FREE ECONOMIC ZONE
“TERMEZ”
FREE ECONOMIC ZONE “TERMEZ”
Area – 80,6 hectares
Industrial products60 lots
Food products 40 lots
Chemical products 20 lots
Lots area –
54,3 hectares
Термиз - Хайратон –
Мазари-Шариф – 500 м
Center of the region
Termez city
Hakim (governor) of the region
Mr. Bobolov Tura Abdievich
Area of regional
20,1 thousand sq. km
Population of region
2.5 million inhabitants
Consists of
14 districts and the city of Termez
Basic information
Official web-site
www.surxondaryo.uz
Termez
Islamic Republic of Afghanistan
Republic of Turkmenistan
SURKHANDARYA
REGION
GENERAL INFORMATION
COMPETITIVE ADVANTAGES OF “TERMIZ” FEZ
MARKET
Convenient location, access not only to the
domestic market of the Republic of Uzbekistan,
Tajikistan, Afghanistan, Iran, Pakistan.
LOGISTICS
The largest logistics center in Central Asia
operates in the free economic zone. Its area is
40,7 hectares. There is also a 3,2 hectare
container yard, 10,5 hectares of open space for
temporary parking, 4 hangars with a total area
of 6000 m2
FINANCIAL SERVICESHigh financial and banking services will be
organized for investors and buyers in the Free
Economic Zone.
QUALIFIED WORKFORCEThe population of the region is more than
2,5 million people. Higher education institutions
and professional colleges annually train more than
30,000 highly qualified specialists.
COMMUNICATION.External roads, power lines, gas pipelines,
telecommunications, water supply, etc. will be
delivered to the free economic zone at the expense
of state funds.
SOCIAL INFRASTRUCTURE.The free economic zone includes modern hotels,
entertainment centers, cafes and restaurants,
grocery stores and others for investors and buyers.
Electricity Gas supplyHeat supply Logistics Customs Restaurants
Law of the Republic of Uzbekistan “On Free Economic Zones”
Decree of the President of the Republic of Uzbekistan No. DP-4853 of 10.26.2016.
“On additional measures to revitalize and expand the activities of free economic zones”
Decree of the President of the Republic of Uzbekistan No. DP-3356 dated 10.25.2017.
“On additional measures to increase the efficiency of the free economic zones and small
industrial zones”
Decree of the President of the Republic of Uzbekistan No. DP-3175 of 08.07.2017.
“On measures to strengthen coordination and increase the responsibility of local ministries,
departments, and state authorities for the effective functioning of the activity of free
economic zones”
The Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 29 dated
January 16, 2018. “On measures to implement the resolution of the President of the
Republic of Uzbekistan No. PP-3356 dated October 25, 2017“ On additional measures to
improve the efficiency of the activity of free economic zones and small industrial zones ”
Basic regulatory acts governing activities in the free
economic zone
0
2000000
4000000
6000000
8000000
10000000
12000000
3 years 5 years 7 years 10 years
Benefits depending on the volume of investments made in the territory of the FEZ
(in equivalent dollars)
300
thous
.
Benefits in the FEZ are provided for a
period of 3 to 10 years depending on the
volume of investments made, including in
the equivalent (US dollar):
from 0,3 mln. dollars to 3 mln. dollars
- for a period of 3 years;
from 3 mln. dollars to 5 mln. dollars
- for a period of 5 years;
from 5 mln. dollars to 10 mln. dollars
- for a period of 7 years;
from 10 mln. dollars and above
- for a period of 10 years,
using the income tax rate and single tax
payment in the amount of 50% below the
current rates over the next 5 years.
3 mln.
5 mln.
10 mln.
+ mln.
+5 mln.
+2 mln.
+3 mln.
Benefits and preferences in the territory of FEZ
customs payments (except for customs clearance fees) for equipment,
raw materials, materials and components imported for own
production needs;
customs payments (except for customs clearance fees) for construction
materials not produced in the republic and imported as part of the
project;
In accordance with the Decree of the President of the Republic of Uzbekistan dated 10.26.2016. No. DP-4853, enterprises participating in free economic zones are exempt from payment:
Enterprises participating in the FEZ are exempted from paying for
the entire period of activity of free economic zones from paying
customs duties (except for customs clearance fees) for imported raw
materials, materials and components in part of products sent for
export.
The state provides guaranteed connection of enterprises
participating in the FEZ to engineering and communication networks
with timely supply to production sites and their uninterrupted
operation.
Governmental
support
land tax;
income tax;
tax on property of legal entities;
tax for the improvement and development of social infrastructure.
Tax
benefits
Customs
exemptions
Benefits and preferences in the territory of FEZ
Providing the necessary
documents to the Directorate of FEZ for consideration
Decision of the Administrative Council on the
placement of the project on the
territory of the FEZ
Granting to the project the status of a
participant in the corresponding FEZ
Start project
Stages of selection of investment projects in the FEZ
information on the state registration of a legal entity
(investor) or other document confirming the activities
of this investor;
business plan of the proposed investment project;
information confirming the investor's experience in the
relevant field and / or the implementation of similar
investment projects (if any);
information on the financial and economic activities of
the investor over the past three years.
