Identifier
Created
Classification
Origin
09TASHKENT705
2009-05-11 12:57:00
CONFIDENTIAL
Embassy Tashkent
Cable title:
UZBEKISTAN: ASIAN DEVELOPMENT BANK'S STOCK RISES WITH
how-toVZCZCXRO1089 RR RUEHDBU DE RUEHNT #0705/01 1311244 ZNY CCCCC ZZH R 111257Z MAY 09 FM AMEMBASSY TASHKENT TO RUEHC/SECSTATE WASHDC 0860 INFO CIS COLLECTIVE NATO EU COLLECTIVE RHEFDIA/DIA WASHINGTON DC RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC RUEABND/DEA HQS WASHINGTON DC RUEAIIA/CIA WASHINGTON DC RUEHNT/AMEMBASSY TASHKENT RUEKJCS/SECDEF WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 02 TASHKENT 000705
SIPDIS
AMEMBASSY HELSINKI PASS TO AMCONSUL ST PETERSBURG
AMEMBASSY MOSCOW PASS TO AMCONSUL VLADIVOSTOK
AMEMBASSY MOSCOW PASS TO AMCONSUL YEKATERINBURG
AMEMBASSY BELGRADE PASS TO AMEMBASSY PODGORICA
AMEMBASSY ATHENS PASS TO AMCONSUL THESSALONIKI
E.O. 12958: DECL: 2019/05/11
TAGS: PGOV ECON UZ
SUBJECT: UZBEKISTAN: ASIAN DEVELOPMENT BANK'S STOCK RISES WITH
POSITIVE ASSESSMENT AND LOAN INCREASE
CLASSIFIED BY: Timothy P. Buckley, Second Secretary, Department of
State, Political and Economic Section; REASON: 1.4(B),(D)
C O N F I D E N T I A L SECTION 01 OF 02 TASHKENT 000705
SIPDIS
AMEMBASSY HELSINKI PASS TO AMCONSUL ST PETERSBURG
AMEMBASSY MOSCOW PASS TO AMCONSUL VLADIVOSTOK
AMEMBASSY MOSCOW PASS TO AMCONSUL YEKATERINBURG
AMEMBASSY BELGRADE PASS TO AMEMBASSY PODGORICA
AMEMBASSY ATHENS PASS TO AMCONSUL THESSALONIKI
E.O. 12958: DECL: 2019/05/11
TAGS: PGOV ECON UZ
SUBJECT: UZBEKISTAN: ASIAN DEVELOPMENT BANK'S STOCK RISES WITH
POSITIVE ASSESSMENT AND LOAN INCREASE
CLASSIFIED BY: Timothy P. Buckley, Second Secretary, Department of
State, Political and Economic Section; REASON: 1.4(B),(D)
1. (C) Summary: On May 3 Deputy Director of the Asian Development
Bank (ADB) Tashkent office, Kiyoshy Tamaguchi, told POLOFF that ADB
recently completed a favorable assessment of Uzbekistan for its
2009-2010 cycle, which cleared the way for a substantial increase
in loans from USD 170 million to USD 300 million. Projects will
focus on water issues and electricity provision. POLOFF also spoke
with a railroad engineer who is working on a project financed by
the Japan International Cooperation Agency (JICA),and he reported
major planned upgrades on the Karshi - Termez lines that will
improve Uzbek rail efficiency over a 10-year timeframe. End
summary.
The Way to Make Friends with Uzbekistan
-------------- --------------
2. (C) POLOFF spoke with Tamaguchi on May 3, who described ADB's
recent assessment of Uzbekistan, which included the macroeconomic
picture, credit performance, forecasts, and other variables. The
document was positive, although Tamaguchi conceded that it "was
perhaps too lenient and favorable" but, on the whole, also
"reasonable." When asked about repayment abilities, Tamaguchi
noted that this is a strong suit for the host country and that
"Uzbekistan is never in default." He noted that Uzbek authorities
were very pleased by the positive assessment for the 2009-2010
period, and it clears the way for a substantial increase in ADB
loans to Uzbekistan from USD 170 million to approximately USD 300
million. Tamaguchi said Uzbek officials are citing the ADB
assessment to other international entities and urging them to
follow suit, which apparently has irked the World Bank, which had
not assessed Uzbekistan in as favorable a light.
3. (C) According to Tamaguchi, the bulk of the loans will be used
for water-related projects and electrical transmission
infrastructure, the latter of which will boost Uzbekistan's
capacity to supply energy to Afghanistan. He was pleased that
Uzbekistan is starting to leverage its strategic central location
in the region to build infrastructure linkages that could benefit
itself and neighbors alike. "Could you imagine countries in other
parts of the world not taking advantage of their locations for so
long," he asked rhetorically.
Rail Infrastructure Improvement
--------------
4. (C) A Japanese national doing railroad consulting work for
Uzbekistan Railways as part of a JICA-sponsored project attended
the same May 3 event, and the engineer told POLOFF that major
improvements are planned on the line between Karshi and Termez. He
referenced already completed project work by ADB, which upgraded
tracks to Karshi, and added that existing track leading north to
Russia is also in decent shape. Thus, with further improvements to
Termez, he noted that this corridor would eventually be able to
efficiently handle a much greater amount of rail traffic. He said
signal and survey work is underway now, and that consulting teams
are exploring electrification of the right-of-way as a means of
adding faster, cleaner trains on this corridor. The engineer is
splitting time between offices in Tashkent and on-site in Karshi,
and he expects the project will be put out to bid in the near
future.
Comment:
TASHKENT 00000705 002 OF 002
--------------
5. (C) Uzbekistan's interest in rail and electricity infrastructure
projects is a welcome indication that the government is starting to
buy into the concept of a north-south axis, which would support our
broader strategic interests in the region and eventually enhance
economic integration with South Asia. Uzbekistan is very
suspicious of Russia - which was especially evident in President
Karimov's critical remarks about "third parties" at the recent
Central Asian water summit -- and this is a good time to promote
links in alternative directions, including with Afghanistan.
NORLAND
SIPDIS
AMEMBASSY HELSINKI PASS TO AMCONSUL ST PETERSBURG
AMEMBASSY MOSCOW PASS TO AMCONSUL VLADIVOSTOK
AMEMBASSY MOSCOW PASS TO AMCONSUL YEKATERINBURG
AMEMBASSY BELGRADE PASS TO AMEMBASSY PODGORICA
AMEMBASSY ATHENS PASS TO AMCONSUL THESSALONIKI
E.O. 12958: DECL: 2019/05/11
TAGS: PGOV ECON UZ
SUBJECT: UZBEKISTAN: ASIAN DEVELOPMENT BANK'S STOCK RISES WITH
POSITIVE ASSESSMENT AND LOAN INCREASE
CLASSIFIED BY: Timothy P. Buckley, Second Secretary, Department of
State, Political and Economic Section; REASON: 1.4(B),(D)
1. (C) Summary: On May 3 Deputy Director of the Asian Development
Bank (ADB) Tashkent office, Kiyoshy Tamaguchi, told POLOFF that ADB
recently completed a favorable assessment of Uzbekistan for its
2009-2010 cycle, which cleared the way for a substantial increase
in loans from USD 170 million to USD 300 million. Projects will
focus on water issues and electricity provision. POLOFF also spoke
with a railroad engineer who is working on a project financed by
the Japan International Cooperation Agency (JICA),and he reported
major planned upgrades on the Karshi - Termez lines that will
improve Uzbek rail efficiency over a 10-year timeframe. End
summary.
The Way to Make Friends with Uzbekistan
-------------- --------------
2. (C) POLOFF spoke with Tamaguchi on May 3, who described ADB's
recent assessment of Uzbekistan, which included the macroeconomic
picture, credit performance, forecasts, and other variables. The
document was positive, although Tamaguchi conceded that it "was
perhaps too lenient and favorable" but, on the whole, also
"reasonable." When asked about repayment abilities, Tamaguchi
noted that this is a strong suit for the host country and that
"Uzbekistan is never in default." He noted that Uzbek authorities
were very pleased by the positive assessment for the 2009-2010
period, and it clears the way for a substantial increase in ADB
loans to Uzbekistan from USD 170 million to approximately USD 300
million. Tamaguchi said Uzbek officials are citing the ADB
assessment to other international entities and urging them to
follow suit, which apparently has irked the World Bank, which had
not assessed Uzbekistan in as favorable a light.
3. (C) According to Tamaguchi, the bulk of the loans will be used
for water-related projects and electrical transmission
infrastructure, the latter of which will boost Uzbekistan's
capacity to supply energy to Afghanistan. He was pleased that
Uzbekistan is starting to leverage its strategic central location
in the region to build infrastructure linkages that could benefit
itself and neighbors alike. "Could you imagine countries in other
parts of the world not taking advantage of their locations for so
long," he asked rhetorically.
Rail Infrastructure Improvement
--------------
4. (C) A Japanese national doing railroad consulting work for
Uzbekistan Railways as part of a JICA-sponsored project attended
the same May 3 event, and the engineer told POLOFF that major
improvements are planned on the line between Karshi and Termez. He
referenced already completed project work by ADB, which upgraded
tracks to Karshi, and added that existing track leading north to
Russia is also in decent shape. Thus, with further improvements to
Termez, he noted that this corridor would eventually be able to
efficiently handle a much greater amount of rail traffic. He said
signal and survey work is underway now, and that consulting teams
are exploring electrification of the right-of-way as a means of
adding faster, cleaner trains on this corridor. The engineer is
splitting time between offices in Tashkent and on-site in Karshi,
and he expects the project will be put out to bid in the near
future.
Comment:
TASHKENT 00000705 002 OF 002
--------------
5. (C) Uzbekistan's interest in rail and electricity infrastructure
projects is a welcome indication that the government is starting to
buy into the concept of a north-south axis, which would support our
broader strategic interests in the region and eventually enhance
economic integration with South Asia. Uzbekistan is very
suspicious of Russia - which was especially evident in President
Karimov's critical remarks about "third parties" at the recent
Central Asian water summit -- and this is a good time to promote
links in alternative directions, including with Afghanistan.
NORLAND