuluut project.
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BadrakhONGOLIA on AND December SIGN 2, LOAN 2011 DEAL 1 Comment FOR ROAD CONSTRUCTION ADB Mongolia and the Asian Development Bank (ADB) on Thursday signed an agreement involving loans worth 170 million U.S. dollars.
The loan deal, signed by Finance Minister Sangajav Bayartsogt and Robert Goelhammer, the ADB representative in Mongolia, was aimed at financing construction of a longitudinal arterial road in the west region of the country.
Bayartsogt said the project would significantly promote international transportation 34 development by connecting the road networks of China and Russia, and accelerate economic and social development in western Mongolia. The 32-year-term loans were set at an annual interest of one percent.
The government plans to complete the road project by 2018. Mongolia’s international and national road networks are expected to top 6,000 km by that time.
BadrakhARLIAMENT on DecemberPASSED THE 1, STATE 2011 BUDGET PParliament passed the 2012 state budget2012 on Wednesday. The budget projects revenues of MNT 4.63 trillion and expenditures of MNT 4.86 trillion.
According to the budget, the President’s Office will be responsible for collecting MNT 20 million in revenues, the Speaker MNT 100 million, the Prime Minister MNT 830 billion, the State Property Committee MNT 814 billion, and the Nuclear Energy Authority nearly MNT 2 billion.
Finance Minister S.Bayartsogt said the budget implements the platform of the coalition government, which was established in 2008. He said the first budget proposed included high expenditures, which led the International Monetary Fund and Asian Development Bank to criticize the proposal. Therefore, the MPP and DP caucuses decided to cut expenditures by MNT 900 billion. And after Mongol Bank recommended MNT 1 trillion in cuts, Parliament cut that amount.
The Minister said the 2012 budget provides for increases in individual incomes and the country’s overall economic growth. He said salaries and pensions will increase by 53 percent, costing about MNT 450 billion.
He added that the budget’s investment priorities are roads and railroads, though overall investment will be reduced.
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He said the Human Development Fund has been allocated MNT 800 billion and citizens will receive share dividends beginning in July 2012.
T VIETNAM RANSPORT MINISTRY NEEDS TO RAISE 20TR DONG OUTER BUDGET FOR INFRASTRUCTURE INVESTMENT IN Posted2012 by VBN on Dec 16 2011. Pursuant to the Government’s capital allocation plan for 2012, the traffic and transportation sector needed 54 trillion dong, including 15 trillion dong of the state budget for 87 projects (41 official development assistance (ODA) projects). Also the ministry proposed the government to allocate 20 trillion dong from G-bonds for 120 projects. The remaining 20 trillion dong will be mobilized from other sources by the Ministry of Traffic and Transportation in order to invest in 40 projects under the Building-Operating-Transferring (BOT) and Public Private Partnership (PPP) forms.
In an interview with Saigon Economic Times Online, Nguyen Hoang—Head of Planning and Investment Department under the ministry said, the state budget in 2012 capital plan that the ministry proposed was increased by 2.5 times, G-bond capital up 2 times compared with the real capital allocation in 2011.
Ministry will only grant capital to the projects which can be completed in 2012, important infrastructure projects, he added.
Till now, the ministry allowed the investment pipeline of 139 projects amounting to more than 610 trillion dong. Among these, 46 projects were approved but have not 35 been started because of lack of capital allocation. – Vietbiz24
Posted TO by BE VBNIETNAM on Dec 13 DISBURSEMENT2011. YEAR Vietnam’s2012 governmentV ODA working group of official development assistance (ODA working group) and development partners have chosen 2012 as the year of ODA disbursement, according to the local newspaper Bao Dau Tu (Investment).
ODA disbursement in 2012 will be more positive than $3.65 billion in 2011, Bui Quang Vinh, Minister of Planning and Investment (MPI) said.
ODA working group’s 2012 task is to coordinate with 6 development bank groups to remove difficulties, obstacles and push up disbursement.
Just before the 2011 Consultative Group (CG) meeting, the government had requested the Ministry of Finance (MOF) to coordinate with the Ministry of Planning and Investment and relevant agencies to propose the domestic financial mechanism to support ODA projects and speed up disbursement.
If Vietnam can prove the effective use, right purpose, and timely disbursement of ODA, the international donors will believe and continue support. If not, no one will support, Minister Vinh added. Source TEI/StoxPlus
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PostedIETNAM byS PERVBN CAPITA on Dec INCOME 10 2011 IN ESTIMATED AT AROUND OLDMAN ACHS V 2050 $20,000: G Goldman Sachs has announced the latest report on BRICS economies, Business Insider posted, in which Vietnam’s income per capita is predicted at around 20,000 by 2040.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The report also forecast the average GDP per person of G-7 (US, UK, France, Japan, Canada, Italy and Germany) and BRICs (Brazil, Russia, India, China and South Africa).
In the report, Goldman Sachs concerned 11 nations of N-11, including Vietnam, Mexico, Nigeria, Egypt, Turkey, Iran, Pakistan, Bangladesh, Indonesia, South Korea and Philippines as well.
Accordingly, by 2050, US will lead the world in terms of income per capita with estimated level of $80,000-90,000 per person per year, followed by Canada with $80,000, UK at below $80,000 and France at $75,000 per person per year.
The global financial institution assessed that BRICs group is the pillar of world economic growth for the future, notably Russia’s income per capita will be around $60,000 by 2050, Brazil’s at $50,000, China $40,000 and India at below $20,000 per person a year. – Vietbiz24
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PostedIETNAM byS ECONOMYVBN on Dec IN 9 2011. M NOT TOO PESSIMISTIC SAYS ECONOMIST VThe national economy2012: in 2012“I’ will have to deal ,”with three challenges “carried forward” from 2011, according to Dr Tran Hoang Ngan, Member of the National Assembly’s Economics Committee.
Dr Tran Hoang Ngan, Member of the National Assembly’s Economics Committee.
What would you say about the economic performance in 2011?
The picture of the national economy in 2011 is a mixture of the bright and dark parts. The biggest achievement is that we still can obtain the GDP growth rate of 36 six percent, which is still lower than the targeted 7-7.5 percent, but should be seen as an encouraging result, if noting that the world’s economy is in big difficulties. ASEAN countries, for example, previously had the average growth rates of 6.9 percent, now can obtain the growth rate of 5.3 percent only.
In 2011, we can, for the first time, reduce the budget overspending to less than 5 percent of GDP. The trade deficit has also decreased significantly to 10 percent, the level which is lower than the predicted 18 percent.
However, problems still exist. As for the budget spending, though we have succeeded in lowering the overspending to less than 5 percent of GDP, the overspending has not been settled after the last many years. In 2011, we spent 9.7 percent more than the estimates, or 70,400 billion dong.
To offset the budget deficit, the government has to issue government bonds, thus becoming a rival to Vietnamese businesses, which pay tax to the state budget. This leads to the interest rate increases, thus putting big difficulties for enterprises. A lot of businesses have stopped operation, while the unemployment has become more serious.
Some experts have warned about a new economic recession, possibly to occur in 2012. What is your viewpoint about that?
I am not too pessimistic about the economic performance in 2012. However, I think that the national economy will continue facing three challenges, and if the government does not take drastic measures to deal with the challenges, we will not see more positive signs in 2012 than in 2011.
First of all, it’s the inflation. The inflation has been staying overly high over the last five years, since 2007, about 13 percent per annum, which is triple that in other regional countries. The prices increase too sharply, which has eroded people’s confidence on the government’s regulation. Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
There are many reasons behind the high inflation. I think that one of the problems lies in the pricing management. In principle, the prices go up and down on the supply-demand basis. However, in many cases, the prices still keep rising when they should decrease in accordance with economic laws.
Vietnam has advantages in agriculture and food production. Its food prices have increased more sharply than that in other regional countries. I think that the government needs to apply more drastic measures to control the prices.
Secondly, overly high interest rates have put big difficulties for businesses. If we cannot lower the interest rates, our businesses would be killed on the home market.
Thirdly, we will face challenges with the openness level of the national economy. With the openness of 166 percent, Vietnam has become “sensitive” to the “weather” of the world’s economy. Meanwhile, ASEAN countries, after the crisis, have narrowed their openness of the economies. Thailand, for example, has narrowed the openness to less than 100 percent, Indonesia 36.7 percent, and the Philippines 53.6 percent.
I have to remind you that all of them are the economies with exports higher than imports, and they still have to lower the openness of the economy, let alone Vietnam, an economy which still imports more than exports.
Has the government realized the challenges?
I think that the government has been aware of the challenges we have to face. It has been striving to obtain a macroeconomic stability and stand firmly amid challenges. Therefore, the government states that Vietnam will not focus on obtaining very high growth rates, but on curbing inflation and ensuring macroeconomic stability. Source: TBKTVN 37 E
PostedCONOMIC by RESTRUCTURIVBN on Dec NG8 IS2011. TOP PRIORITY IETNAM Vietnam’s priority next year 2012will be the aggressive: V PM implementat ion of its plan to restructure the national economy, while placing secondary importance on high economic growth, prime minister Nguyen Tan Dung told international donors at a meeting yesterday. At the Consultative Group Meeting in Hanoi yesterday, the prime minister emphasized that the government will take drastic measures in order to be able to effectively restructure the economy.
He said Vietnam’s macro-economy has seen positive developments recently, with inflation remaining under the government’s control and consumer prices steadily declining over the last six months.
“Vietnam is capable of restricting inflation to around 9 percent next year,” he said.
Dung added that the government will continue to carry out measures intended to avoid a depreciation of the dong.
He said that the country’s foreign reserves have increased, while export turnover also posted a 34 percent rise compared with 2010.
“The government’s overspending has also fallen this year, standing at 4.9 percent, less than the 5.3-percent estimate,” Dung said. “Overspending will continue to drop to below 4.8 percent next year.”
Regarding GDP growth, the prime minister said the growth rate this year is between 5.8 percent and 6 percent, adding that the government is targeting to keep the rate
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
around 6 percent next year to stabilise the macro-economy and ensure social security.
“High growth is not the country’s first choice,” he assured.
Donors urge restructuring
Speaking at the meeting, Victoria Kwakwa, World Bank Country director in Vietnam, said that once Vietnam has made up its mind on prioritising the economic restructuring, the next thing the country needs is a strong will to create and carry out the plan.
She urged that the restructuring should be quickly introduced.
“Delayed action can lead to a crisis,” she warned. “Vietnam is in a better condition to restructure the economy now than it will be when the depression comes.”
A representative from the International Monetary Fund urged Vietnam to issue more drastic measures to reign in the high inflation that is wracking the country.
“The economic restructuring can only be effective if the government creates adequately strong and appropriate policies,” he said.
Pratibha Mehta, United Nations Resident Coordinator in Vietnam, advised that Vietnam should expand the government’s welfare programmes for people who live on government subsidies and low-income earners in this time of high inflation.
“The restructuring should aim at facilitating operations for small and medium sized enterprises to create more jobs for the poor,” she said. “Moreover, the country should reinforce the fight against inflation to ensure that it achieves its 38 targets.”
Administrative restructuring needs speeding up Japanese Ambassador to Vietnam Yasuaki Tanisaki suggested that the Vietnamese government quicken its administrative restructuring to cut spending.
He added that the state budget collection system also needs improving if it is to conduct fair tax collection.
He said that although the official development assistance (ODA) pledged by the Japanese government to Vietnam this year has been delayed due to the devastating earthquake disaster in March, Japan has promised to provide Vietnam a total of $1.9 billion in aid in 2012.
Ha Chan Ho, South Korean Ambassador to Vietnam, said that the Vietnamese government has an extremely heavy responsibility, since Vietnam is now in a new stage of development amid the global economic woes.
The Korean ambassador spoke highly of Vietnam’s economic restructuring plan, but added that “not every good strategy can be successfully achieved without strong support from the government officials.”
The meeting concluded with international donors pledging $7.38 billion in ODA to Vietnam in 2012.
The World Bank, Asian Development Bank, and Japan are the biggest donors, with their respective donations of $2 billion, $1.4 billion, and $1.9 billion.
“Although the assistance is not as high as the $7.9 billion granted last year, it is still valuable support when you take into account the EU debt crisis and the fact that Vietnam is now a mid-income earning country,” Vietnamese minister of Planning and Investment Bui Quang Vinh said.
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PostedTOMIC POWERby VBN STIMULATon Dec 9ES 2011. INH HUAN S DRIVE FOR INVESTMENT ATTRACTION APlanned construction of Ntwo nuclear electricity plants in the southern province of Ninh Thuan is expected to help attract more investment projects here, bringing the human resources to the province, the newswire Vietnamnet reported. Recently Russian investor made sure to supply VVER highly-safe reactors to the nuclear power projects.
Ninh Thuan nuclear electricity plants will be built based on VVER pressurized water reactor 3 and 3+ with high safety coefficient, Phan Minh Tuan—Vice Head of Nuclear Electricity Project PMU Ninh Thuan said at the recent seminar “Safety of Atomic Power and Ninh Thuan nuclear electricity project” held by the Electricity of Vietnam (EVN).
Attending the seminar was Atomenergoprom Group (Russia), the International Nuclear Energy Development of Japan and The Japan Atomic Power Company.
Tuan remarked at the seminar that modern atomic plants are designed by Russia and built based on active and passive safety systems. In case the active safety system does not work, safety functions will still be ensured by passive system.
Dr Alexander Kukshinov, Head of Atomstroyexport’s International Relation Department explained, “After the disaster at Fukushima atomic electricity factory, experiments of VVER reactor were done to surmount the safety level according to design of Russian at atomic power plants, proving the capacity of coping with external disaster threats. 39 Su Dinh Vinh, an official from Ninh Thuan provincial Department of Construction proposed authorities to advance 20.62 billion dong to conduct the settlement for Ninh Thuan 1 nuclear power factory.
Meanwhile, Nguyen Duc Thanh from the local People’s Committee confirmed that the construction on two nuclear electricity plants in Ninh Thuan will help the province attract more other investment projects.
As planned, the Ninh Thuan 1 and 2 atomic power plants will be started in December 2014 and finished by 2022. Two turbines 1 and 2 of the Ninh Thuan 1 plant are expected to be operational by the end of 2020.
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Posted INVESTS by VBN NEARLY on Dec 9 TR2011. DONG IN AN OV EVN 45.2 N Electricity of Vietnam (EVN) has recently announced its report on construction investment activities and production and business in November 2011 with total actualized investment value of 4.265 trillion dong, lifting the accumulated figure in Jan-Nov to 45.19 trillion dong. In November, EVN completed two 500kV power projects namely 500kV Hiep Hoa transformer and the second 500kV transformer of Nho Quan. The group also finished nine 220 kV projects including 220 kV Vinh Long, 220kV Cao Bang and upgraded the capacity of 220kV Viet Tri, Nam Dinh, Phan Thiet and Long An. Totally, in Jan-Nov, the group completed 40 220-500kV power grid projects (five 500kV and 35 220kV projects). EVN kicked off construction for 24 projects (including eight 500kV and 16 220kV projects).
Also in November 2011, EVN completed the overall progress of Ninh Thuan nuclear power project to submit to the Ministry of Industry and Trade. On November 21, 2011, Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
EVN signed a bidding package of consulting services for building document on construction location for Ninh Thuan 1 nuclear power plant.
In December 2011, EVN will ensure the operation of the fourth generator of Son La hydropower plant and the first and second generators of Kank hydropower plant. – Vietbiz24
EW TERMINAL AT OI AI IRPORT BUILT NVietnam BusinessN News,B ADecember 5th 2011
The construction of the new terminal T2 at the Noi Bai International Airport in Hanoi started on December 4th.
The project conducted by the Northern Airports Corporation as the main investor and a joint venture between the Japanese Taisei Group and the Vietnam Construction and Import-Export Joint Stock Corporation as the builder, is expected to finish in 34 months.
With a total investment of ¥75 billion (including over ¥59 billion from the ODA loan of the Japanese Government), the four-storey T2 terminal will have modern equipment to international standards.
Source: HNM Translated by Van Hieu
40 E E M ASTERN UROPE JEDNÁ O VOLNÉM OBCHODĚ S OLDAVSKEM A RUZIÍ 16.12.2011EU 15:22 G
Kdy: 05.12.2011 , Kde: Brusel
Budoucí dohody o volném obchodu přinesou nové příležitosti evropským i českým firmám.
Členské státy EU daly Evropské komisi zelenou k zahájení jednání o tzv. Komplexní dohodách o volném obchodě (DCFTAs – Deep and comprehensive free trade agreements) s Moldavskem a Gruzií. Stalo se tak 5. prosince 2011 na základě hodnocení EK, ve kterém kontrolovala splnění podmínek EU pro otevření jednání ze strany Moldavska a Gruzie. Tyto podmínky byly důležité pro to, aby obě země byly schopné naplnit závazky, které z případných dohod DCFTA S EU vyplynou.
Moldavsko a Gruzie se tak po Ukrajině stanou další zeměmi Východního partnerství, které jednání s EU o zmíněných dohodách zahájily. Jednání EU s Ukrajinou o DCFTA probíhá od února 2008 a mělo by vyvrcholit na letošním prosincovém summitu mezi EU a Ukrajinou. Česká republika patřila k iniciátorům Východního partnerství a obchodní dohody s východními sousedy EU aktivně podporuje.
Evropská komise předpokládá, že oproti Ukrajině půjdou jednání s Moldavskem a Gruzií rychleji, protože vzájemná obchodní výměna s EU je již nyní do značné míry již liberalizována. Největší prostor pro zlepšení obchodních vazeb naopak představují různé netarifní a technické překážky obchodu. Velkou výzvou pro jednání o DCFTAs proto bude snaha o přiblížení Moldavska a Gruzie standardům evropské legislativy a regulatorní spolupráce.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Co se týče Arménie, tj.další země zapojené do Východního partnerství, Evropská komise konstatovala, že Arménie v poslední době učinila pokrok a v blízké budoucnosti by mohla dosáhnout připravenosti také jednat o dohodě DCFTA.
