Minutes of the sixth meeting of the Consultative Council on improvement of investment climate under the President of the Republic of Tajikistan
(dated 23 July, 2010)

Chairman

President of the Republic of Tajikistan E. Rahmon

Members:

Prime-Minister of the Republic of Tajikistan O. Okilov

Chairman, State Committee on Investments

and State Property Management of the Republic of Tajikistan- D. Saidov

Head of the EBRD Country Office Ulf Hindstrom

Director, United States Agency on
International Cooperation (USAID) in Tajikistan - Jeffrey Lehrer

Chairman of the Association of Producers and Entrepreneurs Z. Saidov

Chairman of the Union of Entrepreneurs and

Exporters of Tajikistan N. Zabirov

Chairman of the Association of Banks of Tajikistan I. Lalbekov

Head of Secretariat of the Consultative Council Z. Khotamov

Invitees:

State Advisor to the President of the Republic of Tajikistan

on Economic Policy M. Davlatov

Senior Economic Adviser to the President of RT N. Buriev

Minister of Economy and Trade Development of RT F. Khamraliev

Minister of Finance of RT S. Najmudinov

Head of the National Bank of Tajikistan Sh. Rahimzoda

Minister of Transport and communication O. Boboev

First Deputy Chairman of Agency for Construction and

Architecture under the Government of Tajikistan M. Sultonov

First Deputy Minister of Agriculture P. Amirov

First Deputy Director of Agency for construction and

Architecture A. Komilov

Head of Economic Reforms and Investments Department Kh. Tagoimurodov

Head of Media-Services of the President of RT A. Sharifzoda

Deputy Head of State Committee for Investment

and State Property Management of RT Sh. Rakhmatboev

Chairman of the Association of Internet Users A. Atoev

Chairman of Public Found “Internet” R. Kosymov

Chairman of the Agribusiness Association of Tajikistan M. Rahmatov

Chairman of the National Association of Dekhan Farms A. Sharipov

Chairman of Agro Alliance of Tajikistan Sh. Bozorov

Chairman of the Association of Business Woman of Tajikistan G. Makhkamova

Director of CJSC “Agroindustrial Centre “Guliston” S. Khakimov

Country Manager of the World Bank Country Office

in Tajikistan Ch. Bronchi

UN Resident Coordinator/UNDP Resident Representative

in Tajikistan M. Jones

Ambassador of Germany in the Republic of Tajikistan D. Hertrams

Project Manager, BEE Project in Tajikistan W. Werner

Deputy Director of GTZ Project of Support of SME in Tajikistan Z. Kosimova

UNDP Senior Fellow J. Linn

The 6th Session of the Consultative Council under the President of Republic of Tajikistan took place on July 23, 2010, chaired by the President of the country, Mr. Emomali Rakhmon.

Emomali Rahmon, President of the Republic of Tajikistan, Head of the Council, opened the 6th Session of the Consultative Council and introduced new members of the Consultative Council from the private sector: Ms. G. Mahkamova - Chairman of the Association of Business Women of Tajikistan, Mr. S. Khakimov - Director of CJSC “Agroindustrial Centre “Guliston”and Mr. R. Kosimov -Chairman of Public Found “Internet”. Mr. N. Zabyrov was authorized for one more term.

Mr. A. Aqilov – the Prime Minister of the Republic of Tajikistan made a speech on the first point of the Agenda, on implementation of the Plan of Further Measures of the Government of the Republic of Tajikistan for improvement of investment climate and indicators of the Republic of Tajikistan in international rating and on the process of implementation of the decisions of the Consultative Council on Improvement of the Investment Climate under the President of the Republic of Tajikistan. In the summation of the speech of the Prime Minister, Emomali Rahmon, President of the Republic of Tajikistan, Head of the Council, pointed out that monitoring and supervision of decisions and orders of the President of Republic of Tajikistan and the Government of Tajikistan, as a result of recommendations of the Consultative Council on Improvement of the Investment Climate under the President of the Republic of Tajikistan should be strengthened and taken seriously. He pointed for the need to take further measures to strengthen public private partnership, including increasing the feel of responsibility and awareness of the private sector. As an example, it was recommended to establish training courses at the existing higher education institutions of the country and centres of states and regionswhere entrepreneurs can learn the experience of foreign countries and improve the culture of doing business.

Mr. D. Saidov - the Council Executive Secretary, Chairman of the State Committee for Investment and State Property Management of the Republic of Tajikistan, made a speech on the second point of the agenda – endorsement of draft Plan of Further Measures of the Government of the Republic of Tajikistan for implementation of information and communication technology programs for improvement of e-government.

