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INVESTMENT GUIDE TO THE

2011

JIZZAKH REGIONUZBEKISTAN

Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan

INVESTMENT GUIDE TO THE

UZBEKISTAN

JIZZAKH REGION

TASHKENT – 2011

Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan

UNDPUnited Nations Development Programme is the UN’s global development network, an organization advocating for change and connecting countries to knowledge, experience and recourses to help people build a better life. We are on the ground in 166 countries, working with them on their own solutions to global and national development challenges. As they develop local capacity, they draw on the people of UNDP and our wide range of partners.

The investment guide has been published with assistance of the UNDP project “Support to foreign Trade and Investment Promotion in Uzbekistan”, implemented in association with the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan.

Investment Guide to the Jizzakh Region

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I. GENERAL INFORMATION

Geographical Position: Jizzakh region is located in the central part Uzbekistan between rivers Syrdarya and Zaravshan; the region has common boundaries with Republic of Kazakhstan and Syrdarya region in the north and north-east; with Republic of Tajikistan in the south-east, and with Navoi and Samarkand regions in the west and south-west.

Area: 21,200 km2 or 4.8% of the total country area. The arable area is 1.3 million hectares.

Population: 1.1 million people.

Dynamics of Population, 000 people

1979 1990 1995 2000 2005 2010

511 773 911 997 1057 1117,3

Climate: continental, with relatively mild winter and long hot summer.

Average Monthly Air Temperature, °С

Jan Feb March Apr May June July Aug Sep Oct Nov Dec

0.6 2.0 8.0 16 21.1 26.5 28 25.7 20.5 13.9 7.8 3.1

Average Monthly Precipitation, mm


45.6 52.1 60.9 56.6 31 6.7 3.1 1.0 4.7 25.9 33.9 46.6

Average Monthly Air Humidity, %


79 77 72 62 53 40 42 45 49 59 70 78

Natural Resources: the region has two large natural lakes: Aydar Kol and Arnasay where fishing industry is developing. Many minerals and metals are mined here: gold, silver, tungsten, iron, molybdenum, basalt, granite, and gypsum. Large deposits of minerals used for construction materials like marble and limestone have been found.

Administrative Centre: : Jizzakh city


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Distance from Major Cities, km

Tash

kent

And

ijan

Bukh

ara

Jizz

akh

Kars

hi

Khiv

a

Nav

oi

Nam

anga

n

Nuk

us

Sam

arka

nd

Term

ez

Ferg

ana

Urg

ench

Jizzakh 186 421 363 106 247 921 248 415 921 95 471 386 864

Administrative division: Arnasai, Bahmal, Galla-aral, Jizzakh, Dustlik, Zamin, Zarbdor, Zafarabad, Mirzachul, Pahtakor, Farish, Yangi-abad.

Transport: The total length of automobile roads is 2,540 km; of railways 280.5 km. The railways and auto-mobile roads link the region with all major transport communication networks of Uzbekistan. This allows to carry out transportation of export and import goods to all strategic directions.

Educational Institutions: There are two tertiary educational institutions, 74 vocational schools, four aca-demic lyceums, 553 secondary schools (including special), 189 kindergartens, and 23 nonschool educational institutions in the region.

Healthcare: 61 hospitals, 263 clinics, 14 resorts, 124 rural medicals, and 139 first-aid units function in the region.


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II. ECONOMY

Main social-economic indicators of the Jizzakh Region

Jizzakh region is a dynamically developing agricultural and industrial region of Uzbekistan, with an average annual GDP growth rate of 6.8 %. In the last ten years, cumulative growth has doubled.

GDP growth, %

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010 /2000

104.2 106.5 110.0 110.2 108.6 108.3 107.6 107.6 108.3 106.9 110.2 212,4

Key industries in the region: textile, food processing, milling, cereal, and forage; electricity industry; machinery building;, construction materials production, chemical and petrochemical.

Dynamic development in these industries prompted by adopted policy of modernization ensured a stable industrial growth during the last ten years.

Industry Growth, %

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

122.7 119.9 130.3 115.1 108.6 131.6 109.7 109.2 109.0 105.4 114,9

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Gross Regional Product (billion soums) 83.3 132.8 209.4 322.5 383.9 504.7 625.4 782.8 977.1 1207.8 1389.1

Industrial products (billion soums) 20.5 34.9 67.6 107.4 128.9 192.6 221.2 242.1 296.6 314.1 390.7

Agricultural products (billion soums) 66.2 106.2 171.9 245.7 92.9 321.3 442.5 515.5 590.2 687.7 827.3

Investments in fixed capital (billion soums) 17.4 57.9 69.9 49 62.6 77.2 96.2 100 186.2 230.2 374.1

Retail turnover incl. catering (billion soums) 30.2 57.7 95.1 106.2 121.3 126.1 169.1 209.3 300.5 406.9 589.3

Paid services (billion soums) 5.6 8.3 12.7 18 11.5 30.7 39.8 50.7 80.3 129.3 151.6

Export (million USD) 37 39.5 44.8 31.8 21.6 69.4 83.7 97.7 103.7 73.2 191.0

Import (million USD) 17.4 39.8 35.2 9.8 11.1 5.8 12.6 14.8 21.1 31.7 37.3

Production by Industry


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Agriculture has major influence over the region’s development as it provides raw materials and supplies for textile and food processing industries. Main agricultural businesses units are farms, presently totaling 5,000. This number includes cotton and grain producers as wells as farms specializing in cattle rearing, horticulture, apiculture, fisheries, and poultry husbandry. Governmental support and increased productivity at farms in the last ten years ensured an average annual growth rate of 7.8%.

Agriculture Growth, %

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

100.1 106.9 113.2 116.6 114.0 106.2 106.5 106.7 104.2 104.1 106,1

Recent trends demonstrate considerable predominance of the share of small businesses in economy of the region. Thus, in 2010 on its territory were registered 18,100 small businesses. The share of small businesses in the region’s GDP has increased from 58.4% in 2005 to 77.3% in 2010.

Commissioning of new production capaci-ties and construction of industrial and so-cial infrastructure facilities have increased investment into the fixed capital.

In 2010, 474,900 m2 of housing, 319.3 km of water pipes and 57.6 km of gas pipes were constructed; a vocational school for 435 students and dormitory for 150 occupants were built; 1,392 small businesses created.

Since the Independence, foreign investments into the economy of Jizzakh region have increased to USD 230 million; 44 companies with foreign capital operate currently in the region. Following industries are considered as a priority for attraction of direct investments into the economy of Jiz-zakh region:1. Textile;2. Silk-thread production;3. Construction materials;4. Processing of horticulture produce;5. Foods processing; 6. Dairy and meats processing; 7. Chemical industry;8. Fishing.9. Apiculture10. Tourism


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Following high-priority projects will be implemented in Jizzakh region as specified in the Industrial Develop-ment Program in Uzbekistan for 2011 - 2015.

Project Volume Cost (MM)Implementation

Period

Textile

Setting up spinning production at “A. Soatov LLC” and “PLASTEKS LLC” in the Jizzakh town

6,000 tons of yarn; 4,000 tons of jersey 34.0 2011-2013

Setting up a spinning production line at “Elegans Tex” JV in Jizzakh town

13.5 million m2 cloth;1.58 million bed sets

28.04.0 2011-2012

Setting up spinning, knitting, and dyeing production in Jizzakh region

6,500 tons of yarn; 4,500 tons of jersey 34.0 2011

2012

Commissioning a textile factory in Jizzakh region 20,000 tons of yarn; 9,500 tons of jersey;18.0 million knitted

goods

67.0

2012-2014 2014-2015 2014-2015

Setting up hosiery production in Jizzakh region 24.5 million pairs of hosiery 8.2 2012-2015

Sub-Total 175.2

Machinery Building

Setting up calcium batteries production in Jizzakh town 800,000 9.5 2010-2011

Sub-Total 9.5

Chemical

Setting up production of sundry goods and children’s toys; expanding range of plastic consumer goods manufactured at “Jizzakh Plastmassa” Company

582 tons 0.7 2011

Setting up production of polymers at “Jizzakh Plastmassa” Company 600 tons 1.5 2012-2013

Sub-Total 2.2

Construction Materials

Construction of cement works in Zafarabad district 2.0 million tons 250.0 2012-2015

Setting up a production line for white lime for facing materials in Jizzakh region 10,000 tons 5.0 2013-2015

Sub-Total 255

Total 441.9


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III. PRIORITY SECTORS

TEXTILE INDUSTRY

Jizzakh region has huge potential for developing textile industry. The average annual yield of cotton crops in the region is 224,000 tons. The six ginneries of the region produce 71,100 tons of cotton fiber. Over 30 textile factories operate in the region on the raw cotton grown locally.

Successful investments into the textile industry of Jizzakh region are:• «Forij textile» joint venture with the British «Patrolla World Wide» set up for production of cotton yarn,

with a capacity of 3,000 tons a year.• «Zilola-teks» Company set up for production of knitted goods.

Existing capacities in textile industry of Jizzakh region do not meet the amount of cotton crops grown. The region process only 6% (4,300 tons) of cotton fiber which is indicative of inad-equate development of textile industry for the purposes of fin-ished goods production.

Because of its significant raw cotton supply, Jizzakh region is keen on drawing investments into the textile industry, with the purpose of further growth in textile industry and production of knitted goods and clothes.

Within the next few years in the framework of the Industrial De-velopment Program 2011 - 2015 it is planned to attract invest-ments at total amount about USD 170 million into the textile industry of Jizzakh region.

SILK INDUSTRY

Recently accelerated development of the silk-growing industry in our republic has already brought its fruits.

Today, with the annual yield of 20,000 cocoons, Uzbekistan’s share in the Central Asia silk-growing produc-tion is more than 80%, partly due to the ancient history of silk-growing here. Another powerful cause of such results is the improvements made in accordance with President Decree “On Further Reforms in Silk-Growing Industry”.

Together with expansion of the silk-growing supply base, a program with participation of foreign capital is

Processing of Cotton Fiber


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successfully being implemented for upgrading of manufacturing facilities for silk threads and cloth.

Provisionally, there are 14 large silk thread manufactures and six silk cloths manufactures, with various types of ownership, in Uzbekistan.

Main producers of cocoons of Jizzakh region are based in Dustlik, Pakhtakor, and Mirzachul districts.

In 2010, a new production facility was commissioned at “Kuhinur” private firm, for cocoons processing and silk thread production, with an annual capacity of 80 tons.

Production of silk cocoons in Jizzakh Region

2006 2007 2008 2009 2010

524 tons 490 tons 500 tons 555 tons 605 tons

PROCESSING OF HORTICULTURE PRODUCE

Jizzakh region has a large supply base for horticulture produce processing industry.

Dynamics of Horticulture Output

Unit 2007 2008 2009 2010

Melons and watermelons ton 126,009 134,079 139,210 115,310

Vegetables ton 175,344 194,786 203,170 184,273

Potatoes ton 29,172 30,769 33,428 22,272

Fruits ton 42,757 47,709 50,246 41,074

Grapes ton 18,275 19,083 21,989 16,649

Provisionally, about 8,500 tons out of the grown produce is processed in the region. This does not reflect existing potential in horticulture produce processing as the horticulture output exceeds the processing ca-pacities. In this regard, further investments into advanced horticulture processing industry is necessary, with the purpose of producing competitive on the world market goods, such as juice, jam, as well as frozen, ly-ophilized, and dry fruit.

Successful investments into the fruit and vegetable processing industry of Jizzakh region are joint ventures with foreign partners, such as Uzbek-UAE «Baxmal Golden Apple» joint venture, Uzbek-British “Fruitvitex” joint venture, as well as «Sogda Tomat Konserva» and «AGRO GUMUSH».

In 2010, more than 450,000 tons of fruit, vegetables, melons and watermelons were grown locally, out of which 6,760 tons were exported. Last year, those companies above exported about 1,500 tons of processed,


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dry, and frozen products, which constitute 22.6% of the total export of horticulture produce.

Main importers of horticulture produce from Uzbekistan are Russia, Kazakhstan, and Turkey. In the last years, the exports expanded to include also Afghanistan, Iran, Iraq, China, Turkmenistan, Belarus, and Poland. DAIRY AND MEAT PROCESSING

In 2011-2012, Uzbekistan plans to invest the equivalent of about USD 30 million into the meat and dairy processing industry of the country. In Jizzakh region, 22 projects are planned for implementation with a total cost of USD 5.1 million, including six projects for meat processing, with a total capacity of 1,400 tons a year, and 18 projects for dairy products, with a total capacity of 5,900 tons.

The program plans to set up, nation-wide, 223 new factories using mini-technologies and package equip-ment for meat and dairy processing, inclusive of 107 meat processing factories with a total capacity of 21,000 tons/year and 116 dairy factories with a total capacity of 57,800 tons/year.

Meat and dairy producers are granted tax and customs benefits till January 1, 2012, by the Presidential De-cree. Imports of process line equipment together with spare parts and materials, as well as components and ingredients for meat and dairy processing not produced in Uzbekistan are exempt from customs duties.

The «Milk foods» livestock agribusiness was commissioned under the above program in Jizzakh region. The equipment was supplied and installed by the “Van der Ploeg International B.V.” Company from the Nether-lands, the Swedish company “Delaval Export Service AB”, and “CONEXX Sp. z o.o.” from Poland.

Meat and Milk Production in 2007-2010, tons

2007 2008 2009 2010

Meat 102,259 110,234 116,999 88,707

Milk 276,091 290,013 314,499 274,245

The region has attractive investment offers in meat and dairy processing industry, for production of various sausages and national meat specialties, pasteurized milk, yoghurts, quality cheeses, etc.

PETROCHEMICAL INDUSTRY

Petrochemical industry is rapidly developing in Jizzakh region, the main catalyst in this development being foreign investments.

“Ripoltek-tekstil” Company with partners from Turkey set up production for polypropylene thread, the main material in textile and carpeting production. The production is made on Italian process lines; the daily pro-duction is 4 tons. Main users of the product are carpeting makers of Samarkand and Bukhara, Khiva and Fergana, Jizzakh and Chirchik.

«Sogdiana Pipe Plast» and «Zamonaviy Polymer Kuvur» joint ventures were set up for production of polymer


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piping. Production capacities of «Jizzaxplastmassa» Co. were upgraded which is a large manufacturer of polyethylene film, piping and other plastic products.Commissioning of above facilities filled, to some degree, the construction market with piping for water, gas, and corroding liquids used both in housing and industrial setting (chemical, mining, pulp mills, and metal-lurgic plants).

“Didosa paints” joint venture based in Jizzakh region manufactures an assortment of construction varnishes and paints.

PRODUCTION OF CONSTRUCTION MATERIALS

Jizzakh region possesses significant amounts of raw minerals for construction materials industry.

Mineral Resources for Production of Construction Materials in Jizzakh Region

Industry Mineral Resources Deposits and Estimated Reserves

Production of veneer building bricks Loams Galla-Aral deposit; loams reserves 40,904 tons

Production of facing materials Marbleized limestone and marble Four deposits; estimated mineral reserves 6129,800 m3

Production of lime (calcinations) Limestone Jizzakh (Big Saddle) deposit; limestone reserves 7,285,000 tons

Production of construction materials Argillaceous shale Sayhan and Sayhan-2 deposits; reserves 6,696,000 m3

Production of silicate goods Sand Obruchev deposit; reserves 2,882,000 m3

Production of sand and gravel construction materials

Sand and gravel Sanzar 2 and Ilanchisay deposits; sand and gravel reserves 2,707,000 m3

Production of roofing tiles and bricks Raw materials for roofing tiles and bricks

Eight deposits; reserves 26,026,000 m3

Production of terracotta Wollastonite Koitash deposit; reserves 4,143,200 tons

Production of construction materials Limestone Khauzbulak deposit; reserves 1,132,000 m3

There are more than 30 explored deposits of minerals; including suitable for commercial mining: wollaston-ite, barite, raw minerals used for cement production, stone veneer, clays suitable for production of terracota, gypsum, haydite, lime, raw minerals for bricks, etc.

In the nearest future, within the Industrial Development Program of Uzbekistan 2011 – 2015 it is planned to attract investments for construction of a cement plant in Zafarabad district with a capacity of 2 million tons. The estimated required amount of investments totals USD 250 million.


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Thus, existing raw minerals supply base for construction materials production ensures feasibility of investing into production of roofing tiles, wall facing materials, etc.MACHINERY BUILDING

The machinery building industry in Jizzakh region is represented today by a modern Jizzakh Battery Plant, with the equipment supplied by world-class manufacturers such as DAGA, MAC, Virts, Lingklaitor, Propezi, Baer, Kambro, etc. Operating under franchise of the world-class manufacturer of car batteries, American “Ex-ide Corporation”, this company manufactures low-maintenance and hybrid batteries, of both flooded-cell and sealed types, 55 to 190 ah, as well as maintenance-free cells for 35 to 55 ah covering everybody’s needs.

Within the Industrial Development Program in Uzbekistan it is planned to launch two projects for production of automotive batteries in 2011-2013.

In 2011, a production of calcium maintenance-free batteries will be started in Jizzakh town. The project cost is USD 9.5 million, with annual output of 800,000 batteries.

In 2012-2013, the Jizzakh Battery Plant plans commercial production of car batteries for new «GM Uzbeki-stan» models. This project is currently under preparation. Its estimated cost is USD 1 million; the expected output is 100,000 sets a year.

FISHING INDUSTRY

The region has two large natural lakes: Aydar Kol and Arnasay; where fishing business is rapidly developing.

Fishing Business Growth in 2007-2010, tons

2007 2008 2009 2010

1,086 1,208 1,354 1,741

The shoreline of the lakes in five districts exceeds 380 km. Water resources are adequate here for setting up fresh-water fisheries, which will ensure marketing of fresh fish or setting up fish canning factories.

This industry grows rapidly and is considered high priority as the demand for fish is constantly growing. Hatcheries for commercial kinds of fish are being set up, one of them in Farish district. Forage supply is an important issue. To this end, the «Dustlikdon» company started production of fish forage with high protein content.

Provisionally, there is a number of fish processing joint projects with foreign investors including «Fora Sea-foods» LLC, «Ost-Tennis», etc.

APICULTURE

In 2010, Uzbekistan produced a milestone 3,000 tons of honey. 213,487 beehives are owned by 5,328 house-holds and 475 farm businesses.


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In 2010, to develop and support those farms, they were transferred over 28,000 beehives, about 258,000 frames and other equipment. Furthermore, commercial banks issued 351.8 million soums in loans.To create favorable conditions for producers of this valuable product and to enhance the bee pastures for apiculture businesses, they were allocated additional lands: 440.3 hectares were transferred to 54 new pro-prietorships.

Jizzakh region is a major honey producer area in Uzbekistan. The honey production has increased four-fold in the last years.

Fishing Business Growth in 2007-2010, tons

2007 2008 2009 2010

Honey 64 192 222 242

A successful bee raising firm is “Zomin Asali” in Jizzakh district, currently possessing 270 beehives while in-creasing output every year. Their product is in demand in Jizzakh and other regions of the country. In 2010, this family business produced 9.5 tons of honey. «Zomin Asali» supplies its production to major supermarkets of Tashkent and Samarkand.

400 species of honey plants grow in Uzbekistan thus making successful bee rising a very feasible prospect.

TOURISM

Jizzakh region has potential for developing touristic infrastructure, especially in the nature reserves in Zaa-min, Bakhmal, Galla-aral, Farish, and Yangi-abad districts. Vicinities of Zaamin and Bakhmal on the northern slope of Turkestan range are rich in mountain forests, deep valleys, and fast streams. A national park and nature reserve functions in the vicinities of Zaamin, where the nature is fully preserved.

The Zaamin Nature Reserve created in 1970 is considered a touristic attraction. On an area of 47,000 ha there are 60 various landscape zones: high lands, steppe, rocks, and canyons on the elevations varying from 1000 m to 4000 m above the sea level. The largest part of the park is covered by local variety of fur-trees that purify and emit healthy volatiles into the air. Famous pistachios called “the tree of life”, walnut trees, barberry, dog rose, sea buckthorn, and another 250 medical plants grow here in abundance. Circa 40 mammals’ species and 150 birds species live in the park. Many animals are protected, such as the white-nail bear, the Turkestan lynx, black storks, bearded vultures, golden eagles, boars, wolves, and foxes. The blue bird hiding in deep valleys has marvelously shining feathers. The karst caves in the National Park are amazing: for million years, billions of drops have turned into fantastic landscapes of stalactites and stalagmites.

Investment attractiveness of tourism will bring about creation of a network of small resorts and recreation facilities that would meet the world standards, development of active types of tourism (hunting, fishing, trek-king).

The forests occupying over 78,000 hectares comprise local fir tree, broadleaf trees, walnut and fruit trees plantations, wild almond trees, etc. Vegetation growing on the mountain slopes can be used in medicine


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and cosmetics industry.

IV. INVESTMENT CLIMATE

Since Independence, Uzbekistan as a whole has created a favorable investment environment, introduced a broad spectrum of legal protection measures and benefits for foreign investors, and developed systemic incentives for undertakings with foreign investors.

Following enactments constitute the legal basis for foreign investments in Uzbekistan:- Law “On Foreign Investments”;- Law “On Investment Activity”;- Law “On Guarantees and Legal Protection of Rights of Foreign Investors”; and a number of regulations issued in the form of Presidential Decrees and Cabinet of Ministers’ directives.

As of today, various forms of investments are on offer for potential foreign investors:- setting up joint ventures;- setting up companies with 100% foreign capital;- Acquisition of either part or entire interest in privatized enterprises.

Foreign investors in Uzbekistan are guaranteed investment conditions equally favorable to those that Uzbek legal entities and individuals are entitled to.

Additional guarantees and protections can be granted to foreign investors on an ad-hoc basis, for following types of investments:- Into high-priority industries which ensure stable economic growth and positive structural changes in the country’s economy;- Into high-priority projects which strengthen and expand export base of the country and its integration into the world market;- Into small business projects aimed at processing raw materials, consumer goods and services production, and creating jobs for population.

On top of customs and tax benefits, equal for all companies resident in Republic of Uzbekistan, Jizzakh region provides investment benefits for below industries when direct foreign investments are drawn in:1. Manufacture of radio electronics finished goods and computer equipment components;2. Textile;3. Silk Industry;4. Construction Materials Industry;5. Poultry and egg agribusiness;6. Food processing;


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7. Meats and dairy industry; 8. Chemical and pharmaceutical industry.These industries are exempt from profit tax, property tax for legal entities, tax for improvement and development of social infrastructure, single tax payment, and mandatory payments to the Road Fund.

The state guarantees and protects rights of foreign investors carrying out investment activities in Uzbekistan.

If future enactments adopted by Republic of Uzbekistan deteriorate the investment conditions, laws and regulations applicable at the investment date will be applied to foreign investors for ten years from the in-vestment date. Foreign investors are entitled to new laws and regulations that improve their investment conditions.

Notification requirement is stipulated in legislation regarding this ten-year guarantee. Thus, a foreign in-vestor shall advise the relevant authorized body regarding guarantee applicability when the deteriorating investment conditions occur.

For further information contact www.investuzbekistan.uz

Why invest into Jizzakh Region?• Availability of raw supplies for various types of production;• Availability of qualified workforce;• Availability of the infrastructure required for production;• Advantageous geographical location from logistics perspective;• Access to markets of neighboring countries and other CIS countries;• Governmental support, benefits, and preferences.


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V. PROJECT OFFERS

№

Project Title and Purpose Project Cost (000 USD)

Production of Construction Materials

1. Construction of a cement plant in Zafarabad district, with annual capacity of 2 mln tons 250,000

2. Setting up production of pressed marble tiling at «Zoirjon-bobo» private firm 1,503

3. Upgrading and expansion of production of gypsum and alabaster at «Imorat ADA» private company 100

4. Production of sandwich panels in Jizzakh city 1,000

Textile

5. Production of knitted goods at «Zilola Tex» Co. at Jizzakh city 1,500

Tourism

6. Construction of tourist facility in Yangi-abad district 3,400

7. Construction of toutist camp in Forish district 550

Processing and storage of horticulture produce

8. Setting up production for 3,000 tons of fruit puree and 3,000 tons of tomato paste at «Jizak Invest Tayorlov Savdo»

1,800

9. Processing of horticulture produce for export in Jizzakh city 1,500

10. Setting up a refrigerated storage facility for fruit and vegetables, Jizzakh city 1,550

Food Processing

11. Setting up fishery and primary processing facilities with a capacity of 1,000 tons of fish products at «Zoirjon-bobo» provate firm

400

Chemical

12. Seting up production for industrial oxygene with a capacity of 314,500 m3 at «Dilshod-T» in Jizzakh district

250

This list is constantly updated as new projects are selected and reviewed by departments of Ministry of For-eign Economic Relations, Investments and Trade and Economic department of Jizzakh region. You can also see the data regarding currently offered projects on the “Uzinfoinvest” Agency website: www.investuzbekistan.uz


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CONSTRUCTION MATERIALS PRODUCTION

1. CONSTRUCTION OF A CEMENT PLANT IN ZAFARABAD DISTRICT WITH PRODUC-TION CAPACITY OF 2 MILLION TONS A YEAR

I. LOCAL PARTNER

Title: «UzStroy Materials» Inc.

Legal address: 68-а Mirakilov Str., Tashkent, Uzbekistan

Manager: E. M. Akramov

Telephone: (8-371) 152 20 63 Fax: 255 77 07

e-mail: [email protected] web-site: www.uzsm.uz

Available Infrastructure:

Automobile road Jizzakh-Farish highway at 0.5 – 1.0 km distance

Railway road Pakhtakor-Uchkulach rail road at 0.5-1.0 km distance

Power Supply Construction of double circuit high-voltage 220 kV power line for 140 km from the Jizzakh 220 kV Sub Station (or the Sary-Bazar 220 kV Sub Station) is required, to the design 220 kV Sub Station

Water Supply Water pipe in 10 km, under 2 kg/sm2 (atmosphere) pressures. Underground sources will be utilized. Mineralization 0.6-1.0 g/l, hardness 5.5-7.0 micromole/dm3, pH 7.8-8.0, contents: sulfate-magnesium and calcium.

Sewer Construction of BIO sewage treatment plant required

Gas Supply Main fuel is coal (heating value 5 250 ~ 5410 KCal/kg.)

Heating To be defined by project

II. PROJECT DESCRIPTION

Objective

Construction of a cement plant in Zafarabad district, Jizzakh region, for 2 million tons of cement a year. The site was chosen near Chimkurgan village, Zafarabad district.

Benefits

The project will enable manufacturing of high-quality products marketable both on the local and world markets.


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Brief description of the process:

Manufacturing of Portland cement from clinker comprises following procedures: grinding clinker, burning mineral additives, grinding gypsum mineral, dusting clinker together with active mineral additives and gypsum, and packaging and shipment of cement to the consumer.

Markets

About 45% of product will be marketed inside the country and circa 55% on the open market (Portland cements М-400, М-500)

Raw mineral availability

Kutarmin, Bazaygir, and Balyklitaus limestone deposits are located at 1.5 – 2.5 км of the suggested plant site. Igneous rocks from Arvaten deposit (15 km) and Osmansay (20) will be used as a siliceous component, and quartz and feldspar or dune sands to increase SiO2 content. Feldspar and dune sands are available at 20 km of the plant.

Raw mineral Required amount Local raw minerals

Amount Price

Limestone 4 million tons a year available locally

Igneous rocks (basalts) 392,200 tons a year available locally

Dune sand 483,200 tons a year available locally

Mineral additives:

Gypsum 150,000 tons a year 1 ton 14,000

Burnt clays 270,000 tons a year 1 ton 12,000

Iron ores 38,500 tons a year 1 ton 31,000

Required Investments

Project cost USD 250 million

Required investments USD 250 million

Type of financing Direct foreign investments

Investor’s Contribution and Interest USD 250 million for purchase of equipment, construction and installation, formation of

working capital


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Suggested Sources of Financing

Own funds, million soums Direct foreign investments,

million USD

Loaned

locally, million soum Abroad, 000 USD

250 - -

Focus Areas of Investment

Expense Element Expenses in local currency, billion soums

Expenses in hard currency, million USD

Purchase of equipment, 50

- made locally

- imported 50

Construction of facilities and infrastructure 201.6 billion soum (USD 120 million)

Purchase of heavy equipment and trucks 67.2 billion soums (USD 40 million)

Construction and installation 42 billion soums (USD 25 million)

Formation of working capital 25.2 billion soums (USD 15 million)

Expected financial outcomes of the project, billion soums

Indicator Implementation Stages

1st Yr 2nd Yr 3rd Yr 4th Yr

Sales Volume 205 236 262 263

incl. on the open market 105 121 134 134

Cash Cost 55 70 89 93

After Tax Profit 33 49 64 65

IRR, % 16 21 24 25

Return of Investments (in months) 60 months

Design and Cost Estimate Preparation Business Plan prepared;Feasibility Study not prepared


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2. SETTING UP PRODUCTION FOR PRESSED MARBLE TILING AT “ZOIRJON BOBO” PRIVATE FIRM

1. Local Partner

Title: “Zoirjon Bobo” Private manufacture

Legal address: Jizzakh District, Jizzakh Region

Main activity: Production of construction materials

Date of creation: 19.12.1994

Manpower: 16

2. Cost of Capital Stock

Cost of capital stock: USD 131,200

Manager: K. Sattarov (Director)

3. Products

Construction gypsum, construction lime, paving tiling, cinder bricks, marble chips

4. Project description

Setting up production for pressed marble tiling

5. Technical and economic indicators

Project amount: USD 1,503,000

Required investments: USD 1,503,000

Purpose of Investment: purchase of equipment

6. Mineral Resources Available

Raw mineral: Marble

Sources: Purchased on the internal market

7. Markets for finished product

internal market, exporting


19

8. Infrastructure and Business Plan availability

Available infrastructure: Water and gas supply, power supply, sewer

Distance to the railroad: 0.5 km

Access to automobile road: Available

Business plan: Not available


20

3. UPGRADING AND EXPANSION OF EXISITING PRODUCTION OF GYPSUM AND ALABASTER AT “IMORAT ADA” R&D PRIVATE FIRM

1. Local Partner

Name: “Imorat ADA” R&D private firm

Location: Jizzakh District, Jizzakh Region

Main activity: Production of gypsum and alabaster

Manpower: 38



Manager: А. Azimov (Director)


Upgrading and expansion of exisiting production of gypsum and alabaster


Project Amount: USD 100,000

Required Investment: USD 100,000

Target Area of Investments: Upgrading of production line, formation of working capital

5. Markets for finished product

internal market, exporting

6. Infrastructure and Business Plan availability

Infrastructure: available

Business Plan: not available


21

4. PRODUCTION OF SANDWICH PANELS IN JIZZAKH CITY

I. LOCAL PARTNER

Title: Suleyman Shahlan

Legal address: Jizzakh region, Industrial site A

Manager: Suleyman Shahlan

Telephone: (+998 72) 329 61 99


Automobile road Available

Railroad Available

Power supply Available

Water supply Available

Sewer Available

Gas supply Available

Heating Not available

II. INVESTMENT PROJECT DESCRIPTION

Objective

Organization of sandwich panels production with capacity 1000 m2 a day in Jizzakh city.

Benefits

Project will produce high quality products marketable both locally and abroad.

Markets

70% of output on the local market; 30% of the output for export

Raw supply availability

For production of metallic and cement sandwich panels:Local raw materials: cement, sand, lime, PVA adhesive, aluminum wireImported raw materials: metal galvanized steel plate, granules for production of foam plastic, glue, fiberglass net


22


Project cost USD 1 million

Required investments USD 0.5 million


Investor’s Contribution and Interest USD 0.5mln for purchase of technological equipment



million USD

Loaned


835 (USD 500,000) 0.5 - -




Attracted investments

Purchase of equipment, 500

- made locally

- imported 500

Own funds

purchase of facilities 835 ( USD 500, 000)




Volume of rendered services, million soums 0.8 1.0 1.5 2.2

Return of Investments (in months) 4 years (48 months)

Design and Cost Estimate Preparation Business plan prepared, Feasibility study to be developed


23

TEXTILE

5. PRODUCTION OF KNITTED GOODS AT “ZILOLA TEX” JSC IN JIZZAKH TOWN

I. LOCAL PARTNER

Title: “Zilola Tex” JSC


Manager: B. Valiev

Telephone: (8-372) 226 35 51


Automobile road Highway at 0.5 – 1.0 km distance

Railroad Rail road at 0.5-1.0 km distance

Power Supply Available

Water Supply Available

Sewer Available

Gas Supply Available



Objective

Production of knitted goods at “Zilola Tex” JSC in the town of Jizakh

Benefits

Project will produce high quality products marketable both locally and abroad.

Markets

40% of the output on the local market; 60% of the output on the foreign market

Availability of raw supply


24

Cotton yarn 100 % made locally

Raw mineral Required amount Local supply

Amount Price

Cotton yarn 1,000 tons a year 1,000 tons 2.5 – 3.0 million soums


Project cost USD 1.5 million


Type of financing Foreign direct investment

Investor’s Contribution and Interest USD 1 million for purchase of process equipment, or 66.7% of the total project

cost

Suggested Source of Investment

Own funds, million soums

Direct foreign investments, 000 USD

Loans


835 (USD 500,000) 1000 - -

Focus Investment

Expense Element Expenses in local currency,

billion soums

Expenses in hard currency, 000 USD

Financed by investments

Purchase of equipment, including: 1000

- made locally

- imported from abroad 1000

Financed by own funds

Purchase of facilities 835 (USD 500,000)


Status of Design and Cost Estimate Package Not available


25

TOURISM

6. CREATION OF TOURISTIC FACILITIES IN YANGI-ABAD DISTRICT

I. LOCAL PARTNER

Title: «Kobul Gulom Dilshod» LLC


Manager: K. Sattorov

Telephone: (+998 90) 539 23 52 Fax: (8372 ) 226 36 75

e-mail: [email protected]


Automobile road Jizzakh – Tashkent highway, at 25-30 km distance

Railroad Khavast railroad line, at 25 km distance



Sewer Not available, not required

Gas Supply Not available


II. INVESTMENT PROJECT DESCRIPTION

Purpose

Construction of a full-service touristic facility in Yangi-Abad District, for foreign and local visitors and rendering services related to ecological tourism, such as:

- Ducks hunting and fishing at a lake of 100 hectares;- Recreation and entertainment under the open sky;- Trips to Samarkand and Bukhara;

Benefits

Geographic location of the suggested site and a natural water reservoir warrants success of this project which involves provision of quality marketable tourism services both for local and foreign visitors.


26

Brief description of the process:

Following actions are suggested for setting up of a touristic facility in Yangi-Abad:- Construction of ten huts for one family, with all modern facilities (furniture, air conditioner, TV, refrigerator, telephone, etc.);- Purchase of two minivans and one sedan for trips to Samarkand and Bukhara;- Construction of a café-bar, restaurant, and open-air pool; - construction of two saunas;- Construction of ten hunting houses (3х4m); - Purchase of ten boats and motor boats for duck hunting and fishing;- Construction of a power station, water pumps, and trunk sewer;- Purchase of trucks and refrigerator trucks; - setting up a fishery

Markets

60% of services will be provided to foreign visitors, and 40% to Uzbekistan citizens

Availability of Raw materials

Not required for setting up a touristic facilities




Type of financing Foreign Direct Investment

Investor’s Contribution and Interest USD 3.2 million for construction of buildings and constructions, purchase of

equipment, vans, light vehicles, trucks, heavy equipment, construction and

installation, formation of working capital – 94% of the total cost


Own funds, million soums

Direct foreign investments, million USD

Loans

locally, million soum Foreign, 000 USD

336 (USD 200,000) 3.2 300 -


27

Focus of Investment

Expense element Expenses, million soums

Expenses in currency, 000 USD

Financed by Investment

Purchase of equipment, furniture, electric supplies, and inventory for furnishing the buildings, including:

450

- made locally 336 million soums, (USD 200,000)

- imported 250

Construction of buildings (cottages, a café/bar, a pool, and the hunting huts)

2,016 million soums (USD 1.2 million)

200

Construction of power station, water pumps, and sewer collector

200 million soums (USD 120,000)

80

Purchase of buses, light vehicles, trucks, and special equipment

252 million soums (USD 150,000)

200

Purchase of boats and motor boats 140

Construction and installation 570 million soums (USD 340,000)

120

Formation of working capital 168 million soums (USD 100,000)

300

Financed by own funds

Preparation of approvals and constituent package 17 million soums (USD 10,000)

Preparation of design and cost estimate documentation 84 million soums (USD 50,000)

Landscaping 100 million soums (USD 60,000)

Setting up a fishery at an area of 5 hectares 134 million soums (USD 80,000)

Expected financial Results, billion soums



Volume of rendered services, million soums 0.8 1.0 1.5 2.2


Design and Cost Estimate Preparation Business Plan prepared, Feasibility Study not prepared


28

7. CREATION OF TOURIST CAMP IN FORISH DISTRICT

I. LOCAL PARTNER

Title: ООО «Nuratau-Qizilqum Tur»

Legal address: Jizzakh region, Forsih district, Uhum village

Manager: S.Kurgonov

Telephone: 452-11-36



Railroad Not available

Power supply Available

Water supply Available

Sewer Not available

Gas supply Not available



Objective

Creation of touristic camp in Forish district (construction of recreation zone with tents) for foreign tourists and local population, rendering eco-tourism services.

Benefits

Geographic location of the suggested site for construction of tourist camp and ecological clean environment makes it attractive for investment.

Markets

Rendering services for foreign (40%) and local tourists (60%).


29


Project cost USD 550,000

Required investments USD 500,000


Investor’s Contribution and Interest USD 500,000 for construction of facilities and purchase of equipment



million USD

Loaned


85 (USD 50,000) 500 - -




Attracted investments

Purchase of equipment, furniture, electric supplies, and inventory for furnishing, including:

200

- made locally 120

- imported 80

Construction of necessary facilities with engeeniring communications infrastructure

300

Own funds

Construction of facilities 85 mln soums (USD 50,000)




Volume of rendered services, mln soums 0.2 0.25 0.35 0.5


Design and Cost Estimate Preparation Business plan prepared, Feasibility study to be developed


30

PROCESSING AND STORAGE OF HORTICULTURE PRODUCE

8. SETTING UP A PRODUCTION LINE FOR 3,000 TONS OF FRUIT PUREE AND 3,000 TONS OF TOMATE PASTE AT “JIZZAKH INVEST TAYORLOV SAVDO” LLC

I. LOCAL PARTNER

Title: “Jizzakh Invest Tayorlov Savdo” LLC


Manager: B. Buzrukhodjaev

Telephone: (+998 90) 265-12-62

Acquiring Bank: Aloka Bank



Railroad at 0.5 km distance

Power Supply available, 200 kW/A

Water Supply available

Sewer available

Gas Supply available



Purpose

Setting up Production for 3,000 tons of fruit puree and 3,000 tons of tomate paste

Market demand for planned products

60% of the output will be marketed abroad and 40% on the internal market

Raw mineral availability

Raw produce: tomatoes, apples, apricots, plums, etc.


31

Required Amount of Investment



Type of financing Foreign Direct Investments

Contribution and interest of local partner USD 500,000 or 28% of total project cost for construction and installation, and

formation of working capital

Contribution and interest of foreign partner USD 1,300,000 or 72% of total project cost, for purchase of equipment



million USD

Loans

locally, million soum Foreign, 000 USD

340 (USD 200,000) 1,300 500 -




Purchase of equipment, including: 1,300

- made locally

- imported 1,300

Construction and Installation 600

Purchase of raw materials - -

Formation of working capital 235


Design and Cost Estimate Preparation Business Plan not prepared


32

9. PROCESSING OF HORTICULTURE PRODUCE AND PRODUCTION OF EXPORT-ORIENTED PRODUCTS IN JIZZAKH TOWN

I. LOCAL PARTNER

Title: «JizzakhMevaSabzavotTayorlovsavdo» LLC


Manager: O. Daminov

Telephone: (8 372) 226 39 60


Automobile road Automobile road available, at 1~ 2 km distance

Railroad Railroad at 5 km distance



Sewer Not available




Purpose

Processing of fruit and vegetables (total capacity 3,000 tons) for marketing abroad, in Jizzakh town

Planned Markets

80% will be marketed abroad and 20% on the local market

Availability of raw materials

90% of raw produce will be provided by local farmers


33




Type of financing Foreign Direct Investment

Investor’s Contribution and Interest USD 1.2 million or 80% of the total cost, for purchase of equipment, formation of working capital and construction &

installation



million USD

Loans


500 (USD 300,000) 1,200 - -


Expense Element Expenses in local currency, million soums


From Investment


- locally made

- imported 800

Construction and Installation 252 (USD 150,000)

Purchase of raw materials 588 (USD 350,000)

From Own Funds

Purchase of storage building 504 (USD 300,000)


Status of design and cost estimate documentation Business Plan prepared


34

10. SETTING UP A REFRIGERATING FACILITY FOR FRUIT AND VEGETABLES IN JIZZAKH TOWN

I. LOCAL PARTNER

Title: “JizzakhMevaSabzavotTayorlovsavdo” LLC


Manager: O. Daminov

Telephone: (8 372) 226 39 60


Automobile road Automobile road available, at 1~ 2 km distance

Railroad Railroad at 5 km distance



Sewer Not available




Purpose

Setting up refrigerating facilities for fruit and vegetables storage for 2,000 tons, Freon system

Markets

45% of the fruit and vegetables will be marketed on the internal market and circa 55%, on the external market


35




Type of financing Foreign Direct investment

Share and Interest by foreign investor USD 1,250 million or 66.7% of the total cost, for purchase of refrigerators and

equipment, construction and installation, formation of working capital



million USD

Loans


500 (USD 300,000) 1,250 - -


Expense Element Expenses in local currency, million soums


From Investment


- locally made

- imported 1000

Construction and Installation 168 (USD 100,000)

Purchase of raw materials 252 (USD 150,000)

From Own Funds

Purchase of storage building 504 (USD 300,000)


Status of design and cost estimate documentation Business Plan prepared


36

FOOD PROCESSING

11. SETTING UP A FISHERY AND PROCESSING PRODUCTION FOR 1,000 TONS OF FISH PRODUCTS AT “ZOIRJON-BOBO» PRIVATE COMPANY

1. Local Partner

Title: “Zoirjon-bobo»

Legal address: Jizzakh district, Jizzakh region

Main activity: production of construction materials

Date of creation: 19.12.1994

Manpower: 16



Manager: K. Sattarov (Director)

3. Products

Construction gypsum, construction lime, paving tiles, cinder blocks, marble chips


Setting up a fishery and processing facility for 1,000 tons of fish


Project amount: USD 400,000

Required investments: USD 400,000

Return of Investment: 3 years

6. Availability of Raw materials

Materials: Juvenile fish and forage

Source: Purchase on the local market


37

7. Markets

Locally 10 %

Abroad 90 %

8. Availability of infrastructure and business plan

Infrastructure: Water, gas, and power supply; sewer

Distance to railroad 0.5 km

Access to automobile road: available

Business Plan : Not prepared


38

CHEMICAL

12. SETTING UP PRODUCTION FOR INDUSTRIAL OXYGENE (314,500 M3) AT “DILSHOD-T” PRIVATE FIRM IN JIZZAKH DISTRICT

1. Local Partner

Title: “Dilshod-T” private firm

Legal address: Jizzakh district, Jizzakh region

Main activity: Services (repair and installation of gas bottles)

Date of creation: 2005

Manpower: 4



Manager: T. Akhmedov (100%)


Setting up production for 314,500 m3 of industrial oxygen


Project Costs: USD 250,000

Required Investments: USD 250,000

Return of Investments: 5 years

6. Availability of Raw materials

Raw materials Atmosphere air

7. Markets

Internal Market 100 %


39

8. Availability of infrastructure and business plan

Infrastructure available: Water supply, gas supply, power supply, sewer

Distance to railroad: 1.5 km

Distance to automobile road: 2.2 km

Business plan: Prepared


40

VI. CONTACTS Organization Telephone

Government Authorities

Jizzakh Region Mayor’s Office 226-30-90

Main Economic Office of Jizzakh Region 226-20-72

Statistics Office 771-65-02

Finances Office 226-40-78

Anti-trust Committee 226-20-44

Tax Office 226-34-70

Labor Office 226-56-69

Office for External Economic Relations, Investments and Trade 226-36-68, 226-36-75

State Property Committee 226-25-04

Chamber of Trade and Commerce 771-71-04

Real estate exchange 226-05-72

“FAIZ” taxi and car rental 771-66-66

Banks

Central Bank 226-19-39

National Bank for External Economic Activity (NBU) 222-38-27

Pakhta Bank 226-51-08

Halk Bank 771-61-80

Ipoteka Bank 226-02-39

Microceredit Bank 224-49-39

Asaka Bank 226-34-90

Turan Bank 222-42-40

Galla Bank 224-44-76

Information

Information Office at the Rail Road Station 222-39-90

LD Domestic and International telephone calls 07 (the region only)

Telephone Directory Inquiries 09 (the region only)

First Aid and Emergency

Fire Brigade 01

Police 02

Ambulance 03

The Gas 04

Emergency 050

International dialing code for Uzbekistan: +998

Jizzakh region

Jizzak 72

Bustan 7249

Gagarin 7231

Galyaaral 7243

Pakhtakor 7235

Usmat 7241

Yangikishlak 7245

Zaamin 7239

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