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USTDA AWARDS GRANTS ON AVIATION PROJECTS IN UZBEKISTAN

For Immediate Release

WASHINGTON, D.C. - On April 15, 2003, the U.S. Trade and Development Agency (USTDA) awarded two grants to support projects in the aviation sector in Uzbekistan. The grants were conferred in a signing ceremony at the Embassy of the Republic of Uzbekistan. USTDA Director Thelma J. Askey signed both grant agreements on behalf of the U.S. Government. Deputy Prime Minister of Uzbekistan Elyor Ganiev signed on behalf of the grantees.

Under the first grant agreement, USTDA will provide $549,995 to the Department of State Inspection for Flight Safety Oversight of Uzbekistan (DSFSO) to fund a feasibility study on civil aviation security in Uzbekistan. The study is designed to assist Uzbekistan in meeting its civil aviation security obligations as a member of the International Civil Aviation Organization. In particular, the study will establish specific program and technological requirements necessary to modernize the Uzbekistan Civil Aviation Security System at all five of the nation's international airports.

The second grant awarded provides $260,000 to the Tashkent Aircraft Production Company, the largest manufacturing complex in Central Asia, to fund the first phase of a feasibility study on the coproduction of the IL-114-X00 aircraft in Uzbekistan. The first phase of the study will consist of a regional market analysis to determine if the potential demand for the aircraft warrants further pursuit of the project. If justified by the initial stage of the study, the second phase would analyze potential financing structures and project implementation issues. The IL-114-X00 would combine components, such as engines, avionics and interiors that are supplied by U.S. companies, with an airframe manufactured in Uzbekistan.

The grants awarded this week build on the strength of USTDA's existing program in Uzbekistan. In fiscal year 2002, Uzbekistan was the agency's second largest country program with 15 activities totaling nearly $3.5 million.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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