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Investment Guide for Navoi Region

 

Navoi province is located in the central part of Uzbekistan. Area of the province constitutes 110.8 thousand square kilometers or 24.8% of total area of the country. Population is 825 thousand.

The province borders with the Republic of Kazakhstan in the north and with Jizzakh province in the east, with the Republic of Karakalpakstan in the west, with Samarkand, Bukhara and Kashkadarya provinces in the south.

The province includes following 8 districts: Kanimekh, Kyzyltepa, Navbakhor, Navoi, Nurata, Tamdyn, Uchkuduk, Khatyrcha and following 6 cities: Zarafshan, Karmana, Kyzyltepa, Navoi, Nurata and Uchkuduk; there are also 8 urban-type villages and 53 villages.

The administrative center of the province is Navoi city which was named in honor of the Uzbek poet and philosopher, scientist and statesman Alisher Navoi. City, located in the Zarafshan river valley, was built using a general layout plan in 1960’s.

The north-western part of the province is occupied with Kyzylkum plateau; Nurata mountainous ridges stretch in the east and the south of the province is fringed with Zarafshan River.

The climate of the province is sharply continental and arid; summer is dry and hot, winter is relatively cold and snowless.

 

 

In ancient times, the territory of the province was trespassed with important trade routes such as the Great Silk Road from China to the Mediterranean and further to Europe as well as a trade route connecting western and northern countries with India.

The Sogdian civilization which is one of the most ancient world civilizations was born in the Zarafshan River valley. The valley served as a passage which conducted a dialogue of cultures and communication for people of the East and West.

The province was established within the Uzbek USSR on April 20, 1982. It was re-established on January 27, 1992.

 

 

 

Navoi province is a large industrial and cultural center of the country and plays important role in economic development of the country.

The volume of gross regional product of the province for year 2007 amounted to 1681.2 billion soums (1330.0 million US dollars). Highest volume of GRP accounts to following sectors such as industry - 45.4%, construction - 25.0%, agriculture - 22.6% and trade - 19.0%.

Consumers goods were produced in amount of 105.5 billion soums (83.7 million US dollars) in 2007, growth rate amounted to 110% as compared with 2006. Food products constitute 38.0% and light industry products comprise 9.8% in the structure of consumer goods.

Main purpose of economic reforms implemented in Uzbekistan is establishment and development of a diversified economy in which non-state sector shall gain priority. Non-state sector amounts to 91.3% in the structure of industrial production.

Quantity of small and private enterprises is 14.1 thousand units; and they account to 25% of GRP of the province.

 


As of January 1, 2008, the population of the province amounted to 825.0 thousands including 345.5 thousand people residing in cities and 480.0 thousand people living in rural areas. Average age of the population reaches 25.2 years.

The employed population of the province constitutes 389.2 thousand or 80.8% of able-bodied population. 68.4% of the employed population is workers and employees of enterprises and organizations, 20.8% is employed in agricultural production, 6.2% - in small business, 9.8% constitutes the able-bodied student youth.

Quantity of unemployed population amounts to 6.4% of the able-bodied population.

 

 

 

 

 

 

 

 

 

 

 

 

 

The banking and financial sector of the province is represented with 11 branches of commercial banks and 8 insurance companies. Main Division of the Central Bank of the Republic of Uzbekistan, branches of following main commercial banks such as the National Bank for Foreign Economic Activity, Joint Stock Bank “Asakabank”, Joint Stock Bank “Promstroybank”, Joint Stock Bank “Pakhtabank” and others function in the province.

The insurance sector of the province is represented with “Uzbekinvest” National Company of Export and Import Insurance; “Madad”, “Agrasugurta” and “Kafolat” insurance agencies.

 

 

 

 


Main sectors of agriculture are cotton-growing, grain-growing, vegetable growing, melon and gourd cultivation, viticulture, astrakhan sheep breeding and silkworm breeding.

110 thousand tons of raw cotton, 215 thousand tons of grain as well as 270 thousand tons of fruit and vegetable products including more than 100 thousand tons of vegetables, 30 thousand tons of potatoes, about 40 tons of grapes, 50 thousand tons fruits and 30 thousand tons of melons and gourds are being grown in the province annually. Approximately 20% of total amount of fruits and vegetables is processed.

The share of production of agricultural products in total volume of production of the country amounted to 3.0% for grain, 2% for vegetables, 2.1% for potatoes, 3.7% for melons and gourds, 2.4% for fruits, 3.6% for grapes and 32.2% karakul fur.

More than 500 thousand pieces of karakul fur are produced each year in the province. The province ranks the second place after Bukhara province in production of karakul fur in the country. Quantity of livestock amounts to more than 265 thousand, quantity of sheep reaches 1.8 million and quantity of pigs amounts to 17 thousand; this allows developing hide processing.

Total land area constitutes 10.9 million hectares, area of agricultural lands amounts to 10.1 million hectares including 10 million hectares of pasture lands, irrigated areas comprise 91.6 thousand hectares with their portion being 0.9%.

There are more than 7500 farm enterprises in the province.

 

 

The province possesses rich minerals and raw materials resources. Minerals and raw materials resources of the province are described with availability of such fields as Muruntau gold-bearing field, silica sand fields (of more than 1.5 billion tons), deposits of granite (1.9 billion cubic meters) and marble (420.0 million cubic meters) as well as phosphorites (1.5 billion tons), precious and rare-earth metals, bentonitic clay, basalts, kaolin rocks, limestones, dolomites, wollastonites and feldspar.

One of the most important types of non-metallic raw materials is silica sands. Jeroy, Aydaly and Kulatay silica fields are most thoroughly explored.

 

 


There are detected more than 50 occurrences of kaolin rocks on the territory of the Central Kyzylkums; kaolin rock deposits constitute 204.8 thousand tons for a given average yield of 35%. Kaolin concentrate is used for production of low-grade ceramics as well as in refractory industry and coarse ceramics.

Deposits of slate coal, dolomitic limestones are explored in the province; extraction of feldspar in Lyangar field which deposits constitute 9.2 million tons is made. There are also a Lyavlyakan salt field located in Kanimekh district and a Tuzkuduk salt field in Uchkuduk district.

