September 24, 2013
Foreign economic activity and investment attractiveness of Tashkent province
The dynamic development of foreign economic activity in Tashkent province depends on an ever growing inflow of overseas investments to the regional economy. Another key factor behind such a dynamism is an increase in the volumes of exported goods and services. Facilitating the development of foreign economic activity in the region is also a package of regulatory-legal documents designed to further improve the investment policy, create a proper environment for a stable rise in the exports volumes, diversify the product composition of exportables, ensure the maximum utilization and further development of the region’s resources and production potential, and encourage small enterprises and private entrepreneurs to intensify the exportation of their produce.

A leader among the Republic’s territorial formations, Tashkent province is the main fuel and power base of Uzbekistan, a region with highly developed manufacturing sectors such as non-ferrous metallurgy, chemical and food industries, production of building materials etc. The region accounts for a significant portion of the total amount of copper, gold, zinc and other precious and rare metals, cement, mineral fertilizers and mechanical-rubber produce made in the country.

Created on January 15th, 1938, Tashkent province consists of 14 districts and 4 towns of province subordination. The city of Tashkent, the capital of the Republic of Uzbekistan, is also an administrative center of the region. The big towns located in Tashkent province include Almalyk, Akhangaran, Angren, Bekabad, Chirchik and Yangiyul.

Last year, Tashkent province’s GRP went up by 5.2 per cent compared with 2011. In its total volume, 25.7 per cent is represented by manufacturing, 22.7 per cent – by agriculture, 19 per cent – by transport and communications, 11 per cent – by trade and public catering, 4.7 per cent – by construction, 12 per cent – by other industries of material production and 5 per cent – by taxes. The share of small business in the total volume of its GRP is estimated at 56.7 per cent.

In 2012, the aggregate production volume in farming was 6.7 per cent up on the year before. In the total volume of farm produce, the plant-growing sector produced output to the tune of 1871.3 billion Soum (7.2 per cent higher than the 2011 level), livestock-raising - 1228.6 billion Soum (9.7 per cent above the 2011 figure) and other sectors – 154.1 billion Soum (up 5.4 per cent on the year before) (Currency rates of CB from 24.09.2013 1$=2140.95soums).

The dynamic development of all economic sectors in Tashkent province is fuelled by a rise in both the volume of its GRP and living standards of its population. The region has large reserves of minerals and raw-material resources. Rich deposits of brown coal, kaolin, iron, copper, lead, zinc, bismuth, lithium, asbestos, glass raw material, raw stuff for cement production, facing stone and others are situated in Tashkent province.

To be more exact, there are 88 deposits of minerals in the region, of which 43 deposits are currently under development, 45 ones are not developed and the development of two deposits is regarded as unprofitable.

Tashkent province has rich deposits of the following minerals: Iron (the western spurs of the Chatkal Range); Copper (the Kalmakyr deposit); Molybdenum; Lead and zinc (the Lashkerek and Kurgashinkan deposits); Lithium (the Shavazsay deposit); Uranium; Silver (the Kuchbular and Kyzylolmasay deposits); Coal (the Angren, Shargun and Baisuntau deposits); Kaolin (the Angren deposit); Asbestos (the Sarychekis deposit).

Different branches of the heavy industry have been developed on the basis of these minerals, including fuel power engineering, machinery construction, mining, metallurgy, the chemical industry, production of building materials and others.

The product composition of goods exported from the region encompasses the following product categories: cotton fiber (16 per cent), chemicals (8.3 per cent), ferrous and non-ferrous metals (52 per cent), power resources and oil products (0.02 per cent), machinery and equipment (3.1 per cent), foodstuffs (8.6 per cent), services (0.6 per cent) and others (10.5 per cent).

In 2012, the volume of goods and services imported to Tashkent province worked out at US $1167.6 million. As for the product composition of imports to the region, it looked as follows: machinery and equipment (35 per cent), chemicals (9.6 per cent), ferrous and non-ferrous metals (14.2 per cent), foodstuffs (14.4 per cent), power resources and oil products (2.7 per cent), services (0.3 per cent) and others (23.8 per cent).

Tashkent province exports the following goods: ferrous and non-ferrous metals, electric equipment, fuel, cotton fiber, cotton yarn, stockinet, knitted wear, cotton wool, fabrics, belting filters, washed wool, mineral fertilizers, cement, slate, bricks, gypsum-board plates, gypsum, constriction mixtures, cables, tungsten, copper half-finished products, concentrated kaolin, blue vitriol, rubber galoshes, toilet paper, corrugated boxes, perfumery and cosmetics, ice-cream, plastic toys, propylene bags, training devices, licorice root, rose saplings, geophysical works, building-assembly works, transport-forwarding services, translation services, hotel services, tourist services, broadcasting services, provision of cisterns, production of equipage etc. The following big enterprises and companies take part in the region’s exports activity:

OAO Almalyk Mining and Smelting Works, JV Ammofos-Maxam, JV Maxam Uzbekistan, OOO Uzbek Kumir, OAO Akhangarancement, OAO Akhangaranshifer, APO Uzmetkombinat, OAO Bekabadcement, UzKTJM, OAO Maxam Chirchik, JV Chirchik Transformator Zavodi, OAO Chirchikselmash, OAO Uzbekkhimmash, JV Daishn Megateks, JV Koray Tekstil, FE Osborn Textile, FE Singapore Samarkand, JV Alfi Tekstil, OOO Mekhnat, OAO Uzbekgeofizika, FE Arge Fashion, JV OOO Zarkent Agro Invest, JV OOO Berad Agro, JV Spentex Tashkent Toytepa, OOO Chinoz Tekstik, Alif Grand Corporation, JV Yangiyul Eg Moy, FE OOO Elnur & Ruslan Textile, PE Plasteks and FE Global Comsko DAEWOO.

Tashkent province is a large industrial area of Uzbekistan. Its industrial potential occupies one of the leading places in the national economy, accounting for 20 per cent of all the manufactured produce made in the Republic, 45 per cent of electricity, 98 per cent of coal, 43 per cent of cement, 100 per cent of rolled metal and the bulk of non-ferrous metals.

The vital tasks facing the regional manufacture in the near future is to create and exploit fresh power capacities and electricity transmission networks, as well as to reconstruct existing ones. To begin with, it is essential to bring about strategically important projects such as the construction of two steam-gas plants at the Talimarjan Thermoelectric Power Station (TPS) with a total capacity of 900 MWt, a 370 MWt steam-gas plant at the Tashkent TPS, a 130-150 MWt power-generating unit at the Angren TPS, and high-voltage power transmission lines that connect the Syrdarya TPS and the Novo-Angren TPS.

To complete the construction and put these plants into operation will make it possible to technically re-equip not only Tashkent province, but also the national electric system as a whole, to ensure that all parts of Uzbekistan are reliably provided with the region’s own power resources, to raise the efficiency of its performance, to significantly cut the costs and technical losses associated with the production and transmission of electricity, as well as to optimize the very structure of power resources.

In the manufacturing industry, OAO Uzbekkhimmash and OAO Chirchikselmash are the leading machine building enterprises in Tashkent province. They specialize in turning out equipment and components for enterprises operating in the gas-oil-chemical sector, cotton seeding-machines, cultivators, pick-up attachments to harvesters and spare parts for agricultural production. The region ranks modernization and technical re-equipment of its manufacture as the highest priority.

The Almalyk Mining and Smelting Works, APO Uzmetkombinat and the Uzbek Works of Refractory and Heat-Proof Metals are the Republic’s leading industrial enterprises. They produce the bulk of non-ferrous metals, steel, rolled steel and other goods made of ferrous, refractory and heat-resistant metals.

As of January 1st 2013, 472 enterprises with a share of foreign investments in their charter capital are registered in Tashkent province.

Of the total number of currently operational ones, joint ventures and 100 per cent foreign enterprises account for 351 and 100, respectively. The period under discussion has seen a rise in the number of operational joint ventures in Uzbekistan. In Tashkent province, in particular, they notched up a total of 451, or 111.4 per cent compared with the similar indicator a year earlier (405).

The investors taking part in the creation of enterprises with a share of foreign investments and 100 per cent foreign enterprises in the region represent countries such as Switzerland, Turkey, Great Britain, the US, South Korea, the Netherlands, Russia, Spain and others. By and large, they account for more than 80 per cent of all joint ventures registered in Tashkent province. The majority of these enterprises utilize local minerals and raw materials.

The creation of free industrial zones constitutes a new step towards optimizing the region’s development, setting up highly efficient export-oriented production facilities and applying modern logistics systems and transport infrastructure.

Enterprises operating in the Angren Free Industrial Zone are granted a wide range of tax and customs privileges and preferences for the period from 3 to 7 years depending on the volume of invested capital.

Moreover, they are guaranteed the prompt connection to infrastructure facilities and communications.

At the present moment, as many as 8 investment projects to the tune of US $186 million are being implemented on the territory of the Angren Free Industrial Zone. These include: the organization of production of basic oils from waste oil products; copper pipes; mixers for sanitary-engineering goods; locking fittings and components; sanitary ceramics; ceramic plates; briquetted coal; construction of a new sugar-refinery; and creation of a complex for the production of finished leather goods. Another 22 projects, for a cumulative total of US$ 245million, are now being considered, with all necessary documentation prepared.

A number of railway lines run through the territory of Tashkent province, ensuring communications between Uzbekistan and other Central Asian republics and East-European states. Their total length comes to 363.4 kilometers.

Motor transport plays an important role in the region. The total length of hard-surface motor roads reaches 3,833 kilometers (including international highways). Regional and local roads make up 1,306 kilometers. Among the most important motor roads running across Tashkent province are the Big Uzbek Highway and a road connecting Tashkent with the Ferghana Valley, a Great Silk Road transnational arterial road (currently under construction), which will link the towns of Tashkent, Andijan, Osh (Republic of Kyrgyzstan) and Kashgar (Sintzyan-Uigur Autonomous Area, China), via the Kamchik pass (the Kurama Range).

At the same time, the region has an enormous potential for the development of recreational tourism, because a greater part of Tashkent province lies in the foothills of the Western Tyan-Shan. Hordes of tourists annually visit the region, attracted by its beautiful and picturesque nature.

The Chimgan Tourist Complex enjoys a particularly wide popularity. It is located 90 kilometers away from the Uzbek capital, in the foothills of the Chatkal Range. This unique area is often called “Uzbek Switzerland”. The availability of nature reserves with rich flora and fauna is vital for effective phyto-sanitary therapy and health improvement, as well as the organization of commercial safari.

The Sporting-Sanitary Complex of the Charvak Oromgokhi Health-Improving Center and the Chatkal State Biosphere Nature Reserve operating in the region guarantees all the prerequisites for the provision of excellent tourist services.

The territory of Tashkent province is strewn with more than 300 archeological monuments and over 100 historical-religious monuments.

Khanka, Shakhrukhiya, Tunket and other medieval towns, which existed in the region many centuries ago, are well-known far beyond the borders of Uzbekistan. Unfortunately, they have survived down to the present day mainly in the form of ruins and barrows. In some places archeologists come across hardly discernable traces of an ancient serf wall, which stretched for over 100 kilometers – from the banks of the Syrdarya to the mountain ranges of the Western Tyan-Shan.

To boost the share of tourist services in Tashkent province’s GRP, it is planned to develop new tourist routes and destinations with vast natural and historical-cultural potentialities, to expand the range of tourist services by introducing modern, highly promising ones, to buy new motor vehicles for tourists, to construct catering outlets, campings, mobile or permanent lavatory cum bathrooms and to further improve the way the Uzbek tourist product is advertized and promoted.

To sum up, Tashkent province is well-positioned to implement investment projects in all economic sectors. Its stupendous potential in this field rests on a unique system of guarantees for investors and enterprises with foreign investments. To lure strategic investors, the state guarantees their rights, safeguards their investments and inviolability of their property on the territory of Uzbekistan. In a word, foreign investors are provided with the greatest possible scope of privileges and preferences and incentive to do business.

(Source: “Business partner.uz” Newspaper)


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