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Investment Guide for Andijan Region

Andijan Province is a large agrarian-industrial region of the Republic of Uzbekistan. The Province borders on the north-east and south with the Republic of Kyrgyzstan, on the west with Fergana Province and on the north-west with Namangan Province of the Republic of Uzbekistan. The climate of the province is strongly continental.

Total area of the Province is 4,3 thousand square kilometers.

The province includes 14 administrative districts: Altinkul, Andijan, Asaka, Balikchi, Boz, Bulakbashi, Jalakuduk, Izbaskan, Kurgantepa, Marhamat, Pahtaabad, Ulugnor, Hojaabad and Shahrihan; as well as 11 towns: Andijan, Asaka, Ahunbabayev, Karasu, Kurgantepa, Marhamat, Pahtaabad, Paytug, Hanabad, Hojaabad and Shahrihan.

Andijan is the administrative center of the province. It is known in the Central Asia as one of the ancient cultural and trade centers of the Fergana valley and currently it is a dynamically developing center of the industry and agrarian production. The city is 450 m above sea level, its area is 74.3 square kilometers.

  

In VI century B.C., the state of Davan appeared on the territory of the Andijan Province, with its capital in the town of Ershi (within the Andijan Province). Substitution of bronze implements with iron ones was occurring in that period, production forces were developing, crop farming was growing on the basis of artificial irrigation. Cattle breeding was developing as well, it was the place were the famous ‘celestial horses’ being quite popular in China were bred.

In the ancientry, this land, known as ‘Andugon’, was located at the crossing of caravan trade routes of the ‘Great Silk Road’ connecting West and East.

Development of the Marhamat culture of the Davan state (the years 220-419 A.D.) and ‘Eylatan culture’ (I – III centuries A.D.) encouraged the growth of urbanization and wide spread of handicrafts. Islamization of the local population took place in VII – VIII centuries in the period of spread of Islam.

The collapse of the Arab Empire and annexation in the Samanid state in IX century encouraged development of science and art, trade with other countries. Andijan was becoming one of major centers of the Fergana valley. In X century Andijan became a part of Karahanid State and in XII century enters into the Jigatay State ruled by a son of Chengiz khan. After collapse of the Mongol State in XIV century, Andijan entered into the Timurid State.

This period of development is characterized with development of handicrafts, agriculture, architecture, science and arts. Andijan became homeland of great persons whose names have left the bright imprint in the world history. This includes Zahriddin Muhammad Bobur – the great warlord, the king of one of Timurid states, who was forced to leave his motherland by force of circumstances and subsequently to found the Great Mogul Empire on the territory of modern India, Pakistan and Afghanistan. This was the homeland of the great Uzbek scientist and poet Nodirabegim (Mohlaroyim).

Till the colonization of the Central Asia by the Russian Empire in 1876, Andijan was within the state of Sheybanids (XV century) and then Kokand Khanate.

Soviet power had been established in 1917, alienation of private property and land plots had started. These processes caused resistance of the local population which often proceeded to overt action against the authorities.

In 1941, Andijan Province had been administratively formed within the Republic of Uzbekistan.

Despite of remoteness of the region from the arena of battles of the World War II, the war did not leave the region aside. Hundreds of thousand of people had been mobilized to the troops of Red Army and took part in the battles against the Nazi Germany in 1941-1945. Many industrial enterprises from the western regions of the Soviet Union were relocated to Andijan and produced the products required from the army.

Collapse of the Soviet Union in 1991 and formation of the independent state of Uzbekistan had marked the new stage in development of the Andijan Province. The processes of transition to market economy started and actively progressing in the province, as well as privatization and denationalization of the state property, formation of market infrastructure and organization of joint enterprises with foreign partners, development of foreign economic activity of the enterprises.

Gross regional product (GRP) of Andijan Province in 2007 was 532.7 billion Soums (USD 422.7 million), growth comparing with 2006 was 110.9 %. Scope of production in the industry increased by 119.2 %, automotive industry – 134.1 %, consumer goods – 124.6 %, agriculture – 108.3 %, construction industry – 109 %.

The priority branches of the economy of the Province is agriculture and such sectors of the industry as automotive industry, machine industry, textile and garment industry.

One of the leading branches of the economy is consumer goods production.

Small businesses and private enterprise are also dynamically developing in the Province. As of 1 January 2008, about 32 thousand small and medium-size businesses were registered in Andijan Province. In 2007 they have produced products and services for 234.9 billion Soums (USD 186.4 million), or 44.1 % of GRP of the province.

As of 1 January 2008, population of the province was 2 454 000 people, with 70.7 % living in rural areas and 29.3 % in towns. Representatives of more than 100 nations and ethnic group live in the province. Annual average growth of population is 1.1 %. Density of population is 570 people per 1 sq. km. Andijan Province is on first place in the Republic for density of population.

Labour resources of the province amounts to 1 377 000 people, with 114 700 employed in national economy sectors, and 819. 300 in the field of small business and enterprise.

 

29 state-owned and joint-stock banks operate in Andijan Province: Main Territorial Department for Andijan Province of the Central Bank of the Republic of Uzbekistan, Branch of the National Bank for Foreign Economic Activity of the Republic of Uzbekistan, branches of Pahtabank, Savdogarbank, Gallabank, Alokabank, Promstroybank, Microcreditbank, Ipotekabank, Asakabank and others.

