Swiss-based industrial giant ABB has won tender for the construction of two power substations and a power switching point in Tashkent, the Uzbek ministry of energy and electrification announced last week. According to the tender requirements, ABB will furnish a USD 20 MM loan (with Uzbek sovereign guarantees) and will supply all equipment. The project is the second largest foreign investment in the Uzbek energy sector.

Israeli airline El Al has opened a representative office in Tashkent. Uzbek state airline Uzbekistan Havo Yollari has flown a regular Tashkent-Tel Aviv flight since 1992. The new El Al office will sell tickets to destinations in Israel and abroad in all directions from Tel Aviv. In addition, the office will work to promote tourism to Israel.

Uzbek state-owned gas transport company UzTransGas saw its profits increase roughly eighteen fold in 2000, Reuters reported, citing the State Property Committee. The company's net profits skyrocketed from USD 7.19 MM in 1999 to USD 128.44 MM last year. UzTransGas is a subdivision of national oil and gas holding UzbekNefteGas. The gas transport company controls 13,989 kilometres of gas pipelines with a throughput capacity of 103 billion cubic meters of gas per year, 26 compression stations, and 304 distribution stations. The Uzbek government plans to sell a 44% stake in UzTransGas to a foreign investor some time in the next year. After privatization, the state will retain a 51% interest in the company while 5% will be held by the company's employees.

Uzbekistan plans to boost cotton processing by 50% and increase textile exports to over USD 1.5 B by the year 2005. To do so, the government plans to invest USD 1.4 B in the textile industry over the next several years. According to International Finance Corporation Central Asia specialist Gorton de Monde, Uzbekistan has the potential to become a world leader in textile production. The Uzbek government has weathered criticism over its handling of cotton growing issues in recent years. In particular, critics have pointed to irresponsible water use in drought-prone Central Asia as well as poor working conditions on cotton plantations in the republic.

President of Uzbekistan Islam Karimov met with Asian Development Bank (ADB) president Tadao Chino. In the course of negotiations ADB promised to invest USD 196 million in the country in 2001 and USD 190 in 2002, president's press service reported.