INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO IMPLEMENT HIGH-TECH PROJECTS IN JIZZAKH REGION OF UZBEKISTAN

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Aron Higgins
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1 INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO IMPLEMENT HIGH-TECH PROJECTS IN JIZZAKH REGION OF UZBEKISTAN

2 Location JIZZAKH REGION PROFILE At the center of Uzbekistan Administrative center Jizzakh city Total area 21,2 thousand km 2 Population Hokim 1,3 million Saliev Ergash Alibekovich

3 RAW MATERIAL BASE OF THE JIZZAKH REGION More than 20 fields of mineral resources, including: - Raw material for cement: 196 million tons, - Barite: 11,9 million tons, - Facing stone: 7,3 million cubic meters, - Expanded clay: 6,7 million cubic meters - Limestone: 5,8 million tons, - Wollastonite: 4,1 million tons, - Gypsum: 2,0 million tons.

EDUCATION AND LABOR FORCE Jizzakh Polytechnical Institute

Jizzakh Region 2 high educational institutions with

Jizzakh State Pedagogical Institute 75 professional

4 EDUCATION AND LABOR FORCE Jizzakh Polytechnical Institute There is a broad range of educational institutions in Jizzakh Region 2 high educational institutions with overall number of highly skilled graduates of Jizzakh State Pedagogical Institute 75 professional colleges and academic lyceums with overall graduates of Academic Lyceum

5 TRANSPORT LOGISTICS PROFILE Jizzakh Region has broad means of transportation services Operators involved in transportation include: all train, road vehicles, airplanes companies and couriers Tashkent city km Angren Logistics Centre 273 km Navoi Logistics Centre 248 km Samarkand 95 km

6 CONTEMPORARY LARGE SCALE PLANTS

7 JIZZAKH CEMENT PLANT Project initiator JSC Almalyk MMC Project cost 120 mln USD Equipment Dal Teknik (Turkey) Production capacity ton of white cement ton of cement Export volume 97% of white cement 14% of construction cement Job places 430 people Start of production March, 2014

8 JIZZAKH BATTERY PLANT Company name JSC Jizzakh Battery Plant Production capacity 1 mln pieces Sales to GM Uz, MANAUTO, SAMAUTO Brand name «ENERGY», «ATLANT», «CLASSIC», «HOPPENERGY». Job places 540 people Start of production 2003

JIZZAKH PLASTEKS Company name JV JIZZAKH PLASTEKS LLC -

capacity 9000 ton of rough yarn 4600 ton of knitted

(Germany), Marzoli (Italy), Xorella, USTER (Switzerland)

9 JIZZAKH PLASTEKS Company name JV JIZZAKH PLASTEKS LLC - Spinning and knitting production Annually production capacity 9000 ton of rough yarn 4600 ton of knitted fabric Equipment Trutzschler, Terrot, OERLIKON (Germany), Marzoli (Italy), Xorella, USTER (Switzerland) Export Job places Russia, Kazakhstan 1200 people Start of production 2014

10 IMPLEMENTING LARGE SCALE PROJETS

11 Complex for reprocessing oil products Project cost Production capacity 2,2 mlrd USD 5 mln ton of oil will be processed and output: 3,7 mln ton of motor fuel; ton of aviation kerosene; ton of associated petroleum products Import Hydrocarbon raw materials will be imported form Russia and Kazakhstan Job places people Start of construction April, 2016 Start of production December, 2022

12 Production of light commercial vehicles on the basis of Uzbekistan Peugeot Citroen Automotive JV Project initiator UzPCA Uzbek-French JV Project cost 133,3 mln Euro Production capacity pieces Localization rate 50% Export volume 30% Job places 600 people Start of construction June, 2017 Start of production January, 2019

13 Manufacturing of wide range of glass products Project initiator Project cost MingYuan Silu Industry Co. Ltd (China) 110 mln USD Production capacity 16 mln m 2 Localization rate 75% Export volume 40% Job places 400 people Start of construction September, 2016 Start of production December, 2017

14 FREE ECONOMIC ZONE JIZZAKH

15 FAVORABLE INVESTMENT CLIMATE Availability of engineering and communication infrastructure Low cost for infrastructure utility services Convenient geographical location Qualified human resources and low labor cost Availability of mineral resources Stable supply of energy and water resources Special tax and customs privileges Why to invest in Jizzakh region? Advantageous conditions for investor maintenance services

16 POTENTIAL MARKET OF CONSUMPTION OF PRODUCTS Europe CIS East Asia Middle East & Africa South-East and South Asia

17 TAX AND CUSTOMS PRIVILEGES Participants of FEZ JIZZAKH are exempt from: Land-tax Corporate income tax Property tax Social infrastructure improvement and development tax Unified tax payment for micro firms and small enterprises Compulsory contributions to the Republican Road Fund and odd-budget fund for reconstruction, overhaul and equipping of schools, professional colleges, academic lyceums and medical institutions under the Ministry of Finance of the Republic of Uzbekistan Customs duties (except for customs clearance) for imported equipment, and raw materials and components for the production of products 3 years - 5 years - 7 years - Free Economic Zone Jizzakh established on 18 th March 2013 FEZ Jizzakh has special tax regime and customs privileges Period of privileges and incentives: if amount of direct investments is from 0.3 mln to 3 mln USD if amount of direct investments is from 3 mln to 5 mln USD if amount of direct investments is from 5 mln to 10 mln USD 10 years - if amount of direct investments is more than 10 mln USD

18 PROVISION OF INFRASTRUCTURE SERVICES Parameters Unit of measure Size and length of the lines Power Usage Electricity supply Gas Supply Water Supply Sewage system kva/h 2,2 16 thousand 50% Atmosphere D-219 mm High pressure 40% m 3 D 426 mm 20 thousand 30% m 3 D 800/1200 mm - 70%

International Road M-39 18 km Distances to the biggest

19 FREE ECONOMIC ZONE JIZZAKH GENERAL PLAN OF FEZ JIZZAKH Total area of FEZ Jizzakh 364 hectares Distance from International Road M km Distances to the biggest cities: Tashkent 185 km, Samarkand 95 km, Navoiy 248 km, Bukhara 363 km

20 UTILITY CHARGES FOR LEGAL ENTITIES Utilities Unit of measurement UZS Charges USD Electricity 1000 kwh ,0 Gas 1000 m ,0 Water 1 m ,11 Sewage 1 m ,11

21 CURRENT PROJECTS OF FEZ JIZZAKH Collectors Automobile brakes PP pipes Video and IPphones Telecommunication equipment and accessories LED lamps

22 CURRENT PROJECTS OF FEZ JIZZAKH Telecommunication equipment and accessories

23 CURRENT PROJECTS OF FEZ JIZZAKH Household equipment

24 CURRENT PROJECTS OF FEZ JIZZAKH Polypropylene Pipes

25 CURRENT PROJECTS OF FEZ JIZZAKH Sewing Furniture

26 CURRENT PROJECTS OF FEZ JIZZAKH Heat insulating materials (fiberglass)

27 CURRENT PROJECTS OF FEZ JIZZAKH Mobile Phones Sanitary Products Ceramic tiles Shoes Leather processing Pet Foods

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 3/29/2011