These financial institutions play important role in the process of development of enterprise and investment development of the region. IN 2007, these financial structures have given credits for amount of 68.8 billion Soums (USD 54.6 million). Amount of utilized foreign credits in 2007 was USD 23.7 million.

 

 

Andijan Province has favourable natural climatic conditions for growing of cotton, silk cocoon, vegetables, fruits, melons and gourds. As early as two thousand years ago, farming with artificial irrigation was developing here.

The main sectors of agriculture are: melon-growing, horticulture, cotton-growing, grain crops growing. Livestock farming includes sheep breeding, horse breeding, cattle breeding.

According to results of 2007, agriculture was 28.0 % in the structure of GRP of the province. In gross quantity of agriculture, portion of plant growing is 65.4 %, animal breeding is 34.6 %.

In view of the fact that there are no redundant land areas in the Province, agriculture can develop only through improvement of production efficiency. Scientific Research Institute of Grain-Crops Legumes Seed Growing, ranches of the Republican Scientific Research Institutes of Viticulture and Horticulture, Melon-Growing, Rice-Growing function in the province.

Agricultural products have been produced in 2007 amounting to 823,9 billion Soums (USD 653,9 million). This includes: cotton – 310 thousand MT, cocoons – 2,1 thousand MT, wheat – 534,5 thousand MT, potato – 109,4 thousand MT, vegetables - 595,4 thousand MT, fruits - 253,4 thousand MT, grapes - 25,7 thousand MT, melons - 33,6 thousand MT, milk - 446,5 thousand MT, meat - 76,5 thousand MT, eggs - 176,7 million pieces.

11 ginneries function in the province, at which raw cotton is processed, the product is sent to exportation or processed by local enterprises Karasuv Joint-Stock Company, Ohunboboyev Pahta JV, Gofurota which manufacture medicinal cotton and lint.

40 enterprises of food industry function in the province, including wheat and fodder production enterprises, vegetable and fruit processing, wine-making enterprises. Increasingly more place is being taken by enterprises with foreign investments, among which: Biohimzavod Joint-Stock Company (food alcohol production), MASK Uzbek-British-Russian JV, Hujaobodsharob Joint-Stock Company, Navigul Uzbek-Bulgarian JV (wine and alcohol drinks), Hujaobod meva kuritish Joint-Stock Company (dried fruits). And Asaka Yog Joint-Stock Company and Yog-Moy Joint-Stock Company produce vegetable oil from cotton seeds and utility oil.

Growth of production of this sector in 2007, compared with 2006, was 84.3 %. Enterprises of the sector in 2007 have produced meat products for 2.5 thousand MT, sausages 174 MT, dairy products 8.4 thousand MT, tinned fruit and vegetable foods 23.6 million cans, 19.4 thousand MT of vegetable oil.
About 31 % of the cotton fiber produced in the province and 22 % of grown fruit and vegetable are processed in the province.

 

  1. Mineral resource of the region are mainly constituted with such minerals as sand, gravel and agloporite, which reserves amount to 34 382 900 cu.m. These reserves are located in the town of Hanabad as well as in Andijan, Asaka, Marhamat and Pahtaabad districts.
  2. The province also possess geological reserves of brick raw material amounting to 24.2 million cu.m which are mainly located in the town of Hanabad as well as in Andijan, Asaka, Marhamat, Pahtaabad, Hojaabad, Izbaskan and Kurgantepa districts.
  3. Reserves of limestone in quantity of 52.7 cu.m exist in Andijan and Bulakbashi districts.
  4. There are 9 sources of mineral water in the city of Andijan as well as in Andijan, Asaka, Pahtaobad, Shahrihan and Bulakbashi districts. Production of mineral water was launched in some of those districts.


    Machine engineering, motor car construction, electric, light, food, biochemical industries are developed in the province. Currently ongoing radical technological changes in the industry are aimed at production of finished, high-quality products competitive in the world market, increasing of export.

     Automotive Industry

    After the independence, special attention is paid to development of labour-intensive and science intensive sectors of the economy. One of the important events in the economical life of Andijan Province in the period of independence was launch in July 1996 of motor-car factory UzDAEWOOauto, on which basis, GM Uzbekistan JV had been established in 2007, with participation of General Motors, with production capacity 250 thousand cars per annum.

    GM Uzbekistan is one of the major enterprises of the province.

    Output in 2007 was 171.8 thousand motor cars, such models as Nexia, Damas and Lacetti. Also, since 2007, production of new car models:  Epica, Tacuma and Captiva under world known trademark Chevrolet had been started.

    With development of motor car production, localization of car component units and parts production takes place. Currently, 7 enterprises making products for GM Uzbekistan JV operate in the province, including:

    - lacquer and paint factory UzDongZhu for production of car paint and other lacquers and paints,

    - UzTongHong factory for manufacturing of cat seats,

    - UzDongWon CO. factory for manufacturing of exhaust pipes, exhaust silencers,

    - UzDongYangCo factory for manufacturing of car cabin interior finish,

    - UzKoramCo factory for manufacturing of bumpers and instrument panels,

    - UzKoji factory for manufacturing of electric cords and

    - UzSemyung Co. factory for manufacturing of fuel tanks and spamped parts.

    Localization of production of car spare parts is continuing. In 2007, component parts amounting to 161.4 million Soums (USD 128.1 million) had been produced, or 1.3 times more than in 2006.

     

    Machinery Construction

    More than 30 enterprises function in machine industry. They produce equipment and machinery for agriculture. Among them, a noticeable one is Andijanmash Joint-Stock Company – the only factory in the CIS countries to produce diesel water pumps Andizhanets which are of demand in the foreign sale markets.