' BELARUS ANNOUNCES NEW ELARUS SANCTIONS AFTER ACTIVIST S TRIAL EUEuronews, 16 DecemberB 2011, 12:22 CET (BRUSSELS) - The European Union on Friday tightened sanctions on Belarus, slapping an assets freeze and travel ban against two persons involved in the controversial trial of a human rights campaigner.
An EU statement said that "in view of the gravity of the situation in Belarus" it "today reinforced the EU's restrictive measures on those responsible for the continuing repression of civil society, the political opposition and the independent media in Belarus.
It said two persons associated with the trial of leading rights defender Ales Beliatsky would be targeted, bringing to 210 the number of people sanctioned in Belarus.
The assets of three entities linked to the regime also remain frozen while exports to Belarus of arms and materials that might be used for internal repression are prohibited.
The EU late last month slammed the jailing of Beliatsky after a trial based on evidence nations say they were tricked into supplying.
41 Beliatsky, 49, was detained in August after authorities received information from ex-communist neighbours Poland and Lithuania about bank accounts he held in their countries to support his work at home.
Because of tough restrictions at home, both countries offer a haven for activists from Belarus and their funds. After the arrest, they claimed Belarus had abused tax- information exchange accords and issued formal apologies for cooperating with the regime. Beliatsky is the leader of the banned "Vyasna" (Spring) human rights group and a leading opponent of authoritarian President Alexander Lukashenko, who has the ruled ex-Soviet republic since 1994.
Text and Picture Copyright 2011 AFP. All other Copyright 2011 EUbusiness Ltd. All rights reserved.
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BelELARUSTA, 16.12.2011KRAINE TRADE TO EXCEED BN IN BIn 2011 tradeU between Belarus and$6 Ukraine2011 will reach a record high of approximately $6.1 billion. The surplus for Belarus will make up about $2 billion, First Deputy Prime Minister of Belarus Vladimir Semashko said at the 20th meeting of the intergovernmental Belarusian-Ukrainian joint commission on trade and economic cooperation in Kyiv.
In January-November this year the bilateral trade exceeded $5.5 billion. In November alone the Belarusian-Ukrainian trade was up by about $650 million.
At the same time, these high results of trade and economic cooperation are not the limit for bilateral relations between the two countries, said Vladimir Semashko.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The co-chairperson of the Ukrainian part of the intergovernmental commission, First Vice Prime Minister of Ukraine, Minister of Economic Development and Trade Andrei Klyuev, in turn, stressed that Ukraine attaches great importance to bilateral cooperation with Belarus and is set to intensify the Belarusian-Ukrainian trade and economic relations. He also expressed his sincere gratitude to Vladimir Semashko as head of the Belarusian delegation for his perseverance and consistency in both parties’ reaching mutually beneficial results.
The intergovernmental Belarusian-Ukrainian joint commission summed up the results reached in 2011, discussed further cooperation in the field of energy, transport, agriculture, engineering, chemical industry, space, culture, education, sports and many others.
The co-chairmen Vladimir Semashko and Andrei Klyuev signed a protocol of the 20th meeting of the intergovernmental Belarusian-Ukrainian joint commission on trade and economic cooperation. The sides also approved the program of production and sci-tech cooperation between companies and organizations of Belarus and Ukraine, the joint action plan for the Belarusian-Ukrainian infrastructure projects in the transport sector making part of the transport corridor Klaipeda-Vilnius-Minsk-Kyiv and also projects in road and railway service.
In addition, the chiefs of the State Property Funds of Belarus and Ukraine signed an intergovernmental agreement on the legal status of objects of the Beloozersk water system of the Dnieper-Bug Canal located on the territory of Ukraine.
The First Deputy Foreign Ministers signed a plan of cooperation between the Foreign Ministries of Belarus and Ukraine for 2012-2013, the protocol of exchange of instruments of ratification of the readmission agreement signed on 12 June 2009.
The 21st meeting of the intergovernmental Belarusian-Ukrainian joint commission on 42 trade and economic cooperation will be held in Minsk in May 2012.
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MINSK,ERMANY 14 READY December TO INVE (BelTA)ST IN ELARUS– German TIRE investors RECYCLING are PROJE readyCT to partake in the Gconstruction of a new plantB to recycle used tires in Belarus, Deputy Chairman of the State Science and Technology Committee of Belarus Alexander Zhigulich told a press conference on 14 December.
The new project will use the latest technologies including eco-friendly ones. The plant will produce rubber, cord and textile from old automobile tires. This raw material will be further used at the national industrial enterprises.
The project is estimated at $6 million. Now Belarus is looking into the best resources to finance the construction.
Alexander Zhigulich also mentioned the project to build a municipal solid waste treatment facility in Orsha, jointly with the Italian company COOMI plans. Documents on the intent to implement the project were signed by the Italian COOMI, Orsha Town Hall and Spetsavtobaza company (Orsha). The facility will annually process about 70,000 tonnes of municipal solid waste. This is almost the entire amount of municipal waste generated in the town.
MINSK,SSOCIATION 14 December OF TECHNO (BelTA)LOGY PARKS – Belarus AND BUSIN is ESSlooking INCUBATORS into MAYa possibility BE SET UP IN toELAR createUS an Aassociation of technology parks, business incubators and innovation Bcenters, the director general of the BNTU Politechnik technological cluster, Yuri Alekseyev, told a press conference.
Such proposal was voiced at the Belarusian Innovation Week recently held in Minsk. “A proposal was made to establish a Belarusian association of technology parks, Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
business incubators and innovation centers. There was also a suggestion to participate in the project to create the network of international business incubators under the interstate project “The Network of Business Incubators in the European Union.”
Most developed countries invest in the development of associations of innovation infrastructure entities today. Such associations help promote small enterprise development, improve the system of business incubation taking into account the best international experience, advance promising ideas of young scientists, commercialize research products, and engage in scientific and technical projects of foreign investors. In addition, an association of technology parks and business incubators provide coordination and strengthen links between science and manufacturing sector, formulate recommendations for the development of innovative processes and submit them to the legislative and executive authorities. The formation of such associations helps increase the number of high-tech production facilities, boost innovation exports.
Yuri Alekseyev added that other proposals to establish new innovative facilities in Belarus, including those with the help of foreign organizations, were voiced during the innovation week. For example, the Belarusian Innovation Fund and the Science Park of Kaunas University of Technology (Lithuania) agreed to establish a joint innovation center.
E ZASLAVL,ELARUS TO 15 GANG December UP WITH (BelTA) MAJOR UROPEAN– Belarus CHEMICAL will invite COMPANIES major European companies for the Bsake of setting up joint ventures in the chemical industry. The statement was made by Prime Minister of Belarus Mikhail Myasnikovich after a visit to OOO Henkel 43 Bautechnik and IP Coswick as part of the seminar held on 15 December for executives of government agencies to discuss import substitution.
According to Mikhail Myasnikovich, not all Belarusian enterprises work hard to substitute imports. The share of imported components in the product cost of the best of them is still large. “We have a lot to do, especially in our chemical industry,” stressed the Prime Minister. The industry accounts for a considerable share of imports.
To address the problem, Belarusian enterprises should promote cooperation with well- known foreign manufacturers and create joint ventures with them. “We cannot establish modern chemical enterprises on our own, therefore major European concerns like BASF should be invited in order to set up joint ventures for the sake of satisfying interests of Western partners and for the sake of reducing the import dependence of Belarus,” stated the head of government.
Speaking about the seminar held on 15 December, Mikhail Myasnikovich said the event will give a boost to the fulfillment of import-substituting projects. The seminar was supposed to use good examples to train government executives, he said. “Since there are ministers, heads of district and oblast administrations present, I think it will heat them up in a good way in order for them to implement projects locally”.
OOO Henkel Bautechnik is a civil engineering chemistry division of the concern Henkel in Belarus. The enterprise was founded in 2004 to start manufacturing import- substituting products. The use of local raw materials has allowed reducing the cost of products by 15-20% in comparison with imports. Over the last three years the company’s operation has saved about $20 million thanks to import substitution. In January-October Henkel Bautechnik turned out Br71 billion worth of products, 59.6% up on the same period of last year.
The parquet factory Coswick is a foreign enterprise with Canadian capital. In January-October 2011 the enterprise turned out Br61.2 billion worth of merchandise, Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
123.2% up on the same period of last year. In the period the company exported $6.4 million worth of commodities. Coswick boasts a branched dealer chain across the globe, selling its products in Canada, the USA, the UK, Germany, Greece, the Baltic states, and Russia.
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The Georgian TATE UDGETTimes, PPROVED2011.12.09 2012The ParliamentB approvedA on December 9 the state budget for 2012, criticized by the opposition lawmakers for lack of transparency.
The next year's state budget sets revenues at GEL 6.839 billion, up by GEL 368 million from this year and expenditures - at GEL 6.528 billion, up by GEL 500 million from 2011.
Forecasted tax revenues are set at GEL 6.3 billion next year, up from planned GEL 5.65 million this year. According to the draft, the government expects GEL 239 million in foreign grants next year.
The budget forecasts 2012 economic growth at 5%, setting an expected nominal GDP to amount up to GEL 26.43 billion. Forecasted annual inflation is set at 6%. One of the major amendments in the final version of the draft was related to the new pension package plan, involving increase of minimal monthly pension for 67 years old and above from the current GEL 100 to GEL 125 starting from September, 2012 and funding GEL 15 health insurance policies for all the pensioners from next September.
Breakdown of funding per ministry is as follows: 44 Ministry of Healthcare and Social Protection - GEL 1.722 billion (2011 - GEL 1.685 billion); Defense Ministry - GEL 675 million (2011 - GEL 711 million; 2010 - GEL 728 million); Interior Ministry - GEL 585.2 million (2011 - GEL 568 million; 2010 - GEL 549.2 million); Finance Ministry - GEL 111.7 million (2011 - GEL 228.8 mln); Ministry of Economy and Sustainable Development - GEL 172.3 million (2011 - GEL 162.3 million); Ministry of Regional Development and Infrastructure - GEL 968.3 million (2011 - GEL 806 mln); Ministry of Energy and Natural Resources - GEL 290.3 million (2011 - GEL 248.8 mln); Justice Ministry - GEL 74 million (2011 - GEL 74.5 mln); Ministry in charge of prison system - GEL 120 million (2011 - GEL 112.3 mln); Foreign Ministry - GEL 76 million (2011 - GEL 73.2 mln); Ministry of Education and Science - GEL 595 million (2011 - GEL 561.1 mln); Ministry of Culture and Protection of Monuments - GEL 81.5 million (2011 - GEL 60.9 million); Ministry of Sport and Youth Affairs - GEL 50 million (2011 - GEL 40 million); Ministry of Agriculture - GEL 119.9 million (2011 - GEL 86 million); Ministry of Environment Protection - GEL 17.5 million (2011 - GEL 14.4 million); Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation and Refugees - GEL 34.8 million (2011 - GEL 44.1 million); Office of the State Minister for Reintegration Issues - GEL 1.3 million (2011 - GEL 1.2 million); Office of the State Minister for Integration into European and Euro-Atlantic Structures - GEL 2 million (2011 - 2.2 mln); Office of the State Minister for Diaspora Issues - GEL 850,000 (2011 - GEL 838,000). Next year, when the parliamentary elections are planned, the Central Election Commission (CEC) will receive increased funding of GEL 41.6 million.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
IPNITY 2011.11.26OUNCIL APPROVED THE BUDGET CThe TbilisiC City Council 2012approved the 2012 budget. The GEL 648 million budget allocates GEL 90 866 000 for healthcare, 120 672 000 for transport infrastructure development, 102 550 000 for construction of infrastructure facilities , 36 846 000 for the project New Life of Old Tbilisi, 19 942 000 for the project Assistance to Population, 13 410 000 for improvement of ecological state of the city. The members of the Republican Party and the Free Democrats party left the City Council session.
ETR EČAS RUZIE LÁKÁ ČESKÉ INVESTORY P(www.vlada.czN : G , 28.listopad 2011) Premiér Petr Nečas v pondělí jednal se svým gruzínským protějškem Nikou Gilaurim. Vzájemná spolupráce se rozvíjí především v obchodních vztazích, shodli se oba premiéři. „Velice silně podporujeme ekonomickou spolupráci s Gruzií,“ řekl po společném jednání český premiér Petr Nečas. „Máme zájem na intenzivní spolupráci například v oblasti energetiky,“ dodal. Premiér Nečas zmínil také zájem českých firem podílet se na výstavbě hydroelektráren, které v současnosti v Gruzii probíhá. Čeští investoři by podle českého premiéra rádi pronikli na gruzínský trh také v rámci těžby uhlí a elektrárenského průmyslu.
Výzvou pro české investory je hromadná doprava
„Chceme se jako Česká republika se svými společnostmi a za podpory České exportní 45 banky a EGAP zapojit do modernizace hromadné dopravy v Gruzii, především v hlavním městě Tbilisi, kde česká vláda financovala projekt, na základě kterého mělo být provedeno zhodnocení a analýza budoucího rozvoje hromadné dopravy v tomto městě,“ řekl český premiér. Podle něj má Česká republika také řadu firem, které jsou schopny se v rámci dodávek autobusů, trolejbusů či tramvají do Gruzie velice dobře zapojit.
Ekonomickou spolupráci by podle premiéra Petra Nečase mohl prohloubit také projekt výstavby montážního a opravárenského závodu společnosti Zetor Tractors.
„Česká republika je pátým největším investorem v Gruzii,“ zdůraznil premiér Gilauri. „Česká exportní banka je v Gruzii velmi aktivní, je zde mnoho projektů, které se vyvíjí, a to především v oblasti dopravy, zemědělství a energetiky. Doufám, že všechny tyto projekty budou atraktivní pro české firmy a dojde ještě k těsnější spolupráci,“ uvedl gruzínský předseda vlády.
Nečas: Podporujeme vstup Gruzie do NATO
„Česká republika jednoznačně podporuje euroatlantické aspirace našich gruzínských přátel, to znamená stát se členem Severoatlantické aliance a Evropské unie,“ uvedl premiér Petr Nečas. Zároveň také ocenil angažovanost Gruzie v bezpečnostní oblasti. Připomněl, že se Gruzínci podílejí společně s českými vojáky na spojenecké misi ISAF v rámci bojů v Afghánistánu, kde působí devět set jejich vojáků.
Předseda gruzínské vlády Nika Gilauri po společném jednání vyjádřil poděkování české vládě a Parlamentu jak za politickou podporu, tak za podporu ve snaze Gruzínců stát se jedním ze členů NATO.
Český premiér Petr Nečas zmínil vedle českého exportu mířícího do Gruzie také podporu v rámci probíhajícího českého předsednictví Visegrádské skupině, které se zaměřilo na země východní Evropy. Gruzie je podle něj velmi zásadním partnerem, a to právě v ekonomické oblasti. „Chtěl bych připomenout, že Gruzie hraje klíčovou úlohu jako tranzitní země z hlediska dodávek kaspického plynu,“ připomněl český premiér. Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Zdroj: www.vlada.cz
Kirtskhalia, DECIDES TO STARTN. McClatchy FREE TRADE - Tribune NEGOTIATIONS Business WITH News EORGIA [Washington] 06 Dec 2011. EUDec. 06--TBILISI, Georgia -- The European UnionG (EU) has today taken a decision to begin negotiations on a comprehensive and free trade with Georgia, Georgian Foreign Ministry said.
This sphere is a significant component of Georgia's Association Agreement.
Negotiations will be held on a wide range of issues of economy and trade, which contributes to Georgia's economic integration into the EU.
The decision to start negotiations is due to the corresponding progress that Georgia made in carrying out reforms and conditions required to start the process, Georgian Foreign Ministry reported with reference to the EU website.
According to the European Commissioner for Trade Karel De Gucht, comprehensive free trade zone will help Georgia to become "more competitive and use domestic market of the European Union".
N.Kirtzkhalia.EORGIA ACHIEVES McClatchy OBSERVER STATUS- Tribune IN FRICANBusiness NION News [Washington] 06 Dec 2011. GDec. 06--TBILISI, Georgia -- GeorgiaA has Uobtained an observer status in the African Union. Georgian ambassador extraordinary and plenipotentiary to Egypt and Syria with a 46 residence in Cairo, Archil Dzuliashvili delivered his credentials to Jan Ping, committee chairman of the African Union.
It was noted awarding Georgia a status of permanent observer will favor the formation of partnership between Africa and Georgia, particularly in the sphere of economy.
The ambassador of Georgia thanked Ping for audience and voiced the hope that achieving a status of permanent observer by Georgia will jolt further development and intensification of collaboration. _(c)2011 Trend News Agency (Baku, Azerbaijan) Visit Trend News Agency (Baku, Azerbaijan) at en.trend.az Distributed by MCT Information Services
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InterfaxELASI TO NOT: Russia PAY DIV &IDENDS CIS Business FOR and Financial Newswire [Moscow] 07 Dec 2011. TBILISI. Dec 7 (Interfax) - Tbilisi2010 electricity distribution company Telasi, which is controlled by Russia's Inter RAO UES (RTS: IRAO), decided at an extraordinary shareholders meeting not to pay dividends for 2010, the company told Interfax.
Instead, the company will use its net profit of 48.35 million lari for investments and to cover losses from previous years, a company representative said. Twenty-two million lari will be allocated to financing investment activities, including 5 million lari for 2011 and 17 million lari for 2012. The remaining 26.35 million lari will be spent on covering past losses.
At last Tuesday's meeting, Telasi shareholders prematurely terminated the powers of the supervisory board and elected it in a new composition. Six people, including four Inter RAO representatives and two Georgian representatives, joined the new board. It will elect its chairman at its first meeting scheduled for December 15.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
At their annual meeting on 2010 results on June 28, Telasi shareholders decided to consider profit distribution and dividend pay outs at an extraordinary meeting. The company did not pay out dividends in 2009 due to a loss.
