24-hour news updates on Central Asia at www.timesca.com 7KH7LPHVRI&HQWUDO$VLD7KH7LPHVRI&HQWUDO$VLD7KH7LPHVRI&HQWUDO$VLD Independent weekly April 21, 2011 Founder: Giorgio Fiacconi Vol. 13 No 16 (665) Uzbek economy Tajik security forces consuming too much energy claim to have killed TASHKENT (TCA) — In the coming years Uzbekistan’s electric power industry will militant leader KDYHWRGHDOZLWKDGH¿- cit of energy sources, and will have to in- crease generating ca- DUSHANBE (STRATFOR) SDFLW\DQGHI¿FLHQF\LI — Tajik President Emomali it wants to attract seri- Rakhmon on April 18 praised ous investors. his country’s security forces for an operation in eastern BY DILSHOD Tajikistan on April 15 that ASHURMATOV resulted in the deaths of 15 In mid-March the World Bank militants, possibly including granted the Uzbek government noted militant leader Mullah a US $110 million loan to up- Abdullah. Abdullah’s possible grade the Talimarjan thermal power plant (TPP) in the south. GHDWKFRXOGVLJQL¿FDQWO\DIIHFW The loan will be used to build a the security situation in Cen- new substation with a capacity tral Asia and could have im- of 500/220 kilovolt at the Tali- marjan TPP and a new 218 ki- plications for Russia as well. lometer-long 500 kilovolt power transmission line from the new substation to Sogdiana substa- President Rakhmon praised his country’s security tion (Samarkand region), and forces for what he deemed a successful operation in the WKHLU XQL¿FDWLRQ ZLWK WKH WZR Nurobod district in eastern Tajikistan last Friday. The substations in Kashkadariya. operation resulted in the deaths of 15 militants, report- ODK¶VGHDWKZRXOGVLJQL¿FDQWO\LPSDFWWKHVHFXULW\VLWXDWLRQLQ7DMLNLVWDQ Two years ago national en- edly including opposition leader Abdullah Rahimov, which is a key factor in the stability of the wider Fergana Valley region and ergy company Uzbekenergo an- DOVRNQRZQDV0XOODK$EGXOODK,IFRQ¿UPHG$EGXO- Continued on page 5 nounced plans to implement a $1.28 billion project to modern- ize Talimarjan TPP in 2010-2014, with $800 million coming from foreign investment. Kazakhstan’s blue-chips remain Most of the generating fa- cilities were built in the 1960s- 1970s. Thermal power plants are the main focus of the moderniza- in unchallenged position tion program. Increased capacity and reduced fuel consumption ALMATY — Three Kazakh blue-chip enterprises, one of which is state-controlled while the other will be established using modern two are majority private-owned, are part of the London Stock Exchange’s benchmark stock these energy production technologies days. Rated stable by global corporate performance watchdogs, attempts by rivals to join their such as combined cycle and gas turbine units with a total cost of ranks have been somewhat less impressive. The result is that the three leading companies, state $3.6 billion. oil and gas producer KMG EP and the two non-ferrous metal miners and processors Kazakhmys The modernization project and ENRC, all of which published their results over 2010 lately, do not seem to have much reason includes the construction of a combined cycle unit at the Tash- to fear that their position should come under threat from rivals in years to come. kent TPP (370 megawatt) worth $465 million, Talimarjan TPP even though sales revenues Ibrahimov and Mashkevi- initial public offer (IPO) (two units of 450 megawatt each) BY CHARLES only increased by around 34 ch, though the largest sin- launched on October 7 2005, worth $1.05 billion, and Navoi VAN DER LEEUW per cent (see table). Sharp de- gle shareholder is none less and resulted in a market TPP (400 megawatt) worth $650 SPECIAL TO TCA ductions in impairments can than Kazakhmys, saw its capitalisation in LSE stock PLOOLRQ2YHUWKHQH[W¿YH\HDUV be seen as the main factor in 2010 revenue rise by roughly worth $16.427 billion. It generating capacities of these Kazakhmys, led by a Ka- the company’s strengthened three-quarters, set against was followed a year later, on TPPs will increase up to 12,300 zakhstan tycoon of Korean performance. Rival ENRC which its net earnings more October 4 2006, by Kazmu- megawatts, with power produc- descent, has stunned friend (Eurasian Natural Resources than doubled. naygas EP, which brought in tion increasing to 61-62 billion and foe by increasing its net Corporation), jointly control- Kazakhmys was the first $11.5064 billion. On July 7 kilowatt hours. earnings over 2010 by more led by three Kazakh tycoons to enter the London Stock 2007, Continued on page 12 than two-and-a-half times, by the names of Shodiev, Exchange with an Continued on page 13 www.timesca.com 7KH 7LPHV RI &HQWUDO $VLD 2 NEWS April 21, 2011 BEIJING (Xinhua) Nations and the Shanghai Co- — China and Uz- operation Organization, Hu China, Uzbekistan vow said. bekistan signed eight Echoing Hu’s proposal, Kari- cooperation agree- mov said Uzbekistan attaches great importance to its rela- ments here on Tues- to step up partnership tions with China and always day, pledging to step views China as a reliable coop- up their friendly and tion within bilateral and multi- eration partner. lateral frameworks and timely The Uzbek side is ready to cooperative partner- exchange information to crack work with China to further ship to a higher level. down on the “three evil forces” promote the two countries’ of separatism, extremism and friendly and cooperative part- The signing of the agree- terrorism, including the “East- nership, Karimov noted. ments, which range from in- ern Turkistan” terrorist forces, Next year marks the 20th an- vestment, economic coop- and transnational organized niversary of the establishment HUDWLRQ ¿QDQFH WR QDWXUDO crimes. of China-Uzbekistan diplo- resource, took place after talks Fourthly, the two nations matic relations, Karimov said, between Chinese President Hu should expand people-to-peo- adding that the two countries Jintao and his visiting Uzbek ple exchanges and promote should make full use of this oc- counterpart Islam Karimov. non-governmental friendship, casion to strengthen top-level During the talks, Hu offered Hu said, calling on both sides exchanges, promote people-to- D¿YHSRLQWSURSRVDOWRFRQVRO- to take the opportunity of the people exchanges and expand idate the bilateral ties, suggest- 20th anniversary of the estab- FRRSHUDWLRQLQYDULRXV¿HOGVLQ ing the two nations work closer lishment of China-Uzbekistan RUGHUWREULQJPRUHEHQH¿WVWR so to safeguard peace and sta- diplomatic relationship next the peoples. bility in the region and the rest year to push forward exchanges He said Uzbekistan will con- of the world. of different forms between the tinue its staunch support for Firstly, the two nations could Chinese President Hu Jintao (2nd R) holds a welcome ceremony in two peoples to further consoli- China on Taiwan and Tibet is- honor of Uzbekistan President Islam Karimov (2nd L) in Beijing on sues and work with China to enhance all-level exchanges April 19 (Xinhua) date the social basis of bilateral and political mutual trust, Hu friendship. combat the “three evil forces” said, adding that both sides Finally, China and Uzbeki- for regional peace and stability. should maintain close high- cooperation and further prag- for investment to facilitate the stan could enhance multilat- The two heads of state also level exchanges, deepen coop- matic cooperation. investment of Chinese enter- eral coordination and mutual exchanged views on interna- eration between governments, Both parties should promote prises in Uzbekistan and vice support. tional and regional issues of legislative bodies and parties, continued and steady growth in versa, he added. Hu said China supports Uz- common concern, according to as well as develop and improve bilateral trade, broaden cooper- Thirdly, according to Hu, bekistan’s entrance into the a press release issued from the the bilateral cooperation mech- ation in energy, non-resources China and Uzbekistan should World Trade Organization and Chinese Foreign Ministry. anism. VHFWRUV WUDI¿F DQG FRPPXQL- deepen security cooperation is willing to deepen the coor- As Hu’s guest, Karimov ar- Secondly, the Chinese presi- cation, Hu said. to safeguard regional stability. dination and cooperation with rived in Beijing on Tuesday, dent suggested that the two The two countries should Both parties should enhance Uzbekistan within multilateral starting his two-day state visit nations explore potentials for also improve the environment security dialogue and coordina- frameworks such as the United to China. Uzbek president signs law Felix Kulov’s faction may join broadening parliamentary Kyrgyz ruling coalition — source parties’ rights TASHKENT (Interfax) — The political par- BISHKEK (Interfax) — The parliamentary faction ties represented in the Uzbek parliament got the right to nominate candidates for prime minister of the Ar-Namys (Dignity) opposition party, which is DQGH[SUHVVWKHYRWHRIQRFRQ¿GHQFHLQWKHSULPH OHGE\SURPLQHQW.\UJ\]SROLWLFDO¿JXUH)HOL[.X- minister after the relevant constitutional amend- lov, is engaged in negotiations on its possible entry PHQWV ZHUH RI¿FLDOO\ SXEOLVKHG DQG HQIRUFHG RQ Tuesday. into the republic’s ruling coalition, an Ar-Namys The bills setting forth the new arrangement were source told Interfax on Tuesday. passed by the lower house and upheld by the Sen- ate before they were signed by Uzbek President Is- The faction is “frustrated by a faction, welcomed the Ar-Namys lam Karimov on Monday. Felix Kulov, leader of The new law establishes the democratic and statement made by ten Ar-Namys deputies’ decision because “it will Kyrgyzstan’s opposition deputies at the end of last week, who help promote stability both inside Ar Namys party (RFE/RL) constitutional principles, whereby nomination for decided to join the ruling coalition the ruling coalition and in the re- prime minister is proposed by the political party without quitting the parliamentary public as a whole”. “We all have to put aside our per- which wins the largest number of seats in the low- faction,” the source said.