Limestones reserves constitute 43.3 million tons according to Categories À+Â+Ñ1 and 2.2 million tons according Category Ñ2 in the province.

Such fields of building semi-precious stones such as Gazgan and Nurata marble fields, Lyangar and Karasoy granite and gabbro fields, Azlartal and Karasoy fields of granite for facing materials and wollastonites fields are in the province.

Phosphorites fields such as Jeroy-Sardar, Janakhmet and Tashkura stand out with high content of Ð2Î5.

 


Main basalts field is Aydarkul in the province, one section of which has been explored and its deposits are estimated in amount of 1.9 million cubic meters.

The share of the regional industrial production in total republican production amounts to 10%.
The economy of the province is based on such industrial enterprises as Navoi Mining and Metallurgical Combinate, chemical industry enterprises (Open Joint Stock Company “Navoiazot”, Uzbek-Panamanian Joint Venture Joint Stock Company “Electrokhimzavod”), enterprises producing construction materials (Joint Stock Company “Kyzylkumcement”, Joint Stock Company “UPP”), machinery-building and electrochemical factories, a hydroelectric power plant (Open Joint Stock Company “Navoi TES”), enterprises of textile and food industries.

In total, 799 enterprises function in the province with annual production output of more than 750 billion soums (595.2 million US dollars).
Industrial enterprises of the province produce more than 50 types of important industrial products such as ammonia nitrate (70% of overall republican production), nitronic fiber (100%), sulfuric acid (25.4%), protective chemicals for plants (4.1%), ammonia sulfate (1%), cement (50%), precast reinforced concrete products (4.2%), cotton fiber (3.5%), hosiery (1%) and knitwear (0.5%) products, jewelry products (56%), walling materials (6%), foodstuff such bakery products (2.4%), meat and meat products (2.1%), confectionery products (1.3%) and bear (2.6%).

Mining Industry

Navoi Mining and Metallurgical Combinate (NMMC) is the biggest enterprise of the province and is included in top ten biggest world producers of uranium and gold. The Combinate is a big diversified industrial enterprise which main activity is exploration, extraction and production of uranium, gold, fluorspar, construction materials, marble products and phosphorites.

Central Ores Division for processing of gold-containing ores from Muruntau Field functions within the NMMC structure. Purity of the gold produced is guaranteed with four nines 9999. Gold bars produced in the enterprise are awarded with the status of “optimal gold delivery” by the Arbitration Laboratory of London Precious Metals Market and Tokyo Commodities Exchange.

Uzbek-British Joint Venture “Amantaytau-Goldfields” also functions in the province; it processes oxidized and sulfide ores of Amantaytau Field and produces more than 7.5 tons of gold.

 

 

 

Production of Building Materials

Open Joint Stock Company “Kyzylkumcement” is the biggest cement producer in the country and is one of leading enterprises in the province; its design capacity comprises 3.08 million tons of cement per year.

Production of marble slabs was organized at the enterprise in 1995 with production capacity of 25 thousand square meters of facing slabs; a production line for thermo-activated mineral additive production was put into operation in 1998.

 

 

 

 

 

 

 

 

 

The accomplishment until 2011 of the reconstruction of the existing capacities and building of the fourth technological line for production of cement that would increase production capacity of the enterprise up to 4.08 million tons per year is planned.

Such enterprises as Subsidiary Enterprise “Karrara-mramor” and Private Production Firm “Nuratamramor” where marble slabs are cut and polished using Italian technology also function in the province. Raw materials base is the multi-colored Gazgan marble which has 22 colors and about 200 various color tones and which obtained its international recognition.

Chemical Industry

The biggest producer of mineral fertilizers in Uzbekistan Open Joint Stock Company “Navoiazot” functions in the province; it also produces synthetic fiber “nitron”, resins, caustic soda, acetum and methanol. Building of a new nitric complex for production of 550 thousand tons of ammonia and 450 thousand tons of carbamide per year on the basis of the enterprise during 5 years is planned.

Uzbek-Panamanian Joint Venture Closed Joint Stock Company “Electrokhimzavod” also functions in the province and it is the only specialized enterprise in Central Asia for production of protective chemicals for plants. The enterprise also produces iodized table salt and superphosphates for field works.

Textile Industry

Following light industry enterprises perform activity for production of cotton and knitwear products:

  • Production Commercial Firm “Agama” which is a state knitting factory at NMMC specializing in production of upper knitted garments and socks;
  • Zarafshan Spinning and Knitting Combinate for production of yarn and acrylic fiber;
  • Uzbek-Russian Joint Venture “Velan” for production of quilted blankets made of silk, cotton fabric with camel's hair padding, camel's hair medical belts and sleeping sacks.

 

 

 

 

 

 

 

External trade turnover amounted to 886.0 million US dollars for year 2007 including 570.2 million US dollars for foreign countries and 315.8 million US dollars for neighboring countries.

Increase in external trade turnover by 25.2% as compared with 2006 took place due to growth of exports of chemical products, ferrous and non-ferrous metals, machinery and equipment, cement as well as due to import of technologies.

Export amounted to 538.1 million US dollars. Highest shares in total export volumes account to products of gold-extracting industry (86.3%), cotton-ginning industry (5.1%) as well as chemical industry (9.6%).

Import amounted to 347.8 million US dollars. Import structure is prevailed with machinery and equipment with 50.2%, chemical products with 15.2%, ferrous and non-ferrous metals with 16.5%.

External economic relations were conducted with 62 foreign countries and neighboring countries in 2007.

External trade relations are predominantly maintained with industrial developed countries which account 64.5% of total goods turnover. 81.0% of total volume of export products was shipped to these countries and 39.2% of total import products were delivered from these countries.

Significant volume of external goods turnover account to countries of Europe (66.0%), Asia (20.0%) and America (11.6%).

 

 

Infrastructure of transport communications is well developed in the province: there are 8 railway and 9 automobile stations, 2 airports and developed network of automobile roads in the province. Length of railways constitutes 390.7 kilometers, length of automobile roads amounts to 4.1 thousand kilometers of which 3.3 thousand kilometers with hard surface.

Tashkent-Turkmenistan and Tashkent-Uchkuduk railway lines trespass the territory of the province.

A large modern airport is situated in the city of Navoi that can receive different types of aircrafts including Airbus and Boeing. A big major project of establishing a sub regional air hub and logistics centre is expected to be implemented on the base of this airport.

Its creation is based on the following objectives:

  1. Advantageous geographical location of Navoi airport in the centre of sustained international air routes of aircargo between Europe and Asia, at the intersection of transports crossroads West-East and North-South;
  2. Positive prospects of market development of air transportation between Russia and the States in the subregion, CIS, the Middle East, Africa and India;
  3. A high level of development of industrial and agricultural production, proximity to international transport corridors the availability of transport communications infrastructure, proximity to world-famous historical monuments of architecture in Bukhara and Samarkand, the availability of highly skilled labor forces.

The revitalization of a logistic centre at the Navoi airport will effectively contribute to attract foreign investment, as well as the development of other sectors of industry, including natural resource development and processing of agricultural products.

There are telecommunications, telephone communication (including cellular) in the province; 75 telephone stations function. Cellular communications services are rendered by following 5 operators: “MTS-Uzbekistan, “Beeline”, “Coscom” (U-Cell), “PerfectumMobile” and “Uzmobile”. 400 kilometers of fiber optic cables are laid.

 

Branches of Tashkent State Pedagogical University, Tashkent Technical University, 362 secondary schools, lyceums, specialized sport and musical schools function in Navoi province. There are more than 120 clubs, 300 libraries and 2 museums in the province.

Navoi city is planted well with greenery; it has a lot of umbrageous squares with fountains. There are no dull squat outskirts and repeated typical projects creating monotonous constructions of residential districts in the city.

Zarafshan and Uchkuduk cities in the Central Kyzylkum were established on the basis of fields of nonferrous metal ores. The cities are supplied with transmission facilities lines and water supply pipeline.

Artificial lakes for recreation of residents of these cities are created there.

 

 

 

 

 

 

 

 

 

 

 

 


Total volume of investments amounted to 419.8 billion soums (333.2 million US dollars) in 2007 including attracted foreign investments in amount of 80.3 million US dollars or 20% of total volume of investments.

Volume of foreign investments per capita amounted to 97.0 US dollars.

In the Republic of Uzbekistan, national treatment regime has been established which ensures provision for foreign investments the treatment which is not less favorable than those conditions for investments made by legal and natural persons of the republic.

The enterprises, which attract direct private foreign investments and which are located in rural residential settlements of Navoi province as well as which conduct activity in following sectors of economy: production of radio electronics products and spare parts for computer and computing equipment, light industry, silk production industry, building materials industry, industrial production of poultry and eggs, food industry, milk and meat industry, chemicals and pharmaceutical industry; those enterprises are exempt from income (profit) tax on main activity, property tax, tax for development of social infrastructure and land improvement of territories, single tax for micro firms and small enterprises as well as compulsory payments to the Republican Road Fund.

The stated tax privileges are given according to following volumes of direct private foreign investments:

  • for a period of 3 years for investments from 300 thousand US dollars up to 3 million US dollars;
  • for a period of 5 years for investments above 3 million US dollars up to 10 million US dollars;
  • for a period of 7 years for investments above 10 million US dollars.

 

40 foreign investment enterprises function on the territory of Navoi province; most of these enterprises are concentrated in Navoi and Zarafshan cities and are established with participation of investors for USA, Panama, China, Russia and Ukraine. These enterprises perform activity in following sectors: 6 enterprises in chemical industry, 4 enterprises in production of building materials, 2 enterprises in nonferrous metallurgy, 4 enterprises in machinery building, 7 enterprises in food industry, 4 enterprises in light industry, 5 enterprises in transport and communication, 3 enterprises in trade and 1 enterprise in agriculture.

Total volume of products produced by foreign investment enterprises amounted to 111.7 billion soums (88.7 million US dollars) in 2007. The highest volume of products produced is attributed to enterprises producing marketable goods products.
Volume of exported products by foreign investment enterprises reached 55.1 million US dollars in 2007.

 

 

 

  1. No.
  1. Description and Purpose of the Project
  1. Project Amount / Property Value, Shares Holding (thousand US dollars)
  1. Chemical Industry
  1. 1
  1. Sale of 49.0% shares of Open Joint Stock Company "Navoiazot"
  1. Appraisal is under process
  1. 2
  1. Organization of production of 50 thousand tons of polyvinylchloride on the basis of of Open Joint Stock Company “Navoiazot”
  1. 160 000
  1. Production of Construction Materials
  1. 3
  1. Construction of a glasswork factory with capacity of 10 million square meters of polished sheet glass
  1. 70 000
  1. 4
  1. Technical re-equipment of existing open cast mines and raising production volumes of marble slabs by 20 thousand square meters and marble blocks by 30 thousand square meters at Joint Stock Company "Gazganmramor"
  1. 4 300
  1. 5
  1. Auction sale of the property complex of Subsidiary Enterprise "Langar granite" (extraction of granite blocks)
  1. 674.5
  1. 6
  1. Auction sale of the property complex of Commercial Enterprise "Nurotamramor" (production of marble slabs)
  1.  
  2. 443.4
  1. 7
  1. Auction sale of the property complex of Joint Venture "Langar Uz-Ross" (production of granite blocks and spar)
  1. Appraisal is under process
  1. Textile Industry
  1. 8
  1. Organization of production of 9.7 thousand tons of cotton yarn on the basis of Open Joint Stock Company "Khatirchi pakhta tozalash zavodi"
  1. 8 220
  1. Energy Sector
  1. 9
  1. Sale of 51% of shares of Open Joint Stock Company "Navoi TES"
  1. Appraisal is under process
  1. 10
  1. Construction of a combined-cycle plant with capacity of 370 megawatt in Navoi TES
  1. 231 200
  1. Food Industry
  1. 11
  1. Organization of production of canned meat products on the basis of Limited Liability Company "Konimekh Oasis Food"
  1. 250
  1. Agriculture
  1. 12
  1. Organization of production of washed wool on the basis of Joint Venture "Shark Kyzykum"
  1. 150

 

The list of investment projects proposed for joint implementation with foreign investors may be amended as time elapses. More updated information on the current proposed projects is available on the web-site of Agency “Uzinfoinvest” at: www.investuzbekistan.org.


