From: Philip_De_Leon@ita.doc.gov Sent: Tuesday, October 26, 2004 1:44 PM To: Bove, Roger Even Subject: BISNIS - Tajikistan - Commercial News September 2004 (You are receiving this message as a BISNIS client with indicated interest in Tajikistan - to modify your profile, please see instructions at the end of this email). ================================================================= Commercial News – Tajikistan September 2004 Jamshed Rahmonberdiev, BISNIS Representative in Tajikistan This Commercial News Update covers the following sectors: Economy, Bank & Finance o TAJIKISTAN DEMONSTRATES MOST JAN-JULY INDUSTRIAL GROWTH IN CENTRAL ASIA AND CAUCASUS o CORPORATE MANAGEMENT IN TAJIKISTAN WILL EASE COMMUNICATION WITH INVESTORS o UPGRADE OF LAW ON JOINT STOCK COMPANIES o TRADE TURNOVER BETWEEN TAJIKISTAN AND IRAN UP 27% o OFFICIAL VISIT OF PRESIDENT KHATAMI (IRAN) TO DUSHANBE o MODEL LAW ON PROTECTION OF INVESTOR’S RIGHTS AND SECURITIES IN CIS o 65% INCREASE IN IMPORTS AND 25% INCREASE IN EXPORTS Construction & Transport o $200M RAILWAY PROJECT o TAJIKISTAN-IRAN: HIGHWAY TO LINK TAJIKISTAN AND IRAN o ANZOB TUNNEL: 50% OF WORKS COMPLETED Gas & Energy o TAJIKISTAN WILL CONTINUE TO IMPORT OIL AND GAS o AFGHAN GAS MAY BECOME ALTERNATIVE FOR UZBEK GAS – SAYS OFFICIAL OF TAJIK GAS COMPANY o PROGRAM TO ENHCANCE OIL & GAS SECTOR IN TAJIKISTAN o $250M INVESTMENT IN SANGTUDA HYDROELECTRIC POWER STATION o RUSSIAN GAZPROM TO DEVELOP TAJIK DEPOSITS OF GAS Emerging Markets o TURKISH P.M. OPENS 8TH ECO SUMMIT IN TAJIKISTAN o 8th SUMMIT OF ECO IN DUSHANBE o PAKISTAN AND TAJIKISTAN COLLABORATION o MEETING OF KAZAKHSTAN PRIME MINISTER WITH PRESIDENT RAHMONOV Agriculture o TAJIK-IRAN JOINT VENTURE TO PRODUCE TRACTORS Industry o SIBERIAN URAL ALUMINUM HOLDING TO SUPPLY ALUMINA TO TAJIK ALUMINUM PLANT o MEETING OF DUSHANBE MAYOR UBAIDULLOEV AND GOVERNOR ROSSEL ***************************************************************** Economy, Bank & Finance TAJIKISTAN DEMONSTRATES MOST JAN-JULY INDUSTRIAL GROWTH IN CENTRAL ASIA AND CAUCASUS The Central Asian and Caucus country with the most industrial growth in January-July was Tajikistan, where industrial output increased by 14.4%, the CIS Inter-governmental Statistics Committee reported. Industrial output grew by 14.2% over the same seven-month period in Kyrgyzstan, 9.5% in Kazakhstan, 9.0% in Georgia, 4.4% in Azerbaijan and 3.4% in Armenia. The committee provided no numbers for Turkmenistan or Uzbekistan. Source: Interfax CORPORATE MANAGEMENT IN TAJIKISTAN WILL EASE COMMUNICATION WITH INVESTORS “The Tajik economy needs privileged financing, not offered by local commercial banks,” said Ilya Poluyahtov, consultant of IFC Regional Office in Yekaterinburg. “Because the political situation has stabilized and lead to increased economic stability, foreign countries may find Tajik companies to be good partners for investment financing,” continued Poluyahtov. “It is necessary to introduce corporate management to improve communication with internal and external investors, this will also strengthen a company’s management,” said Poluyahtov. Source: Avesta.tj News UPGRADE OF LAW ON JOINT STOCK COMPANIES The Commercial Law Project (funded by the U.S. Agency for International Development) has drafted a Joint Stock Company law, which may be enacted in 2004. This is an amendment to a law enacted in late 1993 and revised in 1996, 1997 and 1998. The new law’s main points include flexibility of capitalization, new institutions to grant rights for shares, and detailed regulation on management of stock companies. Source: BISNIS Representative, IFC Presentation of Draft Law on Joint Stock Companies TRADE TURNOVER BETWEEN TAJIKISTAN AND IRAN UP 27% According to the Tajik Ministry of Economy and Trade, the trade turnover between Tajikistan and Iran amounted to $30.3M over the first half of 2004, up 27% on a year-to-year basis. Tajik exports to Iran amounted to $17.96M, while imports from Iran amounted to $12.31M. Primary export products are aluminum and cotton, while primary imports include electronic appliances and consumer goods. Source: Ministry of Economy and Trade, Asia Plus News Agency OFFICIAL VISIT OF PRESIDENT KHATAMI (IRAN) IN DUSHANBE Iranian President Khatami arrived in Dushanbe on September 11th for an official visit to discuss the completion of the Sangtuda Hydropower Station in Tajikistan. According to the Department of Information at the Ministry of Foreign Affairs (MFA), President Khatami met with President Rahmonov on September 12th. The talks focused on bilateral cooperation between Tajikistan and Iran to complete the Sangtuda HPS. The three-day official trip included a visit to the Sangtuda site and the Anzob tunnel in northern Dushanbe. The Anzob tunnel, (more info on Anzob tunnel in Construction & Transport section) being constructed by an Iranian company, will enable northern Tajikistan to maintain its trade year-round. At present, northern Tajikistan trading is limited to seasonal operations of the Anzob path, which is usually closed between late October until early May. Source: Avesta.tj News, Asia Plus Blitz, and BISNIS Representative MODEL LAW ON PROTECTION OF INVESTOR’S RIGHTS AND SECURITIES IN CIS The Model law to protect investor’s rights and securities in the Commonwealth of Independent States (CIS) will be enacted by 2005, said Furkat Elov, Deputy Director of Finance Ministry’s Agency for Securities and Foreign Investment in his interview to Avesta.tj news agency. According to the source, the new law calls for the protection of any investor who purchases and places securities in CIS markets. The Model law was discussed in St. Petersburg, on September 25, 2004 at the Second Special Meeting of the task force of the Inter-Parliamentary Assembly of the CIS Countries on securities market development. Source: Avesta.tj News 65% INCREASE IN IMPORTS AND 25% INCREASE IN EXPORTS January-August 2004 Tajikistan exports amounted to $594.1m up 25% from the same period in 2003; Tajikistan imports amounted to $879.3m up 65.1% from the same period in 2003. Source: National Statistics Committee Construction & Transport $200M RAILWAY PROJECT Panjakent, Northern Tajikistan local authorities and Sam Bu, a South Korean company, agreed to link the Zarafshon valley in Northern Tajikistan to a railway network in the Samarkand Region of Uzbekistan. Tajik Railway Company confirmed this information. According to Sam Bu, the South Korean company intending to setup a joint venture in Panjakent to produce mineral fertilizers, the railway project will cost about $200m. Representatives of Sam Bu met with local authorities in Panjakent and Samarkand Region and recently applied for Tajik government permission to build this railway. Although the Korean company is subject to clearance from the Uzbekistan and Tajikistan governments, it is expected that it will finance this construction project. Source: Asia Plus Blitz TAJIKISTAN-IRAN: HIGHWAY TO LINK TAJIKISTAN AND IRAN On September 12, 2004 during an official visit to Tajikistan, Presidents Khatami and Rahmonov discussed a major project for constructing a highway linking Tajikistan and Iran via northern Afghanistan. The highway will increase trade opportunities between neighboring countries and enable landlocked Tajikistan to access seaports. Furthermore, construction may lead to procurement and equipment supply opportunities. Source: Asia Plus Blitz, BISNIS Representative ANZOB TUNNEL: 50% OF WORKS COMPLETED The construction of a 5-km Anzob tunnel that will link Dushanbe with the northern part of Tajikistan will be completed by 2006. This was noted during a meeting between Presidents Rahmonov and Khatami and construction workers of this strategically important object built with assistance of Iranian experts. Approximately 50% of construction has already been completed. The Anzob tunnel is a $40m project, with 75% financing from Iran, a $25 million-dollar loan, and a $10 million-dollar grant. Source: Asia Plus Blitz, BISNIS Representative Gas & Energy TAJIKISTAN WILL CONTINUE TO IMPORT OIL AND GAS Tajikistan oil production in the first eight months increased by 6% to 12,000 tons of oil, coal, and gas production at the Energy Ministry Kurbon Bobokalonov told Interfax. Tajikistan produced 21.2 million cubic meters of natural gas in the period, down 5% year-on-year, he said. Coal production totaled 42,400 tons, up three times from the same period last year. “Tajikistan was and remains an oil and gas importer and annual consumption in the country will grow,” he said. Since the beginning of this year, Tajikistan imported $6 million in fuel and lubricants from Uzbekistan, which is its main supplier, but the country plans to sign an intergovernmental agreement with Kazakhstan soon, Bobokalonov said. Source: Interfax AFGHAN GAS MAY BECOME ALTERNATIVE TO UZBEK GAS - SAYS OFFICIAL OF TAJIK GAS COMPANY “Afghanistan possesses a significant amount of natural gas; its quality is higher than Uzbek gas,” said Ahmad Idiiev, the General Director’s Assistant of the Tajik Gas Company. According to him, their gas reserves in Afghanistan amount to at least $20 billion. “At present there are several reserve wells in Afghanistan, reanimation of these wells requires significant financial resources, says Idiev. Afghanistan used to supply gas to Tajikistan until 1978 when imports were ceased due to political instability in the region.” “Afghan gas is a good alternative to Uzbekistan’s, however construction of at least 100 km of pipelines from Afghanistan to Tajikistan requires millions in investments, continued Idiev. Source: Avesta.tj Internet News PROGRAM TO ENHCANCE OIL & GAS SECTOR IN TAJIKISTAN The Ministry of Power Engineering is working to develop a 10-year program to enhance the oil and gas sector in southern Tajikistan. This decision was made in July 2004 during meeting between the Minister of Power Engineering and his deputies. At present, the management of the oil and gas sector is ineffective and therefore needs to be enhanced and reinforced. A single institution to manage enterprises in this sector needs to be introduced. The existing situation in the oil and gas sector is not favorable; a vast majority of enterprises need local and foreign investments to upgrade their equipment and educate human resources. Source: Asia Plus Blitz $250M INVESTMENT IN SANGTUDA HYDROELECTRIC POWER STATION The estimated construction budget for the Sangtuda-1 hydroelectric power station (HPS) is $500M. Of this amount, Iran will invest $250m (51%), and other countries will contribute to the remaining 49%. According to President Rahmonov, Russia intends to invest $100m in this project and construction will be completed by 2009. Construction of the 670MWt Sangtuda-1 HPS began in 1989 and was later suspended due to the collapse of Soviet Union and the civil conflict in Tajikistan. The completion of this HPS will enable Tajikistan to resolve its domestic problems with energy and provide the ability to export electricity to neighboring countries. Source: Asia Plus Blitz, Avesta.tj News, National TV, and BISNIS Representative RUSSIAN GAZPROM TO DEVELOP TAJIK DEPOSITS OF GAS Russian Gazprom intends to setup joint ventures in Tajikistan with well-logging and Southern boring enterprises said Kurbon Bobokalonov, Chief of the Department for Extraction of Oil, Coal and Gas of the Power Engineering Ministry in his interview to Avesta.tj News. According to the source, an agreement was reached concerning collaboration in the gas sector during a meeting that took place from August 20-21, 2004 in Moscow between Mr. Jurabek Nurmahmadov, Minister of Power Engineering, and Mr. Ryazanov, Deputy Chairman of Gazprom JSC. It is expected that a task force from Gazprom representatives will arrive shortly to conduct an assessment, development and exploitation of gas sites in suburbs of Dushanbe and southern Tajikistan. “Gazprom will soon open its representative office in Dushanbe,” continued Bobokalonov. Source: Avesta.tj Emerging Markets TURKISH P.M. OPENS 8TH ECO SUMMIT IN TAJIKISTAN On Tuesday, September 14, 2004 Turkish Prime Minister Recep Tayyip Erdogan opened the 8th summit of the Economic Cooperation Organization (ECO) in Tajik capital of Dushanbe as the Acting President. During his keynote speech, Erdogan thanked Tajik President Emomali Rahmonov for the perfect organization and warm hospitality. Erdogan later nominated Rahmonov as the new Acting President of the 8th ECO summit. Rahmonov, in his part, said that ECO was a privileged organization, aiming at ensuring the welfare of the people of member countries, and raising their living standards. Source: www.TurkishPress.com 8th SUMMIT OF ECO IN DUSHANBE The 8th Summit of Economic Cooperation Organization (ECO) was held in Dushanbe on September 14, 2004 and was chaired by President Rahmonov. The ECO member countries (Afghanistan, Iran, Kyrgyzstan, Kazakhstan, Pakistan, Tajikistan, Turkmenistan, Turkey and Uzbekistan) discussed the rehabilitation of Afghanistan and implementation of ECO Trade Agreement (ECOTA), and joint efforts to combat illegal drug trafficking. Source: ECO Secretariat, Avesta.tj News PAKISTAN AND TAJIKISTAN COLLABORATION Issues concerning attracting Pakistani investments into the Tajik economy were discussed in Dushanbe at a meeting between the Ministers of economy, trade, energy and industry of Tajikistan and Pakistan. The parties discussed investment opportunities for Pakistani investors in the construction of the Rogun Hydro Power Station, joint ventures in textile and wool processing industries, and the construction of a highway through Vahan gorge to connect Tajikistan and Pakistan. Similar topics were also discussed during discussions between the Prime Ministers of Tajikistan and Pakistan. Source: Press Service of the Ministry of Economy and Trade of Tajikistan MEETING OF KAZAKHSTAN PRIME MINISTER WITH PRESIDENT RAHMONOV Prime Minister of Kazakhstan Mr. Daniyal Ahmetov met with President Rahmonov on September 14. “An increase in foreign trade turnover between Tajikistan and Kazakhstan is a sign of developing mutually beneficial collaboration,” said President Rahmonov. Issues concerning the attraction of Kazakh investments into Tajik economy and creation of joint ventures were discussed at the meeting. Agriculture TAJIK-IRAN JOINT VENTURE TO PRODUCE TRACTORS A joint venture between Tajikistan and Iran will be established to produce tractors for agricultural purposes. It is expected that the plant will be established on the site of Humo JSC, the former Tajik Hydro Devices Plant. Tajikistan has the raw materials necessary for production spare parts for these tractors said Zaid Saidov Tajikistan Minister of Industry. It is expected that the plant will produce approximately 1,000 tractors per annum and will reach 3,000-5,000 units per annum at full capacity, continued Minister. Tajikistan will finance 49% of the $4m project, while Iran finances 51% of the construction. Source: Avetsa.tj News Industry SIBERIAN URAL ALUMINUM HOLDING TO SUPPLY ALUMINA TO TAJIK ALUMINUM PLANT The prospects of cooperation between the Siberian Ural Aluminum Holding (SUAL) and the Tajik Aluminum Plant were discussed on September 8 in Dushanbe at a meeting of President Rahmonov with Governor Eduard Rossel of Russia’s Sverdlovskaya Region. According to President’s spokesman, Ural alumina will be provided to the Tajik Aluminum Plant in Tursunzoda at the first stage of cooperation. During their meeting, the two also considered opportunities for creating joint ventures in Tajikistan to produce rail carriages, construction and agricultural equipment. President Rahmonov and Governor Rossel also discussed issues concerning opening of Tajikistan consulate in Yekaterinburg. Source: Asia Plus Newspaper, Khovar National News Agency MEETING OF DUSHANBE MAYOR UBAIDULLOEV AND GOVERNOR ROSSEL On September 9th, Governor Rossel met with Dushanbe Mayor Ubaidulloev and discussed opportunities for cooperation between Yekaterinburg and Dushanbe. Mayor Ubaidulloev noted that Dushanbe is ready to purchase pipes for their municipal needs and electric meters. Mayor Ubaidulloev also proposed holding the Days of Sverdlovksaya Region celebration in Dushanbe, Tajikistan’s capital. Mayor Ubaidulloev invited Governor Rossel to attend Dushanbe’s 80th Anniversary festivals in mid-November 2004. Source: Asia Plus Newspaper ****************Sent by**************** Philip H. de Leon, Acting Director and International Trade Specialist for Tajikistan Business Information Service for the Newly Independent States (BISNIS) USA Trade Center U.S. Department of Commerce Washington, DC 20230 Tel: (202) 482-2109, Fax: (202) 482-2293 E-Mail: Philip_de_Leon@ita.doc.gov BISNIS Homepage: http://www.bisnis.doc.gov *************************************** DID YOU KNOW ABOUT MyBISNIS? MyBISNIS enables you to: - Update your contact information - Select and change the type of information you receive from BISNIS - Refer a friend to BISNIS products and services - Transfer your subscription to a colleague - Unsubscribe from BISNIS services To use MyBISNIS, go to: www.bisnis.doc.gov/MyBISNIS.cfm