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Investment Guide for Surhandarya Region

Surkhandarya Province is located in the south of the Republic of Uzbekistan in the Surkhan-Sherabad Valley. It borders with Afghanistan on the south along the Amudarya River, with Tajikistan on north-east, with Turkmenistan on south-west, and with Kashkadarya Province of Uzbekistan on north-west.

The area of Surkhandarya Province is 20.1 thousand sq. km, population is above 2 million people. It consists of 14 administrative districts: Angor, Bandihan, Baysun, Denau, Muzrabad, Altinsay, Sariasi, Termez, Uzun, Sherabad, Shurchi, Kizirik, Kumkurgan, as well as 8 towns: Baysun, Denau, Jarkurgan, Termez, Shargun, Sherabad, Shurchi, Kumkurgan. Administrative center of the province is Termez.

The territory of the province is extended mainly from north to south almost for 200 kilometres, from west to east almost for 140 km. Central and southern parts are plains bordered with Gissar ridge on the north, its branches – Baysuntau and Kugitangtau on west and north-west, Babatag ridge on the east and Amudarya valley on the south. The main water passage of the province is Surkhandarya River.

The climate is subcontinental, with warn winter and hot dry long summer, when day temperature often reaches 44° – 46° C.

Termez is one of ancient cities of the world. On the basis of excavations performed in the old Kurgan part of Termez as well as analysis of written sources, it became known that the city was founded in the middle of I millenium B.C. on the bank of Oxus (Amudarya). Trade and economical relations were established with such ancient state formations in the Asia as Sogdiana, Khoresm, Margiana and Parphia as well as with India.

In IV – III centuries B.C., a settlement of people was on the place of ancient fortress of Termez on the area of 10 ha. According to the writings of Hofizi Abruy, the name of the city originates from the word “Raramastha” (“place on another bank”), and further in various epochs it was called in different ways: Antiochia, Demetrias, Tarmid, Tarmiz, Tami, Tamo, since X century it had had its present-day name of Termez.

In III – II centuries B.C., Termez was of the most developed political, economical and cultural centers. According to material evidences, a number of lines of architecture and handicrafts (pottery, casting and metallurgy, vitreous handicraft) were developed in the city in this epoch, that affords ground to state that commodity and money relations here were on a higher level than in other places of Maveranahr.

The period of rule of the Kushans in 105 – 250 years A.D. is deemed as the time of the greatest prosperity of the city of Termez. According to one of the theories, the Kushan Kingdom was founded by the Yuechzhi people which had come from the territory of present-day Chinese province of Sinkiang.

The Kushan civilization had left a noticeable imprint in the history of the world culture. At that time Termez was considered as one of the centers of Buddhism. The chessmen figures of ivory found in the Dalvarzintepa dated to II century B.C., are the most ancient ones in the world as of today.

In the early medieval age, Termez was a separate domain including Termez city and adjacent areas. In pre-Islamic time, kings of Termez were bearing title ‘termezshah’, the last of which ruled in the second half of VII century. The city of Termez was the capital of Termezshahs. By the time of occupation of the city by the Arabs (686-704), the territory of the city covered 70 ha.

In X century the city was known with its huge bazaar and fortress on the bank of Jayhun (Amydarya).

In the period of X – XII centuries, Termez was prosperous, large center of handicrafts and trade of Toharistan. By that time, the area of the city was exceeding 500 ha. A number of gigantic buildings were erected in the city, the one of then which survived to present time is the palace of Termezshahs.

In various times, Termez was within various states: Gaznavids, Karahanids, Karahitais, Saljukids, Khorezmshahs.

In 1220, Termez was ruined by the Mongolian invasion. In XV century, Termez had been reinstated again on the riverine part of Surkhandarya river.

After Tamerlane had taken the power over Maveranahr in 1370, Termez together with Surkhandarya was included in the state of Tamerlane. In 1407, under the order of Temurid Halil Sultan, the Termez fortress was reinstated. After some time, Termez became a large city with its Mint.

In the years 1504-1505, the city was conquered by the dynasty of Sheybanids which united the Turkic-Mongolian tribes

By the second half of XVIII, due to internal wars, the city was totally ruined. Only neighboring villages Pattakesar and Solihobod were survived.

In the end of XIX Termez was conquered by the troops of the Russian Empire which had built a fort in 1894 in 8 km of the ruin of Termez in Pattakesar village. In 1916, after construction of railway Bukhara-Karshi-Termez, economy started to developed in the region.

Surkhandarya Province had been formed on 6 March 1941 (from 1925 to 1941 it was Surkhandarya District).

According to the results of 2007, the gross regional product (GRP) of the Surkhandarya Province was 1042,4 billion Soums (USD 830 million) or 107 % of that showing of 2006. In the structure of GRP, agriculture prevails (45,5%), which main sectors are cotton growing, sericulture, horticulture, grain growing. The portion of this sector in GRP reduced from 48,6% in 2006 to 45,5% in 2007.

 

 

 

 

 

As of 1 January 2008, the permanent population of the province is 2 million people, of which 79.6 % live in rural areas and 20.4 % are urban population.

