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Investment Guide for Samarqand Region
Being located in the center of the Great Silk Road, province is situated along the Zaravshan river oasis and represents a combination of lowland and mountainous terrain relief.. Total area of the province constitutes 16.8 thousand square kilometers or 6.3 % of total area of the country. The population is 2.9 million.
Samarkand province borders with the Republic of Tajikistan in the east, Kashkadarya province in the south, Navoi province in the west and Jizak province of Uzbekistan in the north-east.
Administrative and territorial division of the province is composed of the following 14 districts: Akdarya, Bulungur, Jambay, Ishtykhan, Kattakurgan, Kushrabad, Narpay, Nurabad, Payaryk, Pakhtachi, Pastdargom, Samarkand, Taylyak and Urgut districts. Samarkand city (386.1 thousands people) is the administrative center of the province.
Province is peculiar with favorable climatic conditions: the climate is sharply continental and a number of sunny days per year reaches 300.
The first documentary record about Samarkand is considered to be a description in the Zoroastrian’s Holly Book - Avesta (1st millennium B.C.) of the farming region in the Zarafshan river basin (meaning “Gold Carrying” in Persian language) which is located in the south-east of the modern Uzbekistan. The region is noted as Sugd (Sogd) in the Book; hence, its approximate age is about 3000 years
Alexander the Great invaded the territory of Central Asia in spring 329 B.C. while pursuing Dariy, the King of Persia. Having crossed Oxus river (Amudarya), the troops advanced to Politimet valley (Zaravshan, so named by the Greeks) towards Marakand and captured the city. During Alexander’s battles with the Scythians, in Marakand a rebellion headed by Spitamen broke out. Alexander immediately suppressed the rebellion and destroyed the city; Spitamen was assassinated.
Approximately in 306 B.C., province was included into the Greek-Bactrian Kingdom and was annexed to the Kushan Kingdom in the first centuries A.C.
Approximately in 306 B.C., province was included into the Greek-Bactrian Kingdom and was anAround mid 5 century the rulers of Eftalites dynasty (the White Huns, descendants of the Massahets who defeated army of Cyrus) installed their dominance over Central Asian lands and, later on in 565, nomadic Turk tribes did the same when they came from Altai. nexed to the Kushan Kingdom in the first centuries A.C.
Since 712, Arabs started a campaign against the city. Arab troops headed by Kuteiba ibn Muslim occupied the city. Historical valuables, written and cultural sources were destroyed while introducing new religion and culture there.
The city was often annexed to various states: by Takhirides - in the beginning, Samanides - in IX-Õ centuries; Karakhanides, Gaznevides, Seldjuk Sultanate - in end of X-XI centuries and later by Kara-Kitais and Khorezm-shahs - in XII century during the Great Era of the Oriental Renaissance.
The city Samarkand was devastated when Chingiskhan’s army marched into it on the March 17, 1220. Chingiskhan died in seven years; however, prior to his death, he divided his empire among his sons (Samarkand was given to Chagatai, the second son of Chingiskhan). The empire agonized almost for one and a half century, until Timur came to power being a descendant of Chingiskhan’s cousin, created his own empire stretching from Kashmir in the east to the Mediterranean Sea in the west and from the Aral Sea in the north to the Gulf of Persia in the south and established a capital of which in Samarkand in 1370.
Gur-Emir and Bibi-Khanym palaces, Shokin-Zinda mausoleum were constructed by local and foreign craftsmen, which up to present time astonish us with their beauty and grandeur.
Once lost, trade routes from China to Middle East were revived and encountered in Samarkand. At that time Ottoman Empire gained its power in the south-west of the continent. In 1396 its army completely defeated knights of Europe and besieged Constantinople. Regent of Constantinople, Emperor of Greece and ruler of Venice proposed to Timur to become an ally of Europe. Bayazid, Ottoman Sultan, also proposed an alliance. Timur made his choice and defeated Bayazid’s army consisting of twenty thousands best soldiers on July 28, 1402, in Ankara. 500 years later grateful French people will erect a gold-plated statue of Timur in Paris with inscription “Europe’s Liberator”.
After Timur’s death (Timur died in 1405 during his campaign to China) 15 years old Timur’s grandson, Mirzo Ulugbek, who was an outstanding scientist, became a governor of the country. 40 years of his rule period passed under the following motto: “Aspiration to knowledge is a duty of each Muslim”. University on Registan square and the observatory are Ulugbek’s brainchilds.
After Ulugbek Samarkand for a short time was ruled by Zakhiriddin Bobbur, a Timuride and author of the famous notes “Bobur-Nahme” as well as founder of Great Moguls state in India.
In the XVI century Sheybanides dynasty which united Turk and Mongol tribes destroyed almost entire ruling elite of the Timurides; nevertheless, most influential representatives of the Sheybanides also died in the fight for power. Searches for the khan leaded to Ashtarkhanides (Astrakhan’s natives). Capital was moved to Bukhara; however, Samarkand still remained the biggest city
One century later, during the rule of Mangyts, Samarkand was included into Bukhara Khanate as a special independent principality. At that time Samarkand’s Emir, Bakhodur Yalangtush, using his own funds constructed two madrasah on Registan square one of which, Tillya-Kori being a central one; and another, the left one, called Sher-Dor.
End of XVII and first half of XVIII centuries were characterized with disturbances. City life revived in end of 70s of the eighteenth century.
On May 2, 1868, Samarkand was occupied by troops of the Russian Empire and became a center of Zarafshan District and, later on (since 1887), of Samarkand province. The role of Samarkand increased in 1888 when the rail road connecting city with the banks of the Caspian Sea was constructed.
In 1917, Soviet power was established, which ended in 1991, when Uzbekistan, along with other Soviet Republics, declared its independence.
