Commercial News – Tajikistan
February 2004
Jamshed Rahmonberdiev, BISNIS Representative in Tajikistan


This Commercial News Update covers the following sectors:
Gas & Energy
Economy & Finance
Industry
Transport & Telecom
Legislation

Gas & Energy
RECONSTRUCTION OF DUSHANBE ELECTRICAL NETWORKS

The Loan Agreement between Tajikistan and Kuwait Fund of the Arab Economical
Development “Reconstruction of Electrical Networks of Dushanbe” was ratified
by the Lower House of the Parliament on 11 February 2004. Minister of Power
Engineering Mr. Jurabek Nurmahmadov mentioned that reconstruction of city
networks are planned to be finished by 2006 creating more than 250 jobs.
Source: Asia Plus Newspaper

EXPORT OF ENERGY TO RUSSIA
Ministry of Power Engineering in Tajikistan and representatives of RAO UES
(Unified Energy Systems, JSC) have considered a draft agreement to supply
electric power to Russia during summer season. Under this agreement
Tajikistan will supply 1.4 billion kWh of electricity generated by Norak
Hydro Power Station. Both parties are negotiating pricing schedule and
transit via Uzbekistan and Kazakhstan. Approximately 188 million kWh of
electricity generated by Norak Hydro Power Station was supply to Russian in
the summer and autumn of 2003.
Source: Asia Plus Newspaper

Economy & Finance
“FIRST MICROFINANCE BANK” IN DUSHANBE

The First Microfinance Bank JSC founded by Aga Khan Economic and Social
Development Fund has started its work in Tajikistan in February 2004. The
Bank will offer credit lines to the poor and those lacking opportunities to
receive such credits from other sources. The Bank will also offer debit
operations and money transfers. In the future, introduction of other
services will be considered.
Source: Asia Plus Newspaper

BUSINESS ENVIRONMENT IN TAJIKISTAN – A SURVEY OF SMALL AND MEDIUM ENTERPRISES IN TAJIKISTAN
A survey conducted by the Private Enterprise Partnership division of the
International Finance Corporation (IFC), and the Swiss Secretariat for
Economic Affairs (seco) and The World Bank was presented in Dushanbe on
February 12. Two thousand representatives of small and medium businesses
were surveyed, the questionnaire contained 177 questions. The report
contains conclusions on access to funding, obstacles in setting up a
business, banking services and others. The IFC recommends to stimulate
alternative financing mechanisms such as leasing, micro financing and etc.
Source: Vecherniy Dushanbe

Industry
A FIRST FIVE STAR HOTEL IN DUSHANBE

The Aga Khan Fund for Economical Development with support from the
Government of Tajikistan and Tourism Promotion Services of the Government of
Dushanbe acquired 11 thousand square meters of land for the construction of
a five star hotel SERENA. At present design and architect works are in
progress The hotel will be located on Rudaki Avenue – a main street of
Dushanbe.
Source: Asia Plus Newspaper

RESIDENTIAL CONSTRUCTION IN DUSHANBE
Hatib & Alami Construction Corporation from United Arab Emirates is willing
to build a residential multi story block as well as to participate in the
water supply project in Dushanbe, said Mr. Mashur Al Shaar, General Director
of Hatib & Alami during his meeting with Mayor of Dushanbe Mr. Muhammadsaid
Ubaydullaev. This proposal is now being reviewed by the Mayor’s Office.
Representatives of Hatib & Alami Construction Corporation are viewing
architectural buildings of the city as well existing business environment.
Source: Asia Plus Newspaper

TAJIKISTAN WANTS BOEING AIRCRAFTS
Tajik Prime Minister Oqil Oqilov on Tuesday, February 17, met with visiting
head of the "Boeing" Company's Trade Department Mr. Vladimir Silverstone,
according to presidential press service. Turanboy Tuichiyev, a spokesman
for the prime minister, told Asia-Plus that representatives from the Tajik
national airline "Tojikiston" also attended the meeting. According to him
the main purpose of the meeting was to discuss the acquisition by Tajikistan
of the "Boeing" aircraft on the basis of leasing. Oqilov noted that Boeing
was renowned the world over for producing reliable machines and its planes
were profitable for exploitation in Tajikistan's conditions. In this connec
tion, he suggested that experts from Tajik national airline and the "Boeing"
company should study and compare the Boeing planes with other planes in
terms of economy and carry out feasibility studies on the proposal for
acquisition of these planes as well as prepare a scheme of routes for them,
according to Tuichiyev.
We would recall that while visiting International Air and Space Exhibition
MAKS-2003 in Moscow, the Tajik delegation held talks on August 22 with
representatives from the European Bank for Reconstruction and Development
(EBRD) and the U.S Company of "Boeing". In the course of the talks the
sides considered the issue of lease by Tajik State Air Company "Tojikiston"
of two Boeing aircraft. It is to be noted that the EBRD, which is planning
to provide to Tajikistan a loan on preferential terms for this, offers to
Tajikistan Airbus aircraft as well as Boeing 737-700 that were produced
five-eight years ago. Representatives from the U.S. Company of "Boeing",
for their part, proposed to Tajikistan their aircraft Boeing-757. The Tajik
side has made a condition that aircraft should be produced not earlier than
1998. The sides came to an agreement that by mid-September, both the EBRD
and the "Boeing" Company will have prepared their business-plans and submit
for consideration to the Government of Tajikistan and the administration of
the Air Company "Tojikiston". That time, Mirzoalimov who was heading the
Tajik national airline told Asia-Plus that if the September negotiations are
conducted successfully two international-class aircraft will be supplied to
the republic in April 2004.
Source: www.asiaplus.tajnet.com