The number of able-bodied population is 1058,9 thousand, or 53,2% of the total population. 

 

 

 

 

 

 

 

 

Gross regional product of the province per capita is 523.6 thousand Soums (USD 415 without parity of purchasing ability), which is increased compared with 2006 by 119.7 %.

Banking and financial sector of Surkhandarya Province is represented with 13 branches of commercial banks, 1 credit union and 16 insurance companies. Department of the Central Bank of the Republic of Uzbekistan, branches of the main commercial banks: National Bank for Foreign Economic Activity, Asaka Bank, Ipoteka Bank, Promstroybank and others, operate in the province.

Annual increase of credit contributions is 60 %. Main fields of investment of credit funds are production and infrastructure.

The economy of Surkhandarya Province has agrarian trend. The portion of agricultural production is about 45,5%.

 

 

 

The basic branches of the agricultural production are cotton growing, vegetable growing, sericulture. Dry system is developed on foothills (mainly, wheat and barley are cultivated).

The largest quantity of fine-stapled cotton in Uzbekistan is cultivated in Surkhandarya Province. Horticulture and viticulture are developed in mountain areas. They breed cattle, sheep, goats, wrangle, poultry at farms.

In 2007, 581.7 thousand MT of grain and 345.4 thousand MT of raw cotton are harvested in the province. Also, 1.2 thousand MT cocoons, 83.5 thousand MT of melons and gourds, 94.4 thousand MT of grapes and 700.6 thousand MT of fruits and vegetables, including 76.5 thousand MT of fruits, 349.7 thousand MT of vegetables and 96.5 thousand MT of potato have been produced.

Agricultural products processing is developed in the province. According to the results of 2007, 96 thousand MT of meat, 443.1 thousand MT of milk, 126.3 million eggs have been produced.

In view of the significant role of agro-industrial sector in the province economy, the prospective direction is organization of joint production with foreign partners for agricultural products processing.

 

 

 

The province has significant reserves of minerals. According to the information of the State Geology Committee of the Republic of Uzbekistan, the province has the following mineral and raw material resources:

- non-ferrous and rare metals: 2370,1 thousand MT, including lead – 686,1 thousand MT, zinc – 1386,2 thousand MT, strontium – 297,8 thousand MT of celestine. 176,5 thousand MT of copper and 7,1 MT of gold are contained in lead and zinc ores;

- fuel and energy feedstock: 70.3 million MT of coal in 5 deposits;

- ore-mining feedstock: 2380,3 thousand MT of vitreous feedstock;

- mining-chemical feedstock: 55.7 million MT, including 11.7 million MT of agro-ore feedstock and 43.9 million MT of mineral salt (technical rock salt).

- feedstock for production of building materials – 707.8 million MT of cement feedstock, 5.1 million cu.m of natural facing stones (red sand-rock, pink granite), 4.4 million cu.m of sawn stones, 17.1 million MT of gypsum and anhydrite, 73.1 million MT of limestones, 52.7 million cu.m of haydite feedstock, 56.8 million cu.m of sand for construction works and silicate products, 146.9 million cu.m of sand-gravel materials, 64.8 million cu.m of brick and roof tile feedstock.

24 large industrial enterprises operate in the region. Oil and gas is produced in the province (Havdag, Kakaydi, Lalmikor). Out of the three largest coal fields of Uzbekistan, two ones – Shargun and Baysun are in Surkhandarya.

In industrial production, special place is taken by ginning and cotton processing, production of construction materials, light industry goods, foodstuff.

The basis of the industrial sector of the province is constituted by such large enterprises as: Jarkurganneft Joint-Stock Company (oil production), Surkhantex JV (production of cotton yarn), Jarkurganneftepererabotka JV (oil refining), Surkhonozikovkatsanoati Joint-Stock Company (food industry), Sariassi Stone Sorting Factory Joint-Stock Company (mining industry), Shurchi don mahsulotlari Joint-Stock Company (food industry), Alpomish JV (production of wheat), Surkhantextile Joint-Stock Company (textile produciotn), AOOT Shargun kumir (mining industry) and AOOT Hojaikon tuz (food industry).

120 thousand MT of cotton fiber are produced at the enterprises of the province, where more than 5 % of cotton fiber are processed and 5 thousand MT of cotton yarn are produced, as well as various garments (T-shirts, workwear, underwear).

Machine industry is developed in the province, the Termez Factory for Repair of Agricultural Machinery and Tractor Motors operates.

The main direction of further development of building materials industry is creation of new cement production facilities. 2 deposits of cement feedstock (in Sherabad and Jarkurgan districts) are explored in the province, with total quantity of reserves amounting to 707.8 million MT. Along with this, brick factories, lime production workshops and crushed stone factory exist in the province.

The total length of railways in the province is about 300 km, and total length of motor roads is 2 700 km. In August 2007, the railway Tashguzar-Boysun-Kumkurgan connecting the south of Uzbekistan with the central region of the Republic had been put in operation, owing to this the transportation expenses during supplies of feedstock and finished products are reduced. The Great Uzbek Highway connects Termez and Tashkent.

