(MENAFN- Trend News Agency)
BAKU, Azerbaijan, December 19 . The UK is fully
supportive of Uzbekistan's aim to join the World Trade Organization
(WTO) and to further increase links to international trade, the UK
Ambassador to Uzbekistan Timothy Smart told Trend in an
exclusive interview.
“We are already a firm partner and friend to Uzbekistan, but
there is great potential to do more together, including through the
Tashkent to Samarkand high-speed rail project, green energy, or
educational links. The latter is ever more important owing to the
growing popularity of the English language amongst the younger
Uzbeks,” he said.
The ambassador noted that the annual trading relationship
between the UK and Uzbekistan is worth close to $500 million and
underscored the opportunity for significant expansion.
“We are working closely with UK businesses that are interested
in Uzbekistan across numerous sectors, including education,
infrastructure, clean mining, and financial and professional
services. At the governmental level, we are working on agreements
to boost trade and economic cooperation, such as the Memorandum of
Understanding on Connectivity, which was signed by the former
Foreign Secretary, Lord Cameron, and the Foreign Minister of
Uzbekistan, Bakhtiyor Saidov, in April 2024. This will encourage UK
and Uzbek businesses to work together on Uzbekistan's major
infrastructure projects. We also offer competitive financing
support through UK Export Finance and Enhanced Preferences to Uzbek
businesses that export to the UK through our Developing Countries
Trading Scheme,” he elaborated.
Discussing environmental challenges, Ambassador Smart stressed
the importance of transitioning to clean energy and improving
energy efficiency in Uzbekistan.
“Clean energy transition and energy efficiency improvements are
essential to help decarbonize our economies. On a GDP basis,
Uzbekistan is the most greenhouse gas emission-intensive economy in
the Europe and Central Asia region and the fifth most intensive
globally. The energy sector is the biggest emitter of greenhouse
gases and pollutants. Here too, the UK and Uzbekistan are building
close and vital partnerships. The UK is addressing these challenges
through multiple initiatives, including the Climate Energy Water
Security for Central Asia (CEWCA) Programme, launched in 2024 with
a budget of 19.5 million pounds ($24.7 million),” he said.
The ambassador noted that the CEWCA is designed to facilitate
low-carbon development and strengthen climate resilience in
Uzbekistan and across Central Asia. It supports regional
cooperation on water and energy security, strengthens the climate
resilience of local communities, and mobilizes foreign direct
investment.
He also highlighted the Innovative Carbon Resource Application
for Energy Transition (iCRAFT) programme, a $46.25 million
initiative financed by climate and carbon funds from the
Transformative Carbon Asset Facility (TCAF).
“With a large share of UK funding, iCRAFT is the World Bank's
Global first policy-crediting programme and the first international
carbon finance operation in Central Asia under the Paris Agreement.
iCRAFT is structured as a results-based policy credit programme.
Dispersal of credits is linked to verified greenhouse gas emission
reductions resulting from decreased end-use energy consumption
associated with energy tariff reforms. This innovative approach is
piloted in Uzbekistan with the intention, if proven successful, to
roll it out to other countries,” Timothy Smart emphasized.
Looking ahead, the ambassador discussed plans for 2024-2025,
including new initiatives in education, economic governance, and
green investments.
“We are introducing a new education fund worth 6.5 million
pounds ($8.2 million), which will build on the UK's significant
experience of working with partners operating in the education
sector. The fund will identify catalytic gaps in educational
provision and provide targeted support for equitable and quality
education; provide systemic support to implement reform, including
improving the skills of teachers and leaders; advise on educational
quality assurance systems and English language development across
the region; and promote an evidence-based UK education offer that
will deepen education partnerships and position the UK as the
long-term partner of choice for Uzbekistan. The facility will work
with international financial institutions and strategic delivery
partners such as the British Council, UNICEF, the Aga Khan
Foundation, UK Universities and other UK partners such as Voluntary
Services Overseas,” he said.
Ambassador Smart explained how the UK's 18 million pounds ($22.8
million) Green Inclusive Growth Fund will establish a private
equity/venture capital fund to support green small and medium-sized
enterprises across the region to tackle economic issues (including
job creation) and mitigate against climate change. By championing
green growth, the fund aims to make a positive climate and
environmental impact. The programme started earlier this year and
will last till 2029.
“The Effective Governance for Economic Development (EGED)
Programme, the first multiyear bilateral programme launched by the
UK in the Central Asia region, has been implemented since 2020 and
aims to improve the efficiency, accountability, and transparency of
economic policy implementation according to the reform priorities
in Uzbekistan, as well as in Kazakhstan, Kyrgyzstan, and
Tajikistan. On the supply side, the programme supports increasing
the effectiveness of economic policy in general and in individual
sectors through the planning and implementation of policies based
on the systematic use of data, while on the demand side, it fosters
improvement in the quality of interactions between government and
civil society,” he underscored.
The Ambassador noted that over the last four years, in
Uzbekistan, the programme has provided technical assistance and
expert policy support in the areas of labor rights and employment,
public procurement, transformation of state-owned enterprises,
public finance management, and eCommerce. EGED has also supported a
number of critical analytical and policy papers feeding into
Uzbekistan's reform initiatives (Country Gender Assessment, Air
Quality and Land Management reports, Listening to the Citizens of
Uzbekistan, etc.). Furthermore, through a climate window, the
programme sponsored the World Bank projects that helped generate
critical evidence for climate-smart policies and reforms.
“EGED is also providing support to the Delivery Unit of
Uzbekistan to help ensure better economic policy performance by
embedding evidence-informed processes into reform design and
implementation. In addition, the programme will be supporting the
WTO accession process from early 2025 around analytics,
regulations, and capacity building for selected Uzbek ministries,”
he said.
The Ambassador pointed to recent developments in Uzbekistan's
financial sector, including initial public offerings (IPOs) and
Eurobonds issued on the London Stock Exchange (LSE).
“In particular, Uzbekistan is keen to expand its financial
market capabilities through IPOs and Eurobonds in the UK. There
have been recent issuances by Navoi Mining and Metallurgical
Company, Agrobank, and the National Bank for Foreign Economic
Activity of Uzbekistan at the London Stock Exchange. Uzbekistan
debuted its first-ever green bonds on the London Stock Exchange
worth 4.25 trillion soums ($329.9 million). The proceedings from
Eurobonds will be used to implement the goals of the
Uzbekistan-2030 strategy, as well as the transition to a green
economy and reforms in the energy sector. The UK is pleased to be a
close partner in this initiative. Additionally, in November 2024,
our team in Tashkent took a business delegation to the London Stock
Exchange, including major state-owned enterprises as well as
private companies,” he emphasized.
He outlined that the visit to LSE was a great example of sharing
best practices and fostering partnerships as Uzbekistan prepares
for upcoming IPOs and Eurobonds. Uzbekistan has a strategic vision
of integrating into the international financial ecosystem and
advancing its economic growth through capital market participation.
Additionally, UKEF has announced up to 4 billion pounds ($5
billion) in financing available for projects in Uzbekistan,
including clean energy, transport, and healthcare.
Ambassador Smart concluded by highlighting the importance of the
Uzbek-British Trade and Industry Council (UBTIC), a flagship event
for collaboration.
“This year's event will take place in Tashkent and will focus on
financial and professional services, infrastructure investment and
trade opportunities, mining, and education. The UBTIC will conclude
with a business forum, which I am confident will forge even more
prosperous and long-lasting relationships between our nations,” he
concluded.
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