Investment Guide for Kashkadarya Region

Qashqadaryo province is located in the Southern part of Uzbekistan, in the basin of the Qashqadaryo river on the western mountainside Pamir-Alai.

Qashqadaryo province is located on one geographic latitude with such countries as Turkey, Greece, Italy, Spain, the United State and Japan.

The province spans the area of 28.6 thousand square meters (6.3% of the territory of Uzbekistan), which is comparable with the territories of such countries as Belgium, Albania or Armenia.

The province has 13 administrative districts: Guzar, Dehqonobod, Qarshi, Koson, Kamashi, Kitab, Kasbi, Muborak, Nishon, Mirishkor, Chiroqchi, Shahrisabz, Yakkabogh. City of Qarshi is the administrative centre with population of more than 180 thousand people.

On the North, the province borders with Samarqand province, on the North-West – with Bukhoro province, on the East and South-East – Surhandaryo province. From the North-East part passes the state border with Tadjikistan, on the Western part with Turkmenistan. The perimeter of the total border is 795 km, out which 400 km passes through mountain ranges.

thousand people (more than 8% of the population of the country). Density of population is 88.6 people per one square kilometer.

The climate is continental, dry, somewhere is subtropical, favorable for land cultivation and cattle breeding. Average annual temperature is + 15 C, the average temperature in January is +2C. Average annual quantity of precipitations 187-285 mm, in mountainous and submountain areas – 500 mm.

The history of Qashqadaryo province contains multitude of remarkable events. It’s the history of courageous people, loving its motherland.

Located between the rivers Zarafshan and Amudaryo, the territory in ancient times according to chronicles of Ancient Greece and China had the name of Southern Sogd and Southern Turon.

In II-I millennium B.C. in this territory the culture was developed, people conducted a settled way of life.

The discoveries found on the place of ancient cities and barrows as Navtak – Yerkurgan, Kesh, Iskifagi, Subah, Bazda, Kalandartepa, Kamaytepa, Altintepa testify that their residents were engaged in agriculture and animal breeding, pottery, processing of iron and other crafts. Pottery was developed at a high level, iron melting was carried out even B.C.
On seat of havens where the agriculture and crafts were developed the cities were established where culture, architecture were developed, medreses, mosques and caravanserais were erected. 

This region with its beautiful nature and rich minerals attracted the attention of many foreign conquerors and went through Alexander the Great invasion, the Mongolian campaign, governance of Akhamenids. This region was in an epicentre of revolts of local population against foreign invasions: under leadership of Spitamen against Alexander the Great in 329 B.C., Khashim ibn Khakim (Mukanna) against the Arabian Caliphate in 70-80s of VIII century.

Shakhrisabz city (from Persian شهر سبز (Šahr-e Sabz) — «green city») of Surkhandarya province is the homeland of Amir Temur (Tamerlan), who freed the country from the Mongol yoke and established the great Timurids empire that consisted of not only Middle Asia but also the territory of Middle East from the Mediterranean Sea to North India.

During this period the science and culture was developed, lived and created scientists and poets as Najmiddin Nasafi, Abu Makhul an-Nasafi, Shakhabiddin Nasafi, Abul Barakot an-Nasafi, Abul Kharis Varsini, Mustagfiri an-Nasafi and others.

In Shahrisabz Amir Timur erected the Ak-Sarai – huge palace that was its residence in XIV — the beginning of XV centuries. Unfortunately, by the end of XVII century this magnificent building was partially destroyed. But the remained parts of a portal testify the scale of its construction, the Ak-Sarai has so far unsurpassed mosaic patterns reflecting a high level of art of that time.

After an era of Timurids region have conquered by Shaibaneeds - the new dynasty formed from settled and nomadic Uzbek tribes. The long period followed after that has been marked by internal wars, invasions and campaigns from the neighboring states, influenced negatively on development of economy and culture of the region.

The Kashkadaria province has been organized in 1924, and from 1927 to 1964 entered again into structure of Bukhara, then Surkhan-Darya provinces of Uzbekistan. In 1964 it has been reorganized.

