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Surkhandarya Region SURKHANDARYA REGION INVESTMENT EXPORT TOURISM ABOUT SURKHANDARYA REGION Key information Area 20.1 thousand sq. km Tashkent Population 2.5 mln. people The Republic of Uzbekistan Urbanization ~50% Languages Uzbek (official), SURKHANDARYA Russian (commonly used) Literacy REGION ~97% Consists of The Republic of The Republic of 13 Districts and Termez city Tajikistan Turkmenistan Center of the region Termez city Termez Hokim (governor) of region Mr. Bobolov Tura The Islamic Republic www.surxondaryo.uz of Afghanistan ECONOMY Gross Regional Product (GRP) The shares of GRP 53% 11% 2.5 bln. 2.1 bln. USD 9% USD (est.) 11% 1.4 bln. 6% 10% USD 2017 2018 2019 Industry Construction Agriculture Transport & Communication Trade & Services Others Total Export Total Import (mln. USD) (mln. USD) 2018 254.4 2018 400.9 2017 191.7 2017 217.3 EXPORT & IMPORT Structure of Export Structure of Import 51% 76% 15% 23% 15% 3% 3% 8% 3% 3% Cotton yarn and fabric Foods (inc. agricultural products) Foods (inc. agricultural products) Chemicals Energy resources Services Ferrous and non-ferrous metals Machinery and equipment Others Others Export markets Import markets Khazakstan 29% EU 24% Afghanistan 27% China 17.5% Russia 17% Khazakstan 8.6% China 7.4% Russia 8% Pakistan 6.6% Turkey 6.9% South Korea 6.8% Turkey 3% Pakistan 6.8% Vietnam 2.4% Tajikistan 5% Khirgistan 1.9% India 4% Tajikistan 1.2% Ukrain 3.6% Azerbayjan 0.7% Iran 3% South Korea 0.7% Japan 1.8% EU 0.7% Turkmenistan 1.7% Others 2.4% Others 2.3% MINERAL RESOURCES There are 45 identified deposits of mineral resources, such as: Dolomite Granitee Plaster stone Coal Bentonite (2891 mln. cubic meters) (357 mln. cubic meters) (127 mln. cubic meters) (102-105 mln. tons) (50-100 mln. tons) Ceramic Argillite Iodine and bromine Marble Limestone Phosphorite (26,1 mln. cubic meters) (26 mln. tons) (8,5/180 mln. tons) (8,7 mln. cubic meters) (3,8 mln tons) Strontium-celestine Red sandstone Brick-shingles raw materials Quartz stone Quartz sand (3,3 mln. tons) (unrecognized amount) (72,7 mln. cubic meters) (unrecognized amount) (unrecognized amount) Besides that, an intensive research is being carried out to identify hydrocarbon and metal ore reserves of the region. EXPORT POTENTIAL Sub continental climate with mild winter as well as hot and long summer allows to grow crops three times a year. Annually, about 2 million tons of agricultural products are being produced. Facilities for processing of fresh agricultural products are available only for 12 % of all amount. More then 400 thousand tons of fresh agricultural products are exported every year, including: vegetables 160 melons 35 legumes 32 peanut 44 fruits and berries 54 grapes 38 Due to agricultural conditions there is good opportunity to develop food processing projects in the region. TRANSPORT & LOGISTICS The region has – Tashkent - 720 km. Tajikistan, Railway communication 372 km. Dushanbe - 245 km. with 14 railway stations, 3 cargo servicing terminals, Roads 2844 km. including international M-39, M-41 highways, An international Airport in Termez City, Turkmenistan, Turkmenabad - 441 km. A river port with cargo servicing Afghanistan, in Termez City, Mazari-Sharif - 99 km. An international Logistics center – Termez Cargo Centre TERMEZ CARGO CENTER Total area of the Cargo Centre 40,7 Ha, Container yard area 3,2 Ha, 4 hangars with total area of 6000 m2, Open area for temporary parking of vehicles 10,5 Ha, 1 hangars with refrigeration system, Railway access pathways for wagon supply with storage Cargo servicing capacity - 69 containers per day capacity over 90 wagons BUSINESS & INVESTMENT ENVIRONMENT There are 2160 enterprises which are operating in industry, Successful enterprises including 264 enterprises with foreign investment. Foreign company “Jarkurgancementinvest” The new 86 foreign investment companies have been established over the past period of 2019. The major investors are from: Russian Federation, Austria, Great Britain, China, South Korea, Afghanistan etc. Investment dynamics 653 mln.USD 510 mln.USD 234 mln.USD 323 Cement production plant for 1 mln. tons a year. mln.USD Established on Russian investment. Total investment over 39 mln.USD 91 (est.) 18 mln.USD mln.USD 2017 2018 2019 Foreign Investment Domestic Investment BUSINESS & INVESTMENT ENVIRONMENT Successful enterprises Stable political and JV “Sherabad Textile Invest” legislative system Convenient geographical location Special customs and tax privileges Opportunities of free Main economic zones conditions Availability of qualified human resources Availability of land resources Availability of mineral resources The textile factory with annual production of fabrics over 20 000 tons. Wide tourism opportunities Established on British investment. Total investment about 34 mln. USD FEZ residents are exempted from taxes such as land tax, property tax, corporate tax and from Customs payments on its’ own investment projects PROJECTS UNDER IMPLEMENTATION JV “Surhan Gaz Chemical Operating Company” Ltd. Foreign company “EKO-KULTURA” Ltd. The Goal of the Project: The Goal of the Project: Development of the field with natural hydrocarbons deposits, Creation of agro-industrial cluster; Construction of a Gas chemical Plant, Construction of a greenhouse complex based on hydroponics Supplementary exploration of the Boysun investment block. technology. The area of the investment block is 3,600 sq.km. Creation of agro-logistics center. Estimated reserves about 100 billion cubic meters of natural gas Allotted land area is 510 Ha. Project implementation period - 35 years. Project implementation period - 3 years. The total cost of the project is about 5 bln.USD and the cost of its initial The total cost of the project is 320 mln.USD and the cost of its initial stage is 2 bln.USD. stage is 50 mln.USD. Based on join capital of German, Austrian, Russian and Uzbek companies. Based on investment of Russian companies. Currently, active work is underway on the construction of wells and the Currently, work is underway to develop the land area and rising facilities plant to create facilities for gas recovery and gas processing. for the constructions. PERSPECTIVES FOR INVESTMENT Pharmaceuticals and Processing of agricultural Ready-made textile Medicine products Polymers and plastics Construction materials Leather and footwear PROPOSALS FOR INVESTMENT Pomegranate processing Grapes processing Convenient climate conditions for pomegranate growing, Convenient climate conditions for grapes growing, Annual production of the fruit is up to 25 thousand tons, Annual production of the fruit is up to 45 thousand tons, The fruit is not processed in the region, Only 10% of this fruit is processed, Juices and jams can have to be gotten from this fruit, Wines, juices and jams can have to be gotten from this fruit, Fruit peel can be used for cosmetics and pharmaceuticals, Seeds can be used for cosmetics and pharmaceuticals, The land for the production will be allotted, The land for the production will be allotted, Access to infrastructure and communications will be Access to infrastructure and communications will be provided, provided, Initial investment of about 5 mln.USD, Initial investment of about 8 mln.USD, Estimated project capacity over 10 thousand tons of fresh Estimated project capacity over 15 thousand tons of fresh fruits processing in a year, grapes processing in a year, Estimated payback period of the project is 3 years. Estimated payback period of the project is 4 years. Additional market researches are to be taken PROPOSALS FOR INVESTMENT Peanut processing Dried fruits and vegetables production Convenient climate conditions for peanut growing. Convenient climate conditions for agriculture. Annual regional production of the peanut over 40 thousand Annual regional production of fruits and vegetables over tons, 800 thousand tons, Only 3% of the peanut is processed, Only 7% of the fresh agriculture products is processed, Butter, oil and candies can have to be gotten from the peanut, There is a large variety of production which might to be gotten Stems and waste can be used as a cattle feed, from fruits and vegetables, The land for the production will be allotted, The land for the production will be allotted, Access to infrastructure and communications will be provided, Access to infrastructure and communications will be provided, Initial investment of about 6 mln.USD, Initial investment of about 10 mln.USD, Estimated project capacity over 15 thousand tons of the peanut Estimated project capacity over 30 thousand tons of fresh production in a year, fruits and vegetables in a year, Estimated payback period of the project is 3 years. Estimated payback period of the project is 4 years. PROPOSALS FOR INVESTMENT Leather processing Readymade textile products Sheep and cattle breeding is relatively developed, Cotton is the main crop of the region, annual output of cotton there is over 3 millions of livestock, fiber is about 200 thousand tons, Annually over 600 thousand heads of livestock goes to slaughter, 80% of cotton fiber is processed into yarn, only 25% of the Only 4% of the animal skin is processed, yarn goes for further production, Leather market is not sufficiently supplied, there is a big demand There is a large variety of production which might to be gotten for these goods, from cotton yarn, The land for the production will be allotted, The land for the production will be allotted, Access to infrastructure and communications will be provided, Access to infrastructure and communications will be provided. Initial investment of about 7 mln.USD, Initial investment of about 35 mln.USD, Estimated project capacity over 35 thousand pieces of leather in a Estimated project capacity over 8 thousand tons of the textile year, production in a year, Estimated payback period of the project is 4 years. Estimated payback period of the project is 4 years. PROPOSALS FOR INVESTMENT Marble processing Medical services Providing of a high quality medical services is very demanded. The total amount of identified marble reserves of the region is Medical services are mainly represented by state clinics and by 5 mln.
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