The only Central Asian international river port on Amudarya River is located in the province. Via this port, as well as railway and the ‘Friendship Bridge’ laid across Amudarya, freights are delivered to various countries of Asia from Germany, Poland, Czech Republic, Russia, Bulgaria and other countries of Europe.

Termez city airport operates, which is capable to receive large transport aircraft. Railway connection with Afghanistan is implemented via Hayraton bridge.

Telecommunication, cellular, radio relay and mail communications function in the province. In all district telecommunication stations, analogue automatic telephone exchanges are replaced with digital ones. Telecommunication and radio-relay communication carriers in the province are Surkhandarya Telecom and UzI-Termez, mail operator is Surkhandarya branch of Uzbekistan Pochtasi.

Mobile communication services are provided by MTS-Uzbekistan, Beeline, Coscom (U-Cell), Uzmobile.

Transportation services are provided by 3 types of transport – buses, minibuses and taxi.

 

 

All this preconditions the raw material directivity of export, which main portion is cotton fiber.

According to statistical data, foreign trade turnover of the province for 2007 was USD 228,2 million (141,9 % of 2006), including export – USD 217,3 million (146,2 %), and import – USD 10,9 million (89%).

Main items of export are: cotton fiber – USD 120,6 million, which is 55,5% of total indicator of province’s export, as well as foodstuff – USD 63,5 million (137,7% of 2006), and this item is 29,2% of the total export of the province.

Enterprises with foreign investments (FIE) of the province have realized foreign trade turnover amounting to USD 24.97 million (1.6 times higher than in 2006). Total amount of export of FIE is USD 20.7 million (1.5 times of 2006), import – USD 4.2 million (3.8 times of 2006).

Total export of joint ventures for 2007 was 9.5 % of the total export of the province, import of JV is 38.9 % of the total import of the province.

 

The inhabitants and guests of Surkhandarya Province are provided with the services of M. Uygur Musical Drama Theatre, Youth theatre, Kugirchak puppet show, parks of culture and recreation, Dustlik resort, sport complexes, archeological museum, cultural centers, libraries and cinemas.

University, 844 schools, 76 colleges and 3 academic lyceums exist in the province. 487 libraries, 111 clubs, 16 music and art schools, 11 parks of culture and recreation function there.

Special attention in the province is paid to population health. 73 hospitals, 319 outpatient clinics and day and night clinics, 240 rural medical centers operate in towns and districts.

Great attention is also paid to development of sport and physical culture. 29 stadiums, 30 sportive schools for children and youth, 56 tennis courts, 5 swimming pools exist in the province. Totally 3843 sportive facilities exist.

There are considerable opportunities for development of tourism in the province, with a range of historical sights. Among them, architectural complex of Imam At-Termezi, palace of Khorezmshahs in old part of the city, amphitheater, antique Buddhist temples, ancient cult deposition, Tuprokorgon fortress and others.

For the recent several years, in Termez, due to preparation of the city to 2500th anniversary, the buildings of archeological museum, theatre for 3 thousand seats, A. Navoi, Babur, Dustlik and 2500th anniversary parks of culture and recreation have been commissioned, new alley built, buildings renovated along central streets of the city.

 

 

In 1st quarter of 2008, the amount of foreign investments attracted in the province economy was USD 21.8 million, of which USD 13 million are direct foreign investments and USD 8.8 million – foreign investments.

The largest scope of foreign investments is raised for construction of new railway bridge on the line Tashguzar-Boysun-Kumkurgan (34,3 %), exploration works of Petronas C.O. in Boysun District (29,8 %), textile and light industry (27,0 %), reconstruction of pumping facilities on the Amu-Zang canal (6,0 %), services sector (2,3 %) and production of cement (0,7 %).

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

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

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

- USD 300 000 to 3 million – for a 3 years term;

- above USD 3 million to USD 10 million – for a 5 years term;

- above USD 10 million – for a 10 years term;

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

- realization of direct private foreign investments by foreign investors without provision of guarantee of the Republic of Uzbekistan;

- the share of foreign members in the enterprise’s authorized capital should be at least 50 percent;

- contribution of direct private foreign investments after governmental registration of such enterprises;

- contribution of foreign investments in form of hard currency or new advanced process equipment;

- directing the income gained as a result of granting such privileges within the term of their application for reinvesting for the purposes of further development of enterprise.

 

59 foreign investment enterprises have been registered in Surkhandarya Province. They carry on their business in the following fields: industrial production (41), transport and telecommunication services (6), agriculture (5), trade (3).

Out of the number of active FIE, the most profitable ones are Uzbek-Russian JV Jarkurganneftepererabotka (oil refining), Uzbek-American-Turkish JV Surkhantex (production of cotton yarn), Uzbek-German JV Meridian Hotel (hotel services), Uzbek-Korean JV Agrohizmat Shindong (production of oils), Uzbek-American JV Alpomish (production of wheat). Since the beginning of 2008, another 2 foreign investment enterprises have been established: Uzbek-China JV Uz Osiyo Delta for production of furniture and Uzbek-Russian LLC Surkhancementinvest foreign enterprise for production of cement.