Placement in the territory of FEZ
and registration of participants
Documents Provided
HOW TO BECOME A RESIDENT
OF FEZ?
INVEST NOT LESS THAN 300 THOUSAND DOLLARS IN
PRODUCTION
GET THE INVESTMENT PROJECT APPROVED BY MINISTRY OF
INVESMENTS AND FOREIGN TRADE
PREPARE BUSINESS PLAN AND SUPPORTING DOCUMENTS
CONCLUDE AGREEMENT ON CONDUCTING
INDUSTRIAL AVTIVITIES
REGISTER WITHIN THE TERRITORY OF TERMEZ
DISTRICT
the creation of import-substituting, high-tech
industries in accordance with the parameters
established by law for localization projects;
the volume of export after the start of production
activity is at least 20 percent in the second and at
least 30 percent in the third and subsequent years;
the creation of new jobs in the amount
determined by the administrative councils,
including the establishment of a 10 percent quota
for those in need of employment on the lists
provided by the Council of the Federation of
Trade Unions;
staffing of the organization being created from
among citizens of the Republic of Uzbekistan in
the amount of at least 95 percent of the total
number of employees involved, with the provision
of the possibility of internships and advanced
training.
Mandatory criteria for the placement of investment
projects in the territory of FEZThe business plan should be reflected
information about the organization of a legal
entity;
number of jobs created;
name, specificity and volumes of products;
estimated prices and markets;
marketing research;
availability of raw materials;
calculations of the level of production
localization and changes in the final
commodity position (code according to the HS
code version 2017);
logistics and transportation;
necessary volumes and parameters
of engineering and communications support
tools;
production emissions;
preliminary layout;
production technology description;
process equipment characteristic;
estimated volumes, type and terms
of investment;
financial and economic calculations.
Mandatory criteria and project information
COST OF THE PROJECT
PRODUCTION CAPACITY
ECONOMIC INDICATORS
PAYBACK PERIOD
NEED FOR INVESTMENT
PROJECT LOCATION
PRODUCT MARKETS
NECESSARY INFRASTRUCTURE
Establishing production of sewing machines and equipment
The main objectives are to develop a strategy for the sustainable development of the electro-technical industry, implement comprehensive measures to promote the
development of new types of electro-technical products to saturate the domestic market.
$ 12,0 mln.
200 thousand pcs per year
61 months
$ 8,2 mln.
Free Economic Zone “Termez”
Local market: 50%Export: 50%
Will be clarified
IRR- 21,9%NPV- $10,6 mill
COST OF THE PROJECT
PRODUCTION CAPACITY
ECONOMIC INDICATORS
PAYBACK PERIOD
NEED FOR INVESTMENT
PROJECT LOCATION
PRODUCT MARKETS
NECESSARY INFRASTRUCTURE
Glass production based on “FLOAT” technology
Currently Uzbekistan imports glass to cover construction and other industries needs. Local production is limited and depends on, some times, imported components. A new production shall cover high demand on the local market. New technologies shall ensure
the quality and reduce costs of production and energy consumption.
$32 mln
3’800’000 square meter glass
IRR: 12%NPV: $10 mln
60 month
$32 mln
Free Economic Zone “Termez”
Local market: 50%Export: 50%
Available
COST OF THE PROJECT
PRODUCTION CAPACITY
ECONOMIC INDICATORS
PAYBACK PERIOD
NEED FOR INVESTMENT
PROJECT LOCATION
PRODUCT MARKETS
NECESSARY INFRASTRUCTURE
Production of circuit breakers of different capacities and switches
A circuit breaker is an automatic circuit breaker designed to protect an electric current from damage caused by overcurrent or short
circuit.
$4,69 mln
IRR: 37,9 %NPV: $4,9 mln
42 months
$4,5¥05 mln
Free Economic Zone “Termez”
Local market: 50%Export: 50%
Available
1,4 mln. units
COST OF THE PROJECT
PRODUCTION CAPACITY
ECONOMIC INDICATORS
PAYBACK PERIOD
NEED FOR INVESTMENT
PROJECT LOCATION
PRODUCT MARKETS
NECESSARY INFRASTRUCTURE
Establishing of electronic printed circuit boards production
The main objectives are to develop a strategy for the sustainable development of the electro-technical industry, implement comprehensive measures to promote the development of new types of electro-technical products to
saturate the domestic market
$ 12,8 mln.
2500 thousand pcs per year
73 months
$ 12,8 mln.
Free Economic Zone “Termez”
Local market: 50%Export: 50%
Will be clarified
IRR- 14,2%NPV- $7,5 mln
COST OF THE PROJECT
PRODUCTION CAPACITY
ECONOMIC INDICATORS
PAYBACK PERIOD
NEED FOR INVESTMENT
PROJECT LOCATION
PRODUCT MARKETS
NECESSARY INFRASTRUCTURE
Production of plumbing
Plumbing products are highly demanded on the local market, boosted by the blooming construction sector. The project can benefit from availability of qualified personnel as well
as low operational costs
$2 mln
48’000 pieces sanitary goods
IRR: 47%NPV: $5 mln
24 months
$2 mln
Free Economic Zone “Termez”
Local market: 50%Export: 50%
Available
Thank you for your attention