On October 18, 1996, during celebration of 660th anniversary of Amir Timur, President of the Republic of Uzbekistan, Islam Karimov, awarded to the city Amir Timur Decoration and proposed to establish that day as the official Day of the City.
Development of Samarkand province of the Republic of Uzbekistan is characterized with clear social orientation such as raising employment of the population based on establishment of joint-venture enterprises for enhancement of processing of local agricultural raw materials and further production of food products, processed fruit and vegetable products, capacity building in mechanical engeeniring, development of the economy sectors in the province.
During the last years development of the province’s economy is observed with the established tendency of macroeconomic and financial stability. Its development has been implemented on the basis of fulfillment of measures aimed at deepening economic reforms, formation of diversified economy .building economic capacity, development of rural infrastructure and further improvement of the population’s welfare.
Thus, according to results of 2007, gross regional product of the province amounted to 1 768.2 billion soums (1 403.3 million US dollars) which is by 10.5% higher than in 2006. The structure of the province’s gross product in 2007 shows that predominant development of agriculture which share reached 45.6%, and the share of industry constituted 10.6% have taken place.
Province accounts for more than 10% (2 898.5 thousand people) of the resident population of the country, and the labor capable population amounts to 1.6 million. At the same time, annual growth of this figure reaches 2-3% on average.
In turn 40% of the resident population is economically employed which indicates the presence of huge labor potential. Approximately 70% of the employed population are concentrated in the production sector; the rest 30% account to the non-production sector. It is necessary to mention that growth rate of new jobs creation in the province comprises 21.1% including 18.1% in rural areas; this positively contributes to reduction of the unemployment which decreased almost by 12% as compared to the year 2006.
Being a region rich in agricultural resources, province has a tremendous raw materials potential. Farms of the province grow cotton, grain, almost all kinds of fruits and vegetable, melons and gourds as well as other crops.
Nine districts of the province specialize in cotton-growing, two - in growing of fruit and vegetable crops, two - in astrakhan sheep breeding and one district specializes in tobacco growing.
Samarkand province is rich in deposits of mineral and raw material resources such as manganese, lead, tungsten, gold, silver, marble, granite, wollastonite, raw materials for production of cement, limestone, gypsum, whitewash and keramzite raw materials.
Province possesses significant reserves of:
- ferrous and non-ferrous metals (4 fields with 84.9 million tons),
- metal mining raw materials (1 field with 1.4 million tons),
- molding raw materials (1 field with 3.77 million tons),
- clay applicable for production of ceramic products (2 fields with 3 043 thousand cubic meters),
- chalk-type rocks (1 field with 1 647 thousand tons),
- cement raw materials applicable for production of building materials (4 fields with 242 817 thousand tons),
- cladding stones (11 fields with 11 851 thousand cubic meters),
- keramzite raw materials (1 field with 3 755 thousand cubic meters),
- gypsum (2 fields with 39 666.7 thousand tons),
- sands for concrete and silicate products which are also applicable for production of construction materials (3 fields with 36 486 thousand cubic meters),
- sand and gravel materials (9 fields with 29 758 thousand cubic meters),
- brick raw materials applicable for production of bricks of “75”, “100” and “125” Grades (19 fields with 43 645 thousand cubic meters).
Major factor which characterizes the industry of Samarkand province is its social orientation. Production of consumer goods (CG) amounts to 70.8% of total volume of industrial output of the province. Consumer goods fill the domestic market, satisfying the population demands. 55% in total volume of consumer goods produced in 2007 accounted to food products and the rest 45% - non-food products. Production growth rate results in increase of per capita production volume of consumer goods which grows annually by 14-15 %.
Industrial production is prevailed with textile, food, mechanical engineering industries as well as with construction materials production industry. Thus, during last 3 years approximately 40% of produced products accounted to food industry, 35% - to light industry, 7% - to mechanical engineering and metal processing, and 2% accounted to chemical and petrochemical industries
The basis of the province’s industry includes enterprises such as Joint stock company “Samarkand Elevator Building Plant” (passenger elevators production), Joint stock company “Samarkand Chemical Plant” (mineral fertilizers production), Joint stock company “Alpomish” (automobile and tractor spare parts production), Joint stock company “Sino” (production of modern refrigerators and air-conditioners), Samarkand Tea-Packing Factory, Joint stock company “”Elholding” (production of school furnutyure and scholar equipment, motorolers), Joint stock company “Nafis” (porcelain and household faience dishware production), Joint stock company named after “Khovrenko” (wines and alcoholic beverages production) and Joint stock company “Kattakurgan Yog-Moi” (production of vegetable oil).
Localization program, principle objective of which is the production of import substituting products using local raw materials, saving of foreign currency funds and creation of new jobs is implemented in the province. Implementation of the mentioned program resulted in reduction of prime cost of finished goods by 5-10% on average for the participating enterprises.
External economic activity is actively carried out in Samarqand province, the large agricultural and industrial region of the country. In 1995 economic entities of the province conducted external trade operations with 50 countries worldwide; nowadays, this figure exceeds 120 countries. At the same time increase in volume of external trade with industrial advanced countries worldwide such as EU states, the USA, Japan, and South Korea, Turkey as well as China and a number of other leading countries worldwide is observed. Moreover, trade with CIS countries including Russia, the Ukraine, Kazakhstan and Georgia is actively conducted. Trade cooperation with United Arab Emirates, Iran, Afghanistan, India and other Asian countries is also established.
Growth of external trade volumes was accompanied both with increase of export of goods and growth of import procurement of machinery and equipment, food products, consumer goods and other products. Thus, according to the outcomes of the year 2007, external trade turnover of the province reached 414.1 million USD, which is higher by 35% than in 2006. At the same time, volume of export amounted to 239.9 million USD which is by 35.1% higher than in 2006; import volume reached 174.2 million US dollars, growth rate amounted to 135.4 %.
As a result of increase of export (57.8% in external trade turnover of the province) a positive balance in external trade turnover amounted to 65.7 million USD which is 7 times higher than in 2004 was achieved. The existing situation has become a result of export of produced goods to more than 50 countries worldwide.
Export structure is prevailed with cotton fiber, food products, processed agricultural crops and others. Thus, during last years, the share of cotton fiber in total export varies within 50 - 55%; the share of food products - 30-40%. Such indicators are achieved as a result of increase of manufacture and processing levels, augmentation of sown areas for agricultural products.
It is significant that cotton fiber (approximately 70%) occupies the largest share in the structure of export to foreign countries; whereas food products (70-75%) amount a significant proportion in trade with CIS countries. Stable and large consumer market in the CIS countries remains attractive for local exporters of food products.
Machinery and equipment (about 30%) constitute a principle share of imported products; that indicates a tendency towards modernization of equipment and utilization of unoccupied manufacturing facilities. Due to quantitative increase of functioning farms and dekhkan enterprises as well as growth of products produced by them, lately, the share of import of chemical products made up more than 40%; while, annual growth rate of the mentioned indicator reached about 2–4%. At the same time, as a result of the policy on support of domestic producers, the proportion of imported food products decreased by 2.5-3%
Transport communication infrastructure is represented by a developed network of rail road, motor and air transport
Total length of rail roads in the province is 238 kilometers. There are 14 goods and passenger depots with traffic capacity of 20 freight trains per day. Rail road stations “Ulugbek” in Pastdargom district and “Kattakurgan” in Kattakurgan district of the province are equipped with modern cargo-handling facilities, platforms, warehouse and luggage premises.
Total length of automobile motor highways of the province is 4 128 kilometers. According to quality of covering, motor roads of the province are divided into cement-concrete roads with total length of 62 kilometers, asphalt concrete road with total length of 2 068 kilometers, black top roads with total length of 1 576 kilometers, gravel road - 351 kilometers, un-surfaced roads - 64 kilometers.
Policy conducted by the Government of Uzbekistan aimed at integration with world economic system and establishment of contacts with foreign countries is supported by creation of a new rail road access from Central Asia to Europe such as TRASECA, motorways via mountainous pass Kamchik to China, the second rail road outer access to central Russia and Europe via Navoi-Nukus. All of them are located on the route of the Great Silk Road.
Reconstruction of first stage of Samarkand International airport terminal, conducted by a consortium made up of “Mitsubishi”, “Mautsi”, “Shimidzu” companies with attraction of Japanese Government’s loan, made possible landing of Boeing air-planes
Modern communication facilities are presented with wide network of wireless, radio-relay, cellular and satellite communication and Internet. Dozens of automatic telephone exchange stations in Samarkand were reconstructed with participation of German company “Siemens” and Japanese company “Nec”
Cellular communication services in the province are provided by enterprises with foreign investments “MTS-Uzbekistan”, “Beeline” and “Coscom” (U-Cell).
Musical drama theater, youth theater, puppet theater, and entertainment and recreation parks, recreational zones named after A. Navoi, sport centers, museums, and palaces of culture, libraries and cinema theaters function in Samarqand province.
There are 112 hospitals, 541 clinics, 720 libraries, 260 clubs, 9 museums, 4 theaters, 34 music and art schools, 9 entertainment and recreation parks in the province.
Much attention is given to development of sport and physical culture in the province. 61 stadiums, 49 sport schools for children and youth, 39 tennis courts and 11 swimming pools function in the province.
Samarqand, a pearl of the Great Silk Road; was included in the list of UNESCO World Heritage in 2002.More than 20 historical and architectural monuments such as Registan, Gur-Emir mausoleum, Bibi-Khonum Palace, Shoki-zinda mausoleums ensemble were recognized as greatest achievements of human culture.
There are 38 hotels in the province, some of which are considered as elite ones: “President Hotel”, “Afrosiyob Palace”, and “Panorama Grand”. There are 45 tourist companies and firms such as Private Tourist Agency “Orient Voyage”, LLC “Sarbon Tour”, LLC “Sogda Tour”, LLC “Business Center Samarkand”, LLC “Zamin Travel”.
Dynamics of utilization of foreign investments shows than allocation of investments was mainly made into sectors of processing industries.
As of January 1, 2008, 159 enterprises with participation of foreign capital (FIE) function in Samarkand province. There are 113 FIE (71.1%) operating in industrial sector, 15 FIE (9.4%) - in trade and public catering, 6 FIE (3.8%) - in transport and communication. Such FIE are established with participation of investors from more than 30 countries worldwide. FIE share in total volume of export in 2007 amounted to 25.1%.
Following enterprises with FDIs operate in the province:
- Samarkand Automobile Building Plant (production of minibuses Isuzu (Japan) and spare parts for them);
- Uzbek-American-British JV “UzBAT” (tobacco products);
- Uzbek-Afgan JV “Afgan Samarkand Bukhara Ipak Gilami” (carpets production);
- Uzbek-Singapore JV “Samarkand-Singapore” (ice-cream production);
- Uzbek-Chech JV “Pulsar” (beer and soft drinks production).
Establishment of a joint venture on the basis of LLC “Pakhtakor” for production of 3 thousand tons of cotton yarn Nm50, 1.5 thousand tons of knitted fabric and 3 million pieces of apparels
10 000
2
Organization of production of 3 600 tons of absorbent cotton on the basis Production Commercial Firm “Munavvara”
5 700
3
Organization of production of 10 million running meters of cotton fabrics on the basis Trade Production Enterprise “Tong-KZ”
500
Sewing Industry
4
Organization of production of knitwear products on the basis of Joint stock company “Bofanda”
7 760
5
Organization of production of 792 thousand pieces of apparel on the basis Joint-Stock Company “8 March”
3 000
Processing of Fruit and Vegetable Products
6
Organization of production of 1 000 tons of fruit and vegetable products on the basis of LLC “Kattakurgon Firmasi”
1 700
7
Auction sale of property complex of LLC “Veno-Fud”
Appraisal is under process
Fat-and-Oil Industry
8
Organization of a shop for production of 5 300 tons of technical salomas (fat mass) on the basis of Joint stock company “Kattakurgon yog-moy”
760
Production of Construction Materials
9
Organization of production of gypsum cement at Subsidiary Enterprise “Duoba Gips”
150
Chemical Industry
10
Sale of 100% share of the Samarkand Chemical Plant
20 506
11
Organization of production of 250 thousand tons of nitrocalcium phosphatic fertilizers on the basis of Open Joint-Stock Company “Samarkandkimyo”
5 642.9
Procelain Production Industry
12
Auction sale of property complex of Open Joint-Stock Company “Nafis” (production of porcelaine products)
Appraisal is under process
CDM Projects
13
Construction of small hydropower plant “Shaudar”
15 757
14
Construction of small hydropower plant “Gulba”
14 480
15
Construction of small hydropower plant “Bagishamal-2”
14 142
16
Construction of small hydropower plant “Karkidon”
10 981
17
Improvement of energy using efficiency on electric engines, used in gascompressor units of JSC “Uztransgas” in CS-2 of Zirabulak
13 250
List of investment projects proposed for implementation with foreign investors may be changed with time being. More updated information on the current proposed projects is available on the “Uzinfoinvest” Agency web-site at: (www.investuzbekistan.org)
TEXTILE INDUSTRY
1. Establishment of a Joint venture on the basis of LLC “Pakhtakor” for production of 3 thousand tons of cotton yarn Nm50, 1.5 thousand tons of knitted fabric and 3 million pieces of apparels 1. Information on Initiating Enterprise:
4. Purpose of Proposed Project: Establishment of a joint-venture for production of 3 thousand tons of cotton yarn Nm50, 1.5 thousand tons of knitted fabric and 3 million pieces of apparels 5. Project Technical and Economic Performance Characteristics:
Project Value:
10 000 thousand US dollars
Required Volume of Investments:
10 000 thousand US dollars
Estimated Project Payback Period:
7 years
6. Provisioning of Planned Production with Raw Material Resources:
Required Raw Materials:
cotton fiber
Sources of Raw Materials:
domestic market procurement
domestic market
50 %
export
50 %
7. Sales Markets for Finished Goods: 8. Existing Infrastructure and Availability of Business-Plan:
Existing Infrastructure:
Cold water supply, gas supply, electric energy
Distance to Rail Road:
3 km
Distance to Automobile Road:
0,5 km
Availability of Business-Plan:
available
2. Organization of production of 3 600 tons of absorbent cotton on the basis of Production Commercial Firm “Munavvara”
1. Information on Initiating Enterprise:
Name:
Production Commercial Firm “Munavvara”
Place of Location:
Samarkand province, Samarkand city
Type of Activity:
Production of PET tare
Date of Establishment:
10.12.1998
Quantity of Employees:
16
2. Charter Fund and Enterprise Founders:
Chartered Fund:
81.9 thousand USD
Enterprise Founders:
Production Commercial Enterprise "Shodlik" (86.5%), Production Commercial Firm "Shodlik-trans" (11.5%), B.Mansurov (2.1%)
Management:
V.Tagirova (Director)
3. Production Volume (2005): thousand USD
Products
Production Volume
PET tare
272
Sales Market:
domestic market
4. Purpose of Proposed Project:
Organization of production of 3 600 tons of absorbent cotton 5. Project Technical and Economic Performance Characteristics:
Project Value:
7 100 thousand USD
Required Volume of Investments:
6 330 thousand USD
- direct foreign investments:
- 1 630 thousand USD
- foreign loan funds:
- 4 700 thousand USD
Estimated Project Payback Period:
8 years
6. Provisioning of Planned Production with Raw Material Resources:
Required Raw Materials:
cotton fiber
Sources of Raw Materials:
domestic market procurement
7. Sales Markets for Finished Products: export – 100% 8. Existing Infrastructure and Availability of Business-Plan:
Existing Infrastructure:
Water and gas supply, electric energy, electric energy, sewage
Distance to Rail Road
3 km
Distance to Automobile Road:
3 km
Availability of Business-Plan:
available
3. Organization of production of 10 million running meters of cotton fabrics on the basis of Trade Production Enterprise “Tong-KZ”
1. Information on Initiating Enterprise:
Name:
Trade Production Enterprise “Tong-KZ”
Place of Location:
Samarkand province, Urgut city
Type of Activity:
Production of woven fabrics
Date of Establishment:
23.08.1999
Quantity of Employees:
200
2. Chartered Fund and Enterprise Founders:
Chartered Fund:
490 thousand USD
Management:
K.Jabborov (Director)
3. Production Volume (2005): thousand USD
Products
Production Volume
woven fabrics
8 000
Sales Market:
domestic market, export to CIS countries
4. Financial Information: thousand USD
Name of Indicator
2005
Income from Economic Activity
880
5. Purpose of Proposed Project: Organization of production of 10 million running meters of cotton fabrics 6. Project Technical and Economic Performance Characteristics:
Project Value:
500 thousand USD
Required Volume of Investments:
350 thousand USD
Estimated Project Payback Period:
5 years
7. Provisioning of Planned Production with Raw Material Resources:
Required Raw Materials:
cotton fiber
Sources of Raw Materials:
domestic market procurement
8. Sales Markets for Finished Products:
9. Existing Infrastructure and Availability of Business-Plan:
Existing Infrastructure:
water and gas supply, electric energy, heating, sewage
Distance to Rail Road:
40 km
Distance to Automobile Road:
1 km
Availability of Business-Plan:
available
SEWING INDUSTRY
4. Organization of production of knitwear products on the basis of Joint stock company “Bofanda”
1. Information on Initiating Enterprise:
Name:
Joint-Stock Company “Bofanda”
Place of Location:
Samarkand province, Samarkand city
Type of Activity:
production of knitwear products
Date of Establishment:
1994
Quantity of Employees:
98
2. Chartered Fund and Enterprise Founders:
Chartered Fund:
74.8 thousand USD
Enterprise Founders:
Joint-Venture Enterprise "Ideal-Plastic" (25%), State (25%), Employees (10%)
Management:
R.Makhsatov (Director)
3. Production Volume (2005):
Products
Production Volume
knitwear products
3 294.4
Sales Market:
domestic market
4. Purpose of Proposed Project: Organization of production of knitwear products 5. Project Technical and Economic Performance Characteristics:
Project Value:
7 760 thousand USD
Required Volume of Investments:
5 560 thousand USD
Estimated Project Payback Period:
10 years
6. Provisioning of Planned Production with Raw Material Resources:
Required Raw Materials:
cotton fiber
Sources of Raw Materials:
domestic market procurement
7. Sales Markets for Finished Products:
domestic market
10 %
export
90 %
8. Existing Infrastructure and Availability of Business-Plan:
Existing Infrastructure:
water and gas supply, electric energy, heating, sewage
Distance to Rail Road:
35 km
Distance to Automobile Road:
10 km
Availability of Business-Plan:
available
SEWING INDUSTRY
5. Organization of production of 792 thousand pieces of apparel on the basis of Joint stock company “8 March”
1. Information on Initiating Enterprise:
Name:
Open Joint stock company “8 March”
Place of Location:
Samarkand province, Samarkand city
Type of Activity:
Production of textile products
Date of Establishment:
1994
Quantity of Employees:
633
2. Chartered Fund and Enterprise Founders:
Chartered Fund:
39.78 thousand USD
Enterprise Founders:
"Afrosiab-mramor" (33%), "Tijorat" (20%), State (25%)
Management:
I.Amanov (Director)
3. Production Volume (2005): thousand USD
Products
Production Volume
Consumer goods
1 461.1
Sales Market:
domestic market, export
4. Financial Information: thousand USD
Name of Indicator
2004
2005
Income from Economic Activity
999.3
398.7
Profit After Payment of Tax
31.4
2.29
5. Purpose of Proposed Project: Organization of production of 792 thousand pieces of denim jeans garments 6. Project Technical and Economic Performance Characteristics:
Project Value:
3 000 thousand USD
Required Volume of Investments:
2 000 thousand USD
Ðàñ÷¸òíûé ñðîê îêóïàåìîñòè:
4 years
7. Provisioning of Planned Production with Raw Material Resources:
Required Raw Materials:
Denim fabric
Sources of Raw Materials:
domestic market procurement
domestic market
10 %
export
90 %
8. Sales Markets for Finished Products: 9. Existing Infrastructure and Availability of Business-Plan:
Existing Infrastructure:
gas supply, electric energy
Distance to Rail Road:
2.5 km
Distance to Automobile Road:
0.5 km
Availability of Business-Plan:
not available
PROCESSING OF FRUIT AND VEGETABLE PRODUCTS
6. Organization of production of 1 000 tons of fruit and vegetable products on the basis of LLC “Kattakurgon Firmasi”
I. Information on Initiator of Investment Project
Full Name
LLC “Kattakurgon Firmasi”
Legal Address
10, Ingkichkin Street, Samarkand province, Kattakurgon city
Enterprise Manager:
A. Zokirov
Contact Person:
A. Zokirov
Telephone
(366) 226-43-22
Fax
(366) 455-23-88
Enterprise Founders:
No.
Name of Organization,
Founding Enterprise
Share in Chartered Fund, in %
In million soums
In thousand USD
1
State Property Committee
98.5
24 630
18 801,5
2
Employee
1.5
370
282,4
Total
100
25 000
19083.9
Brief Information on Enterprise
Infrastructure and its Condition:
Area of Buildings and Premises
6.5 hectares including 2.7 hectares of production premises
Motor Road
Asphalt road is available
Rail Road
Rail road branch
Electric Supply
Transformers are connected
Water Supply
available
Sewage
available
Heating Supply
available
Financial Condition of Enterprise: million soums
Year
Income from Economic Activity
Profit After Payment of Taxes
2006
3 521
336
1 ïîëóãîäèå 2007
5 469
810
II. Description of Investment Project
Purpose of Investment Project
Advantages and Benefits from Making Investments
Market Demand in Planned Production of Products (Services)
Provisioning of Planned Production with Raw Materials
Investment Demands:
Project Value
Required Volume of Investments
Form of Financing
Contribution and Share of Initiating Enterprise
Contribution and Share of Attracted Investor
Proposed Sources of Financing
Own Funds, million soums
Direct Foreign Investments, thousand USD
Loan Funds
Local Funds, million soums
Foreign Funds, thousand USD
262
1 500
-
-
Areas of Utilization of Investments
Expenses in Local Currency, million soums
Expenses in Freely Convertible Currency, thousand USD
Purchase of Equipment
1 000
Including
- of local production
- of imported production
1 000
Conduct of Construction and Installation Works
328
Purchase of Raw Materials
328
Formation of Working Assets
262
Expected Financial Results from Project Implementation million soums
Name of Indicator
Years of Project Implementation
Year 1
Year 2
Year 3
Year 4
Products Sale Volume
2 400
2 800
3 200
3 500
Including in external market
1 200
1 400
1 600
1 750
Prime Cost
2 000
2 200
2 800
3 000
Profit After Payment of Taxes
200
220
280
300
Profitability of Investments, %
15
18
21
22
Payback of Project (in months)
Status of Design Estimates Documentation for Project
PROCESSING OF FRUIT AND VEGETABLE PRODUCTS
7. Auction sale of property complex of LLC "Veno-Fud"
Legal Address - Samarkand province, Ishtykhan district
Type of Activity - Processing of agricultural products
Capacity - processing of 150 tons/day of tomatoes, Processing of 120 tons/day of fresh fruits
Area of Land Plot - 1.98 hectares.
Area of Buildings and Facilities - 0.7 hectares.
Provisioning with - production infrastructure - 100 %, labor resources - 100 %
Provisioning with - production infrastructure - 100 %, labor resources - 100 %
Equipment - Made in Italy. Level of depreciation: 49%
Sale Terms and Conditions - Complex
Estimated Value– Appraisal is under process
FAT-AND-OIL INDUSTRY
8. Organization of a shop for production of 5 300 tons of technical salomas (fat mass) on the basis of Joint stock company “Kattakurgon yog-moy” 1. Information on Initiating Enterprise:
Name:
Open Joint stock company “Kattakurgon yog-moy”
Place of Location:
Samarkand province, Kattakurgan city
Type of Activity:
Production of vegetable oil and household soap
Date of Establishment:
1994
Quantity of Employees:
974
2. Charter Fund and Enterprise Founders:
Chartered Fund:
103.92 thousand USD
Enterprise Founders:
Legal Entities (11.5%), Natural Persons (63.5%), State (25%)
Management:
I.Ishbekov (Director)
3. Production Volume (2005): thousand USD
Products
Production Volume
Vegetable oil
2016.8
Household soap
4102.9
Sales Market:
domestic market, export to Kazakhstan
4. Purpose of Proposed Project: Organization of a shop for production of 5 300 tons of technical salomas (fat mass) 5. Project Technical and Economic Performance Characteristics:
Project Value:
760 thousand USD
Required Volume of Investments:
245.3 thousand USD
Estimated Project Payback Period:
4 years
6. Provision of Planned Production with Raw Material Resources:
Required Raw Materials:
refined extraction oil
Sources of Raw Materials:
domestic market procurement
7. Sales Markets for Finished Products: domestic market – 100% 8. Existing Infrastructure and Availability of Business-Plan:
Existing Infrastructure:
water and gas supply, electric energy, heating, sewage
Distance to Rail Road:
0.8 km
Distance to Automobile Road:
3.2 km
Availability of Business-Plan:
available
Full Name
Legal Address
Enterprise Manager
Enterprise Founders:
No.
Name of Organization,
Founding Enterprise
Share in Chartered Fund, in %
In million soums
1
Small Enterprise “Duoba”
100%
1 000
Brief Information on Enterprise
Infrastructure and its Condition:
Distance to Motor Way
1 km
Distance to Rail Road
1.5 km
Electric Supply
available
Water Supply
available
Sewage
available
Gas supply
available
Heating Supply
available
Financial Condition of Enterprise: million soums
Year
Profit After Payment of Taxes
2005
10.2
2006
12.7
II. Description of Investment Project
Purpose of Investment Project
Market Demand in Planned Production of Products (Services)
Provisioning of Planned Production with Raw Materials
Investment Demands
Project Value Required Volume of Investments
Form of Financing
Contribution and Share of Initiating Enterprise
Contribution and Share of Attracted Investor
Proposed Sources of Financing
Own Funds, million soums
Direct Foreign Investments, thousand USD
Loan Funds
Local Funds, million soums
Foreign Funds, thousand USD
Payback of Project (in months)
Status of Design Estimation Documentation for Project
CHEMICAL INDUSTRY
10. Sale of 100% share of the Samarkand Chemical Plant
Investment Obligations: 7 300 thousand USD
1. Basic Information on Company
1. Name of Issuer
Joint stock company “Samarkand Chemical Plant”
2. Legal Address
Samarkand province, Samarkand city
3. Sector
Chemical, State Joint-Stock Company “Uzkimyosanoat”
4. Director (Surname, Name, Second Name)
Aydin Adil ogli Gasanov
5. Contact Telephone, Fax, E-mail
(998 71) 239 22 51,
(998 71) 239 22 79
6. Quantity of Employees including Officers
760 men
7. Total Territory (hectares)
108.9 hectares
8. Production Area (hectares)
54 hectares
2. Information on Issue and Placement of Securities
1. Size of Charter capital
1 526 million soums
2. Structure of Charted Capital (in soums and %)
State Property Committee of the Republic of Uzbekistan: 1 526 million soums, 100%
3. Financial Indicators (million soums)
Indicator
Year
2005
2006
2007
1. Chartered Capital
1 526
1 526
1 526
2. Net Sales Proceeds
3 328
6 446
5 446
3. Prime Cost of Products Sold
2 536
5 165
4 199
4. Gross Profit
792
1 281
1 247
5. Net Profit
14
107
1
6. Accounts Receivable
704
1 828
484
7. Accounts Payable
14 307
13 335
4 632
4. Information on Sale of Shares Holding in Trade Sessions
1. Size of Asset proposed for Sale
100%
2. Ground for Sale
Resolution of the President of the Republic of Uzbekistan No. PP-672 dated July 20, 2007
3. Appraised Value of Sold Shares Holding
20 506 thousand US dollars
4. Type of Sale
Tender Sales
5. Tender Organizers
State Property Committee of the Republic of Uzbekistan
11. Organization of production of 250 thousand tons of nitrocalcium phosphatic fertilizers on the basis of Open Joint stock company “Samarkandkimyo”
I. Information on Initiator of Investment Project
Full Name Legal Address
Enterprise Manager:
Telephone:
Fax: e-mail:
Bank Servicing Enterprise
Brief Information on Enterprise
Volume of Production:
No.
Name of Product
Volume of Production (ton)
Volume of Production (million soums)
Export,
thousand US dollars
Export Countries
2005
2006
2005
2006
2005
2006
1
Accumulator Acid
330
315
18.2
17.4
2
AFU
13 820
1 746.7
3 057
Afghanistan
3
NKFU
5 675
46 600
774.6
7 326.6
2 166
Afghanistan
4
Technical Water Ammonia
628.5
1 254.2
26.9
64.9
Total
2 566.4
7 408.9
Infrastructure and other conditions:
Electric Supply
available
Water Supply
available
Sewage
available
Gas supply
available
Heating Supply
available
Financial Condition of Enterprise: million soums
Year
Income from Economic Activity
Profit After Payment of Taxes
2005
3 328.4
14.24
2006
6 433.3
70.9
Balance Value of Enterprise as January 1 of this year
II. Description of Investment Project
Purpose of Investment Project
Brief Description of Technological Cycle:
Market Demand in Planned Production of Products (Services)
Provisioning of Planned Production with Raw Materials
Investment Demands
Project Value
Required Volume of Investments
Form of Financing
Proposed Sources of Financing
Own Funds, million soums
Direct Foreign Investments, thousand USD
Loan Funds
Local Funds, million soums
Foreign Funds, thousand USD
5 642.9
-
-
Payback of Project (in months)
Status of Design Estimation Documentation for Project
PORCELAIN PRODUCTION INDUSTRY
12. Auction sale of property complex of Open Joint stock company “Nafis” (production of porcelain products)
Legal Address - Samarkand province, Samarkand city
Type of Activity - production of porcelain products
Area of Land Plot - 6.4 hectares.
Area of Buildings and Facilities - 5.4 hectares.
Provision with - production infrastructure - 100 %, labor resources - 100 %
Sale Terms and Conditions - Complex
Estimated Value- Appraisal is under process
CDM PROJECTS
13. Construction of Small Hydropower Plant “Shaudar”
Project Description, Type and Schedule
Objective
Construction of SHPP on existing irrigation facilities of the Republic of Uzbekistan will allow to solve the complex problem of energy supply and irrigation in rural areas of the country, as well as to increase the living standards of local population. Main aims of current CDM project are:
reduction of emission of GHG and toxic substances, produced as the result of burning of fossil fuel at thermal power plants;
reduction of losses during the supply of electricity;
improved energy supply of rural areas;
employment of local population for the purpose of constructing and operating SHPP.
Description
The project aim is the construction of Shaudar SHPP at Dargom channel. Shaudar SHPP is to generate electricity using the potential of water energy of the existing fall. Estimated average long-term amount of generated power is 39,7 mln. KWh. Planned installed capacity of Shaudar SHPP is 6,9 MW. Supply of generated power is to be combined: to integrated power grid and to grid of local consumers.
The technology of power generation in current CDM project implies the construction of SHPP to utilize the potential of existing irrigation outflows.
Installed capacity of projected HPP is 6,9 MW with projected water height of 10 m and projected water flow volume of 79,6 cubic m./s.
Location
SHPP is to be constructed in Samarkand region.
Category
Renewable energy
Hydro power generation
Current status
PDD prepared by ADB
Schedule
Project start date
2010
Project lifetime
40 years
GHG Abated/Sequences (T CO2 eq)
Up to and Including 2012
73 650 tons CO2
Crediting Period (10 Years)
736 500 tons CO2
Finance
Total Investment Cost (US$)
15 757 000
Contact Information
Project Developer
Specialized enterprise “Uzsuvenergo”, Ministry of agriculture and water resources of the Republic of Uzbekistan
14. Construction of Small Hydropower Plant “Gulba”
Project Description, Type and Schedule
Objective
Construction of SHPP on existing irrigation facilities of the Republic of Uzbekistan will allow to solve the complex problem of energy supply and irrigation in rural areas of the country, as well as to increase the living standards of local population. Main aims of current CDM project are:
reduction of emission of GHG and toxic substances, produced as the result of burning of fossil fuel at thermal power plants;
reduction of losses during the supply of electricity;
improved energy supply of rural areas;
employment of local population for the purpose of constructing and operating SHPP.
Description
Construction of Gulba SHPP is conducted at Dargom Channel. Gulba SHPP is to generate electricity using the potential of water energy of the existing fall. Estimated average long-term amount of generated power is 31,1 mln. KWh. Planned installed capacity of SHPP “Bagishamal-2” is 6 MW. Supply of generated power is to be combined: to integrated power grid and to grid of local consumers.
The technology of power generation in current CDM project implies the construction of SHPP to utilize the potential of existing irrigation outflows. Installed capacity of projected HPP is 6,0 MW with projected water height of 9 m and projected water flow volume of 79,6 cubic m./s.
Location
Gulba SHPP to be constructed in Samarkand region of the Republic of Uzbekistan.
Category
Renewable energy
Hydro power generation
Current status
PIN
Schedule
Project start date
2009
Project lifetime
40 years
GHG Abated/Sequences (T CO2 eq)
Up to and Including 2012
57 696 tons CO2
Crediting Period (10 Years)
192 320 tons CO2
Finance
Total Investment Cost (US$)
14 480 000
Contact Information
Project Developer
Specialized enterprise “Uzsuvenergo”, Ministry of agriculture and water resources of the Republic of Uzbekistan
15. Construction of Small Hydropower Plant “Bagishamal-2”
Project Description, Type and Schedule
Objective
Construction of SHPP on existing irrigation facilities of the Republic of Uzbekistan will allow to solve the complex problem of energy supply and irrigation in rural areas of the country, as well as to increase the living standards of local population. Main aims of current CDM project are:
reduction of emission of GHG and toxic substances, produced as the result of burning of fossil fuel at thermal power plants;
reduction of losses during the supply of electricity;
improved energy supply of rural areas;
employment of local population for the purpose of constructing and operating SHPP.
Description
The project objective is the construction of Bagishamal-2 SHPP at Dargom Channel. Bagishamal-2 SHPP to generate electricity using the potential of water energy of the existing fall. Estimated average long-term amount of generated power is 33,5 mln. KWh. Planned installed capacity of Bagishamal-2 SHPP is 6 MW. Supply of generated power is to be combined: to integrated power grid and to grid of local consumers.
The technology of power generation in current CDM project implies the construction of SHPP to utilize the potential of existing irrigation outflows.
Installed capacity of projected HPP is 6 MW with projected water height of 8.1 m and projected water flow volume of 87,0 cubic m./s.
Location
SHPP is to be constructed in Samarkand region.
Category
Renewable energy
Hydro power generation
Current status
PDD prepared by ADB
Schedule
Project start date
2010
Project lifetime
40 years
GHG Abated/Sequences (T CO2 eq)
Up to and Including 2012
62 148 tons CO2
Crediting Period (10 Years)
621 480 tons CO2
Finance
Total Investment Cost (US$)
14 142 000
Contact Information
Project Developer
Specialized enterprise “Uzsuvenergo”, Ministry of agriculture and water resources of the Republic of Uzbekistan
16. Construction of Small Hydropower Plant “Karkidon”
Project Description, Type and Schedule
Objective
Construction of SHPP on existing irrigation facilities of the Republic of Uzbekistan will allow to solve the complex problem of energy supply and irrigation in rural areas of the country, as well as to increase the living standards of local population. Main aims of current CDM project are:
reduction of emission of GHG and toxic substances, produced as the result of burning of fossil fuel at thermal power plants;
reduction of losses during the supply of electricity;
improved energy supply of rural areas;
employment of local population for the purpose of constructing and operating SHPP.
Description
The project objective is the construction of Karkidon SHPP at existing Karkidon water reservoir.
Karkidon SHPP is to generate electricity using the potential of existing irrigation outflows. Estimated average long-term amount of generated power is 52,4 mln. KWh. Planned installed capacity of Karkidon SHPP is 11 MW.
Supply of generated power is to be combined: to integrated power grid and to grid of local consumers.
The technology of power generation in current CDM project implies the construction of SHPP to utilize the potential of existing irrigation outflows.
Installed capacity of projected HPP is 11,0 MW with projected water height of 59 m and projected water flow volume of
21,3 cubic m./s.
Location
Karkidon SHPP is to be constructed within the territory of existing facilities of Karkidon water reservoir in Samarkand region about 370 km from Tashkent.
Category
Renewable energy
Hydro power generation
Current status
PDD prepared by ADB
Schedule
Project start date
2010
Project lifetime
40 years
GHG Abated/Sequences (T CO2 eq)
Up to and Including 2012
97 212 tons CO2
Crediting Period (10 Years)
324 040 tons CO2
Finance
Total Investment Cost (US$)
10 981 000
Contact Information
Project Developer
Specialized enterprise “Uzsuvenergo”, Ministry of agriculture and water resources of the Republic of Uzbekistan
17. Improvement of energy using efficiency on electric engines, used in gascompressor units of JSC “Uztransgas” in CS-2 of Zirabulak
Project Description, Type and Schedule
Objective
The project’s aim is the greenhouse gas emissions reduction through efficient use of electricity by applying frequency regulation technology on motor compressor stations
Description
The project is planning to purchase Frequency Regulation Device, to be installed on each of the motors STM-4000-2 (5 pieces) and STD-4000-2 (8 pieces) at CS-2 in Zirabulak. Electric motor STM-4000-2 converts electrical energy to mechanical energy and drives technology executive body of technological mechanism of a compressor station. The frequency converter manages electric motor and represents electronic static device. The converter outputs electrical power with variable amplitude and frequency.
Over the past 10-15 years, the world has witnessed widespread and successful implementation of frequency regulation electric drives to solve various technological challenges in many fields of economy. The implementation of frequency regulation devices will increase energy efficiency by 34%
Location
CS-2 is located in the inhabited region of Zirabulak in Samarkand province
Category
Energy demand
Improvement of energy efficiency
Current status
PIN
Schedule
Project start date
2009
Project lifetime
15 years
GHG Abated/Sequences (T CO2 eq)
Up to and Including 2012
169 664 tons CO2
Crediting Period (10 years)
424 160 tons CO2
Finance
Total Investment Cost (US$)
13 250 000
IRR (Not Considering CER Revenues)
12%
IRR (Considering CER Revenues)
16%
Contact Information
Project Developer
Joint Stock Company “Uztransgas”
Postal Address
100031, Yusuf Hos Hojib st. 31A, Tashkent, Uzbekistan
Telephone numbers in Samarkand province are seven digit. In order to call to Samarkand province from other province of the Republic of Uzbekistan, it is necessary to dial 8 – long tone – 366 (telephone number). In order to make an international phone call to Samarkand province, it is necessary to dial +99866 (telephone number).
For mobile phone cummunication subscribers codes differ depending on mobile operator and are dialed as for international calls:
- for “MTS Uzbekistan” mobile operator subscribers +99861 (subscriber’s number);
- for “Beeline” mobile operator subscribers +99890 (subscriber’s number);
- for “Coscom” (U-Cell) mobile operator subscribers +99893 (subscriber’s number).
Telephone Directory:
Name of Organization
Telephone Number
Governmental Authorities
Samarkand Province Khokimiyat
2350342
Main Division of Economy of Samarkand Province
2350084,
2311947
Statistics Division
2350583,
2100503
Finance Division
2350850
Demonopolization Committee
2354461,
2359255
Tax Division
2344236
Labor Division
2331396
Division for Foreign Economic Relations, Investment and Trade