The Asian Development Bank (ADB) today approved a $154 million loan to enhance horticulture value chain development in all 12 regions in Uzbekistan and the autonomous region of Republic of Karakalpakstan.

"ADB's support will help increase access to long term financing for horticulture farmers and enterprises along the horticulture value chain," said Bui Minh Giap, Senior Natural Resources and Agriculture Economist with ADB's Central and West Asia Regional Department. "It will allow them to increase their investments, maintain and expand employment, and generate stable incomes for themselves, their employees, and suppliers." 

The government will relend the ADB loan to participating financial institutions (PFIs) that will extend the subloans to interested and qualified farmers and enterprises to finance horticulture operations, including planting materials, processing and storage equipment, and mechanical equipment.

Eight PFIs were selected among commercial banks that expressed interest to participate in the project. They are Asaka Bank, Davr Bank, Hamkorbank, Ipak Yuli Bank, Ipoteka Bank, National Bank of Uzbekistan, Turon Bank, and Uzpromstroybank.

Agriculture is an important sector in Uzbekistan, accounting for 32% of total employment. It is also a key income source in rural areas, where 49% of the population resides. 

Although it is expected to continue growing, the country's agriculture sector is characterized by low productivity and has remained labor intensive. The horticulture sector is constrained by limited access to long-term debt financing, quality land, specialized horticulture machinery, and appropriate inputs. Many producers and enterprises along the horticulture value chains also lack business and managerial skills and access to information on market opportunities and technology which hamper the sector's growth.

Uzbek horticulture exports could expand significantly by capturing a larger share of the Russian Federation market and entering European markets. However, it will require improvements in horticulture quality, safety standards, certification systems, storage, processing, and marketing technologies.

In addition to access to financing, the project will provide support to farmers and enterprise subborrowers to improve their business planning, horticulture agronomic techniques, post-harvesting operations, and export market penetration.

Since Uzbekistan joined ADB in 1995, the country has received $5.1 billion in loans and $64.9 million in technical assistance grants.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members-48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.

Uzbekistan Airways has performed the charter flight to Dushanbe for the first time since 1992, the Foreign Ministry of Uzbekistan reported.

The Tashkent - Dushanbe - Tashkent charter flight was carried out by the national airline on November 30.

The Uzbek Foreign Ministry reported that earlier the Uzbek and Tajik delegations held negotiations in Dushanbe on legal-organizational and economic aspects of further cooperation in the civil aviation sector. 

The sides signed a protocol on cooperation between the civil aviation authorities of of Tajikistan and Uzbekistan in the air transport sector.

Under the signed Protocol, the Dushanbe -Tashkent - Dushanbe flight will be operated twice a week by Somon Air, Tajikistan, and Uzbekistan Airways.

Flights between the two countries were terminated in the autumn of 1992, and in 2000, Uzbekistan introduced a visa regime for travel to Tajikistan.

The Tajik Transport Ministry reported that the first flight Dushanbe - Tashkent will be performed in January 2017.

Diplomatic relations between the Republic of Tajikistan and the Republic of Uzbekistan were established on October 22, 1992.

The legal base of bilateral Tajik-Uzbek relations includes 111 contracts and agreements signed at the interstate, intergovernmental and interdepartmental levels in the period from 1992 to the present.

The approved documents between two countries cover all the key areas of cooperation between two countries and provide a solid legal basis for the further strengthening of bilateral cooperation between Tajikistan and Uzbekistan in the political, economic, trade and other areas.

The trade turnover between the two countries reached the amount of $167, 1 million in 2015.

• corporate profits tax;
• property tax;
• tax on improvements and the development of social infrastructure;
• obligatory contributions to the National Road Fund;
• the integrated tax payment for micro-firms and small businesses;

• Navoi Free Industrial and Economic Zone1
• Angren Special Industrial Zone2
• Jizzakh Special Industrial Zone3

• land tax
• property tax
• corporate profits tax
• tax on improvements and the development of social infrastructure and others

2017 U.S.-UZBEKISTAN 

ANNUAL BUSINESS FORUM: 

"Integrating Best Practices, Strategies and Technological Solutions for Success

AUCC Members are honored to be the first international business delegation to be invited by the people of Uzbekistan to visit the country after Presidential Election on December 4. 

AUCC looks forward to meeting with the country's new leadership to address and advance commercial opportunities of mutual interest. Please join AUCC as a member and be part of our delegation to Uzbekistan.