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NEWS

Uzbekistan plans to attract US$3.3bn of foreign investments

16 March 2012

http://uzdaily.com of 3/16/2012 - Uzbekistan will continue active investment policy in 2012. It is planned to increase the volume of capital investments, directed to development of economy of the country. Their growth compared to 2011 will make up 9.3% and its share in GDP - 24.5%.

The volume of foreign investments and loans will grow by 16% and make up over US$3.3 billion, of which over US$2.3 billion or 70% will be foreign direct investments, which indicates interest and trust of foreign investors into economy of Uzbekistan.

In 2011, total volume of used investments in economy made up over US$10.8 billion, or grew by 11.2% year-on-year. At the same time, its share in GDP made up 24%, which is rated as above average level in line with international criteria.

The highest growth of investments was recorded in such sectors as automobile, chemistry, electro-technical, textile, pharmaceutical, which produce ready products with high added cost.

In total volume of used investments share of internal sources - budget funds, off-budget funds, Fund for Reconstruction and Development, own resources of enterprises, bank loans and population resources - made up 73% in 2011. External investments was 27%.

The decrease of single tax payment for micro-firms and small enterprises from 7% to 6% helped to increase investment activity of businesses, which allowed to direct 80.3 billion soums of freed funds to re-equipment and introduction of new technologies.

Total volume of used foreign investments and loans exceeded US$2.6 billion in 2011, of which over 84% of them were foreign direct investments.

Over 73.5% of all investments were directed to construction of production capacities and about 45.3% of investments were used to purchase of new equipment.

The active investment policy in 2011 helped to launch new modern enterprises, among them are GM Powertrain Uzbekistan on production of automobile engines, enterprises on production of automobile generators and compressors, production of energy saving lamps, production of Samsung washing machines, gas ovens, air conditioners, etc.

Construction-assembly works are underway on such large projects as construction of combined-cycle plant at Navoi thermal power station, construction of the third line of Uzbekistan-China pipeline, construction of Kandym field with construction of gas processing plant.

Navoi free industrial and economic zone is operating successfully, where production of automobile wires, compressors, TV-tuners, energy saving lamps, modems, and other goods were launched.

Within the implementation of the project on construction and reconstruction of the Uzbek national automobile highway, Uzbekistan laid 302.5 km of modern roads. New passenger terminals of local flights were launched in Tashkent and Bukhara.

High-speed train Talgo-250 started to run between Tashkent and Samarkand. The train passed 344 km within 2.5 hours. To launch this train, wide-scale work on modernization and improvement of railway was conducted. Some 600 km of railway roads were rehabilitated and 68 km of new roads were constructed. Railway stations of Tashkent and Samarkand cities were reconstructed and equipped.

President of Uzbekistan adopted several resolutions, which are directed at further development and increasing competitiveness of economy of the country. Among them are programme on measures on production and launch of production of new competitive goods and On priority directions of industrial development of Uzbekistan for 2011-2015, etc.

In 2012, it is planned to launch 1,375 objects due to centralized sources of financing, and special attention will be paid to construction of educational and medical establishments, sport complexes, etc.

This year, it is planned to complete over 270 investment projects. Among them is to launch production of new car Cobalt with the project capacity of 125,000 units, construction of combined-cycle plant at Navoi thermal power station, over 25 textile capacities, etc.

Uzbekistan implements several projects on processing natural gas, including construction of Ustyurt gas chemical complex at Ustyurt field and Mubarek gas chemical complex with field construct with the capacity of 800,000 tonnes of polyethylene and 100,000 tonnes of polypropylene, production of liquidized synthetic fuel, expansion of ash soda production at Kungrad Ash Soda Plant, etc.

The country will also work on development of communication-transport system, including railway and air infrastructure. In particular, it is planned to electrify Karshi-Termez railway with extension of 325 km and Marakand-Karshi railway with the extension of 140 km.

Uzbekistan Havo Yollari implements project on modernization and unification of its fleet through purchasing 10 aircrafts of Airbus A-320, four planes of Boeing 767-300 ER and two planes - Boeing 787-800.

Implementation of the investment projects in industry will help to boost production of industrial goods in Uzbekistan. It is planed that the industrial production growth will make up 9-12% a year within 2011-2015 due to implementation of the projects. Share of industry in GDO will rise from 24.1% in 2011 to 28% in 2015, while exports of the industrial goods in total volume of production will grow from 42.3% in 2011 to 63.2% in 2015.