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Investment opportunities / By Province

Jizzakh province

1. Geographical location, territory, climate

Djizak province is located in the central part of the Republic of Uzbekistan, between the rivers Syrdarya and Zarafshan, bordering in the north, north-east with the Republic of Kazakhstan and Syrdarya province, in the south-east with the Republic of Tajikistan, in the west and south-west with Navoi and Samarkand provinces. The province's territory is 21.2 thousand square kilometers, or 4.8% of the territory of Uzbekistan.

The territory of the province is characterized by a variety of natural landscapes, unique exotic elements of relief and climate. This peculiarity is firstly due to the mountain necklace of Turkestan range, at the foot of which lie more than 3 thousand square kilometers of virgin land.

The province possesses unique opportunities for developing the ecological tourism. There are mountain-wooded vicinity of Zomin and Bakhmal and dizzy canyons and swift river streams. National Park and Preserve is operating with full preservation of nature in the vicinity of Zomin.

The province consists of 12 administrative districts: Arnasay, Bahmal, Gallaaral, Djizak, Dustlik, Zaamin, Zarbdar, Zafarabad, Mirzachul, Pakhtakor, Farish and Yangibad, administrative center - the city of Djizak.

According to its natural and climatic conditions the province belongs to the zone of extreme continental climate, featuring hot and dry summers, relatively mild winter. The average temperature in January is +1ºC, +4ºC, in July of +26ºC, +28ºC degrees. The average annual precipitation is 400-500 mm of rainfall, vegetation period lasts 240-260 days, the relative humidity is 78-80%, in summer - 20-40%.

2. Historical excursus

Djizak province has ancient history.

Many ancient settlements in the province became known through Greek chroniclers who described the campaign of Alexander Macedonian into Asia. Especially, chroniclers mention the city Kirapol (modern Zaamin) and Gaso. Archaeologists have not found the exact site of Gaso, but some sources indicate that the city was between Samarkand and Tashkent. According to some researchers, Gaso may be - ancient Djizak. The word "Djizak" in Sogdian means "fortress".

It is important that through the waters of the river Sanzar, in an area where the mountains end and the steppe begins irrigated agriculture and handicraft prospered. Favorable natural and climatic conditions have contributed to the establishment of the ancient cities. Huge impact on the life of the oasis had a trade route through Ustrushanu, linking East with West.

VII - XII centuries are favorable period in the history of the area. During this period of time, agriculture and handicraft were rapidly expanding. Every month in Mirasmand near Djizak, an international bazaar was gathered. The trade was conducted with woolen fabrics and clothing, silk, jewelry and metal products, ustrushan nephritis. Historian Ibn Havkal writes that in Mink and Mirasmand of Ustrushan, ore mining and processing were developed.

Djizak province had special prosperity during the reign of Temurids.

But in the XVI - XIX centuries, people had to endure a lot of outside intrusion, robbery. The Mongol invasion led to the fall of the main fortresses and fortifications. During Sheybanihan’s reign they were almost completely destroyed. Prolonged feudal wars, invasions of rulers of neighboring states have caused a significant damage to the economy and cultural life.

In 1866, after incorporation into Russia, Djizak was named “uezd”, after an administrative division in 1924 – a district. In December 29, 1973 Djizak province became a part of Uzbekistan.

The twentieth century in the life of Djizak province can be called as a period of renewal. During this time, many new cities and towns were formed, the virgin lands of Djizak steppe were explored, many major irrigation and drainage systems were constructed, and the modern industrial facilities were created. High development also touched upon national education and culture.

Independence gained by Uzbekistan in 1991, gave new impetus to the prosperity and welfare of the population of the area, more opportunities to establish direct trade-economic and cultural contacts with foreign countries appeared.

3. Social and economic development

Gross regional product of the province amounted to UZS 1389.1 billion in 2010 or increased by 110.2% compared to 2009, and that is about 2.2% of the total GDP of Uzbekistan. Gross regional product per capita amounted to UZS 1.22 mln. The main share in the GRP is occupied by agriculture (40.8%), transport and communication services (7.7%), construction (7.6%), industrial manufacturing (6.7%), commerce and catering (6.7%).

