Uzbekistan and Kyrgyzstan discuss implementation of joint projects

Tashkent, Uzbekistan (UzDaily.com) -- A delegation of Uzbekistan headed by the Minister of Foreign Trade of Uzbekistan Jamshid Khodjaev visited Kyrgyzstan.

During the visit of the Uzbek delegation, meetings and negotiations were held with Deputy Prime Minister of the Kyrgyz Republic S. Mukanbetov, Minister of Economy A.Novikov, Deputy Minister of Transport and Roads E.Mamyrkaliyev, and Plenipotentiary Representative of the Government of the Kyrgyz Republic in Osh Province T.Sarybashov and mayor of Osh city A. Kadyrbaev.

The sides discussed implementation of the contract for supply of fruits and vegetables for US$50 million to Kyrgyzstan in 2018-2019. It was said that Uzbekistan shipped products for US$1 million to Kyrgyzstan in January 2018.

Also within the framework of the visit, agreements were reached on the supply of coal for enterprises of the Republic of Uzbekistan at prices acceptable to the Uzbek side. In turn, the Kyrgyz side expressed interest in supply of mineral fertilizers and soda ash from Uzbekistan, as well as elite cotton seed.

At the same time, further joint measures were discussed to launch joint projects as soon as possible, in particular, organization of assembly plants of Uzbek agricultural machinery, Uzavtosanoat buses, Samavto buses, washing machines under the Artel brand, PVC windows and doors in the Kyrgyz Republic and an aluminum profile under the IMZO brand, as well as the establishment in Bishkek of the branch of the Artel Tekhnikal School and shopping and entertainment center Mediapark in Osh.

The parties agreed to establish a zone of Kyrgyz products in the trade networks Korzinka.uz in Uzbekistan and a similar zone of Uzbek food products and consumer goods in Kyrgyzstan’s network supermarkets.

Within the framework of this visit, a trading house of Uztrade JSC was registered in Bishkek, which, following the example of trading houses in other countries, will become a kind of presentation platform for the potential of Uzbek exporters.

During the discussion of banking and financial issues, partner banks from the Kyrgyz side, RSC Bank and Aiyl Bank, were set up to implement the Financial Cooperation Agreement signed in December 2017. The document envisages opening of special credit lines for US$100 million by Uzbek commercial banks to finance the supply of Uzbek producers’ products to the Kyrgyz market.

Kyrgyz banks and National Bank of Uzbekistan, Asaka Bank and Uzpromstroybank signed partnership and cooperation agreements, which envisages opening of credit limit to finance exports of Uzbek goods and services to Kyrgyzstan.

In the near future, together with industry enterprises of the two countries, it is planned to determine a list of specific projects for opening trade financing.

It is worth noting that the first contract for supply of Uzbek agricultural equipment by refinancing through "Ayil Bank" was concluded during this working visit. Namely, delivery for the total amount of US$600,000 of the first batch of equipment, rigging and components was determined to organize the assembly of equipment at the expense of a special credit line.

The prospects of cooperation in the transport and communication sphere were considered separately. The sides discussed holding a meeting on construction of China-Kyrgyzstan-Uzbekistan railway project. The meeting will be held in China in April 2018.

Issues of activation and loading of international automobile corridor "Andijan-Osh-Irkeshtam-Kashgar", launched in October 2017 were also discussed.

Following the results of the meetings and negotiations, the parties agreed to continue work on timely implementation of joint trade, economic and investment projects.

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