    Also, Tojmetall Joint-Stock Company operates in the province, producing ginnery equipment, Irmash Joint-Stock Company for production of hydraulic cylinders for excavators and cranes, Andijan Mechanical Factory producing and repairing railway cars.

    Production of frictionless bearings is also established in the province. Such enterprises as Andizhanelektrodvigatel Joint-Stock Company, Marhamat Electric Factory, Uz DongZhu Kabel Subsidiary Enterprise and Andijankabel represent electric industry of the province.

     

    Textile and Garment Industry

    In view of the fact that Andijan Province is one of those producing cotton fiber in the Republic, textile industry is rapidly developing.

    Enterprises of this sector have produced products amounting to 26.4 billion Soums (USD 21 million). In 2007, 11.5 million sq.m of cotton fabric, 1.98 million pieces of knitted goods, garments for 1.5 billion Soums (USD 1.2 million) have been made. About 30 % of the produced cotton fiber are processed.

    Establishment of own spinning factories allows to independently and continuously produce necessary quantity of high-quality yarn, that in turn assists to reduce transportation expenses, creation of additional jobs and reduction of cost price.

    The main textile producers of the province are such enterprises as Alisher Navoi International Joint-Stock Company, Anteks Joint-Stock Company for production of grey fabric and cotton yarn, Bobur OAO for production of grey fabric and cotton yarn, Anteks Joint-Stock Company for production of garments and cotton yarn.

    In recent years, the list of enterprises possessing own equipment has increased. This number include Tagus Textile JV, Paytug Tex JV, Samo Joint-Stock Company, Asakatextile Joint-Stock Company, Oltinkultextile JV, Investtex JV, Uzbek Ank Spinning Foreign Enterprise.

    237 thousand pairs of shoes for various categories of population had been produced in the province in 2007. 2 shoe factories function.

    Light industry is one of the most labour-intensive sector, today it employs 39.4 % of the total number of employer population of the province. In this connection, the industry is of top priority for social and economical development of the province.

    Formation of the Market mechanism of foreign economic relations is one of the most important components of the systemic reforms determining the nature of entering of any country and its regions in the world economy.
    For the years of independence, all necessary foreign economic activity structures were substantially formed again. Foreign trade turnover of the province in 2007 was USD 1594,9 million, the growth compared with 2006 was 109.1 %. Volume of export was USD 916,9 million, import – USD 679 million. Growth of export compared with 2006 was 1.3 times.
    In the foreign trade turnover, the portion of the CIS countries was 35.1 %, foreign countries and Baltic states portion was 64.1 %.
    In the structure of export, it is noted that the portion of cotton fiber reduces and the portion of machinery and equipment, food industry products, energy resources increases, that evidences staged transition of the region from raw material export to finished product export.
    The main exporters of the province are GM Uzbekistan JV (cars), Alisher Navoi International (yarn), Mimatash Textile (yarn and knitted fabric), Uzbek Ank Spinning (cotton yarn), Shodil MPTPF (petroleum products), UzDongZhu Paint (car and domestic paints), Andijon Polypropylene (polypropylene sacs), Andijon Un (polypropylene sacs), XXI Asr (motor oil) Andijankabel (cable products).
    Volume of import of the province was USD 678.9 million. In the structure of import, the largest portion is taken by machines and equipment – 70.6 %. Among the countries exporting their products, leading one is the Republic of Korea (USD 345.7 million), Romania (USD 45.9 million), China (USD 23.4 million), Malaysia (USD 9.6 million), Poland (USD 5.9 million), Russia (USD 6.9 million).
    In the structure of import, the portion of machines and equipment was USD 479.1 million, ferrous and nonferrous metals – USD 64.98 million, chemical products – USD 74.9 million, foodstuff – USD 11.5 million, services – USD 7.4 million.

     

    For many centuries, the legendary Great Silk Road was passing across Andijan Province.
    At the present time, the transport infrastructure of Andijan Province is well developed and allows to implement freight transportation not only within the province or the Republic but also to the CIS and foreign countries. The total length of asphalt-paved motor roads of the province is 8.2 thousand km. Total length of used railways of the province is 262 km. The network of railways and motor roads enables to provide opportunity for transportation of export-import cargoes to the following directions:

    Andijan – Osh – Ishkertam – China (Karakorum highway) – Karachi sea port (Pakistan)

    Andijan – Osh – Ishkertam – southern sea ports of China.

    Andijan – Tashkent – Samarkand – Termez – Afghanistan.

    Andijan – Tashkent – Kazakhstan – Russia – CIS countries.

    Andijan – Tashkent – Turkmenistan – southern sea ports of Iran.

    The Government of the Republic of Uzbekistan has taken the decision of development of the Andijan – Tashkent – Nukus – Kungrad Expressway Construction Project.

    The air transport of the provinces connects the province center with other cities of Uzbekistan and Russia (Moscow, Omsk, Tyumen, Novosibirsk).

    First railway tracks had been laid as early as in the beginning of XX century. In 2007, railway transport performed cargo transportation of 2334.1 thousand MT of cargo and 52.2 thousand passengers. This kind of transport enables transportation from all the CIS countries.

     

     

    Townspeople and guests of Andijan Province can enjoy the services of the Musical Drama Theatre, Youth Theatre, Lola Puppet Show, culture and recreation parks, Babur recreation area, sport complexes, museums, cultural centers, libraries and cinema theatres.

