Investment Guide to the Uzbekistan Jizzakh Region Tashkent
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Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan INVESTMENT GUIDE TO THE JIZZAKH REGION UZBEKISTAN 2011 Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan INVESTMENT GUIDE TO THE JIZZAKH REGION UZBEKISTAN TASHKENT – 2011 UNDP United 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 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 Jan Feb March Apr May June July Aug Sep Oct Nov Dec 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, % Jan Feb March Apr May June July Aug Sep Oct Nov Dec 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 1 Investment Guide to the Jizzakh Region Distance from Major Cities, km Tashkent Tashkent Andijan Bukhara Jizzakh Karshi Khiva Navoi Namangan Nukus Samarkand Termez Fergana Urgench 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. 2 Investment Guide to the Jizzakh Region II. ECONOMY Main social-economic indicators of the Jizzakh Region 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 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. Production by Industry 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 3 Investment Guide to the Jizzakh Region 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. Apiculture 10. Tourism 4 Investment Guide to the Jizzakh Region Following high-priority projects will be implemented in Jizzakh region as specified in the Industrial Develop- ment Program in Uzbekistan for 2011 - 2015. Implementation Project Volume Cost (MM) Period Textile Setting up spinning production at “A. Soatov LLC” 6,000 tons of yarn; 34.0 2011-2013 and “PLASTEKS LLC” in the Jizzakh town 4,000 tons of jersey Setting up a spinning production line at “Elegans Tex” 13.5 million m2 cloth; 28.0 2011-2012 JV in Jizzakh town 1.58 million bed sets 4.0 Setting up spinning, knitting, and dyeing production 6,500 tons of yarn; 2011 34.0 in Jizzakh region 4,500 tons of jersey 2012 Commissioning a textile factory in Jizzakh region 20,000 tons of yarn; 2012-2014 9,500 tons of jersey; 2014-2015 67.0 18.0 million knitted 2014-2015 goods Setting up hosiery production in Jizzakh region 24.5 million pairs of 8.2 2012-2015 hosiery Sub-Total 175.2 Machinery Building Setting up calcium batteries production in Jizzakh 800,000 9.5 2010-2011 town Sub-Total 9.5 Chemical Setting up production of sundry goods and children’s toys; expanding range of plastic consumer goods 582 tons 0.7 2011 manufactured at “Jizzakh Plastmassa” Company Setting up production of polymers at “Jizzakh 600 tons 1.5 2012-2013 Plastmassa” Company 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 10,000 tons 5.0 2013-2015 materials in Jizzakh region Sub-Total 255 Total 441.9 5 Investment Guide to the Jizzakh Region 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.