In 1986 - 1989 the Kashkadaria province supervised by the first President of Republic Uzbekistan I.A.Karimov.

By the end of 2007 the total regional GDP of the Kashkadaria province has 2139,9 billion sum. (1700 million dollar).

Structure of regional GDP looks as follows: industrial production - 34% from regional GDP, an agriculture - 26%, construction - 8%, trade and (public) catering - 5 %.

Share of the Kashkadarinskai province in the basic parameters of economic development of Uzbekistan

Share of the Kashkadarinskai province in the basic parameters of economic development of UzbekistanThe population of Qashqadarya region as of January 1, 2008 is about 2516.1 thousand people (more than 8% of the population of Uzbekistan). The population mainly consists of Uzbeks. There is also inhabitance of more than 90 nations and nationalities, including Russians, Tajiks, Turkmens, Tatars, Kazakhs and others

The number of able-bodied population is 1343.4 thousand people (53.4% of the total population), the number of employed people is 1283 thousand.

The economy of the region is focused on agriculture. The share of agricultural production in the gross regional product is more than 40%. The gross agricultural output of the region is 796.1 billion soums (607.7 million U.S.).

Natural and climatic conditions of the region are connected with a higher average temperature than in other regions. Long duration of warm period and fertile soil gives opportunity to produce heat-loving plants - late fine-fiber varieties of cotton, sugar cane and persimmon. Favorable climatic conditions and irrigation system of Qashqadarya region allow to growing two to three harvests a year.

Qashqadarya region is a main country's granary of grain, cotton and other supplier of agricultural products. Good evidence is that 10.2% of all agricultural products, as well as more than 10% of cotton, 11% of grain, 19% of astrakhan in the country comes from this region. 

Growing fine-fiber varieties of cotton, as well as breeding cattle and small livestock are considered to be the most important directions of agricultural production in Qashqadarya.

If the general field area of the region makes 2.857 thousand in hectares and 1.381 thousand in hectares from them are pastures. About one million in hectares of the fields are suitable for irrigation.

The most important branches of agriculture in the region are dry and spray grain cultivation and pasturable sheep breeding.

Environment of area are favorable also for cultivation of grapes, pit fruit trees, fig and pomegranate. Grapes of Qarshi sity, especially a grade "Maska", is famous for the flavoring qualities.

In the region, alongside with cotton cultivation also develops silk production. The region takes one of the leading places in the sphere of astrakhan (fur) production. Expansion of pastures, increasing of corn and lucerne sowing and using of industrial wastes promote the further development of animal industry.

The main branch of animal industry is astrakhan (fur) production, which is developing basically in the western, southwest and central areas. Fat-tail sheep, also goats, giving meat and wool are contain on pastures of northern and northeast foothill and mountain areas. For developing productive cattle breeding in foothills and steppes they cultivate semithin fleece sheeps and и long fur goats. The quantity of large horned livestock is calculated on satisfaction of needs of the population of the area in dairy products.

The Qashqadarya region is the large and significant region, having rich natural resources.

98 % of gas and more than 80 % of oil extracted in Uzbekistan are on the share of the region. According to calculations, the oil stock of the region makes tens millions tons.
Considerable inventory of potash and stone salts, marble, haydite, combustible slates, coal, lead, zinc, cement raw material and other minerals has been proven for the manufacture of construction materials. Among the most perspective deposits it should be noted Yahton deposit of tungsten, Dautash deposit of manganese. Also, has been discovered the perspective ores of gold, copper, aluminium, antimony and quicksilver in the region.
In the Kashkadarya region there is 61 deposit of ore and nonmetallic minerals:
- manganese 813.4 thousand tons;
- quartzite - 1735.4 thousand cubic metre;
- porcelain stone – 853.9 thousand tons;
- pegmatite – 1617.1 thousand tons;
- agri-ore-bentonite clay and glauconite – 15.7 million tons;
- marble – 2.7 million tons;
- dolomite – 10.0 million tons;
- limestone – 8.9 million tons;
- building stones – 5.9 million cubic metre;
- cement raw material – 265.5 million tons;
- haydite – 14.5 million tons;
- glass raw material - more than 10.0 million tons;
 

Together with it, the lead prospecting works reveal perspective ores of gold, tungsten, copper, lead and zinc, aluminium, antimonies, quicksilver, coal, combustible slates and native sulfur.

13 % of industrial production of the country falls on the province.

The industry of the Qashkadarya region is indissolubly connected with an agriculture. Its basic branches include cotton-cleaning plants, creameries, factories on manufacture of fruit -vegetable canned food and others. On a share easy and the food-processing industry it is necessary more than 66 % of all production.

In the region are effect about 150 industrial enterprises, including 45 large enterprises in oil-and-gas, in light industry, food-processing industry, mechanical engineering, building materials industry. The basic from them is the enterprises borrowed in oil-and-gas, cotton-cleaning, building, and also in the light and local industry.

Largest of them are Shurtan gaz-chemical complex, Mubarek management of oil-and-gas deposits, Mubarek an oil refining factory, the joint venture «Oksaroy tukumachi», the joint venture «Cotton road», Shahrisabz vine-vodka factory, Shahrisabz cannery, the joint venture «Qarshi oil - extraction factory», the joint venture «Kasan oil - extraction factory » and others.

Putting into operation in 2004 of first block Talimardzhan hydroelectric power station with power 800 МVт, has solved the problem of energy supply in the region.

Petrochemical industry
Qashqadaryo province is a fundamental fuel-energy base of the country supplying more than 90% of produced natural gas, condensate and oil.

In 2001, Shurtan gas-chemical complex that is the largest enterprise on processing of gas was put into operation in the province. Construction of the complex was carried out with the attraction of consortium of the foreign companies ABB Lummus Global (USA), ABB Soimi (Italy), Mitsui&Co.Ltd., Toyo Engineering and Nissho Iwai Corp. (Japan).

Currently the activity of the Shurtan gas-chemical complex includes following parts: processing natural gas with production of ethylene, production of somonomer and production of polyethylene according to the Sclairtech technology. Production capacity of the Complex is processing of approximate 4 billion cubic meters of natural gas, output of 125 thousand tones of different kinds of polyethylene of low and high consistence, 137 thousand tones of liquefied gas and 37 thousand tones of gas condensate, about 4 thousand tones of sulfur. On the base of products of Shurtan gas-chemical complex, Qarshi plant Termoplast produces modern polyethylene pipes for water and gas supply.

Muborak gas refinery with the capacity of 30 billion cubic meters of gas which comprises significant part of gas processed in the country, about 17% of stable condensate and 11% of liquefied gas. Currently, the enterprise is undergoing reconstruction of production, construction of propane-butane blend plant for production of liquefied gas.

Textile industry

Currently, there are dozens of modern textile enterprises on production of yarn, knitted wear and fabric.

Main enterprises are: JV Cotton-Road, Oqsaroy-Toqimachi, Yakkaboghtex. The JV Cotton-Road produces 920 tones of yarn, 5.0 millions pieces of knitted year per annum. Oqsaroy-Toqimachi produces 4800 tones of yarn, 2000 tones of knitted wear, and the JV Yakkaboghtex produces 3 thousand tones of yarn per annum. Main part of producing goods is export oriented.

Foreign trade turnover by thr results of 2007 total 803,7 mln.  dollars (196,3% to 2006), the export -629 mln. dollars (229,7%) and import -174,6 mln. dollars (128,9%).

The main export article is cotton fiber, chemical production, machinery and equipment

In the structure of import heavy import consist of machinery and equipment, chemical production, foodstuffs, ferrous and non-ferrous metals.

Since ancient times through the territory of Qashkadarya passed the Great Silk Road. Nowadays the traffic in the region accomplishing by railway, automobile and aviation mode of transport. Throughout the territory of the region passes railway communication which connects  Tadjikistan, Turkmenistan and Surkhandarya region of Uzbekistan with neighbor and distant countries. There is a modern railway station in Karshi city, from where the trains go to many counties of the world. The extension of railways is 3801 kilometers.

For the economic development of the region the important role play the increasing (promotion) of it`s export potential the construction of railway Toshguzar- Boysun – Kumurgan with the general extension of 223 kilometers  from which passes  106,2 km throw the territory of the region. Putting into operation this railway in the august of 2007 the territory of the region had become a main transit for cargo which goes to Surkhandarya region, Tajikistan and Afghanistan and backwards. It also helps to develop south east regions.

In the economy of the region important role play highways, which general extension of 30 thousand km, including highways of the international and regional importance.

Pipeline network of the region with general extension of 2106 km, serves for necessities oil and gas branch. There are basic highways Karakitaj - Karshi, Shurtan - Mubarek, Shurtan - Bukhara - Gazli - Tashkent.

There are regular flights from the airports of Karshi and Shaxrisabz to Tashkent, other cities of the republic and CIS countries.

In an administrative centre of area - city Karshi it is kept nearby 15 historical monuments of XV - XVI centuries.

The second large city in the field is Shahrisabz, has received world popularity that it is Amir Temur”s  native land, through city passed the Great Silk Way. The attention of tourists is drawn with the architectural monuments constructed by Amir Temur and his grandson Ulugbek.

Moreover Shahrisabz is one of the ancient centers of crafts. Goldensewed hats, embroidered here, are awarded to gold medals of the international exhibitions in Canada, Turkey, Japan. Copper, a pottery executed with a great skill, became prize-winners of many exhibitions.

 In foothill areas of Kashkadarya region- Kitab, Shahrisabz, Yakkabag, Dehkanabad, Chirakchi, Kamashi, natural conditions and a favorable climate allow to develop ecological tourism, there are health complexes, resorts and rest houses, including 3 resorts and 4 children’s health camps in Kitab, 1 rest home and 7 children's health camps in Shasrisabz and 9 children's health camps in Yakkabag are acting.

There are State University, Karshi branch of Tashkent University of Information Technologies, 73 colleges, 6 academic lycees.

In 2007 136,4 million dollars of foreign investments involved in region into implentation of 14 projects, including: 130,8 million dollars in oil-and-gas sphere, 1 million dollars in an agriculture, 1,2 million dollars - in light industry, 2,6 million dollars in sphere of services, 0,7 million dollars - in other branches.

The lead estimation has shown, that for development of industrial production the need for foreign investments for intermediate term prospect makes nearby 700 million dollars, including for development of light industry it is necessary 240 million dollars, mining branch - 250 million dollars, processing of fruit-and-vegetable production - nearby 50 million dollars, the food-processing industry - nearby 40 million dollars, manufacture of building materials - 40 million dollars, development of sphere of services - 35 million dollars.  

There are about 30 enterprises with foreign capital operating in Kashkadarya region created jointly with investors of China, the USA, Bulgaria, Iran, Belgium, Afghanistan, Pakistan, Saudi Arabia, Turkey.

Foreign investments in the Republic of Uzbekistan are provided national treatment that means that foreign investments are granted conditions not less favorable than those provided for investments carried out legal and natural persons of the country.

Enterprises attracting direct private foreign investments and situated in Kashkadarya region, which also carry out activities in the following trades: radio electronic, computer accessories and engineering production, light, silk, construction materials industries, commercial production of bird meat and eggs, food, meat and milk, chemical and pharmaceutical industries; are released from paying income and property taxes, tax for social infrastructure development and lands accomplishments, unified tax for microfirms and small enterprises as well as obligatory deductions to republic roads fund.

Above mentioned tax exemptions are provided in case of attracting direct private foreign investments in the following volumes:
-    from 300 000 to 3 000 000 US dollars – for 3 years;
-    from 3 000 000 to 10 000 000 US dollars – for 5 years;
-    more than 10 000 000 US dollars – for 7 years.
At the same time, the above tax exemptions are applied in case of fulfilling the following requirements:
-    direct private foreign investment without a guarantee of the Republic of Uzbekistan;
-    the share of foreign partners in authorized capital stock shall be not less than 50 percent;
-    depositing of direct private foreign investments after registration of above mentioned enterprises;
-    depositing of foreign investments in freely usable currency or new modern equipment;
-  reinvestment of income obtained as the result of the above mentioned tax exemptions in the period of their application to further     development of the enterprise.