As of January 1, 2011, 20.4 thousand organizations, enterprises and other businesses (including farms) were registered in the province, including about 18.1 thousand small businesses and private entrepreneurships, which make up 88.9% of the total. Share of the enterprises of non-government form of ownership in the total quantity of registered enterprises make up 91.0 %.

In 2010 the number of operating small businesses and private enterprises amounted to 17.2 thousand and they provided employment for 80.0% of all employees in the economy of the province, their industrial accounted for UZS 137.6 billion (35.2% of total industrial output of the province) and increased by 117.5% compared to 2009;

In recent years there has been a significant predominance of the share of small business in the economy. A good example is the fact that, if the small businesses produced goods and services at 58.4% of the GRP in 2005, by the end of 2010 it has reached 77.3%.

In 2010 total trade turnover of DjizakProvince amounted to UZS 228.3 mln., including exports - 191.0 mln., imports - 37.3 million (112.8%).

In general, 79 industrial facilities, including 44 objects in the food industry, 15 - in the production of building materials, 7 - in the petrochemical, 5 - in the light, 2 - in the leather and footwear industry and others were put into operation in 2010 over the province.

New paint-and-lacquer materials production with an annual capacity of 120 thousand tons (Foreign Enterprise «Didosa Paint»), women's and men's shoes production with a capacity of 500 thousand pairs (JV «Jizzakh Elit Poyafzal»), computer case production with a capacity of 90 thousand pieces ("Barna plus" Co. Ltd.), ornamental bricks production with a capacity of 1 million units (JV «Afrosiyob-Turk-Arnasoy»), silk production with a capacity of 70 tons (PE "Kuhinur") and tanned leather production (FE «Pristij Deri»). JSC "Uzavtosanoat" has launched cotton sheets manufacturing for the production of sandwich panels on the basis of basalt insulation of 750 thousand sq. m. per year capacity ("Sandwich panel" Co.Ltd). Also, the project of production of polypropylene yarn with an annual capacity of 1.3 thousand tons was completed at the JV «Euroasia Karpet» in order to expand its production.

3.1. Population

The population of DjizakProvince amounted to 1136.1 thousand people (4.0% of the population) on January 1, 2011. The population density is relatively low and accounts for 54 people per 1 sq. km. Rural population prevails in the province where its share is 53% (602.5 thousand people).

Able-bodied population of the province amounts to 633.3 thousand people, of whom 381.6 thousand (60.3% of total) are employed. 66.2% of the employed population is in the manufacturing sector (252.6 thousand), of which 53.9% – in agriculture, 12% - in trade and catering, 11.9% - in industry, 10.1% - in construction, 3.7% - in transport and communication and others (8.4%). The remaining 129.0 thousand (33.8% of the total employed population) come to the non-production sector. The average monthly wage of the province’s population has increased by 129.8% by the end of 2010 and amounted to UZS 601.6 thousand.

43.5 thousand new jobs, including in rural areas - 28.1 thousand jobs were created in the province during the reporting period. 17.2 thousand people were place in a job with the support of labor authorities in January-December 2010. Number of citizens registered at the labor bodies as job seekers at the end of December 2010 amounted to 3.0 thousand people.

The region is inhabited by more than 70 nationalities.

Education: The province possesses two universities, 74 professional colleges and 4 academic lyceums, 553 schools, including specialized, 189 pre-school and 23 out-of-school institutions.

Healthcare: 61 hospitals, 263 outpatient clinics, 14 health centers, 124 village first-aid stations, 139 first-aid outpatient departments.

3.2. Banking and financial system

Banking and financial sector of DjizakProvince is represented by 39 branches of commercial banks, 3 credit unions and 24 insurance companies. Main Territorial Department of the Central Bank of Uzbekistan, the branches of major commercial banks: National Bank for Foreign Economic Activity, Khalq Bank, Turon Bank, Microcreditbank, Agro Bank, Qishloq Qurilish Bank, Asaka Bank, Ipoteka Bank, Industrial and Construction Bank and others are operating in the province.

Insurance companies: SJSIC "Uzagrosugurta", NCEII "Uzbekinvest", SJSIC "Kafolat", SJSIC "Madad", CJSC "Alfa-Invest".

Credit unions: "Ishonch", "Inom" and "Chashma".