    There are 480 libraries, 148 clubs, 2 museums, 3 theatres, 27 music and art schools, 5 culture and recreation parks in the province, which assist spiritual development of the province population.

    Great attention in the province is paid to sport and physical culture. 29 stadiums, 50 sport schools for children and youth, 121 tennis court, 44 swimming pools function in the province. Generally, 4519 sport facilities function in the province. Among the alumni of the sport schools, one is champion of Olympic Games, one is world box champion, two champions of Asian Games.

    Andijan Province attracts people from different countries of the world with its beautiful nature, hospitality of their inhabitants, rich national traditions and historical places. Among them, Jami architectural complex (mosque and madrasah), Babur house museum, entombment of Aram warlord Kuteib ibn Muslim, Hanabad park town, national park and museum ‘Babur and World Culture’, open ethnographic museum ‘Hunarmandlar rastasi’ (Row of Handicraftsmen).

    3 elite hotels: Elite, Plaza and Bella Elegant function in the province.

    Several tourist companies operate in the province, major ones are Anijantourist Joint-Stock Company, Sayohat Sport Club, Al Sabr, Havo Sayoh.

    Totally, for the years of independence, foreign investments were attracted in the province for a total amount of USD 789 million, with the indicator of amount of foreign investments per capita of population amounting to USD 325.1.

    Analysis of the level of socio-economical development, existing natural and feedstock resources, demographic, production, agricultural potential allows to determine prospective investment capacity of the province as USD 1.2 billion.

    National regime for foreign investments has been established in the Republic of Uzbekistan, which provide for the conditions for foreign investments, no less favorable than relevant conditions for investments realized by legal entities and individuals of the Republic of Uzbekistan.

    Enterprises raising direct private foreign investments and located in rural settlements of Andijan Province, as well as realizing business in the following sectors of economy: production of radio electronic products and components to computers, light industry, silk industry, production of building materials, industrial production of poultry meat and eggs, food industry, meat and dairy industry, chemical and pharmaceutical industry, are exempted from payment, for main activity, of income (profit) tax, property tax, tax for development of social infrastructure and landscaping, single tax for microfirms and small businesses, as well as obligatory deductions in the Republican Road Fund.

    The shown tax privileges are granted in case if the amount of direct private foreign investments is:

    • USD 300 000 to 3 million – for a 3 years term;
    • above USD 3 million to USD 10 million – for a 5 years term;
    • above USD 10 million – for a 10 years term;

    At the same time, the shown tax privileges apply on the following conditions:

    • realization of direct private foreign investments by foreign investors without provision of guarantee of the Republic of Uzbekistan;
    • the share of foreign members in the enterprise’s authorized capital should be at least 50 percent;
    • contribution of direct private foreign investments after governmental registration of such enterprises;
    • contribution of foreign investments in form of hard currency or new advanced process equipment;
    • directing the income gained as a result of granting such privileges within the term of their application for reinvesting for the purposes of further development of enterprise.

     

    By the end of 2007, the number of registered enterprises with foreign investments (FIE) was 87. Out of them, 76 ones were functioning, and in 2007 their produced products amounting to 1776,5 billion Soums (USD 1410 million). Number of people employed at those enterprises was more than 14 thousand.

    Among the registered FIE, 23 ones are specialized in cotton processing, 8 in production of building materials, 7 – in production of consumer goods, 12 – in machine industry, 37 in providing various services to population as well as in transport and communication.

    The portion of foreign investment enterprises in gross industrial production was 86.5 %. Their portion in total export of the province reached 86.5 %.

    In 2007, 16 FIE have been established in the province with participation of Russian, Croatian, South Korean, Italian, Malaysian and Singapore capital.

     

    1. No.
    1. Description and Purpose of Project
    1. Amount of Project / value of property, shareholding (thousand USD)
    1. Textile Industry
    1. 1
    1. Auction selling of the property complex of Balikchitextile Open Joint-Stock Company (production of nonwoven fabrics)
    1. 2 275,7
    1. 2
    1. Auction selling of the property complex of Chinor LLC (production of textile materials)
    1. evaluation is in progress
    1. 3
    1. Sale of 25 % of shares of Chuama JSC
    1. evaluation is in progress
    1. Garment Industry
    1. 4
    1. Establishment of JV for production of 1 million garment products at AN-NUR LLC
    1. 1 500
    1. 5
    1. Auction selling of the property complex of Hujaobod tikuv trikotazh LLC (production of knitted goods)
    1. evaluation is in progress
    1. Silk Industry
    1. 6
    1. Auction selling of the property complex of Bulokboshi ipagi OAO (production of raw silk)
    1. 2 174
    1. Leather Industry
    1. 7
    1. Auction selling of the property complex of Oltin Deri JV (production of leather goods)
    1. 1 523,8
    1. Fruit and Vegetable Products Processing
    1. 8
    1. Auction selling of the property complex of Andijon OAO
    1. 811,9
    1. 9
    1. Establishing of JV for processing of 3 thousand MT of fruit and vegetable products on the base of Shuhrat MP
    1. 330
    1. 10
    1. Establishing of JV for processing of 200 MT of fruit and vegetable products on the base of Bolgaria Sarchashmasi agrofirm
    1. 272
    1. Food Industry
    1. 11
    1. Sale of 45 % of shares in the capital of Andijan biokimyo zavodi OAO
    1. evaluation is in progress
    1. Electric Industry
    1. 12
    1. Auction selling of the property complex of Elektrodvigatel Joint-Stock Company (assembly and repair of electric motors)
    1. evaluation is in progress
    1. Machine Industry
    1. 13
    1. Auction selling of the property complex of Uzrospodshipnik JV (production of bearings)
    2.  
    1. evaluation is in progress
    1. Chemical Industry
    1. 14
    1. Auction selling of the property complex of Zaurak Mill JV (production of sulphur powder)
    1. 1 210
    1. CDM Project
    1. 15
    1. Construction of Andijan Small hydroelectric power plant GES-2
    1. 28 620

    The list of investment projects proposed for realization together with foreign investors can change with time being. Updated information for the projects currently proposed is on the web site of Uzinfoinvest Agency at: www.investuzbekistan.org.