Telasi is one of the largest distributors on Georgia's energy market. It has around 454,000 customers in and around Tbilisi and supplies around 2 billion kilowatt hours per year. The company operates a 5,658-kilometer grid.
The company's charter capital is divided into 81,147,886 ordinary shares of par value 1 lari each. Inter RAO owns 75% of Telasi, Georgia's Energy and Natural Resources Ministry owns 24.53%, and a private individual owns 0.47%.
The official exchange rate on December 7 was 1.6585 lari/$1.
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InterfaxZECH CO :NERGO Russia RO& TOCIS START Business BUILDING and FinancialEORGIAN Newswire IN SPRING [Moscow ] 09 Dec 2011. C P G HPP 2012 TBILISI. Dec 9 (Interfax) - Energo-Pro Georgia, which is owned by Czech company Energo-Pro, plans to start building the Sadmeli hydro power plant with 125 megawatt capacity on the Rioni River in West Georgia in the spring of 2012, Energo-Pro Georgia PR Chief Avtandil Dvalishvili told Interfax.
"Construction of the Sadmeli HPP will cost $250 million," he said, noting that the project will mainly be financed by a loan that the company hopes to raise from the Czech Export Bank.
Sadmeli HPP is the first of three hydro power plants with total capacity of 210 47 megawatts that the Czech company plans to build in Georgia over the next few years. A memorandum from the Georgia Energy and Natural Resources Ministry says the company plans to build an Alpan HPP with 44 megawatt capacity and Zoti HPP with 41 megawatt capacity in western Georgia.
Energo-Pro began operations in Georgia in June 2007, when it won an international tender to acquire Georgian United Energy Distribution Company and Adjara Energy Company, as well as six hydro power plants in the west of the country. Later Energo- Pro bought another four hydro power plants.
Energo-Pro bought a 110 megawatt gas turbine power plant located on the territory of the Tbilisi GRES power plant in December 2010 from Russian-Georgian company Energy Invest.
Energo-Pro Georgia has around 900,000 customers in Georgia. It supplies electricity to 70% of the country's territory.
(Our editorial staff can be reached at [email protected])
E.IsmayilovView TO BEGIN OIL Profile. DEPOT C ONSTRUCTIONMcClatchy - INTribune EORGIA Business IN News [Washington] 10 Dec 2011. SOCARDec. 10--SOCAR Energy Georgia plans to Gbegin operations2012 to build the oil depot in 2012, a source in SOCAR told Trend today.
"Everything is ready to launch the construction operations in 2012," the source said. The source said that all necessary permits were also obtained and the documentation was prepared.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The oil depot will be located near the Tbilisi International Airport. The company bought five acres of land worth $3 million in 2008.
Twenty four tanks with a total capacity of 20,500 tons will be located at the depot. Light oil products such as gasoline, diesel, jet fuel will be kept there. _(c)2011 Trend News Agency (Baku, Azerbaijan) Visit Trend News Agency (Baku, Azerbaijan) at en.trend.az Distributed by MCT Information Services
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Chisinau,CONOMICS 14INISTRY December SAYS /MOLDPRES/ NOT TO USE ENVIRONMENTAL- The Economics FE EMinistry TO PROTECT has sOLDOVANaid the GOODSenvironmental fee on some imports cannot be used as an instrument for protecting or enhancing the competitiveness of the Moldovan goods and their quality, not to mention managerial efficiency.
For many years, the Economics Ministry has been recommending that trade defence instruments recognized in Moldova and abroad should be applied, in particular compensatory, anti-dumping, safeguard measures that would allow the native producers settling some problems they face, Deputy Economics Minister Octavian Calmic told a news briefing today.
Calmic emphasized that the Economics Ministry worked out a draft law on the amendment and completion of the law of 25 February 1998 on payment for environmental pollution, approved by the cabinet last summer. This draft was subject to public discussions and many proposals that came from enterprises were included in this legislative document. 48 Octavian Calmic said that on 21 February 2011, Ukraine started an economic litigation against Moldova, requesting that the environmental fee on imports should be lifted via mechanisms related to the World Trade Organization (WTO). Had Moldova lost this litigation, it would have incurred a financial damage of 150 million lei, not to mention that the country's international image would have been tarnished because of the failure to observe the commitments taken within the WTO. Moreover, Moldova ran the risk to lose the right of economic limitation of its exports. Namely in these conditions, the Economics Ministry ruled to elaborate a string of amendments to the above-mentioned law. A pre-requisite for this is the gradual shift to a European system of management of packages and their waste and observance of the international practice of levying uniform environmental fees from producers and importers, the deputy economics minister said.
Hence, Calmic said, to remove the present inconsistencies, the draft provides for equaling the environmental fees both for the goods imported in plastic containers and one-off packages and for the import of raw material for producing package. Thus, the fee on the import of goods in plastic containers and one-off packages, both with products and used as raw material, will account for 0.5, 1.5 and 3 per cent of the value of goods declared in the invoice.
The document needs to be considered and adopted by the parliament in order to enter into force.
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Chisinau,OLDOVA 14AZPROM December GAS TALKS /MOLDPRES/ TO BE RESUMED - Moldova's AFTER negotiationsDECISION ON on ENERGY a gas PACKAGE new contract with the RussianG gas giant Gazprom will be resumed after MoldovaEU decides on the actions needed to implement the EU Energy Package III. Economics Minister Valeriu Lazar today made statements to this effect during public hearings at the parliamentary commission for economy, budget and finances.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The negotiations between Moldova and Gazprom were suspended at Russia's initiative, after Moldova signed the Energy Package III in October 2011. The document provides for the separation of the supply and transit of gas in order to avoid eventual situations of monopoly. In Moldova's case, Gazprom is the company that produces, transports and distributes gas in Moldova.
Lazar said the talks might be resumed next week already. He noted that a Moldovan delegation is visiting Brussels on 14-15 December to present the country's position on the Energy Package III. Lazar specified that, when signing the Energy Package III, Moldova committed to implement it by taking into account the economic conditions in the country. He also said Moldova will insist on the implementation of the Package III, but by observing Gazprom's patrimony.
As for the new contract with Gazprom, Lazar said it could be signed by late 2011. Lazar emphasized that "the Russian gaz price, in the worst case, will remain the same, i.e. about 400 dollars per 1,000 cubic metres. Or, in the best case, this price is likely to decrease. Yet, I cannot give you more details."
At the same time, the head of the parliamentary commission for economy, budget and finances, Veaceslav Ionita, said the talks with Gazprom were suspended because "Moldova forgot to inform correctly and in due time its partners about the Energy Package III". Ionita added that the Economics Ministry should have analyzed the impact of this Package and the derogations assumed by Moldova after signing the package.
The present contract on gas supply between Moldova and Gazprom expires on 31 December 2011.
M 49 Dec.HINA 15, TO GRANT2011 / OLDOVA[11102] MILLION DOLLARS FOR ECONOMIC TECHNICAL DEVELOPMENT CChisinau, 15 December /MOLDPRES/9.5 - Moldovan Prime Minister, Vlad Filat and Chinese Ambassador to Moldova, Fang Li today gave a joint news briefing, after the ceremony of signing an agreement on economic and technical cooperation between the Moldovan and Chinese governments, the government's communication and press relations department has said.
Filat said that year by year, bilateral cooperation between China and Moldova gets more fruitful.
"The agreement on economic and technical cooperation between the Moldovan and Chinese governments sees a grant of 9.5 million dollars for the implementation of economic and technical projects, that are to be identified by the Moldovan government and subsequently discussed with our Chinese partners," Filat said.
The prime minister noted that the support provided through this agreement once again proves the good cooperation relations with China.
"The given assistance supplements our efforts streamlined towards economic growth and decent living standards for our citizens. I would like to give assurances that as soon as possible, we will come out with concrete draft projects due to be implemented within this financial assistance," Filat said.
The prime minister thanked the Chinese side for the support given to Moldova through the ongoing projects in the fields of medical equipment, video surveillance systems for road traffic in Chisinau municipality, computers and internet connection in Moldovan student hostels.
"Moreover, I would like to avail myself of this occasion to express satisfaction with the dynamic of the bilateral ties and to reiterate that Moldova will further treat China as a friend. In the context, I would like to mention that the friendship Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
relation between our countries is based on understanding and mutual respect. The twenty years of bilateral relations, due to be marked in early 2012, outline a new stage in the Moldovan-Chinese ties. Moldova regards this as a favourable pre- requisite for the fosterage of cooperation in all the fields of interest, for the benefit of our peoples," the prime minister said.
For his part, Fang Li said that the 9.5-million-dollar grant is offered to Moldova on the 20th anniversary of the Moldovan-Chinese diplomatic relations. He added that it confirms the good bilateral ties between the countries. The ambassador said that 60 million yuans is the biggest assistance ever granted to Moldova by China. He noted that, if divided on the population's number, it represents 3 dollars for each Moldovan citizen.
"It is a serious support given by the Chinese people and government to the Moldovan government. We hope that the money will be used for the development of economic and social projects, as well as for creating new jobs for Moldovans," the Chinese envoy said.
After the briefing, the two officials had a bilateral meeting, during which Filat thanked Fang Li for his attitude towards Moldova. The Chinese envoy will leave Moldova in early 2012. He has been serving as Chinese Ambassador to Moldova for a year and five months. The prime minister praised Fang Li's personal contribution to the development of the Moldovan-Chinese relations, noting their ascendant development pace recorded over the past year.
For his part, Fang Li said that the bilateral cooperation had boosted in particular, after Filat's visit to China, in September 2010. The envoy said that the exports of Moldovan wines to China had increased 10-fold and that a string of road infrastructure and safety projects had been launched.
50 He added that Moldova will always play a special role for him and that China will be a reliable friend for the country.
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Chisinau,OLDOVAN ECONOMICS12 December MI NISTER/MOLDPRES/ SAYS GAS- Deputy SUPPLY COPrimeNTRACT Minister, WITH USSIAEconomics LIKELY TOMinster BE SIGNED Valeriu SOON Lazar said today upon his return from a visit to Moscow, that a new gas supply contract with Russia's leading gas company Gazprom, will be signed by the end of the year.
"I am upbeat about the signing of the new gas supply contract by the end of the year, as I felt that for the Russian side, the timeframes are also playing an important role," Lazar said.
He said that if the contract in force is extended, the transition of the Russian gas via Moldova will not be legally regulated, which runs counter to the interests of the Russian gas company. Over 20 per cent of the overall exports of Russian gas are transited via Moldova to the West.
Lazar told the officials of the Russian gas company that Gazprom would also have some benefits following the implementation of the EU Energy Package III. "I have set forth only economic arguments. If prices further increase, the gas consumption will lower, not to mention the massive disconnections that might follow," Lazar added.
As for the delay in the talks with Gazprom, the official said that the management board of the Russian company was concerned with the fact that Moldova is to implement the energy package III, which sees the separation of the supply and delivery of energy.
Valeiu Lazar participated in an ordinary meeting of the Economic Council of the Commonwealth of Independent States on 8-9 December. On the sidelines of his visit, Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
he met Chief Sanitary Inspector of Russia, Gennadiy Onishchenko. The officials discussed the ban on the import of Moldovan wines to the Russian market. Also, the Moldovan official met Russian Education and Science Minister Andrey Fursenko, who is also the co-chairman of the joint Moldovan-Russian inter-governmental commission.
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Chisinau,OLDOVAN PARLIAMENT9 December R/MOLDPRES/EPEATEDLY- ADJOURNS The Moldovan CONSIDERING parliament BUDGETARY todayFISCAL repeatedly POLICY postponed considering the budgetary-fiscal policy for 2012. A parliamentary working group has been examining the issue for two weeks now but failed to reach a consensus on the matter, putting off its examination for the week to come.
The chairman of the parliamentary commission for economy and budget, Veaceslav Ionita, doubted the possibility for the parliament to pass the draft until 1 January. "All the amendments forwarded by the Democratic Party and the Liberal Party were processed, but they all refer to the approval of the draft law in the second reading. The first reading is a political vote, and we have not secured it yet," Ionita said.
He added that the commission expects amendments from the parliamentary opposition, and asked the leaders of the parliamentary factions of the ruling alliance to discuss more often with the relevant ministers and not to put forward "phantasmagoric amendments".
The Democrat and Liberal lawmakers put forward many proposals to amend the budgetary-fiscal policy for 2012. They said they were expecting the government to come with a more complete and more professional document. The Liberal Party asked that this document should be adopted for the entire period of the parliament's mandate and not for one year as it has been so far.
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Interlic, FINANCES Dec 2,ROAD 2011 NETWOR K REPAIRS IN OLDOVAN CAPITAL TheEBRD EBRD is continuing to support the modernisation of Moldova’s transport infrastructure with a €11.7 million facility to the municipality of Chisinau to co- finance a much-needed upgrade of the road network in the country’s capital.
As a result of poor maintenance and severe under-investment during the last two decades, the street infrastructure of Chisinau is in a precarious condition. The increased car ownership in the Moldovan capital coupled with a lack of parking regulation has put additional pressure on traffic congestion and safety in the city.
The EBRD financing, pending City Council’s approval, will be used to rehabilitate major streets in the centre of Chisinau, renew asphalt and paving, build new central pedestrian areas, upgrade the water drainage infrastructure and modernise public lighting.
The project also includes the establishment of on-street parking facilities which will be used under a new parking charge scheme. The parking concept is being developed with additional grant financing provided by the EBRD.
The EBRD financing package includes a €10.3 million loan from the Bank’s own account and a €1.4 million tranche funded by the Green Energy Special Fund, administered by the EBRD. In addition, the European Investment Bank is considering a parallel loan of €10.3 million for the project.
“This is an important project for Moldova and its capital. We are delighted to continue to support the Chisinau municipality to modernise the city’s transport infrastructure. This project will improve traffic safety in Chisinau and will create much-needed additional parking facilities. In addition it will lead to greater participation from the private sector through the tendering and management of on- Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
street parking together with the road rehabilitation maintenance works,” said Thomas Mirow, EBRD President.
In 2010, the EBRD provided a €5 million loan to the Chisinau municipality to co- finance the acquisition of 102 new modern trolleybuses that considerably improved public transportation services in the Moldovan capital. The project was co-financed by the EIB and the EU’s Neighbourhood Investment Facility.
Since the beginning of its operations in Moldova, the EBRD has committed almost €600 million in various sectors of the economy, mobilising additional investment in excess of €430 million.
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Chisinau,OLDOVA LAUNCHES December ENERGY 9. /MOLDPRES/. EFFICIENCY CAMPAIGNThe Economics Ministry and the Agency for Energy Efficiency on 7 December launched the first issue of the campaign "Moldova ECO- Energy" aimed at promoting renewable energy and energy efficiency.
Moldova ECO-Energy is part of a comprehensive social campaign, whose goal is to promote alternative energy sources and energy efficiency. The campaign is conducted by the Moldovan government in partnership with The European Union and the UNDP Moldova.
"Energy efficiency, energy preservation, use of renewable energy resources are serious problems and an absolute priority especially for Moldova, which imports about 70 per cent of the electric energy it needs, and 100 per cent of natural gas and other fuel," acting President, Parliament Speaker Marian Lupu said at the opening of the event.
Noting that energy resources are getting increasingly expensive, Lupu said that 52 Moldova needs to ensure its energy security and efficiency in order to be consequent in the implementation of the economic development strategies.
The head of the EU Delegation in Moldova, Ambassador Dirk Shuebel, said that the European Union and other donors are ready to back Moldova financially and technically in order to enhance its energy efficiency. "It is about a 14.56-million- euro project of energy and biomass, aimed at increasing significantly the use of renewable energy technologies in Moldova," the high official said. Under the project, biomass heating systems will be installed in 130 settlements, mainly in schools and kindergartens.
Dirk Shuebel also mentioned the 42.6-million-euro-worth project "Support for reforming the energy sector", which will focus on enhancing the energy efficiency and using renewable energy resources in Moldova.
Attending the event, Deputy Premier, Economics Minister Vleriu Lazar noted that "surveys proved that 30 to 40 per cent of energy can be saved, and another 20 per cent can be replaced with available renewable energy resources".
According to the government's plans, by 2020 about 20 per cent of Moldova's energy needs should be covered from alternative energy sources.
Moldova to ratify CIS free trade accord after consultations with WTO, EU Chisinau, December 14. (MOLDPRES). Moldova will ratify the Free Trade Agreement signed by eight member states of the Commonwealth of Independent States, after consultations with the World Trade Organization (WTO) and the European Commission.
"We have announced our Russian colleagues, as well as other CIS partners, that as a member of the World Trade Organization, Moldova must inform the WTO Secretariat about the signing of this agreement," Deputy Prime Minister, Economics Minister Valeriu Lazar said upon his return from a visit to Moscow, where he participated in Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
an ordinary meeting of the Economic Council of the Commonwealth of Independent States.
Lazar said that the ratification procedures will start "only when we notify and confirm the lack of objections from other WTO member states". Moreover, Moldova promised the European Commission to announce all the trade partners about the signing of any agreement on trade regime.
The minister expressed hope that once Russia joins the World Trade Organization, the exceptions to the CIS Free Trade Agreement, negotiated by Russia and concerning Moldova, in particular fees on the export of energy resources, wood and some metals used in Moldova as raw materials, will be discussed. "We have an ambitious agenda meant to adjust the bilateral trade to the principles of the World Trade Organization," the deputy prime minister noted.
Eight CIS member countries signed an agreement on the creation of a free trade area in Saint Petersburg on 18 October.
According to data put out by the National Statistics Bureau, in the first 10 months of 2011, 41.1 per cent of Moldovan exports were shipped to the CIS, while imports from the CIS stood at 32.2 per cent.
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CHISINAU,UROPEAN DecemberNION OPEN 12. FOR (MOLDP TALKS RES).ON REE The RADE European GREEMENT Union WITHannounced OLDOVA on 5 December the launch of Utalks on a Free Trade FAgreement, Aalso called the Deep and Comprehensive Free Trade Area between Moldova and the European Union.
