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

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Page 1: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

INVESTMENT OPPORTUNITIES FOR FOREIGN

COMPANIES TO IMPLEMENT HIGH-TECH

PROJECTS IN JIZZAKH REGION OF UZBEKISTAN

Page 2: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

JIZZAKH REGION PROFILELocation At the center of Uzbekistan

Administrative center Jizzakh city

Total area 21,2 thousand km2

Population 1,3 million

Hokim Saliev Ergash Alibekovich

Page 3: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

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.

Page 4: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

EDUCATION AND LABOR FORCE

There is a broad range of educational

institutions in Jizzakh Region

2 high educational institutions with overall

number of highly skilled graduates of 2 749

75 professional colleges and academic

lyceums with overall graduates of 18 565

Jizzakh Polytechnical Institute

Jizzakh State Pedagogical Institute

Academic Lyceum

Page 5: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

TRANSPORT LOGISTICS PROFILE

Tashkent city - 203 km

Angren LogisticsCentre – 273 km

Navoi LogisticsCentre – 248 km

Samarkand – 95 km

Jizzakh Region has broad means of transportation services

Operators involved in transportation include: all train, road vehicles, airplanes companies and couriers

Page 6: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

CONTEMPORARY

LARGE SCALE PLANTS

Page 7: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

JIZZAKH CEMENT PLANT

Project

initiator

JSC “Almalyk MMC”

Project cost 120 mln USD

Equipment Dal Teknik (Turkey)

Production

capacity

350 000 ton of white cement

760 000 ton of cement

Export

volume

97% of white cement

14% of construction cement

Job places 430 people

Start of

production

March, 2014

Page 8: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

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

Page 9: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

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 Russia, Kazakhstan

Job places 1200 people

Start of production 2014

Page 10: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

IMPLEMENTING

LARGE SCALE PROJETS

Page 11: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

Complex for reprocessing oil products

Project cost 2,2 mlrd USD

Production capacity 5 mln ton of oil will be processed and

output:

3,7 mln ton of motor fuel;

700 000 ton of aviation kerosene;

300 000 ton of associated petroleum products

Import Hydrocarbon raw materials will be

imported form Russia and Kazakhstan

Job places 16000 people

Start of construction April, 2016

Start of production December, 2022

Page 12: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

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 10 000 pieces

Localization rate 50%

Export volume 30%

Job places 600 people

Start of construction June, 2017

Start of production January, 2019

Page 13: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

Manufacturing of wide range of glass products

Project initiator “MingYuan Silu Industry

Co. Ltd” (China)

Project cost 110 mln USD

Production capacity 16 mln m2

Localization rate 75%

Export volume 40%

Job places 400 people

Start of construction September, 2016

Start of production December, 2017

Page 14: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

FREE ECONOMIC ZONE “JIZZAKH”

Page 15: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

FAVORABLE INVESTMENT CLIMATE

Why to invest in Jizzakh region?

Special tax and customs

privileges

Availability of mineral resources

Availability of engineering and communication infrastructure

Low cost for infrastructure utility services

Convenient geographical

location

Qualified human resources and low labor cost

Stable supply of energy and water

resources

Advantageous conditions for

investor maintenance

services

Page 16: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

POTENTIAL MARKET OF CONSUMPTION OF PRODUCTS

Europe

Middle East & Africa

CIS

East Asia

South-East and South Asia

Page 17: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

TAX AND CUSTOMS PRIVILEGES

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

Participants of FEZ “JIZZAKH” are exempt from:

3 years - if amount of direct investments is from 0.3 mln to 3 mln USD

5 years - if amount of direct investments is from 3 mln to 5 mln USD

7 years - 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

Period of privileges and incentives:

Free Economic Zone “Jizzakh” established on 18th March 2013

FEZ “Jizzakh” has special tax regime and customs privileges

Page 18: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

PROVISION OF INFRASTRUCTURE SERVICES

Parameters Unit

of measureSize and length

of the linesPower Usage

Electricitysupply

kVA/h 2,2 16 thousand 50%

GasSupply

Atmosphere D-219 mm High pressure 40%

Water Supply

m3 D 426 mm 20 thousand 30%

Sewage system

m3 D 800/1200 mm - 70%

Page 19: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

FREE ECONOMIC ZONE “JIZZAKH”

GENERAL PLAN OF FEZ “JIZZAKH”

• Total area of FEZ “Jizzakh” – 364 hectares

• Distance from International Road M-39 – 18 km

• Distances to the biggest cities:

Tashkent – 185 km, Samarkand – 95 km,

Navoiy – 248 km, Bukhara – 363 km

Page 20: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

Utilities Unit of measurement

Charges

UZS USD

Electricity 1000 kWh 225 060 28,0

Gas 1000 m3 1 000 000 122,0

Water 1 m3 890 0,11

Sewage 1 m3 890 0,11

UTILITY CHARGES FOR LEGAL ENTITIES

Page 21: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

Automobile brakes

LED lamps

Collectors PP pipes

CURRENT PROJECTS OF FEZ “JIZZAKH”

Telecommunication equipment and accessories

Video and IP-phones

Page 22: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

Telecommunication equipment and accessories

CURRENT PROJECTS OF FEZ “JIZZAKH”

Page 23: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

Household equipment

CURRENT PROJECTS OF FEZ “JIZZAKH”

Page 24: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

Polypropylene Pipes

CURRENT PROJECTS OF FEZ “JIZZAKH”

Page 25: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

Sewing Furniture

CURRENT PROJECTS OF FEZ “JIZZAKH”

Page 26: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

Heat insulating materials (fiberglass)

CURRENT PROJECTS OF FEZ “JIZZAKH”

Page 27: INVESTMENT OPPORTUNITIES FOR FOREIGN COMPANIES TO ...uzbekembassy.es/files/Presentation of FEZ Jizzakh.pdf · Why to invest in Jizzakh region? Special tax and customs privileges Availability

Mobile PhonesCeramic tilesSanitary

Products

ShoesLeather

processing Pet Foods

CURRENT PROJECTS OF FEZ “JIZZAKH”