FINANCING INDUSTRIAL SECTOR PROJECTS IN UZBEKISTAN

FINANCING INDUSTRIAL SECTOR PROJECTS IN UZBEKISTAN

Major outcomes of economic reforms in Uzbekistan Sustained high rates of economic growth (7-9% per annum on average), fueled mainly by internal factors Macroeconomic stability Low inflation (below 7-8%) Balanced foreign trade with sustainable surplus 6 times growth of the official reserves in the past 5 years

Major outcomes of economic reforms in Uzbekistan According to HSBC Global Research s The World in 2050 (January 2012): Uzbekistan is identified as one of the fast-growth countries, who have made great progress in fundamentals. The report projects a GDP growth of more than 11x and income per capita growth of close to 9x in the period until 2050 (in real terms). The report also estimates a 25-30% increase in Uzbekistan s working population in the same period.

Major outcomes of economic reforms in Uzbekistan Economist Intelligence Unit (March 2012): Real GDP growth will remain solid in 2012-16 The risk of default is low, given Uzbekistan's high level of foreign reserves relative to its external financing requirement The risk of a large depreciation of the som s official exchange rate is reduced by robust inflows of export revenue

FUND FOR RECONSTRUCTION AND DEVELOPMENT Established in 2006 by the Presidential Decree Charter capital 15 billion U.S. Dollars UFRD s participation ensures successful accomplishment of national projects UFRD provides assistance with its expertise, analysis and liaison with local institutions at all levels

MAJOR OBJECTIVES Financing and co-financing investment projects with major contribution to economic development and structural reforms Providing loans for modernizing industrial enterprises in the key sectors of the economy Introduction of advanced, efficient and energy saving technologies Job creation Contribution to sustainable growth

I. Core sectors Oil & Gas Chemical and Petrochemical Energy & Power Metals & Mining Transport & Communications II. Infrastructure projects AREAS of FINANCING

ACTIVITIES STATISTICS Loans provided for projects Based on the Program of modernization and core infrastructure development in 2011 2015 UFRD has built up portfolio comprising of 70 projects mln.usd No. Stages Project value No of projects UFRD financing Financed on 1/10/12 1 Completed 3115.0 26 1295.6 1273.9 2 Current 11269.9 13 1928.6 1059.6 3 Planned 7276.3 31 1504.0 Total 21 661.2 70 4 728.2 2 333.5

PORTFOLIO STRUCTURE Mining 15% Infrastructure 21% Chemical 11% Energy 17% Oil and Gas and Petrochemicals 36% Projects portfolio: 70 projects at financing and project development stages

ACTIVITIES STATISTICS Financing year on year: 2007 $61.6 mln. 2008 $151.1 mln. 2009 $460.0 mln. 2010 $509.7 mln. 2011 $702.94 mln. 2012 $738.1 mln. (expected)

Completed projects OIL AND GAS SECTOR Construction of a booster compressor stations at the Pamuk and Dengizkul gas fields Projects value: total $150.4 mln./ UFRD $64.4 mln. Outcome: increase gas production on average to 3.4 bln. m³ per year Dates: strated operation in 2008 and 2010 CHEMICAL SECTOR Construction of Dehkanabad Potash fertilizer plant 1 st phase Projects value: $124 mln./ UFRD $ 62 mln. / China exim bank $ 42 mln. Outcome: 200 thousand tons per year Dates: started operation in 2010 Reconstruction and modernization of AM-76 ammonia manufacturing at Ferganaazot and Maxam- Chirchik plants Projects value: total $146.5 mln. / total UFRD $21.2mln. Outcome: production increased to 40% and energy saving 14% Dates: strated operation 2010

Completed projects Energy sector Construction of combined power cycle generation at the Navoi thermal power plant Projects value: $542.2 mln./ UFRD $363.2mln. Outcome: 478 MW/per year Dates: 2009-2012 (expected start of operation in December) Transport and Infrastructure Sectors Modernization of Air fleet of national airline company Uzbekistan Airways Projects value: $1080 mln./ UFRD $514.2 mln. Outcome: 12 planes (A320 200, Boeing 767-300) Dates: 2010-2013

Ongoing projects Construction of Gas and Petrochemical Complex on the Ustyurt Surgil deposit with further field development Projects value: $4031 mln./ UFRD $500 mln. Output: 400 thousand tons / year of polyethylene and 100 thousand tons / year of polypropylene Dates: expected start of operation in 2015 Expansion of Talimarjon TPP with the construction of 2 units of CCG capacity of 450 MW each Projects value: $1280.0 mln./ufrd $250 mln. Output: 900 MW/year Dates: expected strat of operation in 2015 Construcuiton of portland cement and white cement plant in Jizzakh region Projects value: $114.2 mln./ufrd $74.2 mln. Output: 760 thousand tons/year of portland cement or 350 thousand tons/year of white cement Dates: expected strat of operation in 2015

OUR PARTNERS - Asian Development Bank - World Bank - Japan International Cooperation Agency - Qatar Investment Authority - Islamic Development Bank - State General Reserve Fund of Oman - Korea Development Bank - Korea Export-Import Bank - International Petroleum Investment Company - KSURE - Malaysia Export-Import Bank - China Development Bank - The Export Import Bank of China - Kuwait Fund for Arab Economic Development - Czech Export Bank

UZBEK-OMAN INVESTMENT COMPANY Project Uzbek-Oman Investment Company Established 2010 Capital Objectives $500 mln. Equity investments Shareholders UFRD 25%, SGRF 75%

CONTACT US Fund for reconstruction and development of Uzbekistan Tel: +998 71 2385648 Fax: +998 71 234 0157 101 Amir Temur Street Tashkent Uzbekistan 100084 info@ufrd.uz http://ufrd.uz