Offered for realization together with foreign investors the list of investment projects eventually can change. More updated information under projects offered at present is placed on a site of Agency " Uzinfoinvest " to the address: www.investuzbekistan.org

 THE TEXTILE INDUSTRY

1. Auction public sale of property package "Oksaroy tukimachi" (manufacture cotton yarn) joint venture.

• Legal - Qashqadaryo province, Shahrisabz city
• Type of activity- Manufacture cotton yarn
• Capacity- An industrial infrastructure - 100 %
• Manpower          - 100 %
• Conditions of sale -      A package
• Estimate cost - 44600 thousand dollars. The USA

THE TEXTILE INDUSTRY

2. Auction public sale of a property package of Open Society "Yakkabog tukimachi" (manufacture of textile products)

• Legal -         Qashqadaryo province, Yakkabog
• Type of activity -     Manufacture of textile products
• Capacity                 3,5 tons / day
• The area of the ground area -     5,2
• The area of buildings and constructions - 1,8
• Security -      An industrial infrastructure - 100 %; A manpower - 100 %
• The equipment -      Made in Russia, mark STB-180, deterioration - 60%
• Conditions of sale -           A package
• Estimate cost - Conduct valuation

  

THE TEXTILE INDUSTRY
3. Creation of a line on manufacture of pneumospinning cotton yarn with capacity of 2000 tons per year on base of «Kamashi» production enterprise.

1. The information on the enterprise - initiator:

2. The authorised capital and founders of the enterprise:

3. Volume of manufacture (2006):          thousand doll. USA

4. The financial information:                              thousand doll. USA

5. Essence of the offered project:
Creation of a line on manufacture of a pneumospinning cotton yarn by capacity of 2000 tons in one year
6. Technical and economic parameters of the project:

7. Maintenance of planned manufacture with a source of raw materials:

8. Commodity markets of finished goods:

9. Available infrastructure and presence of the business - plan:

THE TEXTILE INDUSTRY

4. Sale of 25,0 % of shares of Open Company "Shahrisabz Sado"
1. The information on the enterprise:

2. The information on industrial activity:

3. The size of the authorized capital and its structure:

4. The information on sale of a shares stocks:

THE TEXTILE INDUSTRY

5. Sale of 25,0 % of shares of joint-stock company "Kitob ip yigiruv"
1. The information on the enterprise:
The name:                                          Joint-stock company "Kitob ip yigiruv"
Branch:                                              The textile industry
Place:                                                Qashqadaryo province, Kitab area
Date of creation:                              1984
Number of workers:                         385
2. The information on industrial activity:
Kind of activity of the enterprise: Manufacture of a cotton yarn
Raw material:                      A cotton fibre
The general area:                11,0

3. The size of the authorized capital: 50 274,0 thousand som (39,5 thousand dollars USA)
4. The information on sale of a shares stocks:

FRUITS AND VEGETABLES PROCESSING

12. Auction public sale of property package of “Shakhrisabz Konserva” OJSS

• Legal address: Qashkadaryo region, city of Shakhrisabz
• Type of activity: fruits and vegetables processing
• Capacity: 400 tns/24 hours
• Total area: 14,9 ha
• Area under buildings and utilities 10,8 ha
• Production Infrastructure: 100%
• Manpower: 100%
• Equipment: made in Yugoslavia, extend of depreciation 90 %
• Means of sale: property package
• Estimate cost: 2102,0 ths, US dollar

FRUITS AND VEGETABLES PROCESSING

13. Auction public sale of property package of “Agrosanoat” Society Ltd.

• Legal address: Qashkadaryo region, city of Karshi
• Type of activity: fruits and vegetables processing
• Capacity: 20 tons/ 24 hours
• Capacity: 7 ha
• Capacity: 2,5 ha
• Production infrastructure: 100%
• Manpower: 100%
• Equipment: made in Russia and Yugoslavia
• Means of sale: property package
• Estimate cost: 772 ths. US dollars

FOOD AND OIL FAT INDUSTRY

14. Auction public sale of property package of “Yakkabog sut” Society Ltd. (dairy production)

• Legal address: Qashkadaryo province, Yakkabog district
• Type of activity: Milk processing
• Capacity: 2 tons/24 hours
• Capacity: 3,08 ha
• Capacity: 0,61 ha
• Production infrastructure: 100%
• Manpower: 100%
• Equipment: made in Russia, depreciation -80%
• Means of sale: Property package
• Estimate cost: 115,4 ths. Us dollars

FOOD AND OIL FAT INDUSTRY

15. Sale of 25% of block of shares in “Shakhrisabz yog pishloq” Society Ltd.

1. The information on the enterprise:

2. Information about production activity

3. Statiory capital: 27621 ths. sums (21,7 ths.US dollars)  
4. Information on sale of block of shares

BUILDING MATERIALS PRODUCTION

16. Auction public sale of property package of “Qashkadaryo marmar” Society Ltd. (marble production)

• Legal: Qashkadaryo province, Kitab district
• Type of activity: marble production
• Marble production: 
• marble plates- 60000 sq.m per annum, marble blocks-3000 cub.m per annum marble crumb- 15000 tns per annum
• Capacity: 170 ha
• Capacity: 0,66 ha
• Production infrastructure: 100%, Manpower: 100%
• Equipment: made in Italy, Russia, Uzbekistan. Extend depreciation 30-50% (station equipment in good condition)
• Means of sale: property package
• Estimate cost: 1611,3 ths. US dollars

BUILDING MATERIALS PRODUCTION

17. Building materials production of “Yigma temir beton” (production of reinforced concrete blocks)

• Legal address: Qashkadaryo province, city of Karshi
• Type of activity: production of reinforced concrete
• Capacity: concrete mortal – 8000 cub. m. per annum
• Capacity: 11,3 ha
• Capacity: 2,9 tons ha
• Production infrastructure: 100%, Manpower:  100%
• Equipment: made in Russia
• Means of sale: property package
• Estimate cost: under study

ENERGY

18. Sale of 51 % block of shares in Mubarek Thermal Electrical Power Station OJSC

1. Information about enterprise

2. Information about enterprise activity:

3. Size of statuary capital and its structure

4. Information on block of shares sale

MINING INDUSTRY

19. Field development of bentonit clay Arabdasht with extraction capacity of 411,6 ths. of  bentonit clay per annum.

1. Information about imitator of investment project

II. Description of project

• Goal of investment project:

• Main advantages and profits:

• Equipment required for project implementation:

• Market demand for products (services)

• Availability of raw material:

Investments requirements:

Supposed sources of financing

Directions of use of investments

Financial results expected from projects implementation                         ths.sums

CLEAN DEVELOPMENT MECHANISM PROJECTS

20. Construction of Gissarak Small Hydropower Plant

CLEAN DEVELOPMENT MECHANISM PROJECTS
21. Utilization of associated gas from oil wells Umid, Kruk, Western Kruk, Sarikum, Yangi Darbaza.

CLEAN DEVELOPMENT MECHANISM PROJECTS
22. Utilization of associated gas from oil wells Arniyaz, Marjon, Yangi Pamuk and Central Pamuk

Telephone numbers in Kashkadarya province are 7 digits. In order to make a telephone call to Kashkadarya province from any other province of the Republic of Uzbekistan 8 – long beep – 375 – telephone number should be dialed. International mode of dialing to Kashkadarya province is +998 75 telephone number.
For the subscribers of the mobile communication the codes vary depending on the mobile operator and to be entered in the international format:

1. +99875 subscriber’s number – for “MTS Uzbekistan”;
2. +99890 subscriber’s number – for “Beeline”;
3. +99893 subscriber’s number – for “Coscom”.

Useful telephone numbers: