FREE ECONOMIC ZONE “TERMEZ” FREE ECONOMIC ZONE “TERMEZ”
Термиз - Хайратон – Мазари-Шариф – 500 м
Area – 80,6 hectares
Lots area – 54,3 hectares
Food products Industrial products Chemical products 40 lots 60 lots 20 lots GENERAL INFORMATION
Basic information
Area of regional 20,1 thousand sq. km
Republic of Turkmenistan Population of region 2.5 million inhabitants
SURKHANDARYA Consists of REGION 14 districts and the city of Termez
Center of the region Termez city
Termez Hakim (governor) of the region Mr. Bobolov Tura Abdievich
Islamic Republic of Afghanistan Official web-site www.surxondaryo.uz COMPETITIVE ADVANTAGES OF “TERMIZ” FEZ
MARKET Convenient location, access not only to the QUALIFIED WORKFORCE domestic market of the Republic of Uzbekistan, The population of the region is more than Tajikistan, Afghanistan, Iran, Pakistan. 2,5 million people. Higher education institutions and professional colleges annually train more than LOGISTICS 30,000 highly qualified specialists. The largest logistics center in Central Asia operates in the free economic zone. Its area is COMMUNICATION. 40,7 hectares. There is also a 3,2 hectare External roads, power lines, gas pipelines, container yard, 10,5 hectares of open space for telecommunications, water supply, etc. will be temporary parking, 4 hangars with a total area delivered to the free economic zone at the expense of 6000 m2 of state funds.
FINANCIAL SERVICES SOCIAL INFRASTRUCTURE. High financial and banking services will be The free economic zone includes modern hotels, organized for investors and buyers in the Free entertainment centers, cafes and restaurants, Economic Zone. grocery stores and others for investors and buyers.
Electricity Heat supply Gas supply Logistics Customs Restaurants Basic regulatory acts governing activities in the free economic zone
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 ” Benefits and preferences in the territory of FEZ
Benefits depending on the volume of investments Benefits in the FEZ are provided for a made in the territory of the FEZ period of 3 to 10 years depending on the (in equivalent dollars) 12000000 volume of investments made, including in
+ mln. the equivalent (US dollar): 10000000 from 0,3 mln. dollars to 3 mln. dollars
+5 mln. - for a period of 3 years; 8000000 from 3 mln. dollars to 5 mln. dollars 10 mln. - for a period of 5 years; 6000000 from 5 mln. dollars to 10 mln. dollars +2 mln. 4000000 - for a period of 7 years; 5 mln. from 10 mln. dollars and above +3 mln. 2000000 3 mln. - for a period of 10 years, 300 thous using the income tax rate and single tax 0 . 3 years 5 years 7 years 10 years payment in the amount of 50% below the current rates over the next 5 years. Benefits and preferences in the territory of FEZ
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:
land tax; Tax income tax; tax on property of legal entities; benefits tax for the improvement and development of social infrastructure.
customs payments (except for customs clearance fees) for equipment, raw materials, materials and components imported for own Customs production needs; exemptions customs payments (except for customs clearance fees) for construction materials not produced in the republic and imported as part of the project;
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 Governmental materials, materials and components in part of products sent for export. support 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. Placement in the territory of FEZ and registration of participants
Stages of selection of investment HOW TO BECOME A RESIDENT projects in the FEZ OF FEZ?
INVEST NOT LESS THAN 300 THOUSAND DOLLARS IN Providing the Decision of the PRODUCTION necessary Administrative Granting to the Council on the project the status of a documents to the placement of the participant in the Start project Directorate of FEZ project on the corresponding FEZ for consideration territory of the FEZ PREPARE BUSINESS PLAN AND SUPPORTING DOCUMENTS
Documents Provided GET THE INVESTMENT PROJECT APPROVED BY MINISTRY OF information on the state registration of a legal entity INVESMENTS AND FOREIGN TRADE (investor) or other document confirming the activities of this investor; CONCLUDE AGREEMENT business plan of the proposed investment project; ON CONDUCTING information confirming the investor's experience in the INDUSTRIAL AVTIVITIES relevant field and / or the implementation of similar investment projects (if any); information on the financial and economic activities of REGISTER WITHIN THE TERRITORY OF TERMEZ the investor over the past three years. DISTRICT Mandatory criteria and project information
Mandatory criteria for the placement of investment The business plan should be reflected projects in the territory of FEZ
the creation of import-substituting, high-tech information about the organization of a legal entity; industries in accordance with the parameters number of jobs created; established by law for localization projects; name, specificity and volumes of products; the volume of export after the start of production estimated prices and markets; activity is at least 20 percent in the second and at marketing research; least 30 percent in the third and subsequent years; availability of raw materials; the creation of new jobs in the amount calculations of the level of production localization and changes in the final determined by the administrative councils, commodity position (code according to the HS including the establishment of a 10 percent quota code version 2017); for those in need of employment on the lists logistics and transportation; provided by the Council of the Federation of necessary volumes and parameters Trade Unions; of engineering and communications support staffing of the organization being created from tools; production emissions; among citizens of the Republic of Uzbekistan in preliminary layout; the amount of at least 95 percent of the total production technology description; number of employees involved, with the provision process equipment characteristic; of the possibility of internships and advanced estimated volumes, type and terms training. of investment; financial and economic calculations. 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.
COST OF THE PROJECT NEED FOR INVESTMENT
$ 12,0 mln. $ 8,2 mln.
PRODUCTION CAPACITY PROJECT LOCATION
200 thousand pcs per Free Economic Zone year “Termez”
ECONOMIC INDICATORS PRODUCT MARKETS IRR- 21,9% Local market: 50% NPV- $10,6 mill Export: 50%
NECESSARY PAYBACK PERIOD INFRASTRUCTURE 61 months Will be clarified 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.
COST OF THE PROJECT NEED FOR INVESTMENT
$32 mln $32 mln
PRODUCTION CAPACITY PROJECT LOCATION
3’800’000 square Free Economic Zone meter glass “Termez”
ECONOMIC INDICATORS PRODUCT MARKETS IRR: 12% Local market: 50% NPV: $10 mln Export: 50%
NECESSARY PAYBACK PERIOD 60 month INFRASTRUCTURE Available 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.
COST OF THE PROJECT NEED FOR INVESTMENT
$4,69 mln $4,5¥05 mln
PRODUCTION CAPACITY PROJECT LOCATION
Free Economic Zone 1,4 mln. units “Termez”
ECONOMIC INDICATORS PRODUCT MARKETS IRR: 37,9 % Local market: 50% NPV: $4,9 mln Export: 50%
NECESSARY PAYBACK PERIOD 42 months INFRASTRUCTURE Available 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
COST OF THE PROJECT NEED FOR INVESTMENT
$ 12,8 mln. $ 12,8 mln.
PRODUCTION CAPACITY PROJECT LOCATION 2500 thousand pcs per Free Economic Zone year “Termez”
ECONOMIC INDICATORS PRODUCT MARKETS IRR- 14,2% Local market: 50% NPV- $7,5 mln Export: 50%
NECESSARY PAYBACK PERIOD INFRASTRUCTURE 73 months Will be clarified 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
COST OF THE PROJECT NEED FOR INVESTMENT
$2 mln $2 mln
PRODUCTION CAPACITY PROJECT LOCATION
48’000 pieces sanitary Free Economic Zone goods “Termez”
ECONOMIC INDICATORS PRODUCT MARKETS IRR: 47% Local market: 50% NPV: $5 mln Export: 50%
NECESSARY PAYBACK PERIOD 24 months INFRASTRUCTURE Available Thank you for your attention