INVEST IN KANIMEKH

INVESTMENT GUIDE BOOK OF KANIMEKH DISTRICT

DEPARTMENT FOR INVESTMENT AND FOREIGN TRADE OF KANIMEKH DISTRICT

NAVOI, REPUBLIC OF 2019 “Our most important task is to create comfortable and decent conditions for entrepreneurship, livelihoods and recreation of people”

“I guarantee reliable protection of all foreign investments, inviolability of their property and free transfer of profits”

President of the Republic of Uzbekistan

SHAVKAT MIRZIYOYEV WELCOME!

Kanimekh district is situated in the center of Navoi region. The Kanimekh district borders with Uchkuduk, Tamdy, Nurata, Kyzyltepa districts, and the Republic of . ABOUT KANIMEKH

DATE OF ESTABLISHMENT TERRITORY

1925 1 million 584 thousands ha

ADMINISTRATIVE DIVISION POPULATION

15 makhalla (sub-districts) 37 thousand

CLIMATE

Dry climate COMPETITIVE ADVANTAGES

TAX PREFERENCES New enterprises are exemption from TOURISM all types of taxes until 2028. Lake “Aydarkul” is located on the territory of the district, where there are 3 tourist bases.

AVIALABLE INFRASTRUCTURE KANIMEKH CARGO AND Available and TRANSPORTATION uninterrupted system of Railway Station is at a distance infrastructure. DISTRICT of 7 km. from center of district.

MINERAL RESOURCES SMALL DISTANCE The northern territories of the The district is it a distance of 25 km. district are rich in mineral from Navoi City. resources. COMPETITIVE ADVANTAGES

On the basis of resolution 3301 of the President of the Republic of Uzbekistan on 29 Sep 2017 COMPANIES ARE EXEMPTED FROM:

INCOME TAX ON DIVIDEND

Stockholders of the local companies

FROM ALL TYPES OF TAXES COMMON TAX

Newly established entities in the Resolution Livestock farming clusters (meat, field of Industry and Service 3301 of eggs, milk, fur, leather, and wool (except retail and petrol 29.09.2017 productions) stations)

FIXED TAX

Locally registered sole trader UTILITY TARIFFS FOR ENTERPRISES

Utility tariffs for enterprises in Region

Power supply kWh 182,0 UZS / 0,022 USD

Cold water supply m / cube 420,0 UZS / 0,050 USD

Heat water supply Gcal 61440,0 UZS / 7,2 USD

Gas supply m / cube 208,9 UZS / 0,025 USD

http://ek.uz MINERAL RESOURCES

MINERAL RESOURCES RESERVES AVAILABLE IN THE TERRITORY OF KANIMEKH

1880,0 th. tons 8236 th. tons

BROWN (IRON) ORE PHOSPHORIT

6175,0 th. tons 245,0 th. tons SHALE OIL MINERAL SALT DRIVERS OF ECONOMY

LEADING INDUSTRIES

Volume of Industrial Volume of agricultural MAIN TYPES OF INDUSTRIAL products products PRODUCTS

5% 2% 64,6 1203,5 9% billion billion UZS UZS 40% 11%

Investments in fixed assets Services 15%

18%

88,3 118,0 Mineral water Construction sands billion billion Construction materials Clothes and accessories UZS UZS Metal Leather and wool Doors and windows FOREIGN PARTNERS

“Sarabel-Diamet-Karakul” “Ramand-” (IRAN) (RUS)

“SARABEL-DIAMET-KARAKUL” “Ramand-Konimex” LTD was LTD was registered in 2003. The registered in 2018. The company company carries out processing of carries out farming raising of goats karakul leather and wool. and sheep of Romanian breed.

“Base Metal” (UAE) “TAN Company” (KAZ)

“Base Metal International Traders” “TAN Company” LTD was registered LTD was registered in 2018. The in 2019. The company carries out company carries out processing of production compound feedstuff and mineral wastes of enterprises. flor. STATE SUPPORT OF INVESTMENT PROJECTS

Khokimiyat (administration) of Kahimekh district

PROVISION OF LAND CONNECTING TO SYSTEM PLOTS OF INFRASTRUCTURE

PROVISION OF EMPTY BUILDINGS STATE SUPPORT OF INVESTMENT PROJECTS

Exemption from taxes State support Exemption from all types of Land plots

taxes for newly created Empty buildings S

business entities Infrastructure T

Exemption from taxes Cargo and transportation - INCOME TAX (PROFIT) Railway Station is at a - SOCIAL PAYMENT distance of 7 km. from center T

T - FIXED TAX of district. TOURISM POTENTIAL

Kanimekh – the Diamond of

Kanimekh – is an urban-type settlement and seat of Konimex District in in Uzbekistan. District is located on the outskirts of a large oasis. The outskirts of Kanimekh is a narrow “strip of life” surrounded by a desert. TOURISM POTENTIAL