A NEW TAJIK-AUSTRALIAN JOINT VENTURE “KHUJAND-SYDNEY”
Varorud Information & Analytical Agency informs that Khujand-Sydney JV
specialized in processing of cotton waste has started its operations in the
town of Kayrakkum. Cotton producing farms of Sogd (Northern region of
Tajikistan) now have an opportunity to supply cotton waste to local
manufacturers. As of today, approximately 15-20% of the total volume of raw
cotton produced in Tajikistan is being processed internally. This leads to
establishment of new technology lines in existing enterprises of light
industry as well as to build new processing enterprises.
Source: www.varorud.org

CARRERA INTERNATIONAL TO PRODUCE KNITTED WEAR AND FABRICS
A textile production firm Carrera International (Italy) intents to continue
its cooperation with industrial enterprises in Tajikistan. As Asia Plus
Newspaper reports this will be based on partnership with Abreshim JSC and
Giavoni JSC of the Sogd region. President of Carrera International Mr.
Emillio Takella visited Khujand and signed an agreement to establish a new
joint venture to produce knitted wear and fabric using local raw materials.
The new joint venture will employ approximately 1,000 people and will start
its operations in March 2004.
Source: Asia Plus Newspaper

Transport & Telecom
MULTI MILLION DOLLAR AGREEMENT FOR TAJIK AFGHAN BRIDGE

Agreement between Government of Tajikistan and Transition Islamic Government
of Afghanistan for the construction of the Tajik-Afghan bridge over the
Pyanj River was signed on February 10, 2004 by Tajikistan Minister of
Transport Abdujalil Salimov and Afghanistan Ambassador Muhammadovud
Panjsheri. A similar bilateral agreement between the U.S. and Tajikistan
was signed on December 31 by United States Ambassador Richard E. Hoagland
and the Minister of Transport of Tajikistan Abdujalil Salimov. The United
States will provide $30-40 million for the project, which will help re-open
historic trade routes between Afghanistan and Central Asia and increase
economic integration in the region. Survey teams from the United States
have completed initial hydrological and topographical investigation and are
analyzing the results. Construction could begin in early 2004, and, once
begun, is expected to take 18 months. The 670-meter bridge will be built to
international seismic standards. This initiative is the result of bilateral
and multilateral discussions among the governments of the United States,
Tajikistan, Afghanistan, Russia, Norway and a number of other interested
parties.
Sources: U.S. Embassy Dushanbe press release and Asia Plus Newspaper

A NATIONAL TELECOM TRANSPORT NETWORK PROJECT IS BEING DEVELOPED
Tajikistan Ministry of Communication has developed a working group to
discuss opportunities of developing a project aimed at building national
telecom transport network. At present, the Ministry of Communications is
gathering feedback from government agencies and ministries to determine
minimal needs for data transmission between various parts of the country.
It is envisaged that technical assessment of the project and business plan
will be developed by a reputable telecom consulting company. Building of a
telecom transport highway will significantly improve data transmission
abilities as well as will open doors to new opportunities and technologies.
All equipment and cable manufacturers are widely encouraged to participate
in this project.
Sources: Ministry of Communications, www.tajik-gateway.org

Legislation
THE LAW ON FREE TRADE ZONE IS APPROVED BY THE PARLIAMENT

On February 18 the law On Free Trade Zones was approved by the Parliament.
The law was presented to parliamentarians by the Minister of Economy and
Trade Hakim Soliev, according to him “experiences of Russian Federation,
Kyrgyz Republic, Belarus, United Arab Emirates and Turkey was taken into
account during drafting of the law. Creation of Free Trade Zones is aimed
at providing favorable environment to bring investments and technologies, to
provide economic growth of specific regions, to establish production
infrastructure, to bring to the market up-to-date and quality products,
create job opportunities which will in return contribute to poverty
alleviation”.
Source: Asia Plus Newspaper

COMPUTERIZED TAXPAYER REGISTRATION SYSTEM GOES ONLINE AT THE MINISTRY OF STATE REVENUES AND DUTIES
On February 16, U.S. Ambassador Richard E. Hoagland and the Minister of
State Revenues and Duties, Mr. Gulomjon Babaev, officially launched the new
computerized taxpayer registration system in the Railroad District Tax
Department of the Ministry of State Revenues and Duties (MSRD). The new
system replaces the manual registration system and enables registration of
taxpayers in the Railway district through a new computer-based system.
The launch of the new system marks a milestone in the partnership between
the Ministry of National Revenue and Duties and the U.S. Government through
USAID, Ambassador Hoagland remarked at the opening ceremony. ?This system,
along with other modernization methods at the Ministry, will foster a more
positive business environment by simplifying the process of tax registration
and easing the burden on taxpayers who comply with the tax code. At the same
time, the reforms will make the entire process more transparent, thereby
ensuring greater accuracy and accountability.
The computerized information system was developed under a partnership
between USAID and the MSRD, initiated by a Memorandum of Understanding
signed in February 2003. The system provides a national taxpayer database
registry in the MSRD and allows taxpayers to receive an accurate
computer-generated taxpayer identification number (TIN) when they register.
The system also enables the transfer of information electronically from the
district to the national database server in the MSRD. This new system is a
win-win for both the Ministry and the taxpayers of Tajikistan who will
benefit from the accuracy and timeliness of the information.
The computerized tax registration is just one part of the collaboration
between the U.S. and Tajik governments initiated in February 2003. At that
time, USAID started a two-year project, implemented by Bearing Point (former
KPMG), aimed at modernizing tax administration and establishing a
computerized tax information system in the Republic of Tajikistan. The total
cost of the project is $1,264,900.
Source: U.S. Embassy Press Release

****************Sent by****************
Philip H. de Leon, Acting Deputy 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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