    TEXTILE INDUSTRY
    1. Auction selling of the property package of Balikchitextile Open Joint-Stock Company (production of nonwoven fabrics

    • Legal Address: 
    Andijan Province, Balikchi District
    • Business object: 
    Production of nonwoven fabric
    • Capacity:
    45 m/hour
    • Land Plot Area:
    6 hectares
    • Area of Buildings and Facilities: 
    4.5 hectares
    • Availability:
    100% of production infrastructure
    100% of labor resources
    • Equipment:
    Befa Maliwatt, made in Germany
    • Terms of Sale:
    Complex
    • Appraised Value:
    USD 2 275 700

    TEXTILE INDUSTRY
    2. Auction selling of the property package of Chinor LLC (production of textile materials)

    • Legal Address: 
    Andijan Province
    • Business object: 
    Production of textile products
    • Capacity:
    45 m/hour
    • Land Plot Area:
    2 hectares
    • Area of Buildings and Facilities: 
    1.5 hectares
    • Availability:
    100% of production infrastructure
    100% of labor resources
    • Equipment:
    Befa Maliwatt, made in Germany
    • Terms of Sale:
    Complex
    • Appraised Value:
    evaluation in progress

     

    TEXTILE INDUSTRY
    3. Sale of 25 % of shares of Chuama JSC
    Investment obligations: under decision of the State Tender Commission

    1. General Information of the Company

    1. Nane of the Issuer

    Chuama Joint-Stock Company

    2. Legal address

    Andijan Province, Izboskan District, M.Rahimov Street

    3. Date of establishment

    1982

    4. Industry branch

    Textile industry

    5. Number of employees, including office workers

    471 persons

    6. Total area (ha)

    4 ha

    7. Feedstock for production

    Cotton fiber

    2. Information of Issue and Placement of Securities

    1. Amount of Authorized Capital

    32 751 000 Soums (USD 25 000)

    3. Information of Auction Sale of Stockholding

    1. Amount of assets offered for sale

    25 %

    2. Basis for sale

    Decree of the President of the Republic of Uzbekistan No. PP-672 dated 20 July 2007

    3. Assessed value of stockholding to be sold

    Evaluation is in progress

    4. Kind of sale

    Competitive bidding

    5. Bidding organizer

    State Property Committee of the Republic of Uzbekistan

    6. Date of bidding

    under decision of the State Tender Commission

    7. Venue of bidding

     

    GARMENT INDUSTRY
    4. Establishment of JV for production of 1 million garment products at AN-NUR LLC
    1. Information of the initiating enterprise:

    Name:

    AN-NUR LLC

    Location:

    Andijan Province, Kurgantepa District

    Business object:

    Production of special clothing

    Date of establishment:

    1968

    Number of employees:

    424

    2. Authorized Capital and Founders of the company:

    Authorized Capital:

    USD 56 000

    Founders of the company:

    B. Ismoilova (17%), S. Ashurov (11%), A. Urinboyev (9%), staff (63%)

    Management:

    B. Ismoilova (Director)

    3. Production volume (2006):        thousand USD

    Product

    Production quantity

    Special clothing/overalls

    250

    Sale market:

    Domestic market

    4. Financial Information:           thousand USD

    Indicator

    2006

    Revenue of business operations

    8,87

    Profit after tax

    2,8

    5. Subject matter of proposed project:
    Establishment of joint venture for production of 1 thousand pieces of garmets per annum.
    6. Techno-economical parameters of the Project: 

    Project value:

    USD 1 500 000

    Required investment:

    USD 1 500 000

    Estimated payback time:

    8 years

    7. Provision of the projected production with feedstock resources: 

    Necessary feedstock:

    Shirt-type cotton fabric

    Sources of feedstock:

    Purchase in domestic market

    8. Finished product sale market:

    Domestic market

    30 %

    export

    70 %

    9. Available infrastructure and availability of business plan:

    Available infrastructure:

    Water, gas, power supply, heating

    Distance to railway:

    12 km

    Distance to motor road:

    500 m

    Availability of business plan:

    Not available

    GARMENT INDUSTRY
    5. Auction selling of the property package of Hujaobod tikuv trikotazh LLC (production of knitted goods)

    • Legal Address: 
    Andijan Province, Hujabad District
    • Business object: 
    Production of knitted goods
    • Capacity:
    5 million pieces per annum
    • Area of Buildings and Facilities: 
    1.5 hectares
    • Availability:
    100% of production infrastructure
    100% of labor resources
    • Equipment:
    made in Russia
    • Terms of Sale:
    Complex
    • Appraised Value:
    evaluation in progress

    SILK INDUSTRY
    6. Auction selling of the property package of Bulokboshi ipagi OAO (production of raw silk)

    • Legal Address: 
    Andijan Province, Bulokboshi District
    • Business object: 
    Production of raw silk
    • Capacity:
    25 kg per shift
    • Land Plot Area:
    11.8 hectares
    • Area of Buildings and Facilities: 
    8 hectares
    • Availability:
    100% of production infrastructure
    100% of labor resources
    • Equipment:
    made in Russia. Amount of wear: 32%
    • Terms of Sale:
    Complex
    • Appraised Value:
    USD 2 174 000

    GARMENT INDUSTRY
    7. Auction selling of the property package of Oltin Deri JV (production of leather goods)

    • Legal Address: 
    Andijan Province, Oltinkul District
    • Business object: 
    Production of leather goods
    • Land Plot Area:
    40.4 hectares
    • Area of Buildings and Facilities: 
    0.77 hectares
    • Availability:
    100% of production infrastructure
    100% of labor resources
    • Terms of Sale:
    Complex
    • Appraised Value:
    USD 1 523 800

    FRUIT AND VEGETABLE PRODUCTS PROCESSING
    8. Auction selling of the property package of Andijon OAO

    • Legal Address: 
    Andijan Province, Andijan city
    • Business object: 
    Production of agricultural products
    • Capacity:
    550 MT per annum
    • Land Plot Area:
    13.7 hectares
    • Area of Buildings and Facilities: 
    10 hectares
    • Availability:
    100% of production infrastructure
    100% of labor resources
    • Equipment:
    made in Russia (wear 40%), Germany (wear 35%), Korea (wear 10%)
    • Terms of Sale:
    Complex
    • Appraised Value:
    USD 811 900

    FRUIT AND VEGETABLE PRODUCTS PROCESSING
    9. Establishing of JV for processing of 3 thousand MT of fruit and vegetable products on the base of Shuhrat MP
    1. Information of the initiating enterprise:

    Name:

    Shuhrat Small Enterprise

    Location:

    Andijan Province, Marhamat District

    Business object:

    Growing of grain and cotton, processing of fruit and vegetable products

    Date of establishment:

    1992

    Number of employees:

    455

    2. Authorized Capital and Founders of the company:


    Authorized Capital:

    USD 96 000

    Founders of the company:

    T. Nuriev (100%)

    Management:

    T. Nuriev (Director)

    3. Production volume (2006):          thousand USD


    Product

    Production quantity

    cotton

    107,2

    grain

    17,3

    transport services

    72,2

    processed fruits and vegetables

    6,2

    Sale market:

    Domestic market

    4. Financial Information:           thousand USD


    Indicator

    2005

    2006

    Revenue of business operations

    106,72

    202,88

    Profit after tax

    10,96

    20,32

    5. Subject matter of proposed project:
    Organization of production of 3 thousand MT of processed fruits and vegetables.
    6. Techno-economical parameters of the Project: 

    Project value:

    USD 330 000

    Required investment:

    USD 250 000

    Estimated payback time:

    5 years

    7. Provision of the projected production with feedstock resources: 

    Necessary feedstock:

    fruits and vegetables

    Sources of feedstock:

    Purchase in domestic market

    8. Finished product sale market:

    Domestic market

    20 %

    export

    80 %

    9. Available infrastructure and availability of business plan:

    Available infrastructure:

    Water, gas, power supply, heating and drainage

    Distance to railway:

    25 km

    Approach to motor road:

    available

    Availability of business plan:

    Not available

    FRUIT AND VEGETABLE PRODUCTS PROCESSING
    10. Establishing of JV for processing of 200 MT of fruit and vegetable products on the base of Bolgaria Sarchashmasi agrofirm
    1. Information of the initiating enterprise:

    Name:

    Bolgaria Sarchashmasi agrofirm

    Location:

    Andijan Province, Jalakuduk District

    Business object:

    Fruits and vegetables production

    Date of establishment:

    14.04.2006

    Number of employees:

    14

    2. Authorized Capital and Founders of the company:

    Authorized Capital:

    USD 27 200

    Founders of the company:

    Hujaobod sharob OAO (14,7%),
    farmer (85,3%)

    Management:

    A. Yuldashev (Director)

    3. Production volume (2006): 

    Product

    Production quantity

    Fruits, grapes

    1 800 metric tons

    vegetables

    500 metric tons

    Sale market:

    Domestic market

    4. Financial Information:           thousand USD

    Indicator

    2006

    Revenue of business operations

    56

    Profit after tax

    20,8

    5. Subject matter of proposed project:
    Organization of production of 200 MT of processed fruits and vegetables foods.
    6. Techno-economical parameters of the Project: 

    Project value:

    USD 272 000

    Required investment:

    USD 200 000

    Estimated payback time:

    3 years

    7. Provision of the projected production with feedstock resources: 


    Necessary feedstock:

    Own fruits and vegetables grown by the agrofirm

    8. Finished product sale market:

    Domestic market

    35 %

    export

    65 %

    9. Available infrastructure and availability of business plan:

    Available infrastructure:

    Water, gas, power supply

    Distance to railway:

    14 km

    Distance to motor road:

    12 km

    Availability of business plan:

    Not available

     

    FOOD INDUSTRY
    11. Sale of 45 % of shares in the capital of Andijan biokimyo zavodi OAO
    Investment obligations: under decision of the State Tender Commission
    1. General Information of the Company