In 2010, a growth of credit investments is 24%, commercial banks allocated credit facilities totaling $ 207.9 billion soums, or more to 39.8 billion soums, than the fact of 2009. The main areas of investment credit funds: industrial and agricultural sector, infrastructure development and construction.

According to the 2010 summaries, the growth of credits allocated was 24%, commercial banks allocated credit facilities totaling UZS 207.9 billion or UZS 39.8 billion more than in 2009. The main areas of credits were: industrial and agricultural sector, infrastructure development and construction.

3.3. Agricultural sector development

Economy of the province is based on agriculture. 300 sunny days a year and an acutely continental climate make it possible to completely provide the population with food due to crop cultivation in the foothills and steppe zones.

Agriculture's share in gross regional product amounted to 59.6% in 2010 and agricultural goods and services worth UZS 827.3 billion were produced or 106.1% more than the same indicator of 2009.

The share of dekhkan households is 62.0% (UZS 307.2 billion), farms - 35.0% (UZS 512.8 billion), agricultural enterprises - 0.9% in the structure of agricultural production.

Djizak has large agricultural lands - the main factor in the development of agriculture. 1.3 million hectares of total 2.05 million hectares of available land are agricultural, 0.8 million hectares are set aside for grazing and 390.5 thousand hectares are crop area (grain, cotton, melons, fruit and vegetable gardens).

The most valuable crops are cotton and wheat. In addition, vegetables, melons and watermelons, fruits, grapes and fodder crops are cultivated.

More than 450 tons of fruits, vegetables, melon products and grapes were grown in 2010, 6.76 thousand tons of them were exported.

Successful examples of investments in processing of fruits and vegetables are newly created joint ventures with the participation of foreign investors. The Uzbek-UAE joint venture «Bakhmal Golden Apple», Uzbek-British JV "Frutviteks», «Sogda Tomat Konserva», «AGRO GUMUSH» are among them.

Livestock, in particular, sheep breeding and poultry are of great importance in the agriculture of the province. In addition, goats and cattle are bred in the province. Modern cattle complex «Milk Foods» Co. Ltd. for 500 heads of cattle is operating in Djizak District of the province. Nowthecomplexcontainsmorethan 700 cattle.

There are enterprises producing meat and sausage products and processing dairy products in the urban areas of the province. Business contacts in the field of animal products processing are established with companies from Germany, China, Greece and Turkey.

Also, it is planned to implement 22 projects with a total value of USD 5.1 million equivalent in Djizak province in the period 2011-2012, including in the meat processing field - 6 projects with annual capacity of 1.4 thousand tons and milk processing field - 18 projects with annual capacity of 5.9 thousand tons.

Sericulture is also well-developed there and the province is one of the leading places in the production of silk cocoons. The main producers of cocoons in the region are the farmis of Dustlik, Pakhtakor and Mirzachul Districts. In 2010 a new production capacity for cocoon processing and silk thread and fabrics production with annual capacity of 80 tons was launched in the PE «Kukhinur».

3.4. Mineral and raw materials potential

Djizak province possesses sufficient resource base for organization of industrial production of construction materials.

In Djizak province, there are 20 fields, of which six developed fields and 14 – not developed.

According to the State Committee of Geology, there are deposits of the following minerals suitable for commercial development of construction materials in Djizak province:

- wollastonite – Koytash deposit  in Gallyaral District (reserves of the category of A+B+C1 - 4.1 million tons);

- mining raw barite (associated component in the processing of lead-zinc ores, the ore content is 9.1%) – Uchkulach deposit in Farish District (reserves are more than 11.9 million tons);

- cement raw materials in Gallyaral, Kutermin, Dunyo-Tepa and Khavast deposits located in Gallyaral, Farish and Yangiabad Districts (total reserves of A+B+C1 category are more than 196 million tons);

- facing stone in Malguzar, Aktas, Sharaksay and Kulsuyuk deposits located in Bakhmal, Gallyaral and Farish Districts (total reserves of A+B+C1 category are 7.3 million cubic meters);

- gypsum in Timiryazev and Zafarabad deposits of Farish and Zafarabad Districts (reserves of A+B+C1 category estimated to 2.0 million tons);

- claydite in Sayhan deposit located in Djizak District (reserves of A+B+C1 category are about 6.7 million cubic meters.)

- lime in Djizak and Kutermin deposits of Djizak and Farish Districts (total reserves of A+B+C1 category are more than 5.8 million tons).

3.5. Industrial potential

The industrial potential of the province is represented by more than 700 enterprises, of which about 20 are the largest companies.

The province possesses manufacturing facilities in such industries as chemicals, light industry, agricultural products processing, food production, engineering and metalworking. The province occupies a leading position not only in the country, but also in Central Asia in the production of alkaline batteries, socks, hosiery and knitwear products, flour and animal feed.

Large industrial enterprises of the province are: JSC "Djizak plastic" (plastic film and pipe, plastic products), JSC "Djizak Accumulator Plant" (batteries for cars, trucks, agricultural machinery), the company JSC "Djizakpakhtasanoat" (cotton, cotton seeds), JSC "Djizakdonmakhsulot" (flour products), JV "Kuytosh-koni" (mining of metal ores), "Nurli don" Co. Ltd. (oil industry) and JV «Forij textile» (textile industry).

More than 50 important industrial products, including 34 kinds of consumer goods, are produced at the enterprises of the province.

At the same time the region has more than 70.0 thousand square meters area of released industrial infrastructure, which has all the necessary utilities (electricity and heat, water supply), at which organization of new production may be available subject to the repair works are done.

Chemical industry.

One of the largest chemical industry enterprises of the country - JSC "Jizzakh plastics" is operating in the province, specialized in plastics processing and manufacturing of plastic pipes, polyethylene film products for industrial use and consumer goods (jars, cans and buckets).

As well, «Sogdiana Pipe Plast» Co. Ltd. and FE "Zamonaviy polimer quvur" Co. Ltd. for production of polyethylene and polypropylene pipes and 400 mm with modern equipment are located in the province.

FE «Ripoltek-tekstil» for production of polypropylene yarn used for the manufacture of textile and carpet products as the main raw material jointly with Turkish partners, and JV «Didosa paints», producing different types of paint products for the construction industry of Uzbekistan are operating in the province.

Textile industry

Djizak has a huge potential for development of the textile industry. 224.0 thousand tons of raw cotton is produced in the province on the average per year. As a result of cotton processing, more than 71.1 thousand tons of cotton fiber is produced at 6 cotton plants of the province. Considering the existing resource base, more than 30 textile mills are operating in the province as of today.

Successful investments in the textile industry of Djizak province are: JV «Forij textile» created jointly with the English company «Patrolla Wold wide» for the production of cotton yarn of 3.0 thousand tons of yarn per year capacity.

The current production capacity of the textile industry of Djizak province does not match the raw materials potential. The province consumes only 6% (4.3 tons) of cotton fiber, which indicates the weak development of textile processing facilities for the production of finished products.

In order to develop the textile industry, the large-scale work is under way to increase the volume of attracted investments, primarily FDI, in the form of advanced production technology and equipment.

In particular, works are in progress on implementation of 6 projects in the textile area, in particular, production of cotton yarn, knitted fabric, knitwear and ready-made garments (JV "Elegance Tex", «Plasteks» Co. Ltd., FE «Jizzax-Kenteks» Co. Ltd.), modernization of the carpets and rugs production (JV «Euroasia Karpet»), production of hosiery and socks products (JSC "Jizzakh Plastics ", JSC" JBI").

Machine building.

JSC «Djizak akkumulyator zavodi (accumulator plant)» for automobile and farming machine accumulators production is operating in the field of engineering of the province. The whole technological chain of battery production, from secondary ram material processing to packaging of finished products, is located in one complex. The company is equipped with modern equipments of world famous companies such as DAGA, MAC, Virts, Lingklaitor, Propezi, Baer, ​​Kambro, etc. using the technology of the American company "Exide Corporation" - a global manufacturer of batteries.

In 2011, it is scheduled to launch the battery production in DjizakCity. The project cost is $ 9.5 million. The plant capacity is 800 thousand units per year.

Also, it is planned to launch the production of accumulators for new car models of CJSC «GM Uzbekistan» in the JSC "Jizzakh akkumulyator zavodi" in 2012-2013. The project is currently under study. The estimated project cost is USD 1 million. It is expected that the production capacity would account for 100 thousand sets per year.

3.6. Transport infrastructure and communication

The province has a fairly developed infrastructure facilities for the further implementation of investment projects.