In his speech, he pointed out, that with the view of advancing further reforms in the area of information and communication technology, studies and analysis were conducted by the private sector and a draft Plan of Further Measures of the Government of the Republic of Tajikistan for implementation of programs for improvement of e-government was developed

The President of Republic of Tajikistan Emomali Rahmon supported the proposed draft Plan and pointed out the positive aspects of introducing of e-government such as: strengthening the interaction between all government bodies, transparency of operations (including taxation and customs operations), systematization of monitoring and supervision, limitation of corruption in the government bodies and reducing budget spending.

He also pointed to the need of time and financing for the full scale introduction of the Plan. First of all, there is a need to prepare qualified human resources. In this relation, it was proposed to the international organizations to consider the possibilities of financing and providing technical assistance in support of implementation of the Program.

The third issue of the agenda - endorsement of the draft State target program on strengthening fruit and vegetable processing sector export capacity for the years of 2010-2012 was presented by the chairman of Accociastion of entrepreneurs and exporters of Tajikistan – Mr. N. Zabirov.

Mrs. D. Hertrams – the Ambassador of Federative Republic of Germany in Republic of Tajikistan presented the draft program. In her speech she pointed to the importance of adoption of the Program, taking into account the uniqueness of Tajikistan as an agrarian country. She especially pointed, that financing of the Program will be provided by GTZ, DFID and USAID without seeking resources from the budget.

The chairman of National Assostaion of dehkan farmers of Tajikistan Mr. A. Sharipov, has also supported the Plan. The draft Program includes the short and long term measures for the development of the fruit and vegetable processing industries. The private sector, government and donors will participate jointly in its implementation and it will be fully financed by donors.

Mr. Ulf Hindstrom –Head of EBRD Country Office in Tajikistan, Mr. Jeffrey Lehrer – the Director of the US Agency on International Development (USAID) in Tajikistan, and Mr. J. Linn - UNDP Senior Fellow, have made speeches on advancement of further cooperation with international community in the framework of the decisions of the Consultative Council, including the implementation of Plan of Further Measures of the Government of the Republic of Tajikistan for improvement of the investment climate and indicators of the Republic of Tajikistan in international rating. In particular, they pointed to the positive developments in the work of the Consultative Council, as well as increasing the role of the private sector in the work of the Consultative Council and its active participation in development and implementation of the proposed Programs.

During the speeches of representatives of international donor organizations, the President of Republic of Tajikistan has made a number of propositions, by briefly presenting the problems that frequently face the entrepreneurs of the country, especially in agriculture sector. It was proposed to strengthen the cooperation between the Government, private sector and donor organizations on the issues related to lending, including the cotton sector, provision with agricultural machinery and inputs, population’s access to the produce of the sector and their export, as well as processing and marketing of the agriculture produce. It was mentioned that these developments can ensure additional budget revenue, increase investment to the agriculture sector, and provide access to non-budget sources of financing and demand for the produced agricultural products, while stabilizing market of the agricultural products.

The assistance of international donor organizations can promote increase in number of enterprise of processing industry, encourage producers in agriculture sector and as result help Tajikistan to overcome the economic crisis. The President of Republic of Tajikistan encouraged donors to submit information to the Government of Tajikistan on completion of planned measures, as well as participate not only in public private dialogue but also in implementation of taken decisions.

On the 4th issue of the agenda of the 7th session of the Consultative Council Mr. Davlatali Saidov, the Council Executive Secretary, Chairman of the State Committee for Investment and State Property Management of the Republic of Tajikistan has spoke and proposed to consider in the next session of the Consultative Council issues related to further improvement of investment climate in the construction sector, in particular pricing system, bidding and inspection procedures.

In his speech Mr. D. Saidov noted that consideration of the issue on further improvement of investment climate in the construction sector will help to further improve the investment climate in construction sector and development of the construction sector, including development of housing and other buildings for the population, improving the quality and safety of the buildings. This issue was initiated by the Association of Builders of Tajikistan in collaboration with the Secretariat of the Investment Council and the State Committee for Investment and State Property Management of the Republic of Tajikistan. In this relation it was suggested to create a working group involving relevant ministries, agencies and private sector representatives to prepare necessary documents for consideration in the next session of the Consultative Council.

The President of Tajikistan supported the proposal and instructed the Agency for Construction and Architecture under the Government of Republic of Tajikistan, as well as other relevant ministries and agencies with involvement of the private sector to conduct the needed analysis and submit their proposals for resolution of the issues.

At last part of the session the President of Republic of Tajikistan has given the word to Mr. Mr. Johannes Linn, who mentioned in his speech, the positive achievements of Tajikistan on improvement of investment climate. He pointed that there is already an adequate legal and normative base for the development and support of the private sector, although there are some issues with its implementation, where the focus and attention should be directed. Mr. Johannes Linn pointed to the timelines of the introduction of information and communication technologies and suggested to build on the positive experience of other countries in implementation of the planned measures as well as supported timeliness of consideration of the issues related to the improvement of investment climate in the construction sector in the next session of the Consultative Council. In addition it is necessary to consider the issues related to the legislation and regulation framework but also envisage measures for their implementation. In the conclusion Mr. Johannes Linn emphasized the importance of the Consultative Council in resolution of problems related to the improvement of investment and business climate in Tajikistan, pointing to the importance of collaboration of Government, private sector and international community through the Consultative Council.

In his final speech President of Republic of Tajikistan mentioned that currently with the relevant legislation framework the problems with their implementation as well as low level of awareness of the entrepreneurs about the legislation has to be addressed. The situation with the investment climate is becoming difficult because of lack of financing of the agriculture sector, which is important for Tajikistan. Despite the fact that Tajikistan has achieved significant results in international ratings, it is important to continue with the efforts in this direction, with a more active involvement of the private sector as well as donor organizations, while giving a special attention to the issues of the agriculture sector, including production, marketing, processing and export of agricultural products.

In conclusion of the session President of Republic of Tajikistan expressed his satisfaction with the work of the Consultative Council with wider involvement of the representatives of the private sector, thanked attendees for participation and hoped for continued fruitful cooperation.

DECISIONS AND RECOMMENDATION OF THE COUNCIL MEETING

(According to the minutes from April 28, 2010.)

· The Government of Republic of Tajikistan:

o to take necessary measures for attracting financing and investment for development and implementation of the information and communication technology programs;

o monitor the implementation of decisions and recommendations of the Consultative Council.

· The State Committee for Investment and State Property Management of the Republic of Tajikistan jointly with other ministries and agencies agree and submit the draft decrees of the Government of Tajikistan on (i) Plan of Further Measures of the Government of the Republic of Tajikistan for implementation of information and communication technology programs for improvement of e-government, and (ii) the State target program on strengthening fruit and vegetable processing sector export capacity for the years of 2010-according to the established rules and procedures to the Government of Republic of Tajikistan.

· The Executive Secretary of the Council on information and communication technologies under the President of Republic of Tajikistan – adviser to the President of Republic of Tajikistan on science and modern technologies is instructed to take necessary measures jointly with relevant ministries and agencies, private sector and international organizations with the view to vitalize the work of the Council

· The working group for preparation of a draft Concept of development of e-government in Republic of Tajikistan is instructed to coordinate its work with the activities of the Council on information and communication technologies under the President of Republic of Tajikistan and to develop the draft Concept and submit according to the established rules and procedures.

· Ministry of Energy and Industry of the Republic of Tajikistan and the State Committee for Investment and State Property Management of the Republic of Tajikistan are instructed to take necessary measures for establishment of an enterprise for granate processing and producing of granate juice in the country.

· Ministry of Education is instructed to establish and offer short-term courses and seminars to entrepreneurs in collaboration with the State Committee for Investment and State Property Management of the Republic of Tajikistan, business associations and international organizations with the view to increase their awareness about the policy developments.

· The Executive Secretary and the Secretariat are recommended to study and consider the issue of further increase in the number of members of the Consultative Council from private sector and international organizations, and if necessary to propose changes and amendments to the regulation of the Consultative Council.

One of the issues of the agenda for next session of the Consultative Council – on further improvement of the investment climate in the construction sector is approved. In this relation, the Agency for Construction and Architecture of the Republic of Tajikistan is instructed to establish a working group with participation of relvant ministries and agencies, scientific and research institutions of the construction sector, private Sector, the Secretariat of the Concultative Council and relevant international organizations with the view to prepare the analytical documents for consideration in the next session of the Consultative Council.

· The candidates for membership from the private sector Mahkamova Gulbahor, Kosimov Rustam, and Hakimov Sanginmurod are accepted for membership and the membership term for Nekrui Zabirov – member from the private sector- is extended for another term.

· The membership of Zaid Saidov, Izatullo Lalbekov and Gulmahmad Kaiumov – members from the private sector, and David Robson – member from foreign investors- ceases due to the completion of their term.

Chairman of the State Investments and State Property
Management Committee of the Republic of Tajikistan - D. Saidov

Head of the Secretariat of the
Consultative Council on Improving Investment Climate
under the President of the Republic of Tajikistan - Z. Khotamov