Investment opportunities / By Province

Namangan province

1. Geographical location, territory, climate

The Namangan province is located in northeast part of Fergana valley. From the southern and southeast sides, it borders with Fergana and Andizhan provinces, in northwest - with Tashkentprovince of Uzbekistan, and national borders with Kyrgyzstan and Tajikistan pass in the north.

The regions territory equals 7,44 thousand sq. km. The population is more than 2 million people.

The province consists of a city of Namangan, 11 districts (Mingbulak, Kasansay, Namangan, Naryn, Pap, Uychin, Chartak, Chust, Turakurgan, Uchkurgan, Yangikurgan), 8 towns: Namangan, Kasansay, Pap, Turakurgan, Uchkurgan, Chartak, Chust, Hakkulabad, 12 settlements of city type and about 100 villages. An administrative centre - the city of Namangan.

The regions landscape is non-uniform. In the north from the Chatkal range its spurs extend, which merge with adyrys and plains. The climatic conditions of eastern and western parts of the province vary considerably.

Surrounded by mountain ranges, the eastern part has mild climate, rainfall of 600 mm, which creates favorable conditions for development of rainfed agriculture. In the western part rainfall is much less, there are few rivers, and hilly and mountainous land with sparse vegetation is unsuitable for agriculture. Part of the land in the floodplain of the Sirdarya river in the south of the province is swampy. Now the swamp is being drained and converted into fertile fields.

Climate in province is continental, characterized by hot dry summer and moderate damp winter. In summer months air temperature rises sharply, it becomes dry and hot, in mountains and foothills as usual cool and damp.

Regions climatic conditions are rather favorable for cultivation of cotton and other thermophilic agricultural crops.

2. Historical excursus

NamanganProvince which is rich in history and culture, occupies one of the most important places in the long history of our country and in the years of development of its independence.

Namangan - one of the most ancient cities of Fergana valley. The city has been formed on border where there lived wandering cattle breeders and the population which was engaged in agriculture. The first information on Namangan settlement dates back to the end of 14th century.

Many famous people such as the poet and thinker Boborakhim Mashrab (1657-1711), in Turakurgan the poet, linguist, educator Isakhan Zhunaydullo son of Ibrat (1862-1937), in Chust - poet Muhammadsharif Egamberdi son of Sufzoda (1869-1937) are lived In Namangan.

The architectural monuments which have remained in the city have been built mainly in 18-20 centuries. Madras Mullah the Kirghiz was constructed in city centre in the beginning of 20th century and bears the name of the master who supervised over the construction. Near this madras, at the same time a mosque of OtaValihanTura has risen. The mausoleum of MavlonBuva was erected in memory of the local poet and became a place of pilgrimage of attendants of the literature. Mausoleum of KhujaAmin was erected in the middle of 18th century. In its decoration, the method of carving on the clay board, which belongs to 12-14 centuries, is applied.

The province was re-established in December 18, 1967 (before it existed from March 6, 1941 till January 23, 1960). The province is located in the eastern part of the Republic and the northern part of the FerganaValley.

3. Social-economic development

The highest growth of gross regional product (GRP) in 2010 was recorded in Namangan and Samarkand, as well as in TashkentCity.

In 2010 NamanganProvince had significant growth in real volume of the gross regional product and in comparison to 2009 it grew by 12.4% (UZS 2.427 trillion). So, growth in industry was 23.7%, agriculture - 6.5%, construction - 31.3%, retail trade turnover - 20%, paid services - 16%. Growth of GRP per capita for 2010 was 10.4%

As of January 1, 2011, 16.9 thousand enterprises and organizations (excluding farms) were registered in NamanganProvince.

During 2010, 1800 small businesses launched and now their number exceeds 27.5 thousand. 849 vacant buildings provided for them to rent in order to create the necessary conditions. Credits from various sources in the amount of UZS 206.5 billion were allocated.

As a result of the consistent development of all sectors of the economy, more than 57.6 thousand new jobs were created in 2010 in the province.

3.1. Population

The population of province as of January, 1st, 2010 equals 2298,1 thousand people, rural population is about 64,6%, urban is 35,4%. Chust, Uychin, Namangan, Pap, Turakurgan, Yangikurgan regions are considered to be densely populated district of the province.

As of January, 1st, 2011 the number of able-bodied population comprises 1322,0 thousand persons or 57,5% from total of residents.

In population content Uzbeks dominate. And also Tadjiks, Russian and representative of other nationalities make up the other part.

According to the natural increase of the population the province wins first place in the country. In this connection the able-bodied population number constantly increases.


3.2. Banking and financial system

15 commercial banks, 53 affiliates, 3 public banks and 1 bank with participation of FDI are operating in the province.

3.3. Agricultural sector development

As throughout the FerganaValley, irrigation agriculture is well developed in NamanganProvince. A lot of irrigation facilities were built there - North-Fergana, Chust and Chartak channels, as well as Urtatukay water reservoir (on the Kasansay river).

Development of irrigation helped to increase the irrigated land area and improvement of their reclamation. Irrigated lands are more on the plains and hills of the eastern part of the province than in the western part.

The volume of agricultural production in 2010 amounted to UZS 1162.9, industrial goods UZS 748.7 billion, consumer goods UZS 441.9 billion.

The main areas of agricultural production are cultivation of cotton, cereals, fruits and vegetables, as well as livestock production. Increase of agricultural production in 2010 amounted to 106.5% (UZS 1162.9 billion) compared with 2009.

492.4 thousand tons of grain, 152.8 thousand tones of potatoes, 439.6 tonnes of vegetables, 126.3 thousand tons of fruit, 74.0 thousand tons of grapes were grown per year on average in the province (according to 2010 summaries).

3.4. Minerals and raw materials potential

NamanganProvince has more than 40 explored deposits of mineral resources. The main mineral resources are concentrated in the foothills of the Pop and Chust areas. Thus, in the foothills of Gava (Chust District) there are deposits of basalt and diabase. Resources are estimated to 6.7 million cubic meters.

There are deposits of carbonate rocks of travertinelike limestone in the Galaba (Chust District) and Charkesar (Pop District) quarries, reserves of which amount to 7613 thousand cubic meters.

In Chadak ore field (Pop District) in Guzak Pirmirab deposit there is silver and gold minerals with proved reserves up to 25 tons.

In Mingbulak District, there are deposits of oil with estimated reserves of 173.2 million tons.

In all districts there are deposits of mineral waters, operating reserves of which amount to 4.5 thousand cubic meters per day.

Almost in all areas there are also significant reserves of loess-like loam rocks used in the manufacture of building bricks and other building materials.

3.5. Industrial potential

Industrial production is dominated by textile, food processing, machine building and building materials industry. In 2010 the growth of industry was 123.7% (UZS 748.7 billion) in comparison to 2009.

There are large engineering plants, car repair shop, chemical factories, in Namangan province. There are also cotton yarn, silk, leather products manufacturing, crafts are well developed, and several companies with foreign capital are operating there successfully.

In the province there are such companies as: Uzbek-Swiss joint venture "Nestle-Uzbekistan" (baby food), Uzbek-Korean joint venture "Uzchasis" (car lights and lamps), JSC "Namanganmash" (pipe fittings, valves), Korean enterprise "HeinTex" (textile products), Uzbek-American joint venture "Mushtari International Ltd." (garments), Uzbek-Russian JV "Barkas tex" (towels), Pakistani enterprise Tradewell International (leather processing), Turkish enterprise MRT textile" (cotton yarn), Uzbek-Russian JV "Toshbulok-TEX" (cotton yarn), Vietnamese enterprise "Golden Silk" (silk production), Uzbek-Chinese joint venture "Khelil Silk" (silk production), Turkish enterprise "Mega Textiles" (cotton yarn), JSC "Uzelektroterm" (transformers, electric heaters), Uzbek-Arab joint venture "Namangan Sharbati" (tomato paste, fruit puree), Uzbek-American JV Agro Mir Chust (fruits and vegetables processing), Uzbek-Luxembourg JV "Saidali" (medical services), Uzbek-Chinese joint venture "Prima mebel" (furniture raw materials).

Machine building

In the province operates JSC "Namanganmash" (Namangan Engineering Plant) - one of the largest CIS enterprises manufacturing stop valves out of carbonaceous steel and titanium alloys.

The company produces more than fifteen kinds of products needed in the energy, mining, chemical, oil and gas industries, and in construction materials production. Steel, cast iron and nonferrous metals are used in valves, check valves, conveyor rollers manufacturing. The companys products meet all international standards.

The main consumers of the products include such giants of the domestic industry, as Almalyk and Navoi Mining and Metallurgical Complexes, JSC "Bekobodsement."

Textile industry

One of the largest companies in the province is "Namangantekstil." Production facilities of the complex are located on the factory area of 55 hectares. In 2007, the South Korean company Hain Tex Co. Ltd. acquired the property complex of the enterprise. Foreign company is planning to invest USD 34 million in the modernization of enterprises and increase the production capacity by 4.5 times.

In the province there are also Uzbek-Russian joint venture for the production of cotton yarn "Toshbulok-Tex", "Golden Silk" - subsidiary of the cocoon processing Vietnamese firm Asia Silk and the Turkish company "Mega Textile", which produces cotton yarn.

Food industry

In February 2002, baby food factory of the Uzbek-Swiss joint venture "Nestle Uzbekistan" worth more than USD 30 million was commissioned in the province. The plant produces long-life milk, yogurt, various kinds of infant formula. Also the production line for drinking water with project capacity of 22 million liters per year was put into operation. In the field of processing of fruits and vegetables there are a number of companies in the province - Uzbek-American JV Agro Mir Chust (tomato and fruit pastes, concentrated apple juice), FE Marvel Juice Co. (Juice), Uzbek-Arab joint venture "Namangan Sharbati" (tomato paste, fruit puree), JSC "Namanganvino" (alcohol and wine products).

3.6. Transport infrastructure

The length of highways more then 11,8 thousand kilometers, including 4 thousand - with a firm covering.

Air-lines of Namangan connect an administrative centre of province to other cities.

The main highways connect Namangan to district centers. In the southwest the provinces territory is crossed by the highway from Tashkent - Kokand, connecting Fergana valley with the Tashkent province through pass Kamchik.

The total length of railway is 144,6 km. Namangan province is crossed by the railroad line Kokand - Namangan - Uchkurgan - Andijan.

Airline Tashkent - Namangan - Andijan passes through the province. The airport with the capacity of 200 passengers an hour operates in Namangan. From airport "Namangan" flights to the republic capital Tashkent, and also to cities of Russia are carried out.

3.7. Social infrastructure and recreation services

In province there are 681 comprehensive school, 11 academic lyceums, 98 professional colleges and 3 higher educational institutions.

435 libraries, 146 palaces of culture, 1 museum of local lore, 1 drama theatre, 5 recreation parks, 69 hospitals, 337 ambulance stations and polyclinics, 222 rural medical points, and also sanatoria, rest houses function in Namangan.

On the southern slope of Chatkal ridge begins hiking trail that leads to remarkable places: to the top of Padshaata mountain stream, Kapchagai gorge, mountain lakes with crystal clear water and alpine meadows. Here at the altitude of 1925 m there is a reserve Sary Chelyak. For its incomparable beauty, these places are often called "Asian Alps."

There is also Chartak health resort and spa, recommended for the treatment of digestive tract and bone tissues diseases.

Among the main attractions of the province, the mausoleum of Haji Amin, madrassa of Mullah Kyrgyz in the City of Namangan, Kok Saray palace on the southern slope of Chatkal ridge Nanay village are worth special mentioning.

4. Investment potential

4.1. Foreign investments in the province

In 2010 the province attracted foreign investment and loans totaling USD 22.3 million, with the share of FDI in it amounted to USD 17.2 million

The promising directions for cooperation are light industry, chemical industry, agriculture and oil and gas industry.

For foreign investments in the Republic of Uzbekistan there have been set national treatment, which grants foreign investment the terms not less favorable than the corresponding conditions for investments by domestic individuals and legal entities.

Enterprise attracting direct private foreign investment and located in Namangan Province, as well as carrying out activities in the following sectors: radio-electronical industry, production of computer components and computer engineering, light industry, silk industry, construction materials, industrial production of poultry and eggs, food processing, meat and dairy industry, chemical and pharmaceutical industries are exempt from operating activities income (profit) tax, property tax, social infrastructure and territories face-lift tax, the single tax for microfirms and small enterprises, as well as compulsory contributions to the Republican Road Fund.

These tax credits are available for private foreign direct investment.

At the same time these tax credits are applied in the following conditions:

- Private FDI  is made by foreign investor without warranty of Uzbekistan;

- The share of foreign participants in the charter capital of the enterprise must be at least 50 percent;

- Contributing the private FDI after the state registration of the enterprises;

- Foreign investment in the form of freely convertible currency or new equipment;

- Income received as a result of providing these benefits for the duration of their use, is re-invested to further development of the company.

4.2. Enterprises with foreign investments

Today 53 enterprises with foreign investments (EFI) are operating in the province, which were created with participation of foreign investors from 23 countries. Among them 47 are engaged in the industry, 2 in transportation and communication, 2 in construction and 1 in trading.

3 new EFI were created in the province in 2010 for cotton yarn, silk and pill production (JV Merry Med Farm, JV Norintex, JV Muborak Pure Silk).

In 2010 the volume of exports of EFI amounted to USD 42.4 million and imports USD 44.3 million.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO