Developing Industry and Infrastructure

Last April the President of the Republic of Uzbekistan Islam Karimov signed a decree on establishment of a special industrial zone “Angren”. Its operational term is 30 years with the possibility of further prolongation.

- In mid-July this year the first investment agreements were signed and the corresponding certificates were handed to the participants of the special industrial zone, – says Sohib Saifnazarov, the Head of the Directorate of the SIZ “Angren”. – As of today six projects totaling approximately USD 197.5 million have been launched in the territory of the special industrial zone. USD 147.4 million of this amount are direct foreign investments attracted by the investors without guarantees of any kind on the part of the Government. It is worth to note that in addition to the ongoing projects a few local and foreign investors have prepared business plans and submitted ten investment applications for implementing in the territory of the SIZ “Angren” of the projects totaling, according to the preliminary estimate, over USD 123 million.

In the first place the plan is to establish the mentioned projects on the basis of the available in the SIZ “Angren” inactive and low-profit enterprises.

The enterprises – participants of the SIZ “Angren” will be covered by the special regime of tax and customs privileges and preferences for the term of 3 to 7 years depending on the amount of the paid in capital investments. The minimum investment amount is USD 300 thousand.

An Uzbek-Korean Joint Venture «Uz-Shindong Silicon» is constructing a silicon production plant with the capacity of five thousand ton per year. The project amounting approximately USD 10 million is being implemented via direct investments of the joint venture founders - the State Committee on Geology and Mineral Resources of the Republic of Uzbekistan and a Korean company “Shindong Enercom Inc.”. The general contractor, a Joint Stock Company “Uzneftegazkurilishinvest”, and its subcontractors have engaged about 80-90 workers with daily activities at the construction site. The works on the main building are almost completed, while the works on indoor and outdoor electrical cabling, sewage and water supply are in progress. Besides, the company erects raw materials reception and storage facilities. Since the beginning of the construction the projects has consumed 350 tons of rebar and 2100 cubic meters of concrete. In mid-August the foreign specialists will start installing the modern equipment.

Another Joint Stock Company “Almalyk Mining and Metallurgical Combine” (AMMC) is also activelu engaged in construction activities in the territory of the special industrial zone “Angren”. Until year-end the company plans to put into operation a new modern plant producing copper pipes of different diameters with the capacity of 8,000 ton per year. It is important to note that after commissioning this plant, the AMMC will be able not only to sell higher added value products in the foreign markets, but also to enter new export markets.

Over 50 workers of the “Almalyk Metallurg Kurilish” trust within the AMMC system are currently engaged in the construction works. Excavators, bulldozers, trucks, heavy trucks "BelAZ" and other heavy machinery is being used in construction. The amount of the excavated soil reached over 200,000 cubic meters. The foundation works are nearly completed, and the walls are being erected. At the same time the foreign manufactures produce technological equipment to be delivered before the end of October this year.

In addition to these two projects, an agreement is made with a Bulgarian company “Prista Oil” on establishment of a modern enterprise manufacturing base oils from the used technical oils (with the capacity of 43 thousand ton per year). Some leading Korean companies will help organize the production of energy-efficient LED street lighting and sanitary ware.

In accordance with the Resolution of the Cabinet of the Ministers of the Republic of Uzbekistan “On measures aimed at expansion of domestic production of sugar” dd. June 8, 2012 an investment project on establishment in the territory of the SIZ “Angren” of a modern sugar plant with the capacity of 1000 tons per day is being accelerated. The construction is carried out by a foreign enterprise “Angren Shakar LLC”. The project is expected to complete in the third quarter next year.

It is worth noting, that in pursuance of the President’s decree the investors establishing their companies in the territory of the SIZ “Angren” are provided with a guaranteed connection to the region’s engineering and transportation facilities. For example, within the frameworks of the Government Programme for advanced infrastructure development in the SIZ “Angren” for 2013-2015, only within the first half year of 2012 the total investment amount reached USD 6.5 million. The project carries out construction and reconstruction of the trunk and access roads sections of 15.7 km in length, as well as expansion of the railways stations. Electricity and gas supply of the territories within the SIZ is being improved, and the water supply and sewage systems are being constructed and reconstructed.

One of the main tasks of the special industrial zone is to create an enabling environment to attract primarily direct investments in order to set up and efficiently operate modern high-tech industrial enterprises which will produce high added value and competitive goods for the domestic and world markets.

Intensive use of the potential of the Angren International Logistics Center as well as of the developed system of automobile and container cargo transportation will provide for the accelerated development and efficient operation of the transport, engineering and social infrastructure.

Launching new enterprises will create prestigious jobs for the graduates of the universities and vocational colleges of Angren city and Akhangaran district. Many people in the neighboring settlements will also be provided with jobs. Establishment of the SIZ “Angren” serves for further industry and infrastructure development, and allows the capital region make its contribution to the country’s well-being.

Akimjan Adizov,
Correspondent of the “Pravda Vostoka” newspaper,
the Tashkent Region.