    1. Nane of the Issuer

    Andijon Biokimyo Zavodi OAO

    2. Legal address

    Andijan Province, Andijan, Babur Avenue, 12

    3. Date of establishment

    1953

    4. Industry branch

    Alcohol Industry, Uzspirtsanoat Joint-Stock Company

    5. CEO (name)

    S. M. Boltaboev

    6. Contact phone, fax, e-mail

    M. R. Igamberdiyev, phone: 8 (374) 224-28-31, 298-04-21, 224-23-58

    7. Number of employees, including office workers

    659

    8. Total area (ha)

    13,8

    9. Production area (ha)

    5,3

    2. Information of Issue and Placement of Securities

    1. Amount of Authorized Capital

    5415,7 million Soum (USD 4134,1 thousand

    2. Total number of issued shares (ea)

    541 572

    3. Par value of shares (Soums)

    10 000

    3. Financial Indicators (million)

    Indicators

    Years

    2005

    2006

    1 half of
    2007

    1. Authorized Capital

    5415,7

    5415,7

    5415,7

    2. Long-term assets

    9727,0

    9434,0

    9240,0

    3. Working assets

    2980,0

    2577,0

    3032,0

    4. Incomes

    4318,0

    7636,0

    4613,0

    5. Expenses

    4254,5

    7538,0

    4594,1

    6. Profit before tax

    58,0

    89,0

    16,4

    7. Net profit

    5,5

    9,0

    2,5

    8. Accounts payable

    2276,0

    1941,0

    2258,0

    4. Information of Auction Sale of Stockholding

    1. Amount of assets offered for sale

    45,04 %

    2. Basis for sale

    Decree of the President of the Republic of Uzbekistan No. PP -672 dated 20 July 2007

    3. Assessed value of stockholding to be sold

    Evaluation is in progress

    4. Date of bidding

    under decision of the State Tender Commission

    5. Venue of bidding

    5. Brief Characteristic of the Company

    Andijon Biokimyo Zavodi OAO was established in 1953 as hydrolysis factory. The enterprise was producing furfurol, feed yeast, furfurol alcohol.
    In 1994, as a result of reconstruction, it was reformed into biochemical plant for production of food rectified ethyl alcohol of mark “Visshey ochistki’ and ‘Extra’. Produciton capacity of the company, at two phases, is 1642,8 thousand l/year of alcohol rectified from grain, GOST 5962-67.

     

    6. Prospective plans of development of the Company

    Enhancement of product range of medicinal preparations.

     

    ELECTRIC INDUSTRY
    12. Auction selling of the property package of Elektrodvigatel Joint-Stock Company (assembly and repair of electric motors)

    • Legal Address: 
    Andijan Province, Andijan city
    • Business object: 
    Assembly and repair of electric motors
    • Land Plot Area:
    6 hectares
    • Area of Buildings and Facilities: 
    2.3 hectares
    • Availability:
    100% of production infrastructure
    100% of labor resources
    • Terms of Sale:
    Complex
    • Appraised Value:
    evaluation is in progress

     

    MACHINE INDUSTRY
    13. Auction selling of the property package of Uzrospodshipnik JV (production of bearings)

    • Legal Address: 
    Andijan Province, Jalakuduk District
    • Business object: 
    Production of bearings
    • Land Plot Area:
    3.7 hectares
    • Area of Buildings and Facilities: 
    2.1 hectares
    • Availability:
    100% of production infrastructure
    100% of labor resources
    • Terms of Sale:
    Complex
    • Appraised Value:
    evaluation is in progress

     

    CHEMICAL INDUSTRY
    14. Auction selling of the property package of Zaurak Mill JV (production of sulphur powder)

    • Legal Address: 
    Andijan Province, Jalakuduk District
    • Business object: 
    Production of sulphur powder
    • Capacity:
    40 MT per day
    • Land Plot Area:
    0.8 hectares
    • Area of Buildings and Facilities: 
    0.1 hectares
    • Availability:
    100% of production infrastructure
    100% of labor resources
    • Equipment:
    Roto Mill, amount of wear – 45%
    • Terms of Sale:
    Complex
    • Appraised Value:
    USD 1 210 000

     

    CDM PROJECT
    15. Construction of Andijan Small hydroelectric power plant GES-2

    Description of Project, Type and Schedule

    Purpose of the Project

    Erection of small hydroelectric power plants on existing irrigation structures of the Republic enables to solve the complex problem of power supply and irrigation in the rural areas of the Republic, promote betterment of the level of living of the population there.
    Main purposes of this Ì×Ð project are:

    1. Reduction of emission of hot gases and toxic compounds emitted in atmosphere during incineration of fossil fuel on heat power plants;
    2. Improvement of power supply of rural areas;
    3. Increase of employment of local population to be employed for construction and operation of HEPP.

    Description

    Andijan waterworks facility (high-head dam and hydroelectric power plant) was built in 1980s and designed for many years regulation for supply of irrigation water to downstream lands.
    Due to frequent changeover of the Toktogul waterworks facility (Republic of Kyrgyzstan) to power generation mode, as well as significant change of the structure of the cultivated crops in Uzbekistan, outflow volumes from the Andijan waterworks facility have changed comparing to the designed values. According to the hydrological monitoring of recent years, dummy discharges significantly increased, which cannot be used by the existing HEPP.
    The Andijan GES-2 is purposed for power generation with use of the potential of the existing dummy discharges. Anticipated average many years power generation will be 171.1 million kW-h. Planned installed power of the Andijan GES-2 will be 50 MW.

    Location

    The Andijan GES-2 is planned for construction in the Hanabad mountain ravine at exit from Karadarya river into Fergana Valley. Structures of the HEPP will be located in the area of the existing site: Andijan Water Reservoir, dam downstream

    Category

    renewable energy

    hydropower

    Current status

    PIN

    Schedule

    Commencement date

    2009

    Project duration

    40 years

    Reduction of emission of hot gas (metric ton CO2 equivalent)

    Before and inclusive 2012

    423 232 MT CO2

    Period of crediting (10 years)

    1 058 080 MT CO2

    Finance

    Total investment expenses (thousand USD)

    28 620

    Contact information

    Project developing entity

    Uzsuvenergo Special Association, Ministry of Agriculture and Water Resouces of the Republic of Uzbekistan

    Postal address

    1, Usman Yusupov Street, Tashkent, Republic of Uzbekistan 100128

    Internet site

    Not available

    Tel./fax

    (+99871) 142-26-30 / 142-25-21

    Contact person/position

    Erkin Gulyamovich Mahkamov, Chief Engineer 

    E-mail

    uzsuvenergo@mail.ru

     

     

     

    Telephone numbers are seven-digit in Andijan Province. For dialing of a number in Andijan Province from other province of the Republic of Uzbekistan, you dial 8 – long tone – 374 (telephone number). International format for telephone dialing to Andijan Province in +998 74 (telephone number).

    For subscribers of mobile communication, carrier codes are different and are dialed in international format:

    - for subscribers of MTS Uzbekistan +99874 (subscriber number);

    - for subscribers of Beeline +99890 (subscriber number)

    - for subscribers of Coscom +99893 (subscriber number)

     

    Telephone numbers:

    1. Name of Organization
    1. Telephone number
    1. Governmental authorities
    1. Andijan Province Government
    1. 222-19-64
    1. Andijan City Administration
    1. 222-28-63
    1. General Department of Economy of Andijan Province
    1. 222-23-44,
    2. 222-20-27
    1. Department of Labour and Social Protection of Population
    1. 290-75-15
    1. Department of Foreign Economic Relations, Investment and Trade
    1. 222-25-81,
    2. 222-25-82
    1. State Property Committee
    1. 224-85-18
    1. Chamber of Commerce and Industry
    1. 222-17-37,
    2. 298-11-02
    1. Banks
    1. The Central Bank
    1. 224-52-12,                                    224-22-78
    1. National Bank for FEA (NBU)
    1. 224-38-40, 224-47-21
    1. Pahta Bank
    1. 224-38-59, 224-49-04
    1. Ipoteka Bank
    1. 222-33-20,
    2. 222-26-78
    1. Promstroybank
    1. 222-17-24, 222-16-08
    1. Microcredit Bank
    1. 224-47-11,224-10-89
    1. Asaka Bank
    1. 224-19-33, 224-82-80
    1. Galla Bank
    1. 222-23-64
    1. Hamkor Bank
    1. 224-70-39
    1. Aloka Bank
    1. 224-55-16
    1. Companies
    1. Andijan Telecom
    1. 224-04-04
    1. Uzinvestloyiha Engineering Company
    1. 225-76-01
    1. Uzbekinvest Export-Import Insurance Company
    1. 224-42-94
    1. Hotels
    1. Sport Hotel
    1. 226-10-78
    1. Andijon Hotel
    1. 225-78-07
    1. Oltin Vodiy Hotel
    1. 226-10-22
    1. Elita Hotel
    1. 224-69-47, 226-10-72
    1. Plaza Luxe Hotel
    1. 237-11-55
    1. Information
    1. Railway Terminal Information Service
    1. 224-21-70
    1. Andijan Airport Information Service
    1. 224-52-81
    1. Bus Terminal
    1. 224-43-38, 224-23-70


    ELITE Hotel
    Address: 13a, Babur Street, Andijan
    Tel.: (998 74) 224 69 47, 224 83 79.
    3-storey building
    Number of rooms:  40
    Restaurant for 80 seats
    Distance to airport – 3 km, to railway terminal – 1.5 km

     

     

     

    Deluxe Room

    Price of 1 day and night –  42500 Soums
    In rooms: TV, air conditioner, wardrobe, table and 4 chairs, bath with hot and cold water supply
    Telephone – internal, urban and long-distance
    Breakfast in included.

     

     

     

     

    Double Room

    Price of 1 day and night –  42500 Soums
    In rooms: TV, air conditioner, wardrobe, table and 2 chairs, bath with hot and cold water supply
    Telephone – internal, urban and long-distance
    Breakfast in included.

     

     

     


    Plaza Lux Hotel
    Address: 11a, Mustakillik Street, Andijan
    Tel.: (998 74) 237 11 55, 237 11 66.
    2-storey building
    Number of rooms:  13
    Restaurant for 60 seats (1 salon), bar – 1 salon
    Distance to airport – 3 km, to railway terminal – 1.5 km

     

     

    Deluxe Room
    Price of 1 day and night –  60 000 Soums
    In rooms: TV, 2 air conditioners, wardrobe, 2 cabinet bases, table and 2 chairs, bath with hot and cold water supply
    Telephone – internal, urban and long-distance
    Breakfast in included.

     

     

     

          Double Room
    Price of 1 day and night –  55 000 Soums
    In rooms: TV, 2 air conditioners, wardrobe, 2 cabinet bases, table and 2 chairs, bath with hot and cold water supply
    Telephone – internal, urban and long-distance
    Breakfast in included.

 

 

 


















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