Investment opportunities / By Province

Andizhon province

1. Geographical location, territory, climate

AndijanProvince is a large agrarian-industrial region of the Republic of Uzbekistan. The Province borders on the north-east and south with the Republic of Kyrgyzstan, on the west with FerganaProvince and on the north-west with NamanganProvince of the Republic of Uzbekistan.

Total area of the Province is 4,3 thousand square kilometers.

The province includes 14 administrative districts: Altinkul, Andijan, Asaka, Balikchi, Boz, Bulakbashi, Jalakuduk, Izbaskan, Kurgantepa, Marhamat, Pahtaabad, Ulugnor, Hojaabad and Shahrihan; as well as 3 towns: Andijan, Asaka, Hanabad.

Andijan is the administrative center of the province. It is known as one of the ancient cultural and trade centers not only in the Fergana valley but also in the Central Asia and currently it is a dynamically developing center of the industry and agrarian production. The city locates in 450 meters above-sea level, its area is 74.3 square kilometers.

The climate of the region is harsh continental, dry. Due to the fact that mountain chains are preventing cold air masses from entering the region, the winter weather is comparatively moderate. Summer is warm, the average temperature of July is 27,3 degree Celsius, winter is cold, the average temperature of January is -3 degree Celsius. The vegetation period is 217 days, average annual precipitation is 200-250 mm.

2. Historical excursus

In VI century B.C., the state of Davan appeared on the territory of the AndijanProvince, with its capital in the town of Ershi. Substitution of bronze implements with iron ones was occurring in that period, production forces were developing, crop farming was growing on the basis of artificial irrigation. Cattle breeding was developing as well, it was the place were the famous celestial horses being quite popular in China were bred.

In the ancientry, this land, known as Andugon, was located at the crossing of caravan trade routes of the Great Silk Road connecting West and East.

Development of the Marhamat culture of the Davan state (the years 220-419 A.D.) and Eylatan culture (I III centuries A.D.) encouraged the growth of urbanization and wide spread of handicrafts. Islamization of the local population took place in VII VIII centuries in the period of spread of Islam.

The annexation of Andijan in the Samanid state in IX century encouraged development of science and art, trade with other countries. Andijan was becoming one of major centers of the Fergana valley. In X century this area became a part of KarahanidState and in XII century enters into the JigatayState ruled by a son of Chengiz khan. After collapse of the MongolState in XIV century, Andijan entered into the TimuridState.

This period of development is characterized with development of handicrafts, agriculture, architecture, science and arts. Andijan is homeland of great persons whose names have left the bright imprint in the world history. This includes ZahriddinMuhammadBobur the great warlord, the king of one of Timurid states, who was forced to leave his motherland by force of circumstances and subsequently to found the Great Mogul Empire on the territory of modern India, Pakistan and Afghanistan.

In Andijan was born, lived and created great Uzbek poet Nodirabegim (Mohlaroyim).

Till the colonization of the Central Asia by the Russian Empire in 1876, Andijan was within the state of Sheybanids (XV century) and then Kokand Khanate.

Soviet power had been established on the territory of CentralAsia after 1917.

In 1941, AndijanProvince had been administratively formed within the Uzbekistan.

Despite the region was far from the World War II battle arena, it wasnt left on sidelines. Hundred and thousands of people were mobilized into the Red Army and took part in battles against Nazi Germany in 1941-1945. Many industrial enterprises from the western regions of the Soviet Union had been evacuated in the city of Andijan and produced the necessary products for the front.

Collapse of the Soviet Union in 1991 and formation of the independent state of Uzbekistan had marked the new stage in development of the AndijanProvince. The processes of transition to market economy started and actively progressing in the province, as well as privatization and denationalization of the property, formation of market infrastructure and organization of joint enterprises with foreign partners, development of foreign economic activity of the enterprises.

 

3.Economic development of the region 

3.1. Social-economic development

Gross Regional Product (GRP) of Andijan province in 2010 comprised 3563 billion UZS (2156,1 mln USD), the growth in comparison with similar period of 2009 109,4%. The volume of production increased by 109,4%, in automobile-building by 107%, in consumer goods - by 109%, in agriculture by 108,1% in construction by 108,9%.

Priority in economy is given to agriculture and such industries as automobile-building, machinery, textiles and clothing industries. One of the leading directions is production of consumer goods.

Small business and private entrepreneurship are also dynamically developing. As of 1st of July 2011, around 35,4 thousand entities of small and medium-sized business were registered. In 2010 they manufactured products to the amount of UZS 369.0 billion (USD 225 million) or 56% of provinces GRP.

3.2. Population

As of 1 July 2011, population of the province was 2 596 ths. people, with 47 % living in rural areas and 53 % in towns. Representatives of more than 100 nations and ethnic group live in the province. Annual average growth of population is 1.1 %. Density of population is 570 people per 1 sq. km. AndijanProvince is on first place in the Republic for density of population.

Labour resources of the province amounts to 1 536 ths. people, with 1112 ths. people employed in national economy sectors, and 793,8 ths. in the field of small business and enterprise.

3.3. Banking and financial system

There are 29 public and joint-stock banks in AndijanProvince: Main Territorial Department of the Central Bank of Uzbekistan for AndijanProvince, affiliates of NationalBank for Foreign Economic Activity of the Republic of Uzbekistan, Pakhtabank, Savdogarbank, Gallabank, Alokabank, Industrial-construction bank, Microcreditbank, Ipotekabank, Asakabank and others.

These financial institutions play an important role in the development of business and investments in the region. In 2010, these financial institutions allocated loans worth UZS 166.4 billion (USD 101.4 million).

3.4. Agricultural sector development

AndijanProvince has favorable climatic conditions for growing cotton, silkworm cocoons, fruits, vegetables, melons and gourds. As far back as two thousand years ago agriculture with artificial irrigation developed there.

The main branches of agriculture are melon and gourd growing, horticulture, cotton-growing and grain-growing. Livestock farming includes sheep breeding, horse breeding and cattle raising.

According to the 2010 summaries, agriculture amounted to 26.4% in the structure of GRP. The share of crop production accounts for 72.7%, and livestock for 27.3% in the gross amount of agricultural production.

Taking into account that there is no extra land area, agriculture can grow only by increasing production efficiency. There are Research Institute for Grain and Leguminous Crops Seed Growing, branches of the Republican Scientific Research Institute of Viticulture and Horticulture, Melon and Rice.

Agricultural products in the amount of UZS 1.6 billion (USD 975 million) were produced in 2010. Including, cotton - 293.1 thousand tons, cocoons - 3.3 thousand tons, wheat - 557.8 thousand tons, potatoes - 169.5 thousand tons, vegetables - 861.7 thousand tons, fruits - 358.9 thousand tons, grapes - 38.2 thousand tons, melons - 64.9 thousand tons, milk - 540.9 thousand tons, meat - 92.1 thousand tons, eggs - 227 million pieces .

There are 11 ginning plants in the region in which they process raw cotton, and the finished product is exported or processed by local enterprises like JSC "Karasuv," JV "Ohunboboev pakhta", PF "Gofurota", which produce medicinal cotton and lint.

40 enterprises of food industry are operating in the region, including companies for flour and animal feed producing, fruit and vegetable processing, wine making. More and more place is being occupied by the enterprises with foreign investments, including JSC "Biokhimzavod" (production of edible alcohol), the Uzbek-British-Russian Joint Venture "MASK", JSC "Hudjaobodsharob", the Uzbek-Bulgarian Joint Venture "Navigul" (wine and alcohol products), JSC "Hudjaobodmeva kuritish" (dried fruits). At the same time, the JSC "Asaka yog" and JSC "Yog-moy" are producing vegetable oil made out of cotton seeds, as well as household oil.

Growth in manufacturing industry amounted to 115.8% in 2010 compared with 2009. The enterprises of the province produced 28.8 thousand tons of meat products, 149 tons of sausage products, 44.9 thousand tons of dairy products, 13.4 million standard cans of canned fruits and vegetables, 18.6 thousand tons of vegetable oil in 2010.

About 93.3% of cotton and 22% of fruits and vegetables of self-production are currently subjected to processing in the province.

3.5. Mineral and raw materials potential

Mineral resources of the region are mainly represented by varieties of such minerals as sand, gravel and agloporite, stocks of which amount to 34382.9 thousand cu.m. The reserves are located in Khanabad town, as well as in Andijan, Asaka, Marhamat and Pakhtaobod Districts.

Also there are geological reserves of brick raw material in the amount of 24.2 million cubic meters in the province. They are mainly located in Khanabad town, as well as in Andijan, Asaka, Marhamat, Pahtaobod, Hudjaobod, Izbaskan and Kurgantepa Districts.

Stocks of limestone in the amount of 52.7 million cubic meters lie in Andijan and Bulakbashi Districts.

There are 9 sources of mineral water in AndijanCity and also in Andijan, Asaka, Pahtaobadskom, Shahrikhon Bulakbashi Districts of the province. Production of mineral water has been launched in some of these areas.

3.6. Industrial potential

Mechanical engineering, automobile, electronics, light, food industries and biochemical industry are developed in the province. Radical technological changes are occurring in the industry focused on the manufacture of finished, high-quality, globally competitive products and increase their exports.

Automobile industry

After gaining independence, development of labor- and knowledge-intensive industries has been on the focus. One of the most important events in the economic life of AndijanProvince in the period of independence was the launch of "UzDaewooAuto" automobile plant in July 1996, on the base of which a joint venture GM Uzbekistan of 250 thousand cars per year manufacturing capacity was created jointly with General Motors in 2007.

GM Uzbekistan is one of the largest companies in the province.

Production volume for 2010 totaled 217.7 thousand cars of various brands such as Nexia, Damas, Lacetti, Epica, Tacuma and Captiva. Production of a new car model Spark has also been launched since 2010 under the world-known trademark Chevrolet.

Localization of parts and automotive components is going on along with the development of automobile industry. Currently, more than 10 companies manufacturing products for GM Uzbekistan Joint Venture are operating in the province, including:

- UzDongJu Paint Co paint and varnish plant for car paint and other paint products manufacturing,

- UzTongHong plant for seats maufacturing,

- UzSemung Co plant for fuel tank production,

- UzDongVongCo plant for exhaust tubes and mufflers production,

- UzDongYangCo plant for cabin interior finish, and

- UzKoramCo plant for bumpers and panels production. Localization of the production of car spare parts is also in process. Spare parts to the amount of UZS 538.8 billion (USD 328.5 million) were produced in 2010. 

Machine building

More than 30 companies in the province are operating in the field of machine building. They are manufacturing equipments and machinery for agriculture. Among them: JSC "Andijanmash" the only plant in the CIS, which produces diesel water pumps under "Andijanets" trademark, which are in demand in foreign markets.

In addition the JSC "Tojmetall" for gins equipment production, JSC "Irmash" for excavators and cranes hydraulic cylinders production, Andijan mechanical plant, which produces and repairs wagons, operate in the province.

Production of automobile filters is also established in Foreign Enterprise "SDK-GROUP". Subsidiaries "Uz Koji" and "Andijankabel" represent the field of electrical industry.

Textile and apparel industry

Taking into account that Andijan is one of the major producers of cotton in the republic, textile industry in the province is expanding rapidly.

The enterprises of the industry produced goods worth UZS 459.0 billion ( USD 279.8 million). In 2010 they produced 10 million sq.m. cotton fabric, 9.3 million pieces of knitwear, readymade garments to the amount of UZS 26.8 billion (USD 16.1 million). About 93% of the produced cotton fibers are subjected to processing.

Creating own spinning mills allow to produce the required number of high-quality yarn independently and regularly and this in turn will help reduce transport costs, create more jobs and cheaper prime costs.

The main textile industry manufacturers are: JV Tagus textile, Poytugtex, Samoshertex, Alyortex and JSC Antex for gray cloth and cotton yarn production.

List of the enterprises, which possess modern equipments, has been expanding in recent years. Among them: Foreign Enterprise NanyangRedCottonAngels , JV Markhamat tex, JV Investtex and others.

458.6 thousand pairs of shoes for different categories of people were produced in the province in 2010. 5 shoe factories are operating there.

Light industry is one of the most labor-intensive industries. Today 40% of the total employed population of the province is working in this industry. In this connection, industry is of paramount importance for the socio-economic development of the province.

3.7. Transport infrastructure

For many centuries, the legendary Great Silk Road was passing across Andijan Province.

At the present time, the transport infrastructure of AndijanProvince is well developed and allows to implement freight transportation not only within the province or the Republic but also to the CIS and foreign countries. The total length of asphalt-paved motor roads of the province is 8.2 ths. km. Total length of used railways of the province is 262 km. It enables to provide opportunity for transportation of export-import cargoes to the following directions:

1.   Andijan Osh Ishkertam China (Karakorum highway) Karachi sea port (Pakistan)

2.   Andijan Osh Ishkertam southern sea ports of China.

3.   Andijan Tashkent Samarkand Termez Afghanistan.

4.   Andijan Tashkent Kazakhstan Russia CIS countries.

5.   Andijan Tashkent Turkmenistan southern sea ports of Iran.

The Government of the Republic of Uzbekistan has taken the decision of development of the Andijan Tashkent Nukus Kungrad Expressway Construction Project.

Provinces air transport connects its center with other cities of Uzbekistan and Russia (Moscow, Omsk, Tyumen and Novosibirsk).

The first railway lines were laid in the early twentieth century. In the period 2007-2010 the rail freight turnover amounted to 2334.1 thousand tons of cargo and more than 52.2 thousand passengers were served. This kind of transportation allows transporting goods from all CIS countries.

3.8. Social infrastructure and recreation services

Musical drama theater, youth theater, Lola puppet theater, cultural and recreation parks, recreation area named after Bobur, sports complexes, museums, cultural centers, libraries and cinemas offer their services to the residents and guests of Andijan Province.

There are various cultural facilities in the region: 480 libraries, 148 clubs, 2 museums, 3 theatres, 27 schools of music and arts, 5 recreation parks, which facilitate spiritual development of population.

Serious attention is paid for sports and physical culture. 29 stadiums, 50 sports schools for children and adolescence, 121 tennis courts, 44 swimming pools and other total of 4519 sport/recreational facilities are functioning.

There are an olympic champion, a world champion in boxing, two champions of the Asian Games among the students of sports schools.

AndijanProvince attracts people from around the world for its beautiful nature, the hospitality of its people, rich cultural traditions and historical sites. Achitectural complex Jomi (mosque and madrassa)", the house museum of Bobur, the tomb of the Arabian commander Kuteiba ibn Muslim, Khanabad city park, Bobur and world culture national park and museum, an open air museum "Hunarmandlar Rastasi (Stand of artisans)".

There are three luxury hotels in the province: Elite, Plaza, and Bella Elegant.

Also, several tour companies are operating in the province. The largests of them are JSC "Andijantourist", "Sayohat sports club"

4. Investment potential

4.1. Foreign investments in the province

Foreign investment worth $ 1 billion were atrracted to the province overall during the years of independence.  At the same time the rate of foreign investments per capita was USD 385.2

 

Analysis of socio-economic development of existing natural resources and raw materials, demographic, industrial, agricultural potential allows to determine the prospective investment capacity of USD 1.5 billion.

4.2.Enterprises with foreign investments

Total number of registered enterprises with foreign investment (EFI) accounted for 83. In 2010, they produced products worth UZS 3384.2 million (USD 2063 million). Number of persons employed in these enterprises amounted to more than 17.9 thousand people.

Among the registered EFI, 25 enterprises specialize in processing cotton, 8 - in building materials production, 7 - in production of consumer goods, 12 in mechanical engineering, 39 in different areas providing services to the people, as well as in transport and communications.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO