Madam Chair, Fellow Governors, Mr President, Ladies and Gentlemen,

I would like to thank the Uzbek authorities and the city of Tashkent for hosting this Annual Meeting and for their warm hospitality.

Norway supported and welcomed the decision in 1999 to place the 2003 EBRD Annual Meeting in Uzbekistan. I am happy to be here, in a country that for many centuries has been a link between Asia and Europe. The Silk Road and Uzbekistan's many cultural treasures are well known to all of us.

The Annual Meeting is a golden opportunity to place focus on the challenges confronting countries in transition. Uzbekistan has a significant economic potential, and because of its strategic position in Central Asia it can play an important role for the economic development of the entire region.

Good governance is essential for sustainable development. Sound economic policies, solid democratic institutions and improved infrastructure are among the key elements for sustained economic growth, elimination of poverty and creation of jobs. Although the Government of Uzbekistan has taken certain positive measures towards democratic reforms, serious concern still remains regarding multiparty democracy, rules of law and respect for human rights. Norway supports the benchmarks set in the EBRD Strategy for Uzbekistan. An area of major concern is arbitrary arrests and torture. It is crucial that the Uzbek authorities implement the recommendations from the UN Special Rapporteur without delay. We know that wise leaders handle constructive criticism seriously. Consequently, we expect progress within these fields.

Private international capital flows, particular foreign direct investments, are vital complements to a successful transition process. To attract inflow of foreign capital, a stable and predictable investment climate is necessary. As long as Uzbekistan has not come to an agreement with the IMF, foreign investors will remain reluctant and capital inflow stagnant. Agreement with the IMF for a Standby Programme is therefore critical to Uzbekistan's relations with the international investment community. An agreement with the IMF is dependent upon liberalisation of trade and currency convertibility. Important is also effective competition and reforms in the banking sector.

The EBRD could be a strong helping hand in this respect. However, as long as the foreign direct investments from the private sector are limited, the Bank's support of a privatisation programme in Uzbekistan will have its limitations. Norway urges Uzbekistan to put greater efforts into improving these very important aspects of transition.

The main focus of the Bank should be kept on the countries or regions in the early and intermediate stages, which are in greatest need of assistance.

The North Western part of Russia is a region with huge potential for development. However, the region also poses immense environmental and nuclear safety challenges. Joining forces are therefore necessary. Norway welcomes the Northern Dimension Partnership Initiative, a joint effort by the EBRD and other international financial institutions, the European Union and Russia. The Initiative will initiate, strengthen and co-ordinate important environmental projects with a cross-border impact.

Norway puts special emphasis on the nuclear window of this initiative, and has already contributed 5 million euro to the programme. Another 5 million is pledged. It is Norway's hope that the programme will be supported by a great number of countries and that we will see significant results from the work being done.

The social implications of EBRD investments are of concern to Norway. It is important for focus on the consequences for vulnerable groups and women’s situation in particular, when large enterprises are refinanced and restructured. Norway will in this regard ask the EBRD to pay special attention to this aspect.

The EBRD has a clear environmental mandate. Due to the environmental procedures in its operations, the Bank will be able to help the transition countries to deal with the problems inherited from the past era.

In conclusion, Madam Chair, I would like to commend the EBRD for its professional work, and express Norway's firm belief that the Bank still has an important mission. However, the main responsibility lies with the Countries of Operation to have the necessary determination to face the economic and social challenges following the transition process.

Thank you, Madam Chair.