INVESTMENT CLIMATE OF UZBEKISTAN AND PERSPECTIVES OF INVESTMENT COOPERATION WITH THE UK COMPANIES, October, 2012

Transcription

1 INVESTMENT CLIMATE OF UZBEKISTAN AND PERSPECTIVES OF INVESTMENT COOPERATION WITH THE UK COMPANIES, INCLUDING «NAVOI» FIEZ AND «ANGREN» SIZ October, 2012

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3 GDP growth (% to previous year)

4 Over 50 normative legal documents on regulating of investment activity adopted in Uzbekistan Law On Foreign Investments in 1998 Law "On Investment Activity in 1998 Law "On Guarantees and Measures to Protect the Rights of Foreign Investors in legal documents on regulating of investment activity adopted in Uzbekistan in 2012 Decree of the President of the Republic of Uzbekistan «On additional measures for stimulation of export manufacturers and expansion of export supplies of competitive output», 2012 Decree of the President of Uzbekistan «On additional measures to stimulate attracting foreign direct investments», 2012

5 Decree of the President of Uzbekistan «On additional measures to stimulate attracting foreign direct investments» 1. Enterprises with the investment volume for at least 5 million USD reserve the right to pay for 10 years for all type of taxes that operated at the date of their registration 2. Investment projects more than 50 million USD share of foreign investors no less than 50%, external engineering communication networks will be provided by state budget. 3. Selling low liquid state objects at zero redemption cost through signing direct contracts with the investor under concrete investment obligations 4. Obtaining of multiply visa for a period of 12 months

6 Decree of the President of Uzbekistan «On additional measures to stimulate attracting foreign direct investments» 5. Extension of incentives and privileges of the President s Decree #UP 3594 on April 11, 2005 I. For all regions of Uzbekistan (except Tashkent region and Tashkent city) II. Tax and obligatory payments exemption Period of Tax Exemptions : 3 years, if amount of direct investments is 0,3 3 mln. USD; 5 years, if amount of direct investments is 3 10 mln. USD; 7 years, if amount of direct investments is more than 10 mln. USD.

7 Decree of the President of Uzbekistan on improving business environment Indicators Number of abolished forms Number of reporting forms Overall reduction Total number of passing records during a year I. Statistical reports Total 65 by 1.4 times by 2.0 times including: 1. For large enterprises 58 by 1.4 times by 1.9 times 2. For entities of small business 7 by 1.6 times by 2.9 times II. III. Tax reports Total 6 by 1.4 times by 2.2 times Financial reports 1. For large enterprises 2 by 1.5 times by 1.5 times 2. For entities of small business 1 by 1.5 times by 1.5 times IV. Other reports Total 50 by 1.7 times by 3 times V. Permission procedures Total 80 by 1.3 times VI. Licensing activities Total 15 by 1.25 times 7

8 3. Rich raw material base Uzbekistan possesses unique resources: solid raw materials, including metallic and non metallic Over 1644 of deposits and 100 sorts of mineral resources

9 4. Energy advantages 10 thermal stations and 28 hydropower plants fully provide the needs of the economy. Total energy capacity MWt Additional capacity 1101 MWt ( ) Coal reserves years

10 5. Diversified industrial base Oil, gas & petrochemical Chemical Mining & metallurgy Automobile Agricultural machinery Electrical engineering Electronics Construction materials Textiles Pharmaceuticals Food processing

11 6. Central geographical location to the largest markets CIS Europe London Berlin Brussels Minsk Kiev Moscow Central Asia Astana East Asia Paris Ankara Tehran Baghdad Jerusalem Amman Cairo Doha Riyadh Abu DhabiMuscat Middle East & Africa Ashgabat Kabul Bishkek Beijing Shanghai South-East and South Asia Seoul Tokyo Bangkok Phnom Penh Manila Singapore Jakarta

12 Tallinn Riga Transport logistic potential (railways) Total length of railways is 4600 thousand km. Klaypeda Brest Chop Zabaykalsk Ilichevsk Alashankou Konstantsia Poti Kars Akhalkalaki Baku Turkmenbashi Uzbekistan Tashkent Navoi Andijan Kashgar Urumchi Beijing DunDan Nahodka Athens Mersin Serakhs Khayraton Mazari-Sharif TyanTsin Gerat Pusan Aleksandria Bafk Bam Zahedan Kvetta Shanghai Dammam Bandar-Abbas Er-Riad Jebel-Ali Chahbahar Gvadar Karachi Railways Mumbai Chittagong Hanoi Hong-Kong Existing Under construction Projected Hoshimin

13 7. Well educated human resources

14 Foreign investments in Uzbekistan (within State investment program) Foreign direct investments and credits Loans under Government guarantee

15 Foreign direct investments to Uzbekistan by country in 2011 (mln.usd)

16 Investments and credits of Great Britain attracted to Uzbekistan (mln.usd)

17 FIEZ Navoi : Concept of creation

18 FIEZ Navoi : Location Navoi 3,000km 2,000km 1,000km Within a radius of 2 thousand kilometers from the airport Navoi there are 10 capitals of various states

19 FIEZ Navoi : Location Territory ha Destination to: Airport 2 km KAL Complex 2 km Samarkand 120 km Bukhara 95 km

20 Navoi International Airport 12 flights per week by NAC «Uzbekiston Havo Yullari» (Delhi, Mumbai, Bangkok, Frankfurt, Istanbul, Dubai, Doha, Dhaka, Hanoi, Moscow); 17 flights per week by «Korean Air». (Milan, Brussels, Vienna, Zaragoza, Incheon, Paris) 1st stage Cargo processing ability 300 tons/day 2nd stage Cargo processing ability 1000 tons/day

21 FIEZ Navoi : Tax preferences Navoi FIEZ residents are exempted from all type of taxes 7 years if amount of direct investments is from 3 mln to 10 mln Euro 10 years and 50% reduction of profit tax for the following 5 years if amount of direct investments is from 10 mln to 30 mln Euro 15 years and 50% reduction of profit tax for the following 10 years if amount of direct investments is more than 30 mln. Euro

22 FIEZ Navoi : Customs exemptions For the whole period of functioning enterprises are exempted from customs duties for imported: Equipment Raw materials Production components 100% for goods aimed to exports 50% for goods aimed to domestic market with delay of payment period up to 180 days

23 FIEZ Navoi : Infrastructure development Administrative building Financial center Utilities Railway, internal and external roads are available Electricity power supply 50 MWt Gas supply 8 atm., 6kg/sm. Water supply 190 cubic meter/hour Sewage 190 cubic meter/hour

24 FIEZ Navoi : Development of social infrastructure 1.2 km from Navoi FIEZ 120 hectares of land 3 residential units 51 rooms (41 standard, 8 twin bedded, 2 VIP, restaurant, gym, common rooms and others)

25 FIEZ Navoi : Current projects 13 operating projects Enterprises working in FIEZ Navoi started production of such good as: Automobile components LED lams ADSL modems Set up boxes Polyethylene pipes 6 projects in progress 48 new projects

26 FIEZ Navoi : New project for production Electrotechnical industry LCD and LED TVs and monitors Household refrigerators and freezers Personal computers, including external input devices (mice, keyboards, joysticks, etc.) Automobile industry Automobile brake pads Acoustic systems for cars Pharmaceutical industry Systems, disposable syringes, droppers, etc. Plasma solutions and blood substitutes Vaccines against different types of diseases (influenza, rubella, hepatitis B, etc.) Chemical industry Coatings for floors, walls and ceilings (plates, sheets, film, and other products) of plastic

27 Special industrial zone Angren 500 ha 178 ha

28 SIZ Angren : Logistic center Creating a competitive advantage for the country in the international logistics market Capacity of storage facilities 5,4 mln. tn./year Total area 36,7 ga Registered 310 vehicles

29 SIZ Angren : Tax preferences and incentives Period of privileges and incentives: 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 10 mln USD 7 years if amount of direct investments is more than 10 mln. USD

30 SIZ Angren : Current projects Synthetic motor oil Automobile tires Sugar plant Ceramic tile Silicon

31 SIZ Angren : New projects for production 22 new projects Iron casting for automobile components Personal computers Household chemicals Drugs for bronchopulmonary diseases Leather products Polymer composite blocks and slabs and etc.

32 Total cost of the project : 700 million USD Production: 70 thousand ton polymers Annual import: 20 thousand ton Raw material: 150 mln.cub.m. natural gas Annual turnover: million USD

33 Total cost of the project : million USD Production: 300 thousand ton of methanol 100 thousand ton of PVC 75 thousand ton of caustic soda Raw material: mln.cub.m. natural gas Annual turnover: 220 million USD Export: 50 percent PVC

34 Production of household electronics refrigerators Total cost of the project : 11.0 million USD Production: 200 thousand units Raw material: copper, metal, diesel, fuel, gas, electricity, polyethylene, polystyrene ( HIPS), ABS, paint, solvent (HIPS 10), foaming polystyrene, EPS, steel rolls and steel plates. Annual turnover: 50 million USD Export: 25 percent

35 Production of washing machines Total cost of the project : 10.0 million USD Production: 100 thousand units Raw material: copper, metal, diesel, fuel, gas, electricity, polyethylene, polystyrene ( HIPS), ABS, paint, solvent (HIPS 10), foaming polystyrene, EPS, steel rolls and steel plates. Annual turnover: 30 million USD Export: 25 percent

36 Production of medications for treatment of oncological disorders Total cost of the project : 28.0 million USD Production: 1.0 mln. units International names: Fluorouracil, Dammarane Sapogenins (Ginseng), Paclitaxel, Bevacizumab, Doxorubicin, Zoledronic acid, Anastrazole, Epirubicin, Job creation: persons

37 Production of architectural glass Total cost of the project : 70.0 million USD Production: 12.0 mln.sq.m. (4 mm.) Annual turnover: 50.0 million USD Export: 40 percent of architectural glass Job creation: 260 persons

38 Production of food products for fast preparation with using sublimated vegetables and fruits Total cost of the project : 4.5 million USD Production: ton instant noodles, dried food, soups, cereals and others Local raw material: sugar, flour, margarine and spreads Export: 40 percent to neighboring and CIS countries

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