 
 

Top priority directions of further development of the province are establishment of new enterprises and modernization of existing enterprises in light industry, fruit and vegetable products processing and storage, production of construction materials.

No.
Description and Purpose of Project
Amount of Project / value of property, shareholding (thousand USD)
Textile Industry
1
Organization of production of 3.5 thousand MT of cotton yarn on the basis of Denov Tamirlash Mehanika Zavodi LLC
10 000
2
Organization of production of 3.7 thousand MT of cotton yarn on the basis of Jayhun Export LLC
7 000
3
Organization of JV for production of 2.5 thousand MT of cotton yarn on the basis of Sariosiyo Temir Beton LLC
7 000
4
Organization of production of 1000 MT of absorbent cotton on the basis of Surhonmedkoton LLC
3 100
Silk Industry
5
Organization of production of 70 MT of raw silk threads on the basis of Kumkurgon Pilla LLC
510
6
Organization of production of 70 MT of raw silk threads on the basis of Muzrabot Pilla LLC
510
7
Organization of production of 30 MT of raw silk threads on the basis of Shurchi Pilla LLC
450
Fruit and Vegetable Products Processing
8
Organization of production of 200 MT of dried apricots and 500 MT of pomegranate juice on the basis of Hakim Private Enterprise
1 000
9
Organization of production of 380 thousand pieces of tinned fruits on the basis of Golib agrofirm
320
10
Organization of production of 2 thousand MT of pickles and tomato paste on the basis of Umarjon Joint-Stock Company
300
11
Auction selling of the property complex of Oltinsoy Sharob OAO (wine production)
Evaluation is in progress
Food Industry
12
Organization of production of 70 thousand MT of iodinated dietary and technical salt on the basis of Hujaykon Tuz Joint-Stock Company
6 970
13
Auction selling of the property complex of Dunyo LLC (grain processing)
1 100
Production of Building Materials
14
Organization of production of 30 thousand sq.m of granite and gabbro on the basis of Javohir PPTF
600
15
Organization of production of gypsum on the basis of Boysun Gips LLC
405
CDM Project
16
Construction of Zarchob small HEPP coordinated hydroelectric system
66 010
Minerals Industry
17
Development of Sherabad celestine ore deposit with production of 17.9 thousand MT of celestine per annum
11 500

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


TEXTILE INDUSTRY

1. Organization of production of 3.5 thousand MT of cotton yarn on the basis of Denov Tamirlash Mehanika Zavodi LLC


1. Information of initiating enterprise:

Name:
Denov Repair Mechanical Factory
Location:
Surkhandarya Province, Denov
Business object:
Production of spare parts for agricultural machinery
Date of establishment:
1932.
Number of employees:
29

2. Authorized capital and founders:

Authorized capital:
USD 36 800
Founders:
individuals (100%)
Management:
T. Mirzaev (Director)

3. Product: 

Product
Sale market
spare parts for agricultural machinery
domestic market

4. Financial information: thousand USD

Description
2005
2006
Income from business operations
104
48
Profit after tax
0,84
0,1

5. Subject matter of the proposed Project:
Organization of production of 3,5 thousand MT of cotton yarn

6. Techno-economical parameters of the Project: 

Project value:
USD 10 million
Required investments:
USD 10 million
Estimated payback period of the Project:
5 tears

7. Provision of the projected production with feedstock resources: 

 
Necessary feedstock:
Cotton fiber
Feedstock sources:
purchase in domestic market

8. Finished product sale market:

domestic market
10 %
export
90 %

9. Available infrastructure and business plan:

Available infrastructure:
water, gas, power supply, drainage, heating
Distance to railway:
15 km
Distance to motor road:
1,5 km
Availability of business plan:
not available

TEXTILE INDUSTRY

2. Organization of production of 3.7 thousand MT of cotton yarn on the basis of Jayhun Export LLC

 
1. Information of initiating enterprise:

Name:
Jayhun Export LLC
Location:
Surkhandarya Province, Angar District
Date of establishment:
15.07.2005.
Number of employees:
40

2. Authorized capital and founders:

Authorized capital:
USD 960
Founders:
I. Juraev (51%), B. Juraev (24%), A.Ziyokulov (15%), A.Ziyokulov (10%)
Management:
B. Allashukurov (Director)

3. Subject matter of the proposed Project:
Organization of production of 3,7 thousand MT of cotton yarn

4. Techno-economical parameters of the Project: 

Project value:
USD 7 000 000
Required investments:
USD 7 000 000
Estimated payback period of the Project:
5 years

5. Provision of the projected production with feedstock resources: 

Necessary feedstock:
Cotton fiber
Feedstock sources:
purchase in domestic market

6. Finished product sale market:

domestic market
10 %
export
90 %

7. Available infrastructure and business plan:

Necessary infrastructure:
Partially available
Distance to railway:
15 km
Distance to motor road:
1,5 km
Availability of business plan:
not available

TEXTILE INDUSTRY

3. Organization of JV for production of 2.5 thousand MT of cotton yarn on the basis of Sariosiyo Temir Beton LLC


1. Information of initiating enterprise:

Name:
Sariosiyo Temir Beton LLC
Location:
Surkhandarya Province, Sariasi District
Business object:
Production of reinforced concrete products
Date of establishment:
1986 .
Number of employees:
70

2. Authorized capital and founders:

Authorized capital:
USD 22 860
Founders:
PF Jasur Agro (67,3%),
FH Ulug Sabo (32,7%)
Management:
S. Dustkobilov (Director)

3. Production volume (2005): 

Product
Production volume
reinforced concrete products
4,5 thousand cu.m
Sale market:
domestic market

4. Financial information:                            thousand USD

Description
2004
2005
Income from business operations
161,6
90,2
Profit after tax
9,12
10,4

5. Subject matter of the proposed Project:
Organization of joint production of 2.5 thousand MT of cotton yarn

6. Techno-economical parameters of the Project: 

Project value:
USD 7 000 000
Required investments:
USD 7 000 000
Estimated payback period of the Project:
7 years

7. Provision of the projected production with feedstock resources: 

Necessary feedstock:
Cotton fiber
Feedstock sources:
purchase in domestic market

8. Finished product sale market:

domestic market
10 %
export
90 %

9. Available infrastructure and business plan:

Available infrastructure:
Water for technical needs, power supply, drainage
Availability of railway branch:
available
Distance to motor road:
100
Availability of business plan:
not available

TEXTILE INDUSTRY

4. Organization of production of 1000 MT of absorbent cotton on the basis of Surhonmedkoton LLC


1. Information of initiating enterprise:

Name:
Surhonmedkoton LLC
Location:
Surkhandarya Province, Termez
Date of establishment:
2003.
Number of employees:
7

2. Authorized capital and founders:

Authorized capital:
USD 2 000
Founders:
individuals (100%)
Management:
H. Eshmurodov (Director)

3. Subject matter of the proposed Project:

Organization of production of 1000 MT of absorbent cotton

4. Techno-economical parameters of the Project: 

Project value:
USD 3 100 000
Required investments:
USD 3 100 000
Estimated payback period of the Project:
5 years

5. Provision of the projected production with feedstock resources: 

Necessary feedstock:
Cotton fiber
Feedstock sources:
purchase in domestic market

6. Finished product sale market:

domestic market
10 %
export
90 %

7. Available infrastructure and business plan:

Available infrastructure:
Cold water, water for technical needs, power supply
Distance to railway:
2,5 km
Distance to motor road:
3 km
Availability of business plan:
not available

SILK INDUSTRY

5. Organization of production of 70 MT of raw silk threads on the basis of Kumkurgon Pilla LLC

1. Information of initiating enterprise:

Name:
Kumkurgon Pilla LLC
Location:
Surkhandarya Province, Kumkurgan District
Business object:
Production of raw silk
Date of establishment:
03.02.2004.
Number of employees:
37

2. Authorized capital and founders:

Authorized capital:
USD 1 371 0
Founders:
individuals (100%)
Management:
M. Ismoilova (Director)

3. Production volume (2005):           thousand USD

Product
Production volume
Raw silk
100,8
Sale market:
export, domestic market

4. Financial information:                             thousand USD

Description
2004
2005
Income from business operations
83,46
85,71
Profit after tax
2,0
2,4

5. Subject matter of the proposed Project:
Organization of production of 70 MT of raw silk threads

6. Techno-economical parameters of the Project: 

Project value:
USD 510 000
Required investments:
USD 500 000
Estimated payback period of the Project:
5 years

7. Provision of the projected production with feedstock resources: 

Necessary feedstock:
Raw silk
Feedstock sources:
purchase in domestic market

8. Finished product sale market:

domestic market
20 %
export
80 %

9. Available infrastructure and business plan:

Available infrastructure:
Water supply, power supply
Distance to railway:
1 km
Distance to motor road:
0,5 km
Availability of business plan:
not available

SILK INDUSTRY

6. Organization of production of 70 MT of raw silk threads on the basis of Muzrabot Pilla LLC

1. Information of initiating enterprise:

Name:
Muzrabot Pilla LLC
Location:
Surkhandarya Province, Muzrabot District
Business object:
Raw silk processing
Date of establishment:
19.06.1995.
Number of employees:
12

2. Authorized capital and founders:

Authorized capital:
USD 500
Founders:
individuals (100%)
Management:
S. Koraeva (Director)

3. Production volume (2005.):          thousand USD

Product
Production volume
raw silk
119,04
Sale market:
export, domestic market

4. Financial information:                    thousand USD

Description
2005
Income from business operations
63,37
Profit after tax
3,12

5. Subject matter of the proposed Project:
Organization of production of 70 MT of raw silk threads

6. Techno-economical parameters of the Project: 

Project value:
USD 510 000
Required investments:
USD 500 000
Estimated payback period of the Project:
5 years

7. Provision of the projected production with feedstock resources: 

Necessary feedstock:
raw silk
Feedstock sources:
purchase in domestic market

8. Finished product sale market:

domestic market
20 %
export
80 %

9. Available infrastructure and business plan:

Available infrastructure:
cold water supply, water for technical needs, power supply
Distance to railway:
15 km
Distance to motor road:
1 km
Availability of business plan:
not available

SILK INDUSTRY

7. Organization of production of 30 MT of raw silk threads on the basis of Shurchi Pilla LLC

1. Information of initiating enterprise:

Name:
Shurchi Pilla LLC
Location:
Surkhandarya Province, Shurchi District
Business object:
Silkworm cocoon production
Date of establishment:
1993.
Number of employees:
15

2. Authorized capital and founders:

Authorized capital:
USD 12 000
Founders:
PF Holmamat Polvon (74%),
individuals (26%)
Management:
T. Hujakeldiev (Director)

3. Production volume (2005.): 

Product
Production volume
Dry cocoons
31,7 metric tons
Sale market:
export, domestic market

4. Financial information:                                 thousand USD

Description
2004
2005
Income from business operations
71,13
62,34
Profit after tax
2,75
1,85

5. Subject matter of the proposed Project:
Organization of production of 30 MT of raw silk threads

6. Techno-economical parameters of the Project: 

Project value:
USD 450 000
Required investments:
USD 450 000
Estimated payback period of the Project:
5 years

7. Provision of the projected production with feedstock resources: 

Necessary feedstock:
dry cocoons
Feedstock sources:
purchase in domestic market

8. Finished product sale market:

domestic market
10 %
export
90 %

9. Available infrastructure and business plan:

Available infrastructure:
cold water supply, gas suply, power supply
Distance to railway:
1,5 km
Distance to motor road:
50
Availability of business plan:
not available

FRUIT AND VEGETABLE PRODUCTS PROCESSING

8. Organization of production of 200 MT of dried apricots and 500 MT of pomegranate juice on the basis of Hakim Private Enterprise

1. Information of initiating enterprise:

Name:
Hakim Private Enterprise
Location:
Surkhandarya Province, Sherabad District
Business object:
Agricultural products processing
Number of employees:
10

2. Cost of fixed assets:

Cost of fixed assets:
USD 216 000
Management:
A. Gaffarov (Director)

3. Subject matter of the proposed Project:
Organization of production of 200 MT of dried apricots and 500 MT of pomegranate juice

4. Techno-economical parameters of the Project: 

Project value:
1 000 000 USD
Required investments:
1 000 000 USD

5. Provision of the projected production with feedstock resources: 

Necessary feedstock:
Fruits and vegetables
Feedstock sources:
purchase in domestic market

6. Finished product sale market:

export -
100 %

7. Available infrastructure and business plan:

Necessary infrastructure:
available
Availability of business plan:
not available

FRUIT AND VEGETABLE PRODUCTS PROCESSING

9. Organization of production of 380 thousand jars of tinned fruits on the basis of Golib agrofirm

1. Information of initiating enterprise:

Name:
Golib agrofirm
Location:
Surkhandarya Province, Altinsoy District
Business object:
Growing of grains and cotton, transportation services
Date of establishment:
20.04.1991.
Number of employees:
30

2. Authorized capital and founders:

Authorized capital:
USD 256 000
Founders:
individuals (100%)
Management:
Y. Turdiev (Director)

3. Production volume (2005.): 

Product
Production volume
grain  
83 metric tons
cotton
20 metric tons
transportation services
USD 26,7 thousand
Sale market:
domestic market

4. Financial information:                              thousand USD

Description
2004
2005
Income from business operations
16,3
26,8
Profit after tax
1,9
4,4

5. Subject matter of the proposed Project:
Organization of production of 380 thousand jars of tinned fruits

6. Techno-economical parameters of the Project: 

Project value:
USD 320 000
Required investments:
USD 280 000
Estimated payback period of the Project:
43 years

7. Provision of the projected production with feedstock resources: 

Necessary feedstock:
Fruits and vegetables
Feedstock sources:
purchase in domestic market

8. Finished product sale market:

domestic market
70 %
export
30 %

9. Available infrastructure and business plan:

Necessary infrastructure:
available
Distance to railway:
18 km
Distance to motor road:
8 km
Availability of business plan:
not available

FRUIT AND VEGETABLE PRODUCTS PROCESSING

10. Organization of production of 2 thousand MT of pickles and tomato paste on the basis of Umarjon Joint-Stock Company

1. Information of initiating enterprise:

Name:
Umarjon Joint-Stock Company
Location:
Surkhandarya Province, Termez District
Business object:
Agricultural products processing
Number of employees:
11

2. Cost of fixed assets:

Cost of fixed assets:
USD 36 000
Management:
K. Siddikov (Director)

3. Subject matter of the proposed Project:
Organization of production of 2000 thousand MT of pickles and tomato paste

4. Techno-economical parameters of the Project: 

Project value:
USD 300 000
Required investments:
USD 300 000

5. Provision of the projected production with feedstock resources: 

Necessary feedstock:
Fruits and vegetables
Feedstock sources:
purchase in domestic market

6. Finished product sale market:
export

7. Available infrastructure and business plan:

Necessary infrastructure:
available
Availability of business plan:
not available

FRUIT AND VEGETABLE PRODUCTS PROCESSING

11. Auction selling of the property complex of Oltinsoy Sharob OAO (wine production)

·         Legal address - Surkhandarya Province, Oltinsoy District

·         Business object - Wine production

·         Capacity - 82 pcs of wine materials and 27,3 pcs of wine spirit

·         Area of land plot - 15 ha

·         Area of buildings and facilities - 10,5 ha

·         Availability - of production infrastructure - 100 %

of labour resources - 100 %

·         Equipment - made in Russia

·         Terms of sale - complex

·         Assessed value - assessment in progress


FOOD INDUSTRY

12. Organization of production of 70 thousand MT of iodinated dietary and technical salt on the basis of Hujaykon Tuz Joint-Stock Company

1. Information of initiating enterprise:

Name:
Hujaykon Tuz Joint-Stock Company
Location:
Surkhandarya Province, Sherabad District
Business object:
Production of dietary and technical salt
Date of establishment:
1996.
Number of employees:
532

2. Authorized capital and founders:

Authorized capital:
USD 111 800
Founders:
Anva LTD private farm (31,7%), Hoji Majithon private farm  (29,2%), Termiz gusht sut savdo AO (25%), staff (14,1%)
Management:
S. Ergashev (Director)

3. Production volume (2005.):         thousand USD

Product
Production volume
iodinated dietary salt
27,5 thousand MT
technical salt
13,9 thousand MT
Sale market:
domestic market, export to Tajikistan

4. Financial information:                                    thousand USD

Description
2004
2005
Income from business operations
554,5
671,4
Profit after tax
21,9
26,2

5. Subject matter of the proposed Project:
Organization of production of 70 thousand MT of iodinated dietary and technical salt

6. Techno-economical parameters of the Project: 

Project value:
USD 6 970 000
Required investments:
USD 6 970 000
Estimated payback period of the Project:
5 years

7. Finished product sale market:

domestic market
70 %
export
30 %

8. Available infrastructure and business plan:

Available infrastructure:
cold water supply power supply
Availability of railway branch:
available
Distance to motor road:
60 km
Availability of business plan:
not available

FOOD INDUSTRY

13. Auction selling of the property complex of Dunyo LLC (grain processing)

·         Legal address - Surkhandarya Province, Denov town

·         Business object - grain processing

·         Capacity - production of 50 MT of wheat

·         Area of land plot - 5 ha

·         Area of buildings and facilities - 3,5 ha

·         Availability - of production infrastructure - 100 %

of labour resources - 100 %

·         Equipment - made in Turkey , amount of wear – 10 %

·         Terms of sale - complex

·         Assessed value - USD 1 100 000


PRODUCTION OF BUILDING MATERIALS

14. Organization of production of 30 thousand sq.m of granite and gabbro on the basis of Javohir PPTF

1. Information of initiating enterprise:

Name:
Javohir Private Production-Trading Firm
Location:
Surkhandarya Province, Sherabad District
Business object:
Production of building materials
Date of establishment:
1999.
Number of employees:
3

2. Authorized capital and founders:

Authorized capital:
USD 2 200
Founders:
B. Mamatkulov (100%)
Management:
B. Mamatkulov  (Director)

3. Subject matter of the proposed Project:
Organization of production of 30 thousand sq.m of granite and gabbro

4. Techno-economical parameters of the Project: 

Project value:
USD 600 000
Required investments:
USD 600 000
Estimated payback period of the Project:
5 years

5. Provision of the projected production with feedstock resources: 

Necessary feedstock:
granite and gabbro
Feedstock sources:
purchase in domestic market

6. Finished product sale market:

domestic market
70 %
export
30 %

7. Available infrastructure and business plan:

Available infrastructure:
Water supply, power supply, heating
Distance to railway:
45 km
Distance to motor road:
30 km
Availability of business plan:
not available

PRODUCTION OF BUILDING MATERIALS

15. Organization of production of gypsum on the basis of Boysun Gips LLC

1. Information of initiating enterprise:

Name:
Boysun Gips LLC
Location:
Surkhandarya Province, Boysun District
Business object:
Production of building materials
Management:
A. Dusimkulov

2. Subject matter of the proposed Project:
Organization of production of gypsum

3. Techno-economical parameters of the Project: 

Project value:
USD 405 000
Required investments:
USD 405 000

4. Finished product sale market:
domestic market

5. Available infrastructure and business plan:

Necessary infrastructure:
available
Availability of business plan:
not available

CLEAN DEVELOPMENT MECHANISM PROJECT

16. Construction of Zarchob small HEPP coordinated hydroelectric system

Project Description, Type and Schedule
Purpose of the Project

Construction of small hydroelectric power plants on existing irrigation structures of the Republic will enable to solve the complex problem of power supply and irrigation in rural districts of the Republic, assist improvement of the level of living of population living there.

The main objectives of this CDM Project are:

§        reduction of emissions of greenhouse gases and toxic compounds which are discharged into atmosphere during combustion of mineral fuel at thermal power plants;

§        reduction of losses during power transmission;

§        improvement of power supply of rural districts

§        increase of employment of local population to be employed on construction and operation of HEPP.

Description

Zarchob small HEPP coordinated hydroelectric system is planned to be on Tupolang river downstream the damsite of the Tupolang Reservoir. The hydroelectric system shall consist of three small HEPPs. Feeding of water shall be derivative, from water intake facility located in 2 km from the Tupolang waterworks structure.

The construction will use the existing infrastructure of the Tupolang waterworks structure and high-skilled workforce having experience of construction of the Tupolang HEPP (2006). Anticipated average long-term annual power generation will be 201.3 million kW-h (2010 – 67.1, 2012 – 134.2, 2015 – 201.3 million kW-h). The total planned power of the system will be 69 MW. Design flow rate of the discharges from the Tupolang Reservoir is 140 cu.m/s. Design head pressure of each step vary from 18 to 20 m.

Two 11.5 MW hydropower units will be installed at each step of the system. Average annual power generation of each step will be 67.1 million kW-h.

Location
Zarchob small HEPP coordinated hydroelectric system is planned for construction in Surkhandarya Province of the Republic of Uzbekistan
Category
Renewable energy
hydropower industry
Current status
PIN
Schedule
Commencement of Project
2010
Project Duration
40 years
Greenhouse gas emission reduction (metric tons CO2 equivalent)
Before and inclusive 2012
165 980 MT of CO2
Period of crediting (10 years)
954 380 MT of CO2
Finance
Total investment costs (thousand USD)
66 010
Contact Information
Project is developed by
Uzsuvenergo Specialized Association at the Ministry of Agriculture and Water Management of the Republic of Uzbekistan
Mail address
1, Usman Yusupov Street, Tashkent, Republic of Uzbekistan, 100128
Internet site
no
Telephone/fax
(+99871) 142-26-30 / 142-25-21
Contact person/position
Erkin Gulyamovich Mahkamov, Chief Engineer
E-mail
       

MINERALS INDUSTRY

17. Development of Sherabad celestine ore deposit with production of 17.9 thousand MT of celestine per annum

I. Information of initiator of investment project

Full name:

Legal address:

 

Contact person:

phone:

 

Infrastructure and its condition:

Motor road
Distance to Surkhan settlement is 25 km
Railway
Distance to Surkhan station is 25 km
Power supply
Overhead power transmission line in the deposit area
Water supply
drinking water: water column of Sherabad collective farm – 2 km, technical water: Surkhan irrigation canal – 10 km
Drainage
no
Gas supply
no
Heat supply
no

II. Description of the Investment Project

• Purpose of the Investment Project

• Equipment necessary for Project realization :

 

• Market demand for the products to be produced (services)

• Provision of the projected production with feedstock

Investment demands

 

• Project cost

 

• Required investment

 

• Form of financing

 

• Contribution of participation share of initiating enterprise

 

• Contribution of participation share of attracted investor

 

 

Proposed sources of funding

Own funds, million Soums
Direct foreign investments, thousand USD
Credit funds
Local, million Soums
Foreign, thousand USD
655
3 700
-
7 300

Utilization of investments

 
Expenses in national currency, million Soums
Expenses in hard currency, thousand USD
Purchase of equipment
 
6 600
Including locally produced
   

- imported

 
6 600
Construction and erection works
6 092
 
Formation of working assets
327,5
 

Expected financial results of Project implementation million Soums

Description
Years of Project implementation
1
2
3
4
Product sales
-
1 428
1 428
1 428
including that in foreign market
-
1 428
1 428
1 428
Cost price
-
1 296
1 251
1 216
Profit after tax
-544
-730
-1 171
-2 030

Project payback period

 

Stage of preparation of design and cost estimate documentation for the Project



Telephone numbers are seven-digit in Surkhandarya Province. For dialing of a number in Surkhandarya Province from other province of the Republic of Uzbekistan, you dial 8 – long tone – 376 (telephone number). International format for telephone dialing to Surkhandarya Province is +998 76 (telephone number).

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

- for subscribers of MTS Uzbekistan +99876 (subscriber number);

- for subscribers of Beeline +99890 (subscriber number)

- for subscribers of Coscom +99893 (subscriber number)

Telephone numbers:

Name of Organization
Telephone number
Governmental authorities
Surkhandarya Province Government
222 70 19,
222 82 40
General Department of Economy of Surkhandarya Province
223 48 91
Statistic Department
223 11 63
Finance Department
223 29 89
Committee for Demonopolization
223 64 09,
223 63 19
Tax Department
222 80 43
Department of Labour
223 21 00
Department of Foreign Economic Relations, Investment and Trade
227 22 63,
223 29 54
State Property Committee
222 79 58
Chamber of Commerce and Industry
770 81 01
Real Estate Exchange
227 25 49
Banks
The Central Bank
227 43 56
National Bank for FEA (NBU)
222 83 10
Pahta Bank
222 79 04
People Bank
222 76 15
Ipoteka Bank
770 83 00
Promstroybank
243 71 33
Microcredit Bank
222 89 83
Asaka Bank
227 35 85
Turan Bank
223 18 99
Galla Bank
227 51 67
Information
Railway Terminal Information Service
222 26 46
Termez Airport Information Service
227 34 27
Long-distance and international phone calls
227 20 80
Automatic telephone exchange information service
227 09 09
Air tickets reservation information
223 21 85

 


















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