Temperature and rainfall

The climate is sharply continental. It is expressed in sharp amplitudes of day and night, summer and winter temperatures. Nature is arid, precipitation is low, the relative humidity of the air is low. The length of the day in summer is about 15 hours, in the winter - at least nine. TOURISM POTENTIAL

Kyzyl-Kum desert

This is a huge desert in Central Uzbekistan. Its name is translated as “red sands”. The major part of the desert is occupied by sand massifs. The climate is sharply continental with unbearable heat in summer. However, sometimes it rains in spring and winter, and what is more some places have groundwater sources serving as cool oases for wildlife and humans. The Kyzyl-Kum nature is very diverse. It is home to the antelope-gazelle, jerboa, various kinds of ground squirrels, the tolai hare, wolf, corsac fox, lark, jay bird, bustard, steppe eagle, owls, snakes (including venomous viper), lizards, varans and even turtles. The desert flora is also rich: wild tulips can be found in spring, sand sedge is common for the sands, while sagebrush and other shrubs, for the clay ground; white and black saksaul can also be met there. TOURISM POTENTIAL

Aydarkul Lake - Wonder among desert

Lake in the middle of desert is not the mirage, but the real miracle of nature. It is called Aydarkul. Origin of crystal pure lake on the south-east of Kyzyl-Kum desert is very mysterious. The area around the lake best suites for walks and rides on horse back and camelback. Fauna is very rich. In spring and in summer alpine grasslands abounds in variety of colors – bright- red tulips and snowy-white acacia. High up in the mountains black storks build its nests. This bird specie is listed in the Red Book of many countries. In early spring thousands of ducks, geese, pelicans and herons flock together here. Tourists can fish, swim and get a tan here. TOURISM POTENTIAL

Adventure Tours

The nomadic dwelling “Yurt” takes its foundation in the origins of a nomadic civilization and is its constant attribute. Nowadays, you can enjoy the exotic way of life of nomads in yurt camps. There are 3 yurt camps on the shore of the “Aydarkul” Lake:

• “Golden Safari” • “Kyzylkum Safari” • “Sputnik-Navoiy” TOURISM POTENTIAL

Mausoleum of Kylych-ota

On the stone installed on the grave of St. Kylych-Ota his blessing is carved. Those who came for healing poured water on a stone and drank drained water.

According to legend, the real name "Kylych- ota" Said Burkhoniddin, he comes from Mecca, he arrived in these places, during the rule of the Arab Caliphate in Central Asia. The commander Kurkizgan, who had a beautiful daughter whom Said Burkhononiddin married, lived in these places. Some time later, on the orders of Amir Saeed, Burkhoniddin was sent to Mecca.

The pilgrimage site Kylych-ota is located on the territory of Shurkul. TOURISM POTENTIAL

National holidays and festivals Navruz is one of the most treasured holidays in Uzbekistan. Sometimes known as Persian New Year, Navruz is a chance to celebrate nature, to welcome a new year, and to enjoy flavorful food with friends, neighbors, and family. The most famous of Navruz dish is sumalak, made from germinated grains and stirred for a whole day by the women of the neighborhood. TOURISM POTENTIAL

Kupkari – competition of real dzhigits Kupkari is a traditional Central Asian team competition played on horseback. In Uzbekistan the kupkari competition is also called an ulak. In this game skilled equestrians compete to carry a goat or sheep carcass into a goal. Usually Kupkari is held in spring or autumn, when the Central Asian peoples traditionally celebrate weddings, as well as during the main spring holiday, Navruz. TOURISM POTENTIAL

Traditional food Kanimekh national cuisine reflects essence of the nation, its history, culture and traditions. Hospitality has always been a distinctive feature of the Kanimekh nation, thus guests are always given a warm reception and the best seat. First he is offered kumys (horse milk), dairy drinks such as shubat (made of camel milk) or ayran (made of cow milk). Then dastarhan (tablecloth) is filled with local bread and refreshments of horse meat and lamb: kazi and kabyrga.

The most popular dish is ‘besbarmak’. It is the main dish of the national cuisine Then baursaks are served kurt (pressed sour and is translated as ‘five fingers’, and to the tea with milk and cream, dried in because the dish is eaten with hands. cream, different shapes).

Traditional first course dish in the cuisine is shurpa, a well cooked broth with meat, vegetables and spices. It is usually served in big bowls. INVESTMENT PROPOSALS INVESTMENT PROPOSALS

1. Project name Organization of ostrich breeding Estimated investment Total project cost (costs) 120,0 thousand $ Construction works 30,0 thousand $ 60,0 thousand $ 10 ostriches families by 2000 $ 2. Ostriches (in one family a male and 2 female ostriches) Food for ostriches 20,0 thousand $ Other costs 10,0 thousand $ 3. Expected employment figure 5 persons 4. Constant costs (salary, taxes and other) 30,0 thousand $ Profitability of project Annual capacity From 10 ostrich families: 600 ostrich chickens = 120 thousand $ First year 5. Net profit - 90 thousand $ 750 ostrich chickens = 150 thousand $ Second year Net profit - 120 thousand $ 6. Period of the project 4 months 10-12 month ostrich gives 40-50 kg of meat; 7. Average price in the domestic market ostrich chicken - 200-250 $; ostrich egg - 10 $; 8. Returned estimated investments period 1,5 years 9. Profitability 300% INVESTMENT PROPOSALS

The organization of cattle breeding 1. Project name complex and a milk processing Estimated investment Total project cost (costs) 1814,0 thousand $ Construction works 388,2 thousand $ 2. Cattle 1308,2 thousand $ Milk processing equipment 117,6 thousand $ 3. Expected employment figure 60 persons 4. Constant costs (salary, taxes and other) 50,0 thousand $ Profitability of project Annual capacity 1,0 mln $ Milk – 1350 tons Cows Meat – 30 tons Camels Milk – 96 tons. 5. Kefir – 576 tons – 144,0 thousand $ Smetana – 576 tons – 633,6 thousand $ Final product Camel milk – 76 tons – 129,2 thousand $ Meat – 30 tons – 105,0 thousand $ 6. Period of the project 1 год 1 kg meat – 3,5 $ 1 l kefir – 0,25 $ 7. Average price in the domestic market 1 l smetana – 1,1 $ 1 l camel milk – 1,7 $ 8. Returned estimated investments period 2 years 9. Profitability 50% INVESTMENT PROPOSALS

1. Project name Organization of hotel

Estimated investment

Total project cost (costs) 409,3 thousand $

Construction works 116,2 thousand $ 2. Furniture accessories 272,8 thousand $

Other costs 23,5 thousand $

3. Expected employment figure 15 persons

Constant costs

Salary 33,7 thousand $

4. Breakfast 31,7 thousand $

Utility costs 34,3 thousand $

Profitability of project

For a day 40 clients - 505,8 $ 5. Annual capacity For an year 14 000 clients - 177,0 thousand $

6. Period of the project 6 months Returned estimated investments 7. 2,5 years period 8. Profitability 55% INVESTMENT PROPOSALS

Organization of extraction and processing of 1. Project name iodized salt Estimated investment Mineral salt reserves 245,5 thousand tons Total project cost (costs) 934,0 thousand $ 2. Construction works 233,9 thousand $ Technologies for equipment 246,5 thousand $ Special equipment 446,5 thousand $ 3. Expected employment figure 50 persons Constant costs (salary, taxes and 4. 30,0 thousand $ other) Profitability of project 1. «NaCl» 4000 tons = 141,1 thousand $ 2. «Iodized salt» 4000 tons = 329,4 thousand $; 3. «Iodized salt «Extra» 6000 tons = 635,3 5. Annual capacity thousand $ 4. Technical salt 3000 tons = 42,3 thousand $ Total of profit: 1,1 mln $ Net profit: 428 thousand $ 6. Period of the project 1 year 1. «NaCl» 1 ton – 35,2 $ 2. «Iodized salt» 1 ton – 82,3 $ 7. Average price in the domestic market 3. «Iodized salt «Extra» 1 ton – 105,8 $ 4. Technical salt 1 ton – 14,1 $ Returned estimated investments 8. 3 years period 9. Profitability 33,6 % INVESTMENT PROPOSALS

1. Project name Organization of park of attractions

Estimated investment

Total project cost (costs) 500,0 thousand $

Construction works 150,0 thousand $ 2. Attractions 300,0 thousand $

Other costs 40,0 thousand $

3. Expected employment figure 20 persons

4. Constant costs (salary, taxes and other) 10,0 thousand $

Profitability of project

For a day- 400 clients – 941 $ 5. Annual capacity For an year – 254,1 thousand $

6. Period of the project 6 months

7. Returned estimated investments period 2 years

8. Profitability 52% INVESTMENT PROPOSALS

1. Project name Organization of modern greenhouse Estimated investment Total project cost (costs) 2761,5 thousand $ 2. Construction works 340,0 thousand $ Technologies for equipment's 2200,0 thousand $ 3. Expected employment figure 30 persons Constant costs Utility costs 181,0 thousand $ Vegetable seeds 30,0 thousand $ 4. Fertilizers and chemicals 85,0 thousand $ Salary 41,5 thousand $ Transportation costs 120,0 thousand $ 5. Other costs 37,5 thousand $ Profitability of project From 4 hectares * 200 000 kg = 1,4 mln $ 6. Annual capacity (for kg 1,75 $) Net profit = 905,0 thousand $ 7. Period of the project 6 months Returned estimated investments 8. 4 years period 9. Profitability 30% INVESTMENT PROPOSALS

1. Project name Organization of stocking production

Estimated investment Total project cost (costs) 934,0 thousand $ Construction works 58,0 thousand $ 2. Technologies for equipment's 324,0 thousand $ Raw materials 80,0 thousand $ Other costs 138,0 thousand $ 3. Expected employment figure 12 persons Constant costs (salary, taxes and 4. 71,1 thousand $ other) Profitability of project

For a month - 320 320 pair of socks; - 41 600 baby tights 5. Annual capacity Total of profit = 1,2 mln $ Net profit = 368,5 thousand $

6. Period of the project 3 months

socks – 0,188$ 7. Average price in the domestic market baby tights – 1$

Returned estimated investments 8. 2,3 years period 9. Profitability 61% INVESTMENT PROPOSALS

1. Project name Organization of flour production

Estimated investment

Total project cost (costs) 2031,0 thousand $

Construction works 433,0 thousand $ 2. Technologies for equipments 950,0 thousand $

Wheat 648,0 thousand $

3. Expected employment figure 20 persons

4. Cost price of production per year 930,5 thousand $

Profitability of project

For a day = 120 tons of flour 5. Annual capacity Total of profit = 7,9 mln $ Net profit = 1,7 mln $

6. Period of the project 6 months Returned estimated investments 7. 2,5 years period 8. Profitability 169 % INVESTMENT PROPOSALS

1. Project name Organization of sheep breeding Estimated investment Total project cost (costs) 180,7 thousand $ Construction works 25,0 thousand $

2. Sheeps (1500) 116,2 thousand $

Food for sheeps 30,0 thousand $ Other costs 4,0 thousand $ 3. Expected employment figure 7 persons 4. Cost price of production per year 5,5 thousand $ Profitability of project

From one sheep 45 kg of meat 45 kg *3,5 $ = 157,5 $ 5. Annual capacity 157,5 $ *1500 sheep = 236,5 thousand $ Net profit = 55,5 thousand $

6. Period of the project 3 months

7. Average price in the domestic market 1 kg of meat – 3,5 $

8. Returned estimated investments period 1 year 9. Profitability 100% INVESTMENT PROPOSALS

Organization of production of plasterboard 1. Project name and gypsum blocks Estimated investment Total project cost (costs) 1600,0 thousand $ Construction works 300,0 thousand $ 2. Technologies for equipment's 1100,0 thousand $ Raw materials 100,0 thousand $ Other costs 50,0 thousand $ 3. Expected employment figure 25 persons 4. Cost price of production per year 50,0 thousand $ Profitability of project

1,4 mln.sq.m of plasterboard = 1364,7 thousand $ 5. Annual capacity 10 thousand sq.m of gypsum blocks = 94,1 thousand $ Total of profit = 1458,8 thousand $

6. Period of the project 6 months

1 piece of plasterboard – 2,9 $ 7. Average price in the domestic market 1 sq.m of gypsum block – 9,4 $

Returned estimated investments 8. 1,5 years period 9. Profitability 78% INVESTMENT PROPOSALS

1. Project name Organization of camel breeding 2. Provision of land plots Desert places, 5000 hectares Estimated investment Total project cost (costs) 977,5 thousand $ Construction works 50,0 thousand $

3. Camels 882,3 thousand $

Foods for camels 30,0 thousand $ Other costs 5,2 thousand $ 4. Expected employment figure 10 persons 5. Cost price of production per year 10,0 thousand $ Profitability of project

364 tons of camel milk = 6. Annual capacity 635,2 thousand $

7. Period of the project 6 months

8. Average price in the domestic market 1 l of camel milk – 1,7 $

9. Returned estimated investments period 2 years 10. Profitability 82% INVESTMENT PROPOSALS

Organization of camel racing and 1. Project name hunting 2. Provision of land plots Desert places, 5000 hectares

Estimated investment

Total project cost (costs) 103,4 thousand $

Construction works 30,0 thousand $

4. Camels 52,9 thousand $

Foods for camels 10,0 thousand $

Other costs 5,0 thousand $

5. Expected employment figure 10 persons

6. Cost price of production per year 5,5 thousand $

Profitability of project

50 visitors for a day = 294 $ 7. Annual capacity Total of profit = 88,2 thousand $

8. Period of the project 6 months

9. Returned estimated investments period 1 year

10. Profitability 82%