The EU invited Moldova to negotiations after the latter met a string of requirements 53 needed to economically integrate into the European market. Three progress reports and one preliminary assessment on the fulfilment of the European Commission's recommendations on actions that should be taken to launch the talks and subsequently to create the Deep and Comprehensive Free Trade Area, were highly appreciated by the European institution.
On 12 December, Prime Minister Vlad Filat will pay a visit to Brussels to continue the talks on the matter with the EU officials. In January 2012, European Commissioner for Trade Karel De Gucht will visit Chisinau to officially launch, jointly with Moldovan prime minister, the first round of negotiations on the creation of a Deep and Comprehensive Free Trade Area.
The Free Trade Agreement might be signed in two or three years. Yet, the Moldovan authorities hope that this process will not take so long. These expectations are based on the latest positive experience in the talks on the European Common Aviation Area, which started on 27 July 2011 and were over in a record period of just three months. Also, Moldova has recently ranked first in the top of European Integration of the Eastern Partnership member states, made public within the Forum of Eastern Partnership Civil Society. The results came as a surprise to experts, given the fact that Moldova outstripped Georgia in terms of EU integration, whereas Ukraine, the former leader of the Eastern Partnership, tumbled to the third position in the top.
"If Moldova further displays the same determination, we stand good chances to complete these negotiations in a quite short period," the director for international cooperation of the IDIS Viitorul think tank, Leonid Litra, said. On the other hand, the executive director of the Expert Grup independent analytical center, Valeriu Prohnitchi, said that the Moldovan authorities and the EU had reached a gentlemen's agreement, under which the Deep and Comprehensive Free Trade Area will be created not earlier than 2015, and a proof of this is the extension of the EU's trade preferences until then.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
"We are prepared and we have the needed support from our partners, including at the level of expertise and assistance. Therefore, I am sure that we will go through the negotiations quite swiftly and efficiently, and that the agreement will be signed as soon as possible," Prime Minister Vlad Filat said.
"It is important how we negotiate this agreement and what transition period we will be given. For instance, Ukraine has a transition period of 10 years to enforce all the provisions of the agreement," Leonid Litra said. He added that "Moldova will have a five-year transition period, because unlike Ukraine, our country had no vexing issues in the negotiations with the EU".
Moldova will have to adopt an entire package of laws and to implement a string of reforms in order to comply with the European standards.
Agriculture tops the list of economic fields that need reforms. Among the pressing problems of the national agriculture are the sanitary and phytosanitary standards, which even some EU countries viewed as quite difficult to implement. Moldova has no laboratories able to ensure an efficient sanitary and phytosanitary control, which the EU may approve. Moreover, Moldova lacks an efficient integrated border management that would secure the customs, sanitary and phytosanitary control of the imported and exported goods. That is why the national producers failed to fully use the quotas offered by the EU for the import of animal products.
There are also problems with the EU standards. Only some 10 per cent out of over 20,000 European standards were taken over. Moldova keeps on sticking to the norms of the Commonwealth of Independent States, which differ from those applied in the EU. This causes problems to the domestic companies doing business with EU partners. Since goods' quality has not reached the European standards yet, Moldova will only benefit from tougher quality requirements.
54 Some experts say that the greatest difficulties will occur in the fields of interests. It is well known that many Moldovan sectors are monopolized; therefore some will find it difficult to accept equal business conditions.
There are many fields requiring comprehensive reforms. Also, Moldova will have to face expenses for the transition to the free trade regime, as well as risks related to the decrease in customs fees on goods imported from the EU countries.
European experts believe that a free trade area will help Moldova become more competitive and benefit from the single EU market. The EU aims at creating a stable and sustainable framework for its economic relations with the Eastern Partnership countries, including Moldova.
Moldovan Deputy Economics Minister, Octavian Calmic, said that the Free Trade Agreement with the EU will bring more benefits than risks. Moreover, "Moldova might become the first country with a preferential trade regime both with the Eastern and Western partners. This will open up a string of business prospects, first of all, in the processing of raw materials from East and their export to West and vice versa," Calmic said. The agreement will also serve as a guarantee for investors.
The European market is the main destination for Moldovan goods, with over 50 per cent of the Moldovan exports having been shipped to the EU in the first nine months of 2011.
Moldova benefits from a five-year preferential trade regime that the Council of the European Commission granted in January 2008. Moldovan goods (except such products as wines, crops and animal products) are exported to the EU community without any quantitative restrictions and without import fees. In 2010, the autonomous trade preferences were extended until late 2015.
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Chisinau,RESIDENTIAL December ELECTIONS 13. /MOLDPRES/.IN OLDOVA SThe RANSNISTRIA so-called LIKELY "presidential TO BE CANCELLED elections" in the "Pbreakaway Transnistria are likely to be cancelled, following a complaint submitted by presidential candidate and incumbent leader Igor Smirnov, according to the Transnistrian news website Olvia-press.
A representative of the Transnistrian electoral commission (CEC), Vladimir Chukhnenko, has told a news conference that the CEC members are considering a complaint received from a representative of Igor Smirnov. The latter demands that the 11 December polls should be cancelled, citing as reason infringements that allegedly took place during the electoral campaign and on election day.
Chukhnenko said a decision on the matter will be made public on 14 December. He did not rule out that the elections might be annulled.
Vladimir Chuhnenko said that with 80 per cent of the ballots counted, none of the six presidential candidates picked up 50 per cent of the votes.
According to the Transnistrian CEC, the voter turnout in the region was 56.65 per cent. Unofficial sources have said that present parliament speaker Anatoliy Kaminskiy and ex-speaker Yevgeniy Shevchuk will most likely participate in the runoff, whereas Igor Smirnov, who has been heading Transnistria for more than 20 years, ranked third in the first round of the elections.
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The PakELPS Banker MPROVE [La hore]EALTHCARE 09 Dec IN 2011.OLDOVA WITH RECEDENT ETTING EAL IFCChisinau,H IDec. 8 --H IFC, a member of the WorldP Bank Group, has helped facilitate a 55 groundbreaking partnership that is expected to improve hospital services in Moldova and pave the way for future investments in the country's healthcare sector.
IFC advised Moldovan officials on a recently-signed agreement with private healthcare provider Magnific SRL. The company will provide radiology and diagnostic imaging services at Chisinau's IMSP Republican Hospital. This is the first public- private partnership project in Moldova and will benefit 100,000 patients annually.
"Public-private partnerships have emerged as way to increase the efficiency of the country's healthcare sector," said Dr. Andrei Usatii, Moldova's Minister of Health. "The availability of technically-advanced diagnostic equipment is essential for ensuring timely diagnosis and contributes to the reduction of total care costs and enhances health service quality."
Magnific SRL will invest $7 million in capital improvements and modern radiology and imaging equipment, including a C.
T. scan, MRI technology, digital fluoroscopy, and digital and mobile X-ray machines. The company will hire on employees who are currently working in the hospital's radiology section. It has also agreed to return to the hospital five percent of its annual revenues from referred patients.
"This agreement represents an important step in improving healthcare for Moldovan citizens and paves the way for new public-private partnership projects in the country," said Georgi Petrov, IFC Public-Private Partnerships Business Line Leader in Europe and Central Asia.
The initiative is part of IFC Advisory Services' Public-Private Partnership program, which counsels governments on ways to engage the private sector in the provision of essential services. The program's goal is to support economic development by expanding access to power, water, healthcare, and sanitation services.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The IMSP Republican Hospital project was implemented with financial support from the Ministry of Foreign Affairs of the Netherlands. Published by HT Syndication with permission from Daily Pak Banker.
For any query with respect to this article or any other content requirement, please contact Editor at [email protected] Copyright © HT Media Ltd. All Rights Reserved.
M E UKRAINE OST ATTRACTIVE FOR FOREIGN INVESTMENT: UKRAINIAN AGRICULTURE, NERGY, FINANCE, KYIV,ONSUMER Ukraine, OODS December 15, 2011 /PRNewswire/ -- CUkrainian Gagriculture, fuel and energy complex, financial services, and production of consumer goods will become the most appealing sectors of national economy for foreign investments in 2012. Such prediction was made by the President of the American Chamber of Commerce (ACC) in Ukraine Jorge Zukoski in his interview with the Ukrainian Week.
Ukrainian businesses look for ways to turn the country into a platform for exporting goods and services to Europe, according to the ACC President. The agricultural sector of Ukrainian economy is most likely to become the most profitable in the country. Within the next five years Ukraine can double the efficiency of the sector. To achieve this, however, additional domestic and international investments, as well as new technologies and infrastructure are needed, commented Zukoski. The global demand for Ukrainian agricultural produce is steadily growing, conditioned by the increase of the world's population [hence the rise of need for food]. "Ukraine is in a unique position, because it can fill this niche [of food production]," stated the President of the ACC. 56
Given Ukraine's rich grain production in 2011, this August the country initiated the creation of the world's grain reserve under the auspices of the United Nations. Minister Prysyazhnyuk explained that Ukraine aimed to form a grain reserve of 10 to 12 million tons, preserve it and make grain interventions on the market following the respective decisions by the UN. Nonetheless, Zukoski stated that the lack of political stability can pose problems for Ukraine's agricultural prosperity.
As for the energy sector, Ukraine is thriving for independence. "Gas and oil tenders… can significantly increase its investment attractiveness," told Zukoski the Ukrainian Week. He also noted that the ACC had witnessed some positive trends in the sector: two tenders on developing the unconditional gas deposits, which were made possible by adopting the new law on diversification of production. The sector bears a potential to attract billions of dollars worth of investments, according to the expert.
Commenting on the financial sector of Ukrainian economy Zukoski pointed out, that the Ukrainian banking system was strong enough to survive the recent world economic crisis. Speaking of the traditional sectors which attract additional investments, the ACC President also mentioned the production of consumer goods. SOURCE Worldwide News Ukraine
JakubFTER CLOSINGParusinski DOORS, Kyiv KRAINE Post ,OPENS Dec WINDOW15 2011 TO INVESTORS A jungle of red tape, U and byzantine bureaucracy in the best of times, Ukraine is no easy destination for investors.
Yet an ambitious new government program, the “One-Stop Shop,” has the potential to become a glimmer of light in the darkness.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The “One-Stop Shop” is part of the Invest Ukraine investment promotion unit at the State Agency for Investment and National Projects. Launched weeks ago and operating out of a Kyiv-based office, it provides free services for large investors, guiding them through the complex process of investing in Ukraine.
The principle and aims of this project are, according to experts, a move in the right direction. Speeding up investment procedures should help attract capital, jobs, and know-how.
But to become a game-changer for Ukraine, notorious for its horrible investment climate and low influx of foreign direct investment, numerous wrinkles have to be ironed out.
The government has yet to address the most fundamental problem plaguing the business community – the lack of a legal, administrative and fiscal environment that would give companies the freedom to thrive.
Plans for the program are impressive. In addition to becoming one of the first sources for clear and structured information in English about doing business in Ukraine, the “One-Stop Shop” is supposed to provide, among other services, market research, feasibility studies, site development support and assist in making contacts with regional government administrations.
Officials at the state agency said the services will be free. However, in an interview this autumn, a senior official from the agency said that big and small investors involved in complicated projects requiring special attention will pay a fee.
The main idea is to speed up and simplify bureaucratic procedures that far too often bog down investors. 57 “Investing in Ukraine is too confusing. Investors spend too much time getting basic information,” Serhiy Yevtushenko, Invest Ukraine’s head, said during the formal launching of the “One-Stop Shop” office.
Currently, Yevtushenko noted, two years can pass between a company’s decision to invest in Ukraine and the launching of operations on the ground. The aim is to reduce this to 6-9 months, he added.
The agency claims to have set itself clear criteria by which to judge its success. “We aim to be measurable and predictable,” Yevtushenko said.
The list includes a first response within 24 hours or a query, a primary study within a week, an in-depth analysis and market research in a month, as well as an investment proposal in a total of six weeks.
Yevtushenko hopes that such diligence will allow the agency to bring in 10 major investors in 2012 that will pump an additional $2 billion into the local economy, creating more than 3,000 jobs.
This will be challenging, considering that Ukraine has since independence attracted less than one fourth of the $200 billion in foreign direct investment that has poured into neighboring Poland.
Even at Invest Ukraine’s “One-Stop Shop” project itself, work remains to be done. At present, contact information on the agency’s www.ukrproject.gov.ua and www.investukraine.com websites remain sketchy. Sections take ages to load only to turn up empty, and there is a lack of specifics.
To top this off, the facts and figures are, according to some accounts, misleading. Gross domestic product per capita in 2010, for instance, is set at $6,700, way above the International Monetary Fund’s estimate of $3,013. That is because the former is
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
adjusted to the cost of living – an acceptable solution, but one that must be clearly marked.
The presentation materials are also inaccurate. The average monthly wage in Ukraine, for example, was set at Hr 2,240, considerably below the October level of Hr 2,729, according to the government statistical office Ukrstat. Then this was converted into dollars using an exchange rate of 9.33 rather than 8. The two moves effectively turned an average wage of $340 into $240.
Yet even if one assumes these “bugs” will be resolved and the agency will be free to pursue its program unfettered, it remains unclear how more systemic challenges will be addressed.
For one thing, the program focuses solely on big companies, ignoring the small and medium enterprises that form the basis of modern economies.
This point was driven home by the Estonian Economy Minister Juhan Parts, who highlighted that there are close to 300 Estonian companies operating in Ukraine, but that they are easily overlooked due to a preoccupation with big investors.
Yet smaller businesses, usually operating in high-tech and high value-added industries, boost a country’s competitiveness and wage growth. “Don’t forget about small investors,” he emphasized.
The Estonian minister is well-placed to dispense such advice. After suffering from a 15 percent gross domestic product decline at the height of the 2009 global economic crisis, Estonia immediately got back on the horse and is projecting 6.5 percent growth in 2011.
The foundation of this recovery, he explained, were smaller enterprises, flexible 58 and versatile enough to adapt to the new realities. “Open up your economy, adapt, and move up in the value-added ladder,” Parts concluded.
Yet small companies are not the only ones struggling, and experts are united in their appeal that Ukraine’s authorities first take care of current investors rather than chase new ones.
Bohdan Yarmolenko, partner at the auditing company Ernst & Young, highlighted the difficulties most troubling international investors: a lack of transparency, a tough legal environment, language barriers, and financial manipulation, notably in connection to the tax regime.
This has indeed become a major problem of late. At the end of October, the tax office flaunted Ukrainian law and international practice by instructing collectors to disregard carrying forward losses from 2010 and before.
The move prevents companies from taking losses incurred in previous years into account when paying taxes. Experts say this could have a crippling effect on businesses, costing them billions of dollars in losses.
Tomas Fiala, president of the Kyiv-based European Business Association and CEO of local investment bank Dragon Capital, pointed to another problem area: privatization of prized state assets.
All too often it is with tenders that limit outside bidding and skew chances in favor of domestic oligarchs. “The ongoing privatization of electricity companies is not the best example,” he said.
According to Fiala, the current initiative to sanction the sale of agriculture land is also troubling.”The draft law on land privatization would be a big step back,” he explained, emphasizing that it would be “very detrimental to the development of agriculture.”
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Time will tell whether or not the “One-Stop Shop” will overcome these problems as well as a deteriorating global economic environment.
“The reaction of the investors will be the best assessment of the project,” Yarmolenko of Ernst & Young said. Read more: http://www.kyivpost.com/news/business/bus_general/detail/119062/#ixzz1hGaCQbsT
UkraininanIEV AND RAGUE Journal PLANNING TO DISCUSS ZERI OIL TRANSIT IN EBRUARY KKIEV, Dec.P 13 – Kiev and Prague areA planning to holdF additional consultations regarding the pumping of Azeri oil through Ukraine and Slovakia to the oil refinery in Kralupy (the Czech Republic), Czech Deputy Industry and Trade Minister Milan Hovorka said.
"I hope that on February 15 we will hold consultations with the participation of the Slovak side and representatives of companies, who will give us a final answer on this project," he said after the fifth sitting of the Ukrainian-Czech commission for economic, industrial and science-technical cooperation in Kiev on December 12.
In turn, Mykhailo Kravchenko, head of the Foreign Economic Activity Department of Ukrtransnafta, noted that earlier the sides agreed on the trial pumping of a batch of Azeri oil through the Odessa-Brody oil pipeline and one of branches of the Druzhba pipeline to the oil refinery in Kralupy in January-February 2012.
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UkrainianZECH INDUSTRY Journal AND TRADE MINISTER PUSHES FOR KRAINE FREE TRADE KIEV,C Dec. 12 – Czech Deputy Minister of IndustryU andEU Trade Milan Hovorka said that his country wants to see the signing of provisions on a free trade area between Ukraine and the EU.
"We want the conditions to be created for the signing of a comprehensive free trade area, and we want entrepreneurs in Ukraine and the Czech Republic to take advantage of all the benefits of this agreement," he said at a meeting of the Ukrainian-Czech intergovernmental commission on economic cooperation co-chaired by him in Kiev on Monday.
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KYIV,KRAINE Ukraine, TO UILD December A RAND 8,EW 2011 OURIST /PRNewswire/ ITY BY -- U"In the nextB threeB and aN half years,C essentially,2014 a completely new tourist city will emerge near Yevpatoria," stated the Vice Prime Minister of Ukraine - Minister of Infrastructure of Ukraine Borys Kolesnikov after the conference Inside Ukraine, organized by The Economist in London. The minister said that the development will ensue within the national program to modernize the Crimean peninsula into an attractive tourist destination.
Minister Kolesnikov explained that a new tourist city would be built from scratch on the Crimean peninsula. It will offer hotel accommodation for thousands of visitors along with vast opportunities for investment in the development of infrastructure. Additionally, the plan to develop Crimea stipulates for two new airports to be built in the central and southern parts of the peninsula.