CHEMICAL INDUSTRY

1. Sale of 49.0% shares of Open Joint Stock Company "Navoiazot"

Investment Obligations: 45 million US dollars

1. Basic Information about the Company

1. Name of Issuer

Open Joint Stock Company "Navoiazot"

2. Legal Address

Navoi province, Navoi-5 city

3. Establishment Date

1964

4. Sector

Chemical industry

5. Chairman of Board (Surname, Name, Second Name)

Bakhtiyor Baratovich Botirov

6. Contact Telephone, Fax, E-mail

(8-436) 29-22-00, fax 223-75-80

7. Quantity of Employees including Officers

9 684

8. Total Area (hectares)

650.44 hectares

9. Production Areas (hectares)

321.52 hectares

2. Information on Securities Issue and Placement

1. Size of Chartered Capital

37 684 800 thousand soums (29 632.9thousand US dollars)

2. Chartered Capital Structure (in thousand soums and %)

Share of State Joint Stock Company “Uzkimyosanoat” is 51%

3. Total Quantity of Issued Shares (pcs.)

753 696

4. Nominal Value of Share (soum)

50000 soums (38.2 US dollars)

3. Information on Sale of Shares Holding in Trade Sessions

1. Size of Asset Proposed for Sale

49%

2. Grounds for sale

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

3. Appraised value of shares holding offered for sale

60009.6 thousand US dollars

4. Type of sale

Tender sale

5. Organizers of sales

State Property Committee of the Republic of Uzbekistan

7. Sales venue

Tashkent city

4. Brief description of the Company

The enterprise was put into operation in 1964. It is one of the biggest enterprises of the country which produces nitrogen fertilizers. It produces “nitron” fiber, acetaldehyde, acetic acid and ammonia sulfate.
History of production development is as follows:
1965–second line production buildings were put into operation for production of ammonia, nitrogen acid and ammonia nitrate.
1970– nitrile acrylic acid shop was put into operation.
1977–production of “nitron” fiber and catalysts was launched.
1988–thiourea and hydrochloric acid production shop.
2001–caustic soda and liquid chlorine production shop was put into operation.

5. Long-term Development Plans of the Company

In accordance the Program of Complex Development of Open Joint Stock Company "Navoiazot" for 2006-2011, following is planned:
1.Reconstruction of 3rd line ammonia production by utilizing modern energy saving technologies.
2.Construction of production of dry prussiates.
3.Reconstruction of weak nitrogen acid production shop by utilizing modern energy saving equipment.
4.Construction of productions complex for output of caustic soda and polyvinylchloride.
5. Reconstruction of chemical water treatment plant.

CHEMICAL INDUSTRY

2.Organization of production of 50 thousand tons of polyvinylchloride on the basis of Open Joint Stock Company “Navoiazot”

1. Estimation of Demand in Polyvinylchloride in the Republic of Uzbekistan.

Polyvinylchloride (PVC) and its products are used in many sectors of industry in Uzbekistan. The volume of PVC imported to the country is currently estimated at up to 30.0 thousand tons per year. Demand in PVC in the country amounts to 1200 US dollars per ton to 1400 USD per ton.

Main consumers of PVC are enterprises producing cable products as well as construction industry, producers of linoleum and tubular goods production for NMMC. Many joint ventures producing plastic windows and doors receive ready semi-finished PVC products from Turkey and Germany. PVC of C-7058M Grade made by Limited Liability Company “Leader Comtrading Sterlitamak c.” are mainly used in Uzbekistan at a price 1.55 million soums per ton.

Taking into consideration expansion of PVC products nomenclature produced in Uzbekistan, it is due to the construction industry alone that the annual volume of PVC processing will gain more than 40 thousand tons in nearest years.

2. Raw Materials Base

2.1. Acetylene

Open Joint Stock Company “Navoiazot” produces acetylene using thermal-oxidative pyrolysis according to following chemical reaction:

2 ÑÍ4 à Ñ2Í2 + 3 Í2 – 377 kilojoules

Acetylene concentration in pyrolysis gases is 6-8%.

Production capacity of the existing acetylene plant for diluted acetylene reaches 35 thousand tons per (100 % acetylene); at the same time, in-plant consumption amounts to 22 thousand tons per year. The remaining 13 thousand tons can be used for production of 30 thousand tons of vinylchloride monomer per year.

2.2. Chlorine

Production capacity of the existing caustic soda and chlorine production for chlorine constitutes 23 thousand tons per year. At the same time:

  • Open Joint Stock Company “Navoiazot” utilizes 12 thousand tons for own needs;
  • 2 thousand tons are sold to consumers in the Republic of Uzbekistan;
  • 9 thousand tons are sold to consumers in CIS countries (Kazakhstan, Kyrgyzstan, Turkmenistan and Tajikistan).

Thus, it is necessary to built new capacities for caustic soda and chlorine production in order to ensure production of polyvinylchloride.

2.3. Availability of Other Types of Raw Materials

The existing capacities at Open Joint Stock Company “Navoiazot” allow supplying with auxiliary types of raw materials (bulk oxygen, inhibited oxygen, methanol, chemically purified water, deep-desalted water) in volumes sufficient for production of 50 thousand tons of PVC per year.

2.4. Availability of Infrastructure

The existing infrastructure of Open Joint Stock Company “Navoiazot” which includes steam-gas-materials pipelines, electric power supply systems, circulating water supply, water and sewage pipelines and others allows supplying all kinds of energy resources for newly established PVC production in volumes sufficient for production of up to 50 thousand tons of PVC per year.

3.Appraisal of the Project for Creation of PVC Production Complex with Capacity of 50 thousand tons

The appraisal included data on technical and commercial proposals from following foreign companies “Lurgy (S.A.S.)”, MBNC, CITIC developed for application to conditions of Open Joint Stock Company “Navoiazot”.

In order to establish PVC production with capacity of 50 thousand tons per year, it is necessary to implement following works:

  • on reconstruction of the existing acetylene production plant for raising the capacity up to 45 thousand tons per year;
  • on creating new capacities for production of;
  • caustic soda of 32 thousand tons per year;
  • chlorine of 28.5 thousand tons per year;
  • vinylchloride monomer of 52 thousand tons per year;
  • polyvinylchloride of 50 thousand tons per year.
  • Construction period is 36 months;
  • Net profit for the period of 15 years is 358.6 million US dollars;
  • Payback period is 6.0 years.

4. Principle Technological Production Scheme

A. Caustic Soda, Liquid Chlorine

Chlorine and caustic soda production technology is similar to the technologies used in the operating production of caustic soda and chlorine.

B. Vinylchloride Monomer (VCM)

Technological process for production of vinylchloride monomer (VCM) using diluted acetylene (6-8% acetylene) containing pyrolysis gases is divided into following stages:

  • Pyrogas purification stage.
  • Hydro chlorination of acetylene.
  • Extraction of raw VC.
  • Rectification of VC.
  • Combustion of organic chlorine wastes.

C. Polyvinylchloride

Polyvinylchloride is produced using suspension polymerization of vinylchloride in demineralized water with activating agents which suspend agents and other auxiliary reagents. Polymerization process is made in reactors with mixing devices in pressurized environment.

Technological process for polyvinylchloride production is divided into following stages:

  • Preparation of solutions.
  • Polyvinylchloride polymerization.
  • Degassing of PVC and discharge water suspension.
  • Extraction of PVC from suspension, drying and plansiftering.
  • Warehousing, packaging and shipment of commercial PVC.
  • Regeneration of unpolymerized vinylchloride.
  • Treatment of discharge waters.

5. Analysis of Technical and Economic Performance Indicators

Analysis of technical and economic performance indicators for creation of PVC production in Open Joint Stock Company “Navoiazot” shows that 3 options for project implementation are available depending on PVC production capacity for 30, 50 and 100 thousand tons per year. All these options:

  • require attraction of loan resources of 77.03 to 274.3 million US dollars;
  • have fairly short payback period of 6-6.5 years;
  • are secure for loan repayment;
  • will have net profit for the period of 15 years ranging from 212.7 to 799 million US dollars;
  • will ensure production of commercial caustic soda and PVC products of 41.5 to 135.1 million US dollars per year.

6. Selection of the Option and its Feasibility Substantiation

Selection of PVC production capacity depends on following factors: availability of prime raw materials, sale of finished products and availability of financing.

It is proposed to select the option of creation of PVC production with capacity of 50 thousand tons per year in the first stage. It is planned to expand the production of up to 100 thousand tons per year (stage II) after development of production and sales markets.

Feasibility substantiation of the option is as follows:

  1. Open Joint Stock Company “Navoiazot” avails the existing acetylene production with capacity of 35 thousand tons per year using diluted acetylene which capacity will be raised up to 45 thousand tons per year after accomplishment of reconstruction.
  2. Open Joint Stock Company “Navoiazot” avails unused areas and necessary infrastructure for construction of new production of caustic soda and chlorine.
  3. Works experience and operating skills will be accumulated in due process of capacities development.
  4. Marketing policy will be developed and relations with permanent consumers will be established during 3-5 years of operation.

 

PRODUCTION OF CONSTRUCTION MATERIALS

3. Construction of a glasswork factory with capacity of 10 million square meters of polished sheet glass

I. Information on Investment Project Initiator

Full Name

Legal Address

Enterprise Manager: fax:

telephone:

e-mail: web-site:

Infrastructure and its Condition:

Automobile road

Distance to automobile highway is 2–3 km

Railway

Available

Electric power supply

Available

Water supply

underground water sources

Sewage

Construction of biological treatment facility is required

Gas supply

Supplied with gas is required

 

II. Description of Investment Project

• Purpose of Investment Project

• Advantages and Benefits of Investments

 

 

• Market Demand in Products (Services) Planned for Production

• Supplied with the Planned Production with Raw Materials

 

Demand in Investments

• Project Cost• Required Volume of Investments

• Form of Financing

• Contribution and Share of the Attracted Investor

Proposed Sources of Funding

Own Funds, million soums

Direct Foreign Investments, thousand US dollars

Credit Funds

Local, million soums

Foreign, thousand US dollars

-

70

-

-

Areas of Investment Utilization

 

Expenses in National Currency, million soums

Expenses in Freely Convertible Currency, thousand US dollars

Purchase of equipment

 

60

Including
- of local production

 

 

- of imported production

 

60

Conduct of Construction and Installation Works

10.48

 

Formation of Working Assets

2.62

 

Anticipated Financial Results from Project Implementation billion soums

Description

Years of Project Implementation

1

2

3

4

Products Sales

8.6

11.5

17.3

23.0

Including in External Market

2.3

3.1

4.7

6.2

Cost Price

7.74

10.4

15.6

20.7

Profit after Tax

2.31

3.12

4.68

6.21

Profitability of Investments, %

15

15

16

18


Payback of the Project (in months)

Status of Preparation of Design and Estimation Documentation

 

PRODUCTION OF CONSTRUCTION MATERIALS

4.Technical re-equipment of existing open cast mines and raising production volumes of marble slabs by 20 thousand square meters and marble blocks by 30 thousand square meters at Joint Stock Company "Gazganmramor"

I. Information on Investment Project Initiator

Full Name

Legal Address

Enterprise Manager:fax:

Contact Person:telephone:

Enterprise Founders:

No.

Name of Organization,
Founding Enterprise

Share in Chartered Capital, in %

In million soums

In thousand US dollars

1

LLC "Ros-Uzmramor" (RF)

51.1%

25.8

19.7

2

LLC "Story-top-alliance" (RF)

23.0%

11.6

8.9

3

Enterprise Employees

25.9%

13.1

10

 

Total

100%

50.5

38.6

Bank Servicing the Enterprise

Brief Information on the Enterprise

Production Volume:

No.

Name of Product

Production Volume, tons

Utilization of Capacity, %

Export,
thousand US dollars

Exporting Countries

2006

2007

2006

2007

2006

2007

1

Marble blocks

10 978

12 336

87

98

4 067

6 370

Russian Federation, Afghanistan

2

Marble slabs

12 496

7 550

100

94

5 172

20 365

Tajikistan, Kazakhstan

 

Total

23 474

19 886

 

 

9 239

26 735

 

Infrastructure and its Condition:

Automobile road

distance is 76 km

Railway

distance is 76 km

Electric power supply

available

Water supply

available

Sewage

available

Financial Condition of the Enterprise: million soums

Year

Income from Economic Activity

Profit after Tax

2006

101.7

26.9

2007

121.8

54.8

Enterprise Book Value as of Jan 1, 2008

II. Description of Investment Project

• Purpose of Investment Project

• Advantages and Benefits of Investments

• Market Demand in Products (Services) Planned for Production

• Supplied with the Planned Production with Raw Materials

Demand in Investments

• Project Cost • Required Investments

• Form of Financing

• Contribution and Participation Share of Initiating Enterprise

• Contribution and Share of the Attracted Investor

Proposed Sources of Funding

Own Funds, million soums

Direct Foreign Investments, thousand US dollars

Credit Funds

Local, million soums

Foreign, thousand US dollars

-

4 300

-

-

Areas of Investment Utilization

 

Expenses in Local Currency, million soums

Expenses in Freely Convertible Currency, thousand US dollars

Purchase of equipment

 

3 096

Including
- of local production

 

 

- of imported production

 

3 096

Conduct of Construction and Installation Works

559.6

 

Formation of Working Assets

1017.6

 

Anticipated Financial Results from Project Implementation million soums

Description

Years of Project Implementation

1

2

3

4

Products Sales

2100

2352.0

2634.0

2950.0

Including in External Market

420.0

470.0

527.0

590.0

Cost Price

1785.0

1929.0

2160.0

2330.0

Profit after Tax

147.0

235.0

253.0

384.0

Profitability of Investments, %

8.2

12.2

11.7

16.5


Payback of the Project (in months)

Status of Preparation of Design and Estimation Documentation

 

PRODUCTION OF CONSTRUCTION MATERIALS

5.Auction sale of the property complex of Subsidiary Enterprise "Langar granite" (extraction of granite blocks)

  • Legal Address - Navoi province, Khatircha district
  • Type of Activity- extraction of granite blocks
  • Capacity - 3000 cubic meters
  • Area of Land Plot-15 hectares.
  • Area of Buildings and Facilities -12 hectares.
  • Supplied with - 100 % of production infrastructure
                            100 % of labor resources
  • Equipment-Made in Italy. Depreciation level is 12% - 20%
  • Status - is put on the balance sheet of the National Bank for FEA of the Republic of Uzbekistan
  • Terms and Conditions of Sale- Complex
  • Appraised Value - 674.5 thousand US dollars

 

PRODUCTION OF CONSTRUCTION MATERIALS

6.Auction sale of the property complex of Commercial Enterprise "Nurotamramor" (production of marble slabs)

 

  • Legal Address - Navoi province, Nurota district
  • Type of Activity - production of marble slabs
  • Capacity - 800 square meters/day
  • Area of Land Plot - 1425 hectares.
  • Area of Buildings and Facilities - 850 hectares.
  • Supplied with - 100 % of production infrastructure
                            100 % of labor resources
  • Equipment - Made in Italy. Depreciation level is 8 - 22%
  • Terms and Conditions of Sale - Complex
  • Appraised Value - 443.4 thousand US dollars

PRODUCTION OF CONSTRUCTION MATERIALS

7.Auction sale of the property complex of Joint Venture "Langar Uz-Ross" (production of granite blocks and spar)

  • Legal Address - Navoi province, Khatyrcha district
  • Type of Activity - production of granite blocks and spar
  • Area of Land Plot - 21 hectares
  • Area of Buildings and Facilities - 12 hectares
  • Supplied with - production infrastructure

Electric power supply is available

  • Terms and Conditions of Sale - Complex
  • Appraised Value - Appraisal is under process

 

TEXTILE INDUSTRY

8. Organization of production of 9.7 thousand tons of cotton yarn on the basis of Open Joint Stock Company "Khatirchi pakhta tozalash zavodi"

I. Information on Investment Project Initiator             

Full Name

Legal Address 

Enterprise Manager:                                                                                                                                                                                                 

Enterprise Founders:

No.

Name of Organization,
Founding Enterprise

Share in Chartered Capital, in %

In million soums

1

State Share

51%

26.01

2

Share of Employees

6%

3.06

3

Share with no ownership

43%

21.93

 

Total

 

51

Brief Information on the Enterprise

Infrastructure and its Condition:

Distance to automobile road

5 km

Distance to railway

8 km

Electric power supply

available

Water supply

available

Gas supply

available

Financial Condition of the Enterprise:                     million soums

Year

Income from Economic Activity

Profit after Tax

2006

112 084

57 761

 

II. Description of Investment Project    

• Purpose of Investment Project

• Market Demand in Products (Services) Planned for Production

• Supplied with the Planned Production with Raw Materials

Demand in Investments

• Project Cost     • Required Volume of Investments

• Form of Financing
 
• Contribution and Participation Share of Initiating Enterprise

• Contribution and Share of the Attracted Investor

 

Proposed Sources of Funding

Own Funds, million soums

Direct Foreign Investments, thousand US dollars

Credit Funds

Local, million soums

Foreign, thousand US dollars

9 270

1 145

-

-\\

 

Payback of the Project (in months) 

Status of Preparation of Design and Estimation Documentation   

 

ENERGY SECTOR

9. Sale of 51% of shares of Open Joint Stock Company "Navoi TES"

Investment Obligations: To be decided by the State Tender Commission

1. Basic Information about the Company

1. Name of Issuer

Open Joint Stock Company "Navoi TES"

2. Legal Address

Karmani district, Navoi province

3. Establishment Date

2004

4. Sector

Energy sector, State Joint Stock Company “Uzbekenergo”

5. Chairman of Board (Surname, Name, Second Name)

Bakhodir Ibragimovich Juraev

6. Contact Person

Shavkat Eshboevich Turdiev

7. Contact Telephone, Fax, E-mail

8 (436) 770 34 21, 770 34 23

8. Quantity of Employees including Officers

7684

9. Total Area (hectares)

121.7

10. Production Areas (hectares)

7.8 hectares

11. Raw Materials for Production

Natural gas, reserve fuel is fuel oil

2. Information on Securities Issue and Placement

1. Authorized Capital Size

9 276.68 million soums (7 081.4 thousand US dollars)

2. Chartered Capital Structure (in thousand soums and %)

Share of State Joint Stock Company “Uzbekenergo” is 51.0%;
State share is  48.0%;
Share of Employees is 1.0%

3. Financial Indicators   (million soums)

Indicator

Years

2005

2006

I half-year of
2007

1. Chartered Capital

9 276.68

9 276.68

9 276.68

2. Long-Term Assets

14680.7

17691.1

22767.8

3. Current Assets

110346.0

132480.6

137167.2

4. Income

111263.9

129830.2

75170.7

5. Expenses

105654.6

121540.6

69627.2

6. Gross Profit

5609.2

8289.6

5543.5

7. Net Profit

3857.6

6493.8

4548.9

8. Accounts Payable

108905.2

126239.1

129392.1

4. Information on Sale of Shares Holding in Trade Sessions

1. Size of Asset Proposed for Sale

51%

2. Grounds for sale

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

3. Appraised value of shares holding offered for sale

Appraisal is under process

4. Type of sale

Tender sale

5. Organizers of Sales

State Property Committee of the Republic of Uzbekistan

6. Sales Date

To be decided by the State Tender Commission

7. Sales Venue

5. Brief description of the Company

Navoi TES is a thermal power station with installed capacity of 1 250 megawatt.  The TES ensures supply with electric power to Samarkand-Bukhara Power Center, with thermal energy to Production Union “Navoiazot" as well as to industrial and residential sectors of Navoi city.

 

ENERGY SECTOR

10. Construction of a combined-cycle plant with capacity of 370 megawatt in Navoi TES

Navoi TES is located in the central part of the Republic of Uzbekistan and is the most important station for electric power supplied to Samarkand city as well as consumers in Navoi province. It also supplies heat to Navoi city and industrial steam to adjacent chemical plants.

12 boiler units and 12 turbine units including 6 energy blocks are installed in the station. Full installed capacity constitutes 1 250 megawatt, capacity of units varies from 25 megawatt to 210 megawatt. Units were built during period from 1963 to 1981; one of them is still in operation for 40 years.
Utilization coefficient of electrical power reaches 54.2% and 45.81% for thermal power.

Putting into operation more new and highly effective electrical and thermal capacities at Navoi TES which are vitally important sources of energy and heat for the central region of the Republic of Uzbekistan and Navoi city will allow to raise full thermal productivity, to increase operational reliability of the station, to reduce environmental impact due to lower consumption of fuel and reduction of carbon dioxide emissions as well as reduction of nitrogen and sulfur oxides.

Total capacity of this electric power station will exceed its installed capacity after putting into operation a combined-cycle plant with electrical capacity of 340 megawatt and thermal capacity of 150 Gcal/hour on the territory of Navoi TES even when the existing plants No.1 and No.2 would be disassembled.

The territory of Navoi TES avails sufficient space for construction of a new electricity and heat generating combined-cycle plant with capacity of 340-380 megawatt without disassembly of any existing plants.

Navoi TES is supplied with natural gas using 4 gas pipelines from two different sources of natural gas which are located approximately 23 kilometers from each other. The existing flow rate of each gas pipeline is 0.32 million  nmÇ/hour and the total flow rate is 1.28 million nmÇ/hour.
To ensure possibility for combustion gas in gas turbines, it is necessary to provide for a relevant gas treatment and drying system as well as installation of a gas compressor toward a gas turbine power plant with gas pressure of not less than 3.5-4.0 MPa.

Annual consumption of natural gas by a new electrical power station is estimated at 488 million cubic meters. Capacity for supply with natural gas is estimated at 11.2 billion. cubic meters (1.28 õ 8.760). Thus, capacity for supply with natural gas will be sufficient even after putting into operation the new electric power station.

Present project will be implemented with a prospective replacement of the existing plants No.1 and No.2 for which operation water is supplied for cooling in amount of approximately 10000 cubic meters/hours. Such consumption value comprises about one third of the required volume for this project; therefore, at least, the remaining two thirds must be provided with new cooling stacks. Supply with full consumption of water from the cooling stacks is also considered as a main option.

The new electric power generating plant consists of following main components:

  • a gas turbine with auxiliary devices and plants, heat recuperation steam generator (HRSG) with appropriate auxiliary devices;
  • a steam turbine with appropriate auxiliary devices;
  • a generator with appropriate devices and step-up transformer;
  • a gas compressor;
  • a 220 KV overhead line from the transformer to the existing distributing device;
  • distributing equipment and modification of the existing distributing device;
  • control system;
  • a cooling stack and water circulation system;
  • rooms for the gas turbine, steam turbine, the generators and control system;
  • steam-to-water heat exchanger.

The platform for the new plant is located in about 1.5 kilometers from the connection point of the 220 KV transmission line. It is necessary to connect the 220 KV overhead line between the connection point and the secondary high-voltage side of the main transformer. The cooling stack with natural water flow will be located next to the new hybrid thermal electrical combined-cycle plant in proximity to the existing cooling stacks.

FOOD INDUSTRY

11. Organization of production of canned meat products on the basis of Limited Liability Company "Konimekh Oasis Food"

I. Information on Investment Project Initiator             

Full Name

Legal Address 

Enterprise Manager:       

Contact Person:                                                                                                                                                                                             

fax:      telephone:

Enterprise Founders:

No.

Name of Organization,
Founding Enterprise

Share in Chartered Capital, in %

In million soums

1

R.S. Sidikov

70

3710.0

2

A. Sarsenbaev

20

1060.0

3

M. Bukaev

10

530.0

 

Total

100

5300

Bank Servicing the Enterprise 

Brief Information on the Enterprise

Production Volume:                                            million soums

No.

Name of Product

Production Volume

Utilization of Capacity. %

2006

2007

2006

2007

1

Canned Meat Products

6 700.0

38 230.0

57%

175%

Infrastructure and its Condition:

Area of buildings and facilities (square meters)

620 square meters

Distance to automobile road

60 km

Distance to railway

45 km

Electric power supply

available

Water supply

artesian wells are available

Sewage

Alternative sewage system

Gas supply

Diameter of pipes is 50

Financial Condition of the Enterprise:             million soums

Year

Income from Economic Activity

Profit after Tax

2006

6 700

385

2007

38 230

6 685

Received Bank Loans:


Lender

Loan Amount

Interest Rate

Year of Loan Extension

Year of Loan Repayment

JSCB “Galla Bank”

50 million soums

16%

2005

2007


Enterprise Book Value as of January of current year.

 

II. Description of Investment Project    

• Purpose of Investment Project

• Brief Description of Technological Cycle and Required Equipment

• Supplied with the Planned Production with Raw Materials

Demand in Investments

• Project Cost     • Required Volume of Investments

• Form of Financing
 
• Contribution and Participation Share of Initiating Enterprise

• Contribution and Share of the Attracted Investor

Proposed Sources of Funding

Own Funds, million soums

Direct Foreign Investments, thousand US dollars

Credit Funds

Local, million soums

Foreign, thousand US dollars

 

250.0

-

-

Areas of Investment Utilization

 

Expenses in Local Currency, million soums

Expenses in Freely Convertible Currency, thousand US dollars

Purchase of equipment

 

200

Including
        - of local production

 

 

        - of imported production

 

200

Formation of Working Assets

65.5

 

Payback of the Project (in months) 

 

AGRICULTURE

12. Organization of production of washed wool on the basis of Joint Venture "Shark Kyzykum"

I. Information on Investment Project Initiator             

Full Name

Legal Address 

Enterprise Manager:   

Contact Person:    telephone:

Enterprise Founders:

No.

Name of Organization,
Founding Enterprise

Share in Chartered Capital, in %

In million soums

In thousand US dollars

1

"Shark-Kyzylkum"

30

56.2

44.6

2

Foreign Partner

70

129.8

99.1

 

Total

100

186

143.7

Bank Servicing the Enterprise 

Brief Information on the Enterprise

Infrastructure and its Condition:

Area of buildings and facilities (thousand square meters)

 

Distance to automobile road

1 km

Distance to railway

70 km

Electric power supply

available

Water supply

available

Sewage

available

 

Enterprise Book Value as of Jan 1, 2007

II. Description of Investment Project    

• Purpose of Investment Project

Demand in Investments

• Project Cost     • Required Volume of Investments

• Form of Financing
 
• Contribution and Participation Share of Initiating Enterprise

• Contribution and Share of the Attracted Investor

Proposed Sources of Funding

Own Funds, million soums

Direct Foreign Investments, thousand US dollars

Credit Funds

Local, million soums

Foreign, thousand US dollars

59

105

-

-

Areas of Investment Utilization

 

Expenses in Local Currency, million soums

Expenses in Freely Convertible Currency, thousand US dollars

Purchase of equipment

 

105

Including
        - of local production

 

 

        - of imported production

 

105

Formation of Working Assets

59

 

Anticipated Financial Results from Project Implementation                      million soums

Description

Years of Project Implementation

1

2

3

4

Products Sales

700

1 000

1 000

1 000

Including in External Market

-

-

-

-

Status of Preparation of Design and Estimation Documentation   

 

 

  1. Telephone numbers in Navoi province are seven digit. In order to dial a telephone number to call from other province of the Republic of Uzbekistan, it is necessary to dial 8 – long tone – 436 (telephone number). In order to make international phone call to Navoi  province, it is necessary to dial +998 79 (telephone number).
  2. Operators codes for subscribers of cellular communication are different and should be dialed using following international formats:
  3. +99879 (subscriber’s number) for subsribers of “MTS Uzbekistan” cellular communication operator;
  4. +99890 (subscriber’s number) for subsribers of “Beeline” cellular communication operator;
  5. +99893 (subscriber’s number) for subsribers of “Coscom” (U-Cell) cellular communication operator;
  6. +99898 (subscriber’s number) for subsribers of “PerfectumMobile” cellular communication operator;
  7. +99898 (subscriber’s number) for subsribers of “Uz Mobile” cellular communication operator.

Telephone Directory:

  1. Name of Organization,
  1. Telephone Number
  1. Public Authorities
  1. Navoi Province Khokimiyat
  1. 225-92-20
  1. Main Division of Economy of Navoi Province
  1. 223-81-39
  1. Statistics Division
  1. 770-35-01
  1. Finance Division
  1. 226-05-80
  1. Demonopolization Committee
  1. 225-18-03
  1. Tax Division
  1. 223-30-00
  1. Labor and Social Protection Division
  1. 224-23-00
  1. Division for Foreign Economic Relations, Investment and Trade
  1. 223 63 62,
  2. 223 04 39
  1. State Property Committee
  1. 224-04-61
  1. Chamber of Commerce and Industry
  1. 770-31-01
  1. Customs Division
  1. 223-87-87
  1. Immovable Property Exchange
  1. 224-04-61
  1. Commodities Exchange
  1. 223-66-47
  1. Banks
  1. Central Bank
  1. 226-10-95
  1. National Bank for foreign economic activity (NBU)
  1. 223-41-81
  1. Pakhta Bank  
  1. 224-75-41
  1. Narodniy Bank
  1. 532-01-89
  1. Ipoteka Bank
  1. 223-37-57
  1. Promstroybank
  1. 224-50-71
  1. Microcredit Bank
  1. 223-73-67
  1. Asaka Bank
  1. 770-21-28
  1. Turon Bank
  1. 224-21-08
  1. Galla Bank
  1. 224-98-01
  1. Ipak Yuli Bank
  1. 226-00-05
  1. Savdogar Bank
  1. 224-41-01
  1. Inquiry Services Telephones
  1. Inquiry Office of Railway Station
  1. 225-59-07
  1. Inquiry Office of Airport “Navoi”
  1. 539-35-40
  1. Long-Distance and International Telephone Calls
  1. 007
  1. Inquiry Office of Automatic Telephone Station
  1. 009
  1. Inquiries on air plane tickets and reservations
  1. 223-40-70

 

 

























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