Investment proposal

Expansion of vineyards and organization of wine Project production Increasing the volume of harvested grapes with Project goal introduction of drip irrigation system and organization of grape processing. Sphere/industry Agricultural industry Project implementation schedule 2019-2021 Yangiabad district, region, Republic of Project implementation location Information about project participants: Initiator LLC «YANGIOBOD UZUM-SERVIS» Co-executor (industry institution) JSC «Uzsharobsanoat» Project amount 4412,2 thousand USD Expected financing sources Own funds 2096,6 Commercial bank loans - Required amount of foreign direct 2315,6 thousand USD investment - Existing plantations, equipment, buildings and structures – 1249.7 thousand USD (investment of LLC “GIT”) - Saplings, equipment, technology and materials Main costs composition for expansion of a plantation for 259 hectares – 3101,7 thousand USD

- Working capital – 17,3 thousand USD

- Unexpected expenses – 43,7 thousand USD Expected profitability 16% Expected payback period 6 years Total sales2019 – 105,0 thousand USD 2020 – 1 012,5 thousand USD 2021 – 1 215,0 thousand USD 2022 – 1 620,0 thousand USD 2023 – 2 025,0 thousand USD 2024 – 2 835,0 thousand USDProduction costs for Cash flow the 4th year – 712,1 thousand USDAverage annual costs when reaching maximum power: Total – 660,9 thousand USD. Of them:Raw material – 156,0 thousand USD Wages of employees – 214,1 thousand USDOther expenses – 221,4 thousand USDTaxes and obligatory payments – 87,2 thousand USD Characteristics of products planned for Fresh, processed and dried fruits and vegetables production compliant with the ISO standard Grapes – 3 500 tons of products per year Project capacity/productivity Grape wine – 120 000 dahl per year Land plot (500 Ha), refrigeration complex for 100 Contribution to the project by the tons, drying complex for 100 tons. Products, initiator financing part of investment expenses in the amount of 2,096.6 thousand USD. Feasibility study of the project is at the Current project status development stage Company LLC «YANGIOBOD UZUM-SERVIS» Pastchakir village, Yangiabad district, Jizzakh Details, address, contacts region, Republic of Uzbekistan; Date of the company’s foundation 2016 Statutory fund 4,28 billion UZS; Founders and distribution of shares LLC «GOOD INTENT TRADE» - 100% share;

Information about the initiator of the project

Company LLC «YANGIOBOD UZUM-SERVIS» Pastchakir village, Yangiabad district, Jizzakh Details, address, contacts region, Republic of Uzbekistan; Date of the company’s foundation 2016 Statutory fund 4,28 billion UZS; Founders and distribution of shares LLC «GOOD INTENT TRADE» - 100% share;

Information about the founders

Name LLC «GIT»

Contact number +998977470167 e-mail [email protected]

Contact of the performer from the MIFT

Name Ochilov Akmal Position Leading expert Mobile: +998 99 876 25 10 Work: +998 71 252 42 Contact number 13 e-mail [email protected]

General information

Total jobs: 104 units, out of them:

Number and types of created jobs - Administrative staff: 3 - Engineering and technical personnel: 1 - Employees: 100 Impact of the project on the environment (Environmental Impact Statement Project), No negative environmental impacts are expected. including the expected types and volumes of waste, their disposal place on land plots of LLC “YANGIOBOD UZUM- Information about the land for SERVIS” with a total area of 580.6 hectares, located construction of the enterprise in the territory of RMC “Khujamushkent soy” (430.6 hectares) and RMC “Balandchakir” (150 hectares). - electrical substation – will be provided at the expense of the existing capacity of supply (3 transformers) and additional transformers 2 pcs.

- natural gas network – not provided Existing infrastructure - sewer networks – not provided

- railway station: - Dashobod station, 20 km

- water – existing own wells (5 wells), 3 more wells will be drilled Required infrastructure - Upcoming construction and Industrial and administrative buildings/facilities installation work Design and estimate documentation A business plan of the project is developed Electric power requirement (kW/h), 88 400 kWh per year installed power (kW/h or mW/h Water requirement (m cube) 21 200 m3 per year Gas requirement (t cube) -

Market analysis, productions definition (works, services),marketing researches

Types of products Grapes (tons)/Wine (dahls) 2019 – 350 / 02020 – 875 / 30 0002021 – 1050 / 36 Annual production 0002022 – 1 400 / 48 0002023 – 1 750 / 60 0002024 – 2 450 / 84 000 Estimated sales markets and their shares: Internal 10% of the total Export 90% of the total Production cost Grapes – 0.5 USD/kgWine – 3.0 USD for Dahl. Need for raw materials (per year) Fertilizer – 387.5 tons/yearFuel – 80.0 tons/year Total market demandThe volume of the world grape market is about 8.0 million tons and increases annually by an average of 3%.Uzbekistan for the last three years takes the first place in the export of raisin to China and increased the supply of its raisin by Market volume 30%, and its market share reached a record of 68.4%;Uzbekistan takes the 9th place (72.0 thousand tons) in the world in the export of raisins and the 10th place in the export of grapes (about 100 thousand tons);In the first half of this year, exports of wine materials amounted to 9.6 million dollars; Uzbekistan – 0,07% Expected market share Russia, CIS and PRC – 0,04% In – LLC Navigul Agro (50,000 tons/year), LLC Inter Agro Fresh (3000 tons/year);in city – LLC Gold Dried Fruits Export (10,000 tons/year);in – LLC Golden Main competitors Apple (9000 tons/year);in Surkhandarya region – LLC Gold Dried Fruits Export (10,000 tons/year);in – LLC Highway Logistics Center (10,000 tons/year) Main competitive advantages Quality and low cost of production Main target groups of consumers All categories of the population Sales structure by target consumer All categories of the population groups Export Estimated

main competitors’ price initiator’s price Pricing strategy (tons/thousand USD) (tons/thousand USD)

Agricultural raw materials 46.2%

Depreciation 21.1%

Final product cost structure Salary 27.0%

Other costs 5.9%

Markup 15.0% Patents, licenses, certificates in accordance with the current - legislation Formed base of potential customers with a confirmed willingness to is being developed purchase products Marketing research Available Presentation component of the Available project - Enterprises, attracting foreign direct investment and specialized in manufacturing products (services) are exempt from corporate income tax, property tax, single tax for micro and small enterprises, as well as mandatory contributions to the Republican Road Fund, which are provided with the volume of private foreign direct investment:

from 300 thousand USD to 3 million USD – for 3 years;

over 3 million USD to 10 million USD – for 5 years;

over 10 million USD – for 7 years.

(Decree of the President of the Republic of Uzbekistan DP-3594 of April 11, 2005).

- the minimum amount of share of foreign investments in the authorized capital of an enterprise Additional information with foreign investments is reduced from 30 to 15 percent.

- the requirements for mandatory participation of a foreign legal entity as a participant of an enterprise with foreign investments have been canceled.

- the minimum amount of the authorized capital of an enterprise with foreign investments was reduced from 600 million UZS to 400 million UZS. (about +/- 50.0 thousand USD at the rate of the Central Bank of the Republic of Uzbekistan on the day of investment)

- the amount of the state duty for state registration of enterprises with foreign investments is reduced by three times;

- the obligatory procedure for concluding export contracts for fruits and vegetables at prices not lower than the prices published by JSC Uzagroexport is canceled. Increasing competition by competitorsDelay in Project risks attracting investment

Production technology and parameters of main equipment

Depends on the investor's preferences

Type of equipment is being developed Country of origin Productivity Price Energy consumption Not available Installed power Not available Overall dimensions of the equipment Not available Main equipment weight Not available Main equipment units (lines) Not available Working hours per year Duty cycle Frequency of conducting the planned preventive maintenance (PPM) Number of people involved in the production process and their functions