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The move is growing in popularity in various countries of the world. In Saudi Arabia six so-called "economic cities" are being built across the country. The aim of the project is to create over a million new job opportunities and provide homes for 4-5 million residents. The project is set to contribute USD 150 billion to the GDP of Saudi Arabia by 2020.
This year the government of Honduras introduced one of the most revolutionary concepts of new cities. The major advantage of the emerging city will be a charter of legally binding rules regulating the life in the area. One of the better governed countries of the world will be asked to guarantee the charter.
Crimea is an autonomous republic of Ukraine located in the south of the country. Its geographical location makes the peninsula the most favorable for recreation region of Ukraine. Crimea is surrounded by the Black Sea and borders on the Sea of Azov. The mildly salty waters of the Black Sea, perfectly warm in summer, attract millions of tourists to the sunny beaches of the southern Crimean coast annually.
As of now, the Crimean tourist infrastructure and the quality of services provided has hardly reached its potential. This serves as an incentive for the Ukrainian government to invest in the development of the region, as well as provides an attraction for foreign investors who have a chance to capitalize on the emerging tourist market with high potential.
Map of the area http://wnu-ukraine.com/news/culture-lifestyle/?id=1141
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DailyAK KRAINETimes, BUSINESSFriday, FORUDecember AKISTAN 09, 2011 PITCHES FOR TRADE INVESTMENT P U P , KARACHI: Exports from Pakistan to Ukraine have shown a substantial increase over the 60 last eight years and the average export during this period is 53 percent.
In 2003, Pakistan’s export to Ukraine was $7.45 million, which reached $66.52 million in 2010.
However, the 116 products, which Pakistan exports to Ukraine, have the market share of 5.1 percent of range of products, which constitutes 2.2 percent Ukraine total imports worth $61 billion.
Trade Development Authority of Pakistan (TDAP) in collaboration with Pakistan embassy in Ukraine organised the first Pakistan-Ukraine Business Forum in Kiev.
TDAP Chief Executive Tariq Puri leading a trade delegation to Ukraine, highlighted the features of bilateral trade.
Pakistan could increase its share by adding value in its supply chain and product diversifications, he added.
World Bank’s ‘Ease of Doing Business Index’ has ranked Pakistan as number 1 in South Asia.
Discussing the agriculture sector, Puri apprised Pakistan is the second largest buffalo meat producer, second largest buffalo milk producer, third largest cottonseed producer, third largest chillies producer, fourth largest goat meat producer, fifth largest mango producer, seventh largest wheat producer, but has not been able to optimise its strengths for capturing a larger share in the global processed food market.
He emphasised upon the fact that Pakistan has the fifth largest coal reserves in the world and has abundance of other natural resources.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Pakistan requires from the foreign investors to bring the requisite technology through mutually beneficial entrepreneurial arrangements and he invited them for investing in the potential projects especially in steel and iron ore sectors.
Ukrainian government was introducing to integrate its economy with the world and to provide the enabling environment, he added.
Pakistani businessmen expressed their satisfaction on the response they got in Ukraine. Later the Pakistani trade delegation met with American Chamber of Commerce.
UkrainianUCLEAR UELJournal STATE CONCERN TO BUILD FUEL PLANT NEAR IROVOHRAD NKIEV, Dec.F 7 - Kirovohrad Regional State AdministrationK has approved the allocation of land for the construction of a nuclear fuel plant in the village of Smolyne, the administration said.
The operator of the plant construction, the Nuclear Fuel state concern, received a land plot of 7 hectares for its use. Earlier the land was used by VostGOK.
As reported, the residents of the village of Smolyne during public hearings on the issue of the environmental impact of a nuclear fuel plant supported the placement of the object near the village.
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ByKRAINE KaterynaS Choursina INS ,ENDER Bloomberg, FOR Dec TAKE 9, 2011 IN YIVENERGO U DTEK 25% K DTEK, Ukraine’s largest private power producer, bought a 25 percent stake in PAT 61 Kyivenergo, a state- owned energy generating and distribution company, in a tender organized by the country’s state property fund.
DTEK offered 450.5 million hryvnia ($56.3 million) for the stake, according to state property fund’s website today. It outbid energy distributor PAT Poltavaoblenergo.
DTEK is owned by Ukraine’s richest man, Rinat Akhmetov. The company will complete next year the purchase of another energy producer, Zakhidenergo, based in the western city of Lviv.
To contact the reporters on this story: Kateryna Choursina in Kiev at [email protected] To contact the editor responsible for this story: Claudia Carpenter at [email protected] ®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
TendersinfoKRAINE AND NewsEBANON, December ARE INTERESTE 9, 2011D IN DEVELOPING THE ENERGY SECTOR UUkraine and LLebanon interested in developing the energy sector. The Prime Minister of Ukraine Mykola Azarov said this after meeting with Prime Minister of Lebanon Najib Mikati. Mykola Azarov informed that the parties agreed that the Minister of Energy of Lebanon in the near future visit Ukraine to review the national experience in the construction of small hydropower, wind energy development opportunities, build solar power plants.
We agreed that the Minister of Energy will visit Ukraine soon to get familiar with experience of Ukraine in the construction of small hydropower plants, the possibilities of wind energy, solar power plant construction - the Head of Ukrainian Government said. Mykola Azarov thanked the Prime Minister of Lebanon Najib Mikati for the opportunity to visit Lebanon, stressing that that was the first visit of
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Prime Minister of Ukraine to the Lebanese Republic during the history of bilateral relations. The Prime Minister of Ukraine informed that during a meeting with Prime Minister of Lebanon Najib Mikati it was discussed in detail cooperation in agriculture, transport, culture, banking, including possible opening of Lebanese banks in Ukraine, as well as legal basis. It is clear that the development of economic and cultural cooperation should be based on a solid foundation of legal relations - Mykola Azarov said. - We have outlined a number of documents in this area, which work should be completed soon. According to the Prime Minister of Lebanon Najib Mikati, Heads of Governments noted the importance of the intergovernmental commission on trade and economic cooperation and agreed that the line ministers of both countries should maintain a constant dialogue. The PM of Lebanon stressed on fruitful negotiations, noting that it has been discussed issues of cooperation in various fields. Of all the issues I mentioned Lebanese side intention to deepen and develop cooperation, - Mykola Azarov said. Copyright 2011 Tendersinfo News,
UkrainianABINET APPROVES Journal MAJO R ORYSPIL AIRPORT PROJECT COST INCREASES CKIEV, Dec. 9 – The UkrainianB cabinet has approved a revised project on the construction of Terminal D at the Boryspil international airport, nearly tripling its cost compared to the initial estimate, to UAH 4.809 billion.
Cabinet resolution No. 1219 of November 21, 2011, which amends resolution No. 1000 of July 23, 2008, was posted on the government's Web site on Thursday.
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UkrainianKOTECHNIK Journal RAHA TO BUILD NIPROPETROVK S ST SOLAR PLANT NEXT YEAR KIEV, Dec. 2P - Ekotechnik Praha (the Czech1 Republic) will begin constructing the 62 first solar power station in Ukraine's Dnepropetrovsk region in 2012, the regional administration's information department said in a statement.
The company's subsidiary, Ekotechnik Ukraine, will act as the general contractor for the project, investments in which are estimated at around 100-110 million euro.
UkrainianKRAINE BUSINESSMEN Journal TAXES AND CORRUPTION AS BIGGEST PROBLEMS KIEV,U Dec. 2 – UkrainianID businessmen think taxation policy and corruption in Ukraine are their biggest problems, and that the situation in this sphere has worsened this year, according to a report on competitiveness of Ukraine's regions in 2011 presented by the Foundation for Effective Governance in Kiev.
According to the survey, the importance of the role of the country's tax policy in business grew from 14% to 16% in 2011, and corruption from 10% to 15%.
The foundation's experts think that the fact that tax policy became one of the top obstacles for businesses is most likely to be connected with the coming into effect of the Tax Code of Ukraine on January 1, 2011 and the uncertainty about its further administration.
MOSCOW,AZPROM De CLOSEc. 2 TO (UPI) NEW DEAL-- Russia WITH andKRAINE Ukraine could reach an agreement on further Gcooperation in the natural gas Usector before the end of December, a Gazprom official said. Gazprom Chairman Alexei Miller met with Ukrainian Energy Minister Yuri Boiko in Moscow to discuss cooperation in the natural gas sector. Both sides, Gazprom said in a statement, were focused on spelling out new terms and conditions for bilateral energy cooperation.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
"There is a certain progress in the negotiations," Miller said in a statement. "I believe we may enter into agreements on cooperation deepening in the gas sector before the year end."
Kiev is lobbying for cheaper gas from Russia's Gazprom. With its economy in shambles from the global recession, the $400 per 1,000 cubic meters paid is putting strains on the Ukrainian economy.
Gazprom cut gas supplies to Ukraine briefly over contract disputes in 2009. The deal that brought gas back to Ukraine eventually landed former Prime Minister Yulia Tymoshenko in jail for seven years on charges she abused her authority.
Ukrainian officials in November suggested a new natural gas price would be roughly halved for Kiev, though Kremlin spokesman Dmitry Peskov was quoted by Russia's state-run news agency RIA Novosti as saying at the time that it was "premature" to speak of a formal pricing arrangement. © 2011 United Press International, Inc. All Rights Reserved.
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KyivIGH Post,SPEED TRAINSDec 01, WILL 2011 CU T| TRAVEL Mark Rachkevych TIME BETWEE N MAJOR KRAINIAN CITIES NEXT YEAR TrainH times between Kyiv and three major UkrainianU cities could be dramatically reduced next year when new high-speed trains are introduced ahead of the Euro 2012 soccer tournament.
Six of 10 trains ordered from South Korean manufacturer Hyundai are scheduled to be delivered ahead of the championship, which kicks off on June 8 in Ukraine and 63 Poland.
The new passenger trains will be a big step up in quality as well as speed compared to Ukraine’s rolling stock of Soviet-built trains, many of which have been refurbished but still lag far behind European standards.
Their top speed of 180 kilometers per hour will make travel time from Kyiv to Kharkiv, Lviv and Donetsk 3.5 hours, 4.5 hours and 5.5 hours, respectively – shaving one-third to one-half off current times.
Tickets will cost from $6.70 to $13.40 per 100 kilometers, according to the infrastructure ministry, a hefty increase from ticket prices on existing trains, but still cheaper than air travel, Ukraine’s Euro 2012 agency announced last week.
At between $35 and $100, ticket prices on the high-speed trains from Kyiv to any of Ukraine's three other Euro 2012 host cities will be affordable for most locals and tourists. By comparison, a roundtrip flight to Lviv or Donetsk costs some $300.
Each high-speed train will consist of nine carriages with a total capacity of 579 passengers. The first three carriages are first class while the remaining six are second class. Some will be wheelchair accessible.
The Hyundai trains that will soon be rolling on Ukraine’s railway tracks are a big step above in comfort and quality compared to the nation’s existing stock of Soviet- designed and built passenger carriages. (Courtesy)
First-class travelers will be able to stretch their legs horizontally and have individual electric sockets for cell phone and laptop use. Wi-Fi internet will be provided free of charge, and there will be four to six TV monitors in each carriage broadcasting movies and passenger information.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
A Ukrainian delegation is set to inspect the first of 10 high-speed electric-powered trains it ordered from for some $300 million during a visit scheduled to South Korea on Dec. 20.
Christened the Ukrainian Express, the trains are slated for delivery in late February and Ukrainian state railway workers will be trained in South Korea to operate and maintain the rolling stock starting in late December.
“It’s an enormous leap for our transport system,” said Deputy Prime Minister Borys Kolesnikov on Nov. 23.
The Export-Import Bank of Korea funded 85 percent of the purchase price, or $261 million, of the trains in a 10-year loan to Ukraine.
The deal stems from a memorandum of understanding signed between ex-Prime Minister Yulia Tymoshenko and her South Korean counterpart Han Seung-Soo in July 2009, as part of several bi-lateral agreements.
Read more: http://www.kyivpost.com/news/business/bus_general/detail/118026/#ixzz1fUi1ojXS
KyivOLL PostKRAINIAN, Dec 02BUSINESSMEN 2011, Interfax MOST OFTEN-Ukraine COMPLAINT ABOUT TAXATION POLICY CORRUPTION UkrainianP : U businessmen think taxation policy and corruption in Ukraine, are their biggest problems, and that the situation in this sphere has worsened this year, according to a report on competitiveness of Ukraine's regions in 2011 presented by the Foundation for Effective Governance in Kyiv on Nov. 30. 64 According to the survey, the importance of the role of the country's tax policy in business grew from 14% to 16% in 2011, and corruption from 10% to 15%.
The foundation's experts think that the fact that tax policy became one of the top obstacles for businesses is most likely to be connected with the coming into effect of the Tax Code of Ukraine on Jan. 1, 2011 and the uncertainty about its further administration.
The problems with tax policy and corruption are followed by the problem of the instability of state policy, although its importance dropped from 17% to 12% over the year.
"As forecasted, the importance of inflation and the currency exchange rate, which were topical during the crisis, dropped in 2011. But considering the high level of macroeconomic instability in the country, these factors are very likely to return to top positions soon," reads the report.
According to the survey, the role of inflation dropped from 10% to 7% in 2011, in proportion with tax rates (8% in 2010). Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The second five of the biggest problems for businesses includes ineffective state apparatus – 6% (up from 5% in 2010), the instability of local and state authorities - 6% (down from 10% in 2010), access to funding – 6% (down from 9% in 2010), the licensing system – 5% (in 2010 this problem was not mentioned in the poll), and low qualification of labor force – 4% (up from 3% in 2010).
The authors of the report said that in 2011 respondents in various regions of Ukraine faced the same problems (95% coincidence), which was not typical for 2010.
Director of the Foundation for Effective Governance Natalia Izosymova said that in 2011 the foundation jointly with the World Economic Forum for the first time researched all 24 regions of Ukraine, the Autonomous Republic of Crimea, Kyiv City and Sevastopol City. GFK Ukraine polled 2,100 companies.
Read more: http://www.kyivpost.com/news/business/bus_general/detail/118079/#ixzz1fUiEW9Mi
BALKANS 16.12.2011HORVATSKO 17:42 VSTOUPÍ DO V ČERVENCI CKdy: 09.12.2011 , Kde:EU Brusel 2013 Summit EU rozhodl, že Srbsko si musí na kandidátský status počkat. Lídři členských států Unie v pátek 9. prosince 2011 na začátku druhého dne jednání Evropské rady slavnostně stvrdili svými podpisy budoucí rozšíření evropské 65 sedmadvacítky o Chorvatsko. Během samotného jednání Evropské rady pak řešili otázku zahájení přístupových rozhovorů s Černou Horou a přiznání kandidátského statusu Srbsku. Chorvatsko
Premiéři a prezidenti členských států EU podepsali v pátek dopoledne přístupovou smlouvu Chorvatska, které by tak mělo do Evropské unie vstoupit 1. července 2013. Ke splnění tohoto cíle bude ovšem nastávající člen EU muset důsledně plnit své závazky, především dále realizovat reformy v oblasti fungování právního státu (tj. nezávislost a efektivita soudnictví, boj proti korupci a organizovanému zločinu a napravování křivd a zločinů občanské války). Při splnění těchto podmínek a po ratifikaci smlouvy všemi členskými státy a chorvatském referendu se balkánská země stane osmadvacátým členským státem EU. Černá Hora
Evropská rada přivítala hodnocení Komise ve vztahu k pokroku v Černé Hoře. Tato kandidátská země by měla podle doporučení evropských institucí lépe bojovat proti korupci a organizované trestné činnosti. Ve svém reformním úsilí by měla černohorská vláda brát zvláštní zřetel na zásady právního státu a základních práv. Členové Evropské rady se dohodli, že přístupová jednání s Černou Horou by měla odstartovat v červnu příštího roku. Srbsko
Evropští státníci vzali na vědomí pokrok, jehož dosáhlo Srbsko při plnění kodaňských kritérií. Dále členové Evropské rady označili za uspokojivou spolupráci srbské vlády s Mezinárodním trestním tribunálem pro bývalou Jugoslávii a ocenili otevření dialogu mezi Bělehradem a Prištinou. Zlepšení vztahů mezi Srbskem a Kosovem dokládá společná dohoda o integrované správě hranic. Srbsko se udělení kandidátského statusu sice zatím nedočkalo, bude o něm však rozhodovat Rada EU v únoru 2012, přičemž její rozhodnutí musí potvrdit Evropská rada v březnu téhož roku. V době do konání obou Rad bude mít Srbsko příležitost pokročit v řešení dalších praktických otázek. Osobní angažmá proevropsky zaměřeného srbského prezidenta Borise Tadiće je zárukou, že Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
plnění dosažených dohod bude úspěšně pokračovat. Udělení statusu kandidátské země Srbsku by pak nejspíš posílilo i pozici vlády před jarními volbami.
V návaznosti na závěry Evropské rady vydali vysoká představitelka EU pro zahraniční záležitosti a bezpečnostní politiku a místopředsedkyně Komise Catherine Ashton a komisař pro rozšíření Štefan Füle prohlášení, v němž pogratulovali prezidentu Tadićovi a jeho vládě za pokrok, který učinili v posledních letech a měsících. Oba představitelé Komise zdůraznili, že „Rozhodnutí Evropské rady (…) je jasným signálem, že si EU přeje přivítat Srbsko do svých řad a těší se na další zintenzivnění spolupráce se Srbskem“. Island
První polovina roku 2012 snad ukáže, že rozšiřování zůstává jednou z nejúspěšnějších politik Evropské unie. Alespoň dílčí pozitivní zprávou v tomto směru momentálně je úspěšná mezivládní konference s Islandem 12. prosince 2011, kde byly předběžně uzavřeny další čtyři kapitoly přístupových jednání: 6. Právo společností, 20. Podnikání a průmyslová politika, 21. Transevropské sítě a 23. Soudnictví a základní práva. Není žádným překvapením, že posledně uvedená kapitola, která byla neuralgickým bodem přístupových jednání s Chorvatskem (a bezpochyby bude jednou z nejnáročnějších i případě negociací s dalšími balkánskými kandidáty), nepředstavovala v případě Islandu jako dlouholeté fungující a vyspělé demokracie žádný problém. Současně byla na této mezivládní konferenci otevřena kapitola 33. Finanční a rozpočtová ustanovení. Dohromady tak Island má již uzavřeno osm z celkového počtu pětatřiceti kapitol (s tím, že další tři jsou již otevřeny a pracuje se na jejich dojednání).
Proces rozšiřování má i nadále pro EU strategický význam z hlediska bezpečnosti či dalšího rozvoje ekonomiky, což potvrzuje mimo jiné i zájem českých firem o investice v regionu západního Balkánu.
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Luxembourg, PROVIDES DecemberM FOR8. (MIA). FINANCING The EuropeanESTERN ALKANCommission, in cooperation with the ECEuropean InvestmentEUR141 Bank (EIB) and the EuropeanB Bank for Reconstruction and Development (EBRD), has provided over EUR 140 million for financing small and medium enterprises (SMEs) in Western Balkan countries.
This is a crown of the tree-year efforts, said Serbian Vice-Premier Bozidar Gjelic, who promoted the idea for setting up a regional investment platform.
"This is a chance to enable people, who have energy to work, to earn and remain in their countries," Gjelic said Wednesday at a meeting of the Western Balkans Investment Framework (WBIF) Steering Committee in Luxembourg.
Gjelic said the EC, EIB and EBRD contributed to EUR141 million - Western Balkans SME Platform, which will have three funds - for innovation, development and guarantees.
The platform is devoted to contribution of capital access availability for local SME's which has so far been a problem for these companies. The aim is to improve standards in business, ensure transfer of skills and market development by creating a favorable climate for venture capital and private investment in the Western Balkan region.
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SOFIA,ULGARIA December USTRIA 15. IGN (BTA). GREEMENT Bulgaria ON ALEand OFAustria MISSION signed NITS an agreement on the sale of Bprescribed, A emission unitsA within the National SchemeU for Green Investments, the Ministry of Environment and Waters said. A part of the vacant quotas has been sold. The revenues from the deal will be used to finance projects on enhancing the energy efficiency of buildings of schools and kindergartens as well as on the construction of boimass and biogas plants on Bulgarian territory. The implementation of these projects will bring about considerable reduction of the greenhouse gas emissions. Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
TheNUSUAL Kyiv DROUGHTPost, Dec TRIGG 02,ERS 2011 ALARM ACROSS ALKANS UBEZDAN, Serbia (AP) — The waters of theB mighty Danube are so low that dozens of cargo ships are simply stuck, stranded in ghostly fog or wedged into sand banks on what is normally one of eastern Europe's busiest transport routes.
A lack of rain has triggered the worst drought in decades for this time of year, dropping river levels to record lows and sounding an alarm in parts of central and eastern Europe.
Power supplies are running low in Serbia, drinking water shortages have hit Bosnia, and crop production is in jeopardy in Romania, Bulgaria and Hungary. The Czech Republic is at its driest since records began in 1775.
Meteorologists say they are not sure why the region has had far less rain than average since August — but they don't see any more coming quickly. That is bad news for shipping companies that are already reporting big losses.
"This is a disaster," said Branko Savic, the manager of a privately owned Danube shipping company in Serbia that he says is operating at only a third of its capacity. "Traffic on the Danube is practically nonexistent. . . We are in dire need of enormous amounts of water, rain, or melting snow in order to better the situation."
About 80 big cargo ships are stranded at the Serbia-Hungary border on the Danube, Europe's second largest river, which winds 2,860-kilometer (1,777-mile) from Germany, passing through eight countries before flowing into the Black Sea.
67 "In my many years of experience as a boat captain, I don't remember a drought as harsh as this one," said Anton Balasz, whose ship is among those stuck where exposed sand banks are preventing boats from passing.
Sunken World War II German battle ships have surfaced on the Danube and unexploded bombs that fell during the 1940s emerged from the Sava river in Serbia. At the normally bustling northern Bosnian port of Brcko on the Sava river, workers have been told not to expect any work until further notice.
"If the situation continues, we could easily send all of our work force home," said Mustafa Nukovic, the port's general manager, pointing to the empty cargo terminals and boats parked in the docks.
In Bosnia, drinking water restrictions have been introduced at night in Sarajevo and other cities.
"The Bosna river is so low, you can walk from one bank to another," said Emir Emric, a fisherman. "People catch fish with bare hands — and not only any fish — but 20- kilogram (44-pound) catfish."
Electricity supplies are also running low in Bosnia and Serbia because hydropower plants cannot produce enough power due to the low river water levels. If there is no rain in the next couple of days, hydroelectric plants will be shut down, said Bosnian Serb Energy Minister Zeljko Kovacevic.
Environmentalists are also worried. A World Wildlife Fund report noted a sharp drop in bird populations along the lower stretch of the Danube because of the persistent drought.
The current level of the river along the Bulgarian bank is at its lowest since 1941, and shipping on large stretches of the river has ground to a halt, according to the Bulgarian Executive Agency for Exploration and Maintenance of the Danube River. Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The Bulgarian section between the ports of Somovit and Silistra has a total of 14 spots where the Danube level is below the river navigation minimum of 250 centimeters (98 inches), and 6 spots were the waters are as shallow as 160 centimeters (63 inches).
In Romania, officials say that though the country had a bumper wheat harvest this year, the drought looks set to severely damage next year's production.
"If the drought continues, the wheat crop will be down by at least 20 percent," said Marcel Cucu, the spokesman for the Romanian League of Agriculture Producers Associations.
After having to deal with large areas of farmland under water in 2010, in 2011 Hungary faces the opposite problem — the lack of rainfall.
While the 2011 harvest has resulted in good yields, expectations for 2012 are not very encouraging, said Gyorgy Czervan, state secretary at the Ministry of Rural Development.
Czervan said the average rainfall measured across the country so far this has year has been between 240 millimeters (9.45 inches) and 500 millimeters (19.7 inches), around half the normal amount.
The dearth of rain has caused the soil to harden in many parts of the country, making autumn planting of some products very difficult.
Read more: http://www.kyivpost.com/news/world/detail/118090/#ixzz1fUjRXiyT
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S D D ’ E R ALBANIA BND, LedionHPERNDARJE Veshi ISPUTES- 19.12.2011 ECISION OF LBANIA S NERGY EGULATOR CEZ Shperndarje, the Albanian unit ofA Czech utility CEZ, has contested the decision of Albania’s Energy Entity Authority to leave electricity rates for consumers unchanged for three more years claiming that the decision will affect its investment plan, local media reports.
Although the average electricity rate for consumers remained unchanged at 9.53 Leks per kWh, now CEZ Shperndarje will have to buy the energy at a rate of 2.83 Leks per kWh from the Albanian Power Corporation (KESH) instead of the previous rate of 1.48 Leks, and transmit through Albania’s Transmission System Operator (OST) at a rate of 0.65 Leks per kWh instead of 0.6 Leks previously, which according to the company will increase its operational costs.
ERMAN COMPANY TO CONSULT LBANIA IN TALKS GAzerbaijan, Baku, Dec. 15 /A Trend A.Badalova/TAP Germany's Roland Berger company has become a consultant for the Albanian government in the negotiations for the Trans Adriatic Pipeline (TAP) project, Balkans Business News website reported referring to Albania's Minister of Economy Nasip Naco.
The company won an international tender to provide consultancy services on the development of gas infrastructure projects in Albania, the economy ministry said in a statement.
Roland Berger will advise Albania on its negotiations with TAP consortium in order to achieve the best benefits from the project.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The second round of negotiations between Albania and the TAP Consortium was held in Tirana this week.
The negotiation of a Host Government (Permit) Agreement (HGA) between TAP and the Albanian Economy, Trade and Energy Ministry was launched in late November. The Agreement will define the terms and conditions under which the development, construction and operation of the pipeline will be secured through a legally binding framework.
The Trans Adriatic Pipeline will transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into Western Europe. The project is aimed at enhancing security of supply as well as diversification of gas supplies for the European markets. The total length of the pipeline is about 800 kilometers.
The initial pipeline capacity will be 10 billion cubic meters per year. TAP's shareholders are EGL of Switzerland (42.5 percent), Norway's Statoil (42.5 percent) and E.ON Ruhrgas of Germany (15 percent).
Gas, which will be produced during the second stage of Azerbaijani Shah Deniz gas condensate field development, is considered as the main source for TAP project.
Roland Berger is a major player in the highly competitive management consulting services in the German market. Today, Roland Berger is Germany's second largest management consultancy, with a share of more than one fifth of the market.
BNE,LBANIAN Ledion ARLIAMENT Veshi - 16.12.2011PPROVES RIVATIZATION OF LBPETROL 69 AThe AlbanianP ParliamentA approvedP on Thursday Awith 72 votes in favor the law which envisages the privatization of 100% of shares of Albania’s state-owned oil company Albpetrol. The Albanian opposition voted against the law considering the privatization of Albpetrol as non-transparent and raising concerns about corruptive affairs, local media reports. The Albanian Parliament also approved with the votes of the majority the changes of procedures regarding property registration, making notaries responsible for the transfer of ownership titles.
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BNE,LBANIA Ledion TO IVEVeshi ON -ONCESSION 16.12.2011 AINTENANCE OF ILOT ORINE IGHWAY A The AlbanianG governmentC has decided to give on concessionH the maintenance and operation of the Milot-Morine Highway, part of the Albania-Kosovo Motorway. The decision was taken on Wednesday by Albania’s Council of Ministers, which also authorized Albania’s Ministry of Transportation as the institution that is going to handle the process.
Bid procedures for this road segment are expected to be opened by the end of the month, local media reports. This is the first project which involves concessions in infrastructure in Albania, which soon will be followed by other road axes.
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BNE, Ledion MBASSADOR Veshi -RGES 08.12.2011 LBANIA TO DOPT OUGHER TANCE ON ORRUPTION OSCEThe OSCEA AmbassadorU in ATirana EugenA Wolfarth declared on WednesdayC that corruption is seriously hampering Albania’s efforts to join the European Union and urged Albania to take a tougher stance against corruption starting with high officials. According to Wolfarth, immunity for high-level public officials, including judges, remains a barrier for an efficient and successful investigation of corruption cases.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
A few days ago, a report from Transparency International stated that the corruption perception in Albania had deteriorated.
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BNE,LBANIA Ledion Veshi UDGET - 07.12.2011 UPPORTS MPLEMENTATION OF AJOR ATIONAL ROJECTS AAlbania’s: 2012 PrimeB Minister Sali IBerisha considered the 2012N budgePt, which was approved with the votes of the majority a day earlier, as the biggest budget in the country’s history despite the economic crisis in the region, local media reported on Tuesday. Berisha declared that the 2012 budget guarantees the country’s economic stability, economic growth, as well as it supports the implementation of major national projects.
The Albanian PM described the current economic model as successful and which has led to an increase of foreign direct investment, soaring of Albanian exports and higher salaries and pensions. Berisha called the proposals of the Albanian opposition for the introduction of progressive taxation and the removal of the VAT for certain basic items an attempt to introduce a Marxist economic model in Albania.
BOSNIA Balkans.comIOMASS IN BusinessOSNIA AND - 19.12.2011ERZEGOVINA ASSOCIATION LAUNCHED As“B a continuanceB of activitiesH within” the framework of UNDP GEF project “Bosnia and Herzegovina Biomass Energy for Employment and Energy Security – Biomass” Inaugural Assembly of the association “Biomass in Bosnia and Herzegovina” was organized and held in Banja Luka following the first workshop on forming the association “Biomass in BiH” held in Sarajevo on November 2nd, 2011. 70 More than 20 companies/persons have signed the Founding Document and established the basic structures necessary for functioning of the Association, as Statute of the Association, President, Supervisory and Management Board. Founders include consulting companies, producers of energy, technology or biomass fuel, as well as individual private entrepreneurs and non government organizations from entire BiH which deal with renewable energy resources. Establishing the Association represents one of Biomass project activities directed towards establishing sustainable biomass market and enhancing the cooperation between sector representatives and authorities, international organizations and similar associations. Chambers of Commerce of FBiH and RS have shown their support to founding of the association through their representatives. Mrs. Šemsa Alimanović, representative from Chamber of Commerce of FBiH stated the following: “I am glad that I was able to contribute even a little to work around founding of the association of Biomass in BiH. Chamber system supports founding of the association of Biomass in BiH and will be available for future activities. Motivation for obtaining energy from renewable energy sources is a trend in the European Union, where energy from biomass also belongs. Potential in Bosnia and Herzegovina is abundant in forestry and wood processing as well as in agriculture. Using renewable energy sources will create employment which represents a joint goal for all of us.” Mr. Lazo Šinik, representative from RS Chamber of Commerce emphasized in his speech the significance of all activities undertaken on founding the association “Biomass in Bosnia and Herzegovina”, because Bosnia and Herzegovina has significant amounts of biomass starting from forest residue, through residue from wood processing industry, up to residue from agricultural production. This potential represents solid foundations for production of bio-fuel and bio-gas which can be turned into heating and electric energy in cogeneration plants. He also stated that, having in mind that EU directive 28/09 foresees that by the year 2020, 20% of totally produced energy comes from renewable energy sources, and by the year 2030, 30% of energy needs have to come from biomass energy and to achieve a growth in energy efficiency by 10%, it is necessary to expedite the activities on forming the association as well as to start with production of electric and heating energy from renewable
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
sources, meaning biomass, as soon as possible. Mr. Šinik concluded:“Production of energy from renewable sources will reduce the costs of business activities, increase gross national product and number of employed individuals, and most importantly it will protect the environment”. It is considered that by forming the Association, biomass sector and interests of local producers and sector representative will be better represented in country and abroad, and that this merger will provide better stand for achieving goals – sustainable development based on rational need for renewable energy sources, local energy security and local biomass market, creation of employment opportunities and cleaner environment. Association will make Bosnia and Hercegovina closer to world trends in expoitation of renewable energy sources. Source: UNDP
OR ANK APPROVED INITIAL LOAN EXPOSURE TO RIZMA LOCATED IN OSNIA AND ERZEGOVINA BBalkanB Business News Correspondent - 24.11.2011MKF P , B H BOR Bank d.d., with its seat in Sarajevo, Bosnia and Herzegovina, approved initial loan exposure to Microcredit Foundation Prizma in the amount of BAM 1,9 million. This loan arrangement represents beginning of the cooperation between these two institutions.
BOR Bank was established in 1995 under name Bank for Reconstruction and Development BiH. BOR Bank is traditional local bank with focus on financing national economy and numerous projects, primarily those with developmental goals, under very favourable terms. Mission of BOR Bank is to be transparent and proactive local bank, which provides high quality banking services with attractive pricing, and which aim to ensure high level of satisfaction of its clients, employees and shareholders through efficient and high quality performance, while contributing to development of the local community.
71 Microcredit Foundation Prizma is the leading micro credit organization in Bosnia and Herzegovina and in the region. Prizma has got 50 registered branch offices in which more than 250 young and highly skilled employees provide services for more than 70.000 active clients in 100 municipalities across entire territory of the country. Prizma has, so far, disbursed 330.000 loans in total amount above 530 million KM.
The above mentioned funds will be used for further extension of operations in order to strengthen Prizma's sovereign leadership position on a dynamic micro finance market in Bosnia and Herzegovin
T S CZECH PRAGOIMEX WILL SUPPLY ELECTRICAL EQUIPMENT FOR THE MODERNISATION OF ATRA KT8D5 BalkanTRAMS IN Business ARAJEVO News OSNIA Correspondent AND ERZEGOVINA - 25.11.2011 Czech Pragoimex has, B won a KC6·3mH contract to supply electrical equipment for the modernisation of Tatra KT8D5 trams in Sarajevo, Bosnia and Herzegovina.
The project objective is to increase the technical reliability and safety of public transport in Sarajevo. Many trams that are being used in Sarajevo nowadays are of Czech production (ČKD Tatra), and were bought in the 70s and 80s. Many tramcars were seriously damaged during the war, and in spite of several repairs in the 90’s; the Sarajevo trams are still in a very bad technical condition. In the first phase of the project 15 tramcars of type K-2 were overhauled (bogies and electrical components). The necessary spare parts were funded and delivered by CzDA, the overhauling works were carried out by Sarajevo city transport company. In the second phase schduled for 2011 five tramcars of type KT8D5 will be overhauled. Source: Czech Development Agency
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S S ' R S POTENTIAL COOPERATION BETWEEN CHINESE COMPANY HENZHEN UNLIGHT AND BOSNIA S EPUBLIC OFBalkan RPSKA Business News 13.12.2011 The Prime Minister of Bosnia's Republic of Srpska, Mr. Aleksandar Dzombic met with the Chairman of the Board of Shenzhen Sunlight Co.Ltd, Mr. Chen Dong Yi.
At the meeting, which is also a return visit of the Chinese delegation, two sides considered investment opportunities in RS for the Chinese company, which manufactures and sells high-voltage LED lighting, non-polar LED lamps and other lighting.
The Company delegation last days visited several enterprises in Banjaluka, Novi Grad, Celinac and Krupa na Vrbasu, and exchanged views with their leadership on the issue of potential cooperation.
Prime Minister Aleksandar Dzombic noted that Republic of Srpska was open to all forms of cooperation, particularly those which could create new jobs.
Chairman of the Board Chen Dong Yi gave a promise to meet with some other entrepreneurs, after returning to China, and also introduce them with investment opportunities in Republic of Srpska. Source: RS Government
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BANJA INVITES LUKA, BosniaPTIMA FORDec 13OSNIA (Reuters) ROATIA - TAKEOVERBosnia's TALK Optima Group said OMV AG had invited OMVit to start OnegotiationsB on a, Cpossible takeover of the Austrian oil and gas group's petrol stations in Croatia and Bosnia.
"We have received OMV's proposal. OMV is aware that we are interested in the 72 takeover and I hope we can start the talks as soon as our headquarters in Moscow gives a go-ahead," Optima's spokesman Rade Vidakovic told Reuters.
Optima Group, which operates Bosnia's sole oil refinery Brod, motor oil plant Modrica and the Nestro petrol retail chain, had earlier said that an expansion across the Balkans was one its strategic goals.
The group, owned by Russian firm Neftegazinkor, a unit of state-run Zarubezhneft, has a retail network of 88 petrol stations in Bosnia. It earlier said it plans to invest 200 million euros ($261.74 million) on retail chain expansion by 2015.
OMV said last week it was planning to sell Croatia and Bosnia units and that discussions with interested parties would start in the next few months. It plans to move away from refining and retail and focus on exploration and production.
OMV operates 63 retail units in Croatia and holds a 13 percent market share there, while in Bosnia it runs 13 units and has an 8 percent market share. ($1 = 0.7641 euros) (Reporting By Gordana Katana; Writing By Maja Zuvela)
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BalkanO ON Business IMPLEMENTING News PILOCorrespondentT PROJECTS IN - NERGY14.12.2011 FFICIENCY BETWEEN THE AND OSNIA SIGNED TheU Signing Ceremony of the Memorandum of Understanding (MoU) on EUimplementingB pilot projects in Energy Efficiency between the EU and (9) nine BiH municipalities was held in the EU Delegation in Sarajevo on Monday, 12 December 2011.
The Memorandum was signed by the Head of the Delegation of the European Union to BiH and EU Special Representative, Ambassador Peter Sorensen, and Mayors of Municipalities Brcko, Jajce, Neum, Prnjavor, Tesanj, Trebinje, Visegrad, Zenica and Zvornik.
The MoU marks the beginning of the cooperation on the implementation of the project Support to BiH to meet the requirements of the Energy Community Treaty with special focus on Energy Efficiency and Renewable Energy (DELTER), which aims to increase energy efficiency in public buildings and to assist BiH to comply with its commitments under the Energy Community Treaty. It consists of four components: 1. Demonstration projects for energy efficiency/renewable energy, 2. Institutional and technical capacity building, 3. Public Education and 4. Legal Framework.
The EU funds this project from the Instrument for Pre–Accession Assistance (IPA 2007 and 2008 budget) in the amount of 2,500,000.00 EUR. Additionally 400.000 EUR is provided from the IPA 2008 budget.
The nine projects will receive supplies for improved energy efficiency - windows and doors, insulation materials, boilers, thermostatic valves and lighting fixtures that will be installed in schools and public administration buildings of the selected municipalities.
The selection procedure of the beneficiary municipalities was transparent and with the involvement of the state and the entities authorities. 73 Ambassador Sorensen emphasised that reducing energy consumption and eliminating energy wastage are among main goals of the EU.
Energy efficiency is one of the most cost effective ways to enhance security of energy supply and to reduce emissions of greenhouse gases.
Ambassador also stressed that the energy efficiency is Europe biggest energy resource. BiH has the added value of being the main net exporter of the region.
Energy sector is one with the best possibilities for economic growth, he said and added that in 2010 EU started providing support to Energy Efficiency projects in BiH. Source: http://www.bh-news.com
T ' R S D HE GOVERNMENT IS OPEN TO ALL INVESTORS WHO HAVE A VISION AND WANT TO INVEST IN BOSNIA S EPUBLIC OF RPSKA SAYS ZOMBIC Balkan Business News, CorrespondentPM - 16.12.2011
The Prime Minister of Bosnia's Republic of Srpska, Mr. Aleksandar Dzombic, together with the Ambassador of Kingdom of Norway to B&H, H.E. Ms. Vibeke Lilloe, President of the High Judicial and Prosecutorial Council of B&H, Mr. Milorad Nonkovic, and President of the Basic Court in Modrica, Mr. Zdenko Vranic, officially opened reconstructed building of the Basic Court in Modrica Municipality.
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
The Government of Bosnia's Republic of Srpska and Kingdom of Norway have jointly invested around one million euros in the reconstruction of the Basic Court’s building in Modrica. The Government of Republic of Srpska invested BAM 300.000, while funds granted by the Government of Kingdom of Norway amounted 395.000 euros.
Prime Minister Dzombic said that the Government of Republic of Srpska has invested almost 53 million euros for the past five years into courts, attorney and prosecutor’s offices and prisons in Republic of Srpska, what provided good conditions for professional, independent and effective work of judicial system in Republic of Srpska.
Norwegian Ambassador Vibeke Lilloe said that the Government of Norway decided to pay special attention to the Justice sector in B&H, and had made significant investments in its modernization, together with local authorities.
After visiting the building of Modrica’s Basic Court, Her Excellency pointed out that the quality of reconstructed building is in the same category as courts in EU countries and expressed her hope that good material and technical conditions would improve the efficiency, equity and fairness in judicial processes in Modrica.
The Minister of Justice of the Government of Republic of Srpska, Mr. Dzerard Selman, also attended the Official Opening Ceremony, as well as Representatives of local authorities in Modrica and neighboring Municipalities, and numerous businessmen and Representatives of public life of the Municipality.
Prime Minister Dzombic and Minister Selman, during today's visit to Municipality Modrica, also met with the Mayor and leadership of the Municipality.
Prime Minister Dzombic said that the Government allocated around BAM 34 million for the development of Municipality of Modrica for the past four years, and would try to 74 provide additional BAM 2.600.000 in the following period, in cooperation with Municipality, for construction of rainwater sewage system in the City and equipping a new elementary school building in the suburb “Modrica V”.
He reminded that Investment-Development Bank of Republic of Srpska provided BAM 9 million to Modrica Municipality, and the amount of BAM 12.000.000 was allocated from the Development Program of Republic of Srpska.
„Funds has been realized in the best manner“, Prime Minister Dzombic said and stressed that most significant projects are construction of road communication to Duga Njiva on Trebava Mountain and sewege network in new refugee settlements, which were undergoing.
The Prime Minister expressed satisfaction with the work of the leadership of Modrica Municipality which in last few years constantly realizes budget surplus and regularly pays obligations to budget users.
Prime Minister Dzombic and Minister Selman today also visited the Company “Oil Refinery Modrica”, and had talks with the leadership of the Company.
The Prime Minister of Republic of Srpska expressed his satisfaction with work of the Oil Refinery which increased the volume of production and has 600 employees, and over the next few days will receive ten new trainees.
He stressed that the Refinery is a good example of privatization process and choice of strategic partner, and added that the Government of Republic of Srpska was open to all investors who had a vision and wanted to invest in Republic of Srpska. Source: Government
OSOVO K Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
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JARINJE,USSIAN AID December STILL WAI 14.TING (TANJUG). TO ENTER TheOSOVO Russian aid convoy is still waiting at the Jarinje administrative crossing Kto enter Kosovo, and Russian Ambassador in Serbia Alexander Konuzin discussed the situation with Russian Emergency Situations Minister Sergey Shoygu via a video link on Wednesday morning.
As an official of the Russian Ministry of Emergency Situations told Tanjug, Shoygu said the convoy should remain where it is and wait for further instructions.
According to the Ministry members accompanying the convoy, the task remains for the humanitarian aid to be delivered to Serbs in Kosovo via the Red Cross in Kosovska Mitrovica.
The representatives of the Russian ministry stated that the Russian political top, including Interior Minister Sergey Lavrov, are intensively negotiating the solving of the situation and the passage of convoys.
Late on Tuesday, having allowed through two trucks from the Russian convoy after a comprehensive control, EULEX suspended the control procedure and thereby blocked the entrance of other trucks.
A third truck, which at that moment was at the Jarinje administrative crossing, spent the night there.
There have been no changes on Wednesday morning, and EULEX members are performing control, still not allowing the Russian trucks to cross.
The rest of the convoy is in Rudnica, several kilometers from the Jarinje crossing, awaiting the situation to develop.
75 EULEX stopped allowing the Russian trucks through after the Russian side refused to be accompanied by EULEX, and after the Serbs in Zvecan on Tuesday afternoon intercepted and returned the column of EULEX police vehicles whose intention was to accompany the convoy.
According to Konuzin, EULEX then requested that the convoy accepts to be accompanied by EULEX, or to go to the Merdare checkpoint.
However, the Russian side refused explaining that convoy would not go on to Merdare because the crossing was controlled by the Kosovo customs, which they find unacceptable.
- SERBIA Balkans.comORRIDORS Business RENEWABLE news - ENERGY15.12.2011 PRIORITIES Source: IN Tanjug "CBELGRADE --10, Serbian11, Infrastructure and Energy Minister2012" Milutin Mrkonjić has stated that he is satisfied with the results achieved in 2011 by his ministry. Milutin Mrkonjić (file) He announced that priorities for 2012 would include the construction of road and railway Corridors 10 and 11 and investments in renewable energy sources.
Mrkonjić told Tanjug that plenty had been accomplished in 2011 on the completion of the construction of the road Corridor 10 through Serbia, adding that about 180 kilometers of Corridor 10 had been built since the beginning of this government's mandate, out of the total 330 kilometers that needed to be built.
“Tenders have been invited for the remaining 150km, and Corridor 10 will be completed in the next year or two,” the minister stressed.
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“The railway modernization and the construction of the railway Corridor 10 through Serbia is one of the largest development projects in the country,” Mrkonjić added.
“The construction of the Valjevo-Loznica railway, which is part of the Corridor 11, will soon continue,” Mrkonjić said, adding that the Belgrade-Bar railway through Serbia was also planned to be reconstructed.
“The construction of the Belgrade-South Jadran highway on the road Corridor 11 will continue in 2012,” the minister stressed.
He stated that signing of a cooperation agreement with Italy, which will invest at least EUR 2bn in Serbia, was a huge success.
The minister said that the agreement envisaged that Italian partners purchased electricity produced by renewable sources in hydro electric power plants that will jointly be built by Electric Power Industry of Serbia (EPS) and the Italian company Seci Energia.
“Serbia has considerable potential in that area, and major investments in renewable energy sources are planned for 2012,” Mrkonjić underlined.
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Balkans.com SUPPORTS Business BUSINESS news IN ERBIA- 15.12.2011 WITH MILLION LOAN TO RO REDIT ANK ERBIA TheEBRD EBRD is further increasing the availability€30 of financingP C to micro,B small and medium-sized enterprises (MSME) in Serbia with a €30 million credit line to ProCredit Bank Serbia. ProCredit Bank Serbia is a leading institution for financing MSMEs and agricultural producers in the country, with a broad regional network, offering universal banking services. 76 Although small companies represent the main source of private sector employment in Serbia and are major contributors to the country’s economy, MSMEs and entrepreneurs still face limited access to financing for their development and growth.
ProCredit Bank Serbia will use the proceeds of the EBRD loan to support MSMEs operating in production, services trade or agriculture sectors with sub-loans estimated at around €5,500 on average. The project will thus contribute to deepening the financial intermediation in Serbia and strengthening the banking sector while increasing credit availability to smaller entrepreneurs.
“We are pleased to continue our cooperation with ProCredit Bank Serbia and to support a continuous flow of funding to Serbian SMEs, particularly at a time when availability of financing remains constrained,” said Henry Russell, EBRD Director for Small Business Finance.
“In a decade of our operations in Serbia, more than 280,000 clients recognised our commitment to responsible banking. This credit line will certainly enable us to further improve our efforts in providing the SME sector with credit products designed to meet their specific needs,” said Borislav Kostadinov, Chairman of the Board of Directors of ProCredit Bank Serbia.
Since the beginning of its operations in Serbia, the EBRD has committed around €2.8 billion in various sectors of the country’s economy, with a total value of some €6 billion. Source; EBRD
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BELGRADE,ERBIA USSIA Dec NEGOTIATE13 (Reuters) - MLN Serbia RAIL SYSTEMand Russia LOAN have entered final negotiations for a $800 million, loan to overhaul$800 the Balkan country's dilapidated rail network, the Serbian infrastructure ministry said on Tuesday. Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
Assistant Infrastructure Minister Dejan Lasica said negotiators should iron out details by the end of the week on a first deal worth 50 million euros ($66 million) for repairs to a 15-kilometre stretch of railway between the capital Belgrade and the northern town of Pancevo.
"This first agreement is very important as the other deals will follow the same pattern," Lasica said. "We are now negotiating the share of participation of Serbian and Russian firms and prices."
The $800 million loan is a part of a wider economic pact between Serbia and Russia agreed in 2009.
Serbia is seeking investors to improve its ageing infrastructure, mismanaged and neglected during the wars and sanctions of the 1990s and damaged by NATO bombs in 1999.
The loan envisages the participation of subsidiaries of Russia's state-run OAO Russian Railways in the project and purchases of Russian-made diesel locomotives, Lasica said.
It will also include track repairs between the west Serbian towns of Valjevo and Loznica, reconstruction of Serbia's key rail link to the Adriatic port of Bar in neighboring Montenegro, and the completion of a new railway station in Belgrade.
Parliaments of both countries must ratify the full deal once agreed. ($1 = 0.7567 euros) (Reporting By Aleksandar Vasovic; Editing by Hans-Juergen Peters) © Thomson Reuters 2011. All rights reserved.
“ S D (RSD) 77 „KOLUBARA INVESTS ABOUT 20 MILLION ERBIAN INARS ANNUALLY IN ENVIRONMENTAL SerbiaPARAMETERS-Energy MEASUREME - 13.12.2011NT
For the Company as Mining Basin “Kolubara”, the implementation of monitoring system and monitoring of all environmental parameters is of crucial importance. In the year 2011, 20 million RSD has been invested so far, in different types of measurements regarding environmental impact. It is important to say that young experts from “Kolubara”, within the EMS Project of the Serbian Environmental Protection Agency, are going to acquire new professional knowledge and skills on how to manage all environmental parameters according to the European standards. The Implementation of comprehensive Environmental Monitoring Project in the entire “Kolubara” company should soon begin as well.
- When talking about environmental monitoring, we can say that measurement and management of measured values is essential, i.e. monitoring and continuous improvement of all the parameters. It is not sufficient that we in “ Kolubara” just comply only with Legal regulations, since it goes without saying, but it is necessary also to show to all interested parties and the public that we are willing to improve the present state and to maximally reduce adverse impact of our activities on the environment. More importantly, we should inform all citizens concerned on the state of the environment in detail, and we could do that by using, for example “Kolubara” website, “Kolubara” magazine or by any other available way etc. All the information regarding this matter is accessible to the public, for example information on what our actions are, how much money we invest in the projects related to gradual, but continuous improvement of the quality of the environment. First step in that process is environmental parameters measurement - says Vukica Popadić Njunjić, MSc , Head of the Department for Environmental Protection and Improvement of the MB “Kolubara” d.o.o.
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Three Contracts worth in total 14 million RSD regarding the monitoring of Vreoci facilities impact on the environment (annually) are being implemented at the moment, through accredited institutions and companies in the Branch “ Processing Plant”.
Air quality control is performed by the Laboratory for environmental protection of the Zemun Mining Institute. Twice a year (in the summer and in the winter period) measurements of hazardous and harmful substances emitted from the Heating plant, are performed. In the samples from the winter period, the concentration of total powdery matter is determined, NO2, NO, SO2, CO and CO2, and chemical properties of coal and electrofilter ash are also examined. Once a year measurement of harmful and dangerous substances from the facilities of Drying Plant is also performed, and the quality of ambient air in the impact zone of the production facilities in Vreoci is monitored at 4 measuring points. The 24-hour-samples are taken and the quantity of sulphur dioxide, carbon dioxide, soot and suspended solids is measured.
Accredited laboratory of the licensed Company “ MOL” a.d., Belgrade, performs physical-chemical and microbiological analyses of the Kolubara river water, wastewaters and ground waters, four times a year, at nine location,.
By taking thirty samples out of nine boreholes at four localities - area surrounding settling basin of the water treatment facility (dry separation area, facility for coal enrichment and Heating plant – area surrounding ash and slag dumps), the analysis of soil quality has been performed. As part of this process, Initial Environmental Examination (IEE) of ground water quality and soil absorbing properties examination were done. This year, in the Branch “ Processing Plant”, continuous environmental noise monitoring has taken place. Vesna Krstić, Head of the Department for Environmental Protection of the Branch “ Processing Plant” is responsible for monitoring and auditing of all these measuring processes.
Concerning the noise control, since 2012 the trained operators are going to start 78 with continual level measurement, and they are going to use some of the cutting-edge equipment purchased especially for that purpose. That is going to create conditions for high quality prevention i.e. the development of wind protection zones or noise barriers towards settlements, and the measurements will show which settlements are directly endangered by the open pit mining.
Last, but not the least, we have got consent on three Studies on Environmental Impact Assessment (projects of relocation of the state road M22 Belgrade-Ljig; 1st phase of the Peštan river regulation and control of flood waters outflow, as well as 2nd phase of the river Kolubara relocation in the area of Tamnava open pit mines), for which the IEE study has been carried out.
- IEE is very important to us, because it gives us the information on the environmental conditions before starting with mining operations, so that we could react properly during operation of the open pit mines and minimize negative impacts. Regarding this, we are going to use experiences of the EU Member States and we are planning to increase the quantity of wood biomass at temporary or permanently available areas of the open pit mines, and thus obtain both ecological and financial gain - says Branislav Pajić, Head of the Department for Environmental Protection and Improvement of the Branch “ Open Pit Mines”.
As part of water quality monitoring, in the Open pit mines, in accordance with Legally defined places, and as often as requested , the sampling is performed four times a year, at the points where wastewater is discharged from the open pit mines into the surrounding rivers (the Kolubara and the Peštan). Samples taken are analyzed and about forty main and additional physical-chemical and chemical parameters are monitored in the licensed laboratories. Samples are taken every three months at all the places where wastewaters are discharged into the recipients, at the inflow point, 50 m upstream and 50 m downstream from the discharge point. In order to prevent pollution of the Peštan river, during the past few years, the “biorotor” (for biological aerobic treatment) and two separators (for separating
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grease and oil) are used for sewage wastewater treatment. Beside this one in Medoševac, a similar device is also in operation in the newly opened mining settlement at “Tamnava- West Field”.
Ambient air quality monitoring is also established in the open pit mines, and the monitoring is performed by two automatic weather stations in Kalenić and at the location “Old erection yard” in Baroševac. Data collected on the stations are being updated every 15 minutes and sent to the server of the Republic Hydrometeorological Service of Serbia, to be accessible to all interested parties and institutions. Two suspended solids analyzers are also in operation within the weather stations, and they are very close to each other (one analyzer per million inhabitants is prescribed by the Law). Adoption of the Action plan by the management board of the Branch “Open Pit Mines” is under way, and the idea is to replace or reconstruct all boiler rooms in the open pit mines until the year 2015. (RBK) Source: Serbia-energy.com
M S ' M ’’ ORE THAN 25.3 MILLION TONS OF COAL HAVE BEEN PRODUCED IN THE OPEN PIT MINES OF ERBIA S SerbiaINING- EnASINergy -OLUBARA 13.12.2011 Coal andB overburden‘’K production balances exceeded for about five percent. Stockpiles in thermal power plants filled in by ten percent more than it was planned.
Over the last ten months, more than 25.3 million tons of coal have been produced in the open pit mines of Serbia's Mining Basin ‘’Kolubara’’, making it about five percent more than planned.
According to the information provided by the Service for production coordination of ‘’Kolubara’’, in the Open Pit Mine ‘’Tamnava West Field’’ the largest quantities of 79 lignite have been excavated, namely more than 10.2 million tons, which is slightly less than planned. The Field ‘’D’’ with the production of nearly 8.6 million tons of lignite has surpassed the plan for 17 percent. In the mine ''Veliki Crljeni'', it was produced nearly 4.2 million tons of coal, and/or almost two percent over the plan. In the field ‘'B’’, almost 2.4 million tons of coal have been excavated, i.e. three percent less than planned.
The production of coal in October amounts to 2.9 million tons, slightly less than planned.
As of late October, stockpiles in thermal power plants were filled ten percent more than planned, which proves once again the readiness of thermal capacities for winter season.
The overburden production in the four open pit mines of MB ‘’Kolubara’’, in the previous ten months, was about 57.4 million cubic meters, which is almost five percent above the plan.
If we consider each open pit mine separately, the Field "D” has had the highest output, over 26.6 million cubic meters of overburden, or three percent over the plan. In the mine "Tamnava West Field", 22.31 million cubic meters of overburden were excavated and deposited and the highest over-fulfillment of the plan of nearly 20 percent was achieved. In the Field "B", about 5.6 million cubic meters of overburden has been excavated and deposited, about 90 percent of the planned quantity. The Field "Veliki Crljeni", with output of nearly three million cubic meters of overburden, realized the plan with 69 percent.
During October, in the open pit mines of "Kolubara", the production of more than 5.4 million cubic meters of overburden was recorded, which is about six percent over the plan. Over-plan output of overburden in October should be particularly emphasized when we consider the fact that in the field "B", only about 57 percent of the
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
monthly plan fulfillment has been achieved due to unscheduled investment repairs of the overburden system, and that due to the unresolved issues of expropriation in the mine “Veliki Crljeni", somewhat more than 70 percent of the plan realization was accomplished. The OPM "Tamnava West Field" achieved the production of 52 percent above the balance production plan, and the Field "D" realized one percent above the plan. Source: Serbia-energy.com
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bneOMICO - 13.12.2011 IL IS INTERESTED IN BUILDING AN OIL REFINERY IN MEDEREVO ERBIA CThe AmericanO -Dutch consortium Comico Oil, which operates the, namesake company in Belgrade, is interested in building an oil refinery in Smederevo, Bosnia Daily reports. A land spanning 113 hectares will be rented for the period of 99 years. Smederevo's Mayor Predrag Umicevic said that the construction of a refinery would result in the creation of 500 new jobs, adding that many local companies would be engaged in the construction. During the negotiations in August 2011, Comico Oil raised the price of the land rent from 4.5 million US Dollars to about 9 million, which is, according to Umicevic, above the market price. Source: bne
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Agayeva,MBASSADOR McClatchy ZERBAIJAN - Tribune ERBIA Business TO REACH STRATNews EGIC[Washington] PARTNERSHIP 03 LEVDecEL 2011. IN COMING YEARS ADec. 03--Relations: A between, Azerbaijan and Serbia in the coming years will reach the level of strategic partnership, Serbian Ambassador to Azerbaijan Zoran Vayovich believes.
"Relations between the two countries are developing every day, and we hope that soon they will reach the level of strategic partnership," Vayovich told Trend. 80 Vayovich said a number of projects to invest in Serbia's infrastructure and construction of roads are scheduled, and Azerbaijani companies expressed their interest in being involved in these projects.
Implementation of joint economic projects, according to Vayovich, will significantly increase the level of trade turnover between the two countries. This year trade turnover is less than $10 million, which, of course does not suit both parties, the diplomat said.
He said business circles of both countries display great interest to develop cooperation. Businessmen of both countries expressed this interest during the recent business forum in Belgrade.
The legal base between the two countries, which currently constitutes 20 agreements and contracts, creates all the conditions for it. _(c)2011 Trend News Agency (Baku, Azerbaijan) Visit Trend News Agency (Baku, Azerbaijan) at en.trend.az Distributed by MCT Information Services
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ÁRCI INANCOVÁNÍ VNĚJŠÍ ČINNOSTI ČEKAJÍ ZMĚNY FStálé zastoupení ČR v Bruselu,EU 12.12.2011 Kdy: 07.12.2011 , Kde: Brusel Vnější činnost Unie je důležitá i v dobách krize, výše rozpočtu se nesníží, zaznělo z Evropské komise. Ve středu 7. prosince 2011 přijala Evropská komise návrhy rozpočtu určeného na nástroje vnější pomoci v letech 2014–2020. Stalo se tak na pozadí vyjednávání o
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novém víceletém finančním rámci EU. Komisaři vyhodnotili současné nastavení geografických a tématických finančních nástrojů a potvrdili jejich zachování s několika modifikacemi. Unii tyto návrhy umožní plnit její úlohu na světové scéně: bojovat proti chudobě a podporovat demokracii, mír, stabilitu a prosperitu.
Podle předloženého návrhu by měly být výdaje na zahraniční pomoc do budoucna více koncentrované. Mělo by tak dojít ke snížení roztříštěnosti a zvýšení efektivnosti díky zaměření na omezený počet priorit. Nástroje budou koncipovány flexibilnějším způsobem. Unie si uvědomuje, že v dnešním rychle se měnícím světě je zapotřebí pružně reagovat na vznik nepředvídatelných událostí. Vyšší efektivitu by mělo zajistit zjednodušení pravidel a procedur pro plánování a poskytování evropské pomoci.V neposlední řadě vyjádřila Komise ve svém návrhu požadavek více se soustředit na podporu lidských práv, demokracie a řádné správy věcí veřejných.
Komise dává nově důraz na princip diferenciace, podle nějž bude EU přidělovat větší množství prostředků těm, pro něž může mít pomoc největší dopad. Tedy nejpotřebnějším regionům a zemím, včetně nestabilních států. Země, jež si mohou pro vlastní rozvoj obstarat dostatek zdrojů, již nebudou dostávat bilaterální grantovou pomoc a budou místo toho využívat nových forem partnerství. Pro takové země vznikl nový nástroj, jehož cílem je podporovat a propagovat zájmy EU a řešit vážné globální výzvy. Unie díky němu rovněž může s průmyslovými zeměmi, rozvíjejícími se ekonomikami a zeměmi, v nichž EU sleduje významné zájmy, realizovat agendy, jež nespadají do rozvojové spolupráce.
Nových nástrojů využije i politika sousedství a předvstupní pomoc. „Tyto nové nástroje nám umožní v budoucnu ještě lépe reagovat na potřeby a cíle našich partnerů. Díky novému nástroji evropského sousedství a nástroji předvstupní pomoci bude pomoc pro naše sousedy rychlejší a pružnější a bude možné více diferencovat a poskytovat lepší pobídky těm, kteří budou dosahovat nejlepších výsledků,“ řekl eurokomisař pro rozšíření a politiku sousedství Štefan Füle. Připomněl tak nový 81 princip „více za více“, kterým se bude do budoucna řídit Evropská politika sousedství.
Celková částka navrhovaná pro devět nástrojů v letech 2014–2020 činí téměř 100 mld. eur včetně Evropského rozvojového fondu, stojícího mimo rozpočet Unie (34 275 mil. eur). Balíček bude postoupen Evropskému parlamentu a Radě EU a měl by být přijat v roce 2012.
S M D OSTATNÍ IMF,TATEMENT Press BYRelease ANAGINGNo. 11/465 IRECTOR, December HRISTINE 13, 2011AGARDE ON RAQ Ms. ChristineIMF Lagarde, Managing DirectorC of theL InternationalI Monetary Fund (IMF), issued the following statement after a meeting with H.E. Nouri Al-Maliki, Prime Minister of Iraq in Washington today:
“It was a pleasure to meet Prime Minister Al-Maliki today. Over the past several years, Iraq and the International Monetary Fund have engaged in a very successful partnership, anchored by successive IMF-supported economic programs. This partnership has facilitated substantial debt relief and helped achieve macroeconomic stability, including a strong dinar, low inflation, and a resumption of economic growth, in a very challenging political and security environment.
“Prudent fiscal policies are essential to maintaining macroeconomic stability and fostering inclusive growth. In this context, I am very encouraged by the government’s new budget proposal for 2012 that was recently submitted to the Iraqi Council of Representatives. The proposal aims to restrain the growth of current spending, thus freeing up resources for infrastructure investment and social support, while limiting the size of the budget deficit. The proposed budget would
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allow the current Stand-By Arrangement (SBA) to continue to provide a safety net to the budget in case oil revenues were to fall sharply.
“Promoting policies that lead to more inclusive growth is central to our engagement with Iraq. We are working closely with the Iraqi government to rebuild its essential economic institutions to help improve economic management and public service delivery. The current SBA offers a framework for Iraq’s structural reform agenda, by promoting better public financial management, including the management of Iraq’s hydrocarbon resources, and developing a financial sector that can support private sector activity and job creation. We look forward to further progress in these areas.
“We remain committed to helping Iraq in its efforts to foster sustained and inclusive economic growth, generate viable employment opportunities, and improve living standards for all Iraqis. An IMF staff mission is scheduled to meet the authorities in January to discuss progress under the program and next steps.”
IMF EXTERNAL RELATIONS DEPARTMENT Public Affairs Media Relations E-mail: [email protected] Phone: 202-623-7100 Fax: 202-623-6278 Fax: 202-623-6772
Contact: Karin Nylund 82 Acting Press Secretary to Dr. Björling +46 8 405 37 11 +46 70 252 87 52
W ' S E
DailyORLD Times ANK [Lahore]S URVEY 08VENTS Dec IN2011. NEGATIVELY IMPACT ISLAMABAD,B Dec. 8 --: World Bank'sMENA World Investment andFDI Political Risk Survey 2011 has revealed that political risk remains a salient constraint to investment in developing countries, becoming more prominent over the next three years as current concerns about the global economy subside.
The crisis in the Middle East and North Africa (MENA) region has had a negative effect on FDI, but a significant number of corporate investors surveyed have either not changed their investment plans or have adopted a "wait and see" approach. Stability is critical for persuading investors to resume investments.
Heightened global risk perceptions in the aftermath of the financial crisis, fuelled by sovereign credit risk in the developed world and political crises in the Middle East and North Africa, have increased investor's concerns, according to a new report by the World Bank's Multilateral Investment Guarantee (MIGA). However, the report, World Investment and Political Risk, notes that investors are more optimistic over the medium term.
A survey of global investors conducted for the report finds they are "cautiously optimistic" about their investment plans in the next 12 months. They are more confident over the next three years: nearly 75 percent of corporate respondents have plans to expand in developing countries over this period.
MIGA's survey shows that events in the Middle East and North Africa have had a negative effect on foreign direct investment (FDI), but a significant majority of global investors said they have not changed their investment plans. However, while Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
investors appear willing to ride out this period of turmoil and uncertainty, they are also ready to downsize plans should political instability intensify and become prolonged.
Overall, the report notes that the recorded growth of private capital flows to developing countries, including FDI, is moderating, but is expected to regain speed in the medium term, corroborating the sentiment found in the investor survey. "This uncertain economic landscape aside, developing countries are expected to grow more than twice as fast as high-income economies over the next few years," notes MIGA's Executive Vice President Izumi Kobayashi. "This continued growth, together with stronger and more business-friendly environments, should enhance their appeal to savvy investors worldwide." For the purposes of the MIGA-EIU Political Risk Survey, the definition of political risk includes the following: Transfer and convertibility restrictions: risk of losses arising from an investor's inability to convert local currency into foreign exchange for transfer outside the host country. Currency devaluation is not covered. Expropriation: the loss of investment as a result of discriminatory acts by any branch of the government that may reduce or eliminate ownership, control, or rights to the investment either as a result of a single action or through an accumulation of acts by the government. Breach of contract: risk of losses arising from the host government's breach or repudiation of a contractual agreement with the investor, including non-honouring of arbitral awards. Non-honouring of sovereign financial obligations: risk of losses due to non-compliance of government guarantees securing full and timely repayment of a debt that is being used to finance the development of a new project or the enhancement of an existing project. Terrorism: risk of losses due to politically motivated acts of violence by non-state groups. War: risk of losses due to the destruction, disappearance, or physical damage as a result of organised internal or external conflicts. Civil disturbance: risk of losses due to social unrest. Other adverse regulatory changes: risk of losses for foreign investors stemming from arbitrary changes to regulations. 83 Less than 10 percent respondent companies have responded in Survey that they are investing in Pakistan as against 30 percent companies in India and over 40 percent companies in China. Against the question in which developing countries is your firm presently investing. Some 40 percent companies responded that they are investing in China, over 30 percent companies in India and 30 percent companies were of the view that they are presently investing in Brazil, Russian Federation, Mexico, Argentina, South Africa, Turkey, Indonesia, Malaysia, Chile, Vietnam, Philippines, Saudi Arabia, Thailand, Egypt, Romania, Ukraine, Colombia, Peru, Pakistan, Nigeria, Kazakhstan, Morocco, Bahrain, Bangladesh, Ghana, Panama, Iraq, Serbia, Bulgaria, Algeria, Costa Rica, Cambodia, Oman, Tanzania, Angola, Honduras, Kuwait, Albania, Georgia, Tunisia, Belarus, Uruguay, Dominican Republic, Guatemala, Jordan, Lebanon, Turkmenistan, Bosnia and Herzegovina, Uganda, Congo, Democratic Republic of Congo, Lithuania, El Salvador, Uzbekistan, Iran, Jamaica, Sudan, Yemen, Madagascar, Zambia, Armenia, Montenegro and Syrian Arab Republic.. The Survey 2011 has projected that in South Asia growth was 6.2 percent of the GDP 2009, 9.1 percent of the GDP 2010, 7.0 percent of the GDP in 2011, 6.8 percent of the GDP in 2012 and 7.9 percent of the GDP in 2013.
Foreign Direct Investment (FDI) in Pakistan was $0.53 billion in 2003, rose to $1.12 billion in 2004, further increased to $2.20 billion in 2005, and it stood at $4.27 billion 2006, highest in $5.59 billion in 2007, $5.44 billion in 2008, started declining to $2.39 billion in 2009 and further declined to $2.02 billion in 2010.
World Investment Trends And Corporate Perspectives: The global economy is slowing down in 2011 amidst growing uncertainty and increased downside risks. Growth of private capital flows to developing countries, including foreign direct investment (FDI), is also moderating, but is expected to regain speed in the medium term.
Developing countries now attract two-fifths of global FDI and originate close to one-fifth of overseas investment. Both shares are expected to increase given the growing importance of developing countries in the global economy, the growth differential between developed and developing counties, as well as structural
Politických vězňů 1419/11, 113 42 Praha 1 tel.: 234 379 488, 225 279 403 fax: 225 279 100 GSM: 603 826 261 [email protected], www.ppzrs.org
characteristics and improving business environments in the latter. Corporate investors surveyed by MIGA, based both in the North and South, are cautiously optimistic about their investment plans in developing countries over the next 12 months, but are more optimistic over the next three years. However, they are concerned about macroeconomic stability and access to finance as potential constraints in the short term. Political risk remains a salient constraint to investment in developing countries, becoming more prominent over the next three years as current concerns about the global economy subside. The crisis in the Middle East and North Africa (MENA) region has had a negative effect on FDI, but a significant number of corporate investors surveyed have either not changed their investment plans or have adopted a "wait and see" approach. Stability is critical for persuading investors to resume investments.
Published by HT Syndication with permission from Daily Times.
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N ATA ON AID FOR CLIMATE CHANGEOECD, 6.12.2011 Since 1998, the DAC has monitored aid for climate change mitigation. In December 2009, DAC members approved a new marker to track aid in support of climate change adaptation. The OECD Secretary-General released the new figures on 84 climate change aid on 6 December 2012.
The data show that these flows reached USD 22.9 billion in 2010, representing 15% of total official development assistance. One-third of the estimated climate- change-related aid in 2010 went to support adaptation (USD 9.3 billion) while two-thirds was for mitigation (USD 17.6 billion, up 69% from 2009). Of the total USD 22.9 billion, an estimated USD 4 billion supported both mitigation and adaptation objectives.
Download the underlying data in Excel: http://www.oecd.org/dataoec d/10/63/49189979.xlsx
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