Network of railways and roads connected to all major transport communications of national importance. This allows the transportation of export, import goods in all strategically important areas. The total length of highways in the province – 4071,8 km. including roads of international significance-168 km., republic significance-858 km..

The length of railway lines - 250 km. Domestic railway line stretched to such  large industrial facilities, as cotton processing, milling, construction companies, to the Uchkulach mine in Farish district and cotton terminal in Pakhtakor district.

The provincial center Djizak city has a modern “Djizak” railway station and cargo railway station Djizak-2 of "Uzbekistan Railways".

In the area, 166 branches of «Uzbekiston Pochtasi» national mail service are functioning.

3.7. Social infrastructure and recreation services

There are 94 clubs, 6 museum, 2 theaters, 5 cinema, 127 libraries, 17 schools of music and art, 2 recreation parks in Djizak province.

Much attention is paid to sport and physical culture, 11 stadiums, 390 sport halls, 27 sports schools for children and youth, 30 tennis courts, 4 swimming pools function there. In total, 2200 and sports facilities work in the area.

The province's territory is characterized by a variety of natural landscapes, unique exotic elements of topography and climate. This peculiarity of the place is given primarily by the mountain necklace of Turkestan range, at the foot of which, more than 3 thousand square meters miles of virgin land lie.

The province has unique opportunities for ecological tourism development, there are mountain-wooded neighborhood Zaamin and Bakhmal with dizzying canyons and swift river currents. National Park and Preserve function with full preservation of nature around Zaamin.

11 hotels with 428 rooms are operating in the province, including: «N&J», «BEK», «Grand Royal», «Uzbekistan», «Comfort continent», «Nur», «Buston» (Bungalov)  and «Meenor». Also the complex «Sangzor» is providing services for the guests of the province.

4. Investment potential

4.1. Foreign investments in the province

More than USD 230 million of FDI was attracted to DjizakProvince during the years of independence, meanwhile the index of per capita FDI amounted to about USD 200.

In 2010, the volume of foreign investment in the region increased by 140.8% compared to the fact of 2009 and amounted to USD 20.0 million with an increase of USD 5.8 million, including, commercialized foreign investments amounting to USD 6.0 million.

In order to broader attract the investments, especially FDI, the Regional Investment Program for 2011 and the Program for Development of the Industry of Djizak Province in 2011-2015 have been developed.

In the frameworks of the addressed part of these programs, it is provided for implementation of 122 investment projects worth USD 163.2 million equivalent, including attraction of foreign investments and loans of USD 15.0 million by 12 projects. At the same time it is provided for attraction of FDI worth USD 7.3 million.

In the consolidated list of prospective investment projects envisaged for implementation in 2012-2015 included 14 projects totaling USD 50.0 million, including 8 projects which are provided for attraction foreign investments of USD 45.9 million.

4.2. Enterprises with foreign investments

The enterprises with foreign investments (EFI) in the province play an important role in economic development. To date, 54 enterprises are registered in the region, of which 44 have a business activity. In particular, by sectors: industry (32 of which 21 enterprises for production of consumer goods), agriculture and forestry (6), transport and communication (2), the provision of services (2), trade and catering (2). The above-mentioned enterprises were created with the participation of foreign investors from 15 countries. In territorial sense, FDI is mainly created in DjizakCity - 25, Gallyaaral District - 4 and Bahmal District - 4. The share of these districts / cities account for 75% of the total number of existing EFI.

Particularly, 6 enterprises with foreign investments were newly registered in 2010: the Uzbek-British joint venture «Fruitvitex» (fruits and vegetables processing), the Uzbek-Chinese JV "Kristal-Fuyin-Industries» (production of bricks), Turkish Foreign-owned Enterprise «Pristij Deri» (leather processing), LLC with foreign investments «Anqara-Adana» (fishing industry), «Fora Fish Trade» (in the field of agriculture) and «Djizak Rossiya Invest» (fat-and-oil industry).

In 2010 EFI produced goods and services in the amount of UZS 55.2 billion. Foreign trade turnover of EFI in 2010 totaled USD 27.97 million or 142% as compared to 2009 (including exports of EFI – USD 17.65 million, 2.5 times more than in 2009) and its share in the province’s foreign trade turnover was 12.3%.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO