Investment opportunities / By Province

Qashqadaryo province

1. Geographical location, territory, climate

Kashkadarya province is located in the Southern part of Uzbekistan, in the basin of the Kashkadarya river on the western mountainside Pamir-Alai.

Kashkadarya province is located on same geographic latitude as Turkey, Greece, Italy, Spain, the UnitedState and Japan.

Total area of the province amounts to 28.6 thousand square meters (6.3% of the territory of Uzbekistan), which is comparable with the territories of such countries as Belgium, Albania or Armenia.

The province consists of 13 administrative districts: Guzar, Dehkanabad, Karshi, Koson, Kamashi, Kitab, Kasbi, Mubarek, Nishan, Mirishkor, Chirakchi, Shakhrisabz and Yakkabog. Administrative center is the city of Karshi with a population of more than 180 thousand people.

On the North, the province borders with Samarqand province, on the North-West with Bukhoro province, on the East and South-East Surhandaryo province. From the North-East part passes the state border with Tadjikistan, on the Western part with Turkmenistan. The perimeter of the total border is 795 km, out which 400 km passes through mountain ranges.

Population of the province as of 1st of January of 2008 is 2516,1 ths. people. Density of population is 91,8 people per one square kilometer.

The climate is continental, dry, somewhere is subtropical, favorable for land cultivation and cattle breeding. The average annual temperature is + 15 C.

The average annual quantity of precipitations are 187-285 mm, in mountainous and submountain areas 500 mm.

2. Historical excursus

The history of Kashkadarya province contains multitude of remarkable events. Its the history of courageous people, loving its motherland.

Located between the rivers Zarafshan and Amudaryo, the territory in ancient times according to chronicles of Ancient Greece and China had the name of Southern Sogd and Southern Turon.

In II-I millennium B.C. in this territory the culture was developed, people conducted a settled way of life.

The discoveries which were found on the territories of ancient cities and barrows as Navtak Yerkurgan, Kesh, Iskifagi, Subah, Bazda, Kalandartepa, Kamaytepa, Altintepa testifies that their residents were engaged in agriculture and animal breeding, pottery, processing of iron and other crafts. Pottery was developed at a high level, iron melting was developed out even B.C.

In the shelter places, where agriculture and crafts had risen, the cities formed, in which culture and architecture were developed, madrassas, mosques and caravanserais were erected.

This region, which has beautiful nature and rich in natural resources attracted the attention of many foreign invaders and endured the invasion of Alexander the Macedonian, Mongolian campaign and Achaemenids rule. This region was at the epicenter of the local population revolts against foreign invasions: under the leadership of Spitamen against Alexander the Macedonian in 329 BC, Khashim ibn Khakim (Mukanna) against the Arab Caliphate in the 70's and 80's of VIII century.

Shakhrisabz City (from Persian. شهر سبز (Šahr-e Sabz) - green city) of Kashkadarya Province was a home to Amir Temur (Tamerlane), which unyoked the country from Mongolians, and founded the great empire of Tamerlane, which included whole territory of the Middle East from the Mediterranean to northern India besides Central Asia.

During this period the science and culture was developed, scientists and poets as Najmiddin Nasafi, Abu Makhul an-Nasafi, Shakhabiddin Nasafi, Abul Barakot an-Nasafi, Abul Kharis Varsini, Mustagfiri an-Nasafi and others lived and created.

In Shahrisabz Amir Temur had built Ak-Sarai huge palace that was its residence in XIV the beginning of XV centuries. Unfortunately, by the end of XVII century this magnificent building was partially destroyed. But the remained parts of a portal testify the scale of its construction, Ak-Sarai has so far unsurpassed mosaic patterns reflecting a high level of art of that time.

After an era of Temurids province have conquered by Shaibaneeds - the new dynasty formed from settled and nomadic Uzbek tribes. The long period followed after that has been marked by internal wars, invasions and campaigns from the neighboring states, influenced negatively on development of economy and culture of the province.

The Kashkadarya province has been organized in 1924, and from 1927 to 1964 entered again into structure of BukharaProvince, then Surkhan-Darya Province of Uzbekistan. In 1964 ithasbeenreorganized.

From 1986 to 1989 KashkadaryaProvince was governed by the current President of the Republic of Uzbekistan Islam Karimov.

3. Social and economic development

The dynamics of GRP production during 2001-2007

By the end of 2010 the total provinceal GDP of the Kashkadarya province has 4865,1 billion sum.

Structure of provinceal GDP as compare with 2009 looks as follows:

industrial production 101,5%,

agriculture 120,5%,

construction 140,2%,

trade and (public) catering 132,2%.

3.1. Population

The population of the province is 2668,8 thousand people. Density of population is 93,3 people per one square kilometer.

The population mainly consists of Uzbeks. There is also inhabitance of more than 90 nations and nationalities, including Russians, Tajiks, Turkmens, Tatars, Kazakhs and others. Numberofable-bodiedpopulationis 1476.3 thousandpeople. 971.6 thousandofthoseareemployed.

The largest cities: Shahrisabz, Kitab, Koson, Muborak, Yakkabogh, Guzar, Qamashi. The province has 13 administrative districts: Guzar, Shahrisabz, Dehqonobod, Qarshi, Koson, Qamashi, Kitab, Kasbi, Muborak, Chiroqchi, Nishon, Yakkabogh, Mirishkor.

City of Qarshi is the administrative centre with population of more than 239,7 thousand people.

3.2. Development in agricultural sector

The economy of the Province is focused on agriculture. The share of agricultural production in the gross provincial product is more than 27,3%. The gross agricultural output of the province is 1329,7 billion soums. (USD 791,5 mln.).

The natural and climatic conditions of the region are associated with a higher average temperature than in other areas. Long duration of the warm season and fertile soil allow to grow heat-loving subtropical crops - late-staple fine-fibre varieties of cotton, persimmons and sugar cane.

KashkadaryaProvince is country's main granary of grain, cotton and other supplier of agricultural products. Good evidence is that 10.2% of all agricultural products, as well as more than 10% of cotton, 11% of grain, 19% of astrakhan in the country comes from this province.

If the total land area of the province is 2,857 thousand ha, 1,381 ha of it occupied by the pasture. The province possesses about 1 million hectares of land suitable for irrigation.

The most important branches of agriculture are rainfed and irrigated grain growing as well as  distant (pasture) sheep breeding.

Natural conditions of the province are favorable for grape, stone fruit, figs and pomegranate growing. Karshi grapes, especially the sort of "Mask", is famous for its taste.

Sericulture is also developing in the province along with the cotton growing. The province takes one of the leading places in karakul breeding. Expansion of pastures, increase of corn and alfalfa, the increasing use of industrial wastes contribute to the further development of livestock sector.

The main branch of livestock sector is karakul growing, which is developed mainly in the western, southwestern and central districts. Fat-tailed sheep and goats that provide wool and meat are contained in the pastures of northern and north-eastern foothills and mountainous areas. Semi-fine-fleece sheep and long-wooled goats are grown in the foothills and plains for the development of productive animal husbandry. The number of cattle is enough to meet the demand of the provinces population for dairy products.

3.3. Mineral and raw materials potential

The KashkadaryaProvince is the large and significant province, having rich natural resources.

The region accounts for 98% gas and more than 80% of oil produced in Uzbekistan. According to the estimations, provinces oil reserves make up tens of millions of tons.

There are considerable explored reserves of potash and rock salt, marble, claydite, pyroshale, coal, lead, zinc, cement raw materials and other minerals for construction materials production. Yakhton tungsten deposit and Dautash manganese deposit are among the most promising fields. Also, prospective ore deposits of gold, copper, aluminum, antimony and mercury were identified in the province.

There are 61 deposit of ore and nonmetallic minerals in the KashkadaryaProvince:

- manganese 813.4 thousand tons;

- quartzite - 1735.4 thousand cubic metre;

- porcelain stone 853.9 thousand tons;

- pegmatite 1617.1 thousand tons;

- marble 2.7 million tons;

- dolomite 10.0 million tons;

-limestone 8.9 million tons;

- building stones 5.9 million cubic metre;

- cement raw material 265.5 million tons;

- glass raw material - more than 10.0 million tons.

3.4. Industrial potential

The province accounts for 13% of the republics industrial production.

Industry of KashkadaryaProvince is inextricably linked with agriculture. Its major branches include ginneries, oil mills, factories for the production of canned fruit and vegetable and others. The share of light and food industries account for more than 66% of all manufactured products.

In the Province operate about 150 industrial enterprises, including 45 large enterprises in oil-and-gas, in light industry, food-processing industry, mechanical engineering, building materials industry. Most of them are the enterprises in oil-and-gas, cotton-cleaning, building, and also in the light and local industries.

The largest of them are Shurtan Gas Chemical Complex, Mubarek Oil and Gas Department, Mubarek Oil Refinery, JV

Oqsaroy Tukimachi JV Cotton Road, Shakhrisabz wine and alcohol plant, Shakhrisabz cannery, JV Karshi oil-extraction plant, JV Kasan oil extraction plant and others.

Commissioning of the first block of Tolimarjon 800 MW Power Plant in 2004, solved the energy supply issue in the region.

Petrochemical industry.

Kashkadarya is the main fuel and energy base of the republic, giving more than 90 percent of natural gas condensate and oil produced in the country.

In 2001, Shurtan Gas Chemical Complex the largest gas processing enterprise was put into operation. Construction of the complex was carried out with the assistance of a consortium of foreign companies such as ABB Lummus Global (USA), ABB Soimi (Italy), Mitsui & Co.Ltd., Toyo Engineering, Nissho Iwai Corp. (Japan).

Currently Shurtan Complex is focused on the followings: natural gas processing with ethylene production, co-monomer and polyethylene production with Sclairtech technology. Production capacity of the complex consists of the followings: processing of about 4 billion cubic meters of natural gas, production of 125 thousand tons of various sorts of polyethylene of low and high density, 137 thousand tons of liquefied gas and 37 thousand tons of gas condensate, about 4 thousand tons of sulfur. "Thermoplastic" plant in Karshi produces modern polyethylene pipes for water and gas supply on the basis of products of Shurtan complex .

There is a Mubarek Gas Processing Plant with capacity of 30 billion cubic meters of gas annually in the province, which accounts for much of the processed gas in the country, about 17% of stable gas condensate and 11% of liquefied gas. Currently reconstruction works underway in the company, a propane-butane mixture installation is being constructed for liquefied natural gas production.

Textile industry.

Today tens of modern textile enterprises for yarn, knit and fabric production are operating in the province.

The main enterprises are: JV Cotton Road, Oqsaroy-Tukimachi, Yakkabagtex. JV Cotton Road manufactures 920 tons of yarn, 5.0 million pieces of knitwear annually, and Oqsaroy-Tukimachi produces 4800 tons of yarn, 2000 tons of knitwear and JV Yakkabagtex produces 3000 tons of yarn annually. Bulk of the products is export-oriented

3.5. Transport infrastructure

In ancient times the Great Silk Road passed through the territory of current KashkadaryaProvince.

In Kashkadarya the traffic accomplishing by railway, automobile and aviation mode of transport.

Throughout the territory of the province passes railway communication which connect Tadjikistan, Turkmenistan and Surkhandarya province of Uzbekistan with neighbor and distant countries. There is a modern railway station in Qarshi city, from where the trains go to many counties of the world. The extension of railways is 3801 kilometers.

For the economic development of the province the important role play the promotion of its export potential the construction of railway Toshguzar- Boysun Kumurgan with the general extension of 223 kilometers  from which passes  106,2 km throw the territory of the province.

With the commissioning of this railway in August 2007, the province began to serve as a main transit for cargo to Surkhandarya Province, Tajikistan and Afghanistan and back. It also allows to develop the south-eastern regions of the province which are rich for mineral resources.

Highways, including those of international and regional importance, total length of which is about 30,000 km, are also of high importance in the provinces economy.

Provinces pipeline of 2106 km total length is used for the needs of oil and gas industry. Major highways are Karakitay Karshi, Shurtan - Mubarak, Shurtan - Bukhara - Gazli - Tashkent.

Regular flights to Tashkent and other cities of the republic and CIS countries operate from the airports of Karshi and Shakhrisabz.

3.6. Social infrastructure and recreation services

Kashkadarya province has 1117 comprehensive schools, 7 academic lyceums, 130 colleges and 3 high educational institutions which produce qualified cadres. 121 Palace of Cultures, 4 theatres, 6 culture and recreation parks, 102 hospitals, and there are sanatoriums, vacation houses operate in Province.

Special attention pays for improvement knowledge and raise culture of population. Especially, the information resource center, 160 culture institutions function in the province.

The special attention pays for development of physical culture and sport. There are 20 stadiums, 815 sports halls, 7 swimming pools, 4781 sport grounds, where more than 666,1 thsd. people go in for sports per a day and other sport institutions.

Currently in the province operates:

- in Kitab 3 sanatorium, 4 child health-improving camps;

- in Shakhrisabz 1 rest home, 7 child health-improving camps;

- in Yakkabag 9 child health-improving camps.

Within Kashkadarya province independent tourist trips are possible: pedestrian, water, cycling, automobile, motorbike.

The popular international tourist objects besides monuments of Shakhrisabz, is Sultan Mir Khaydar - the architectural complex of ancient mausoleum and mosque in the village Kasbi.

About 15 historical monuments of XV - XVI centuries are preserved in the administrative center of the area - the city of Karshi.

The second largest city in the province - Shakhrisabz is world renown for being the birthplace of Amir Temur. The Great Silk Road passed through the city. The architectural monuments built by Amir Temur and his grandson Ulughbek attract the attention of tourists.

In addition, Shakhrisabz is one of the oldest centers of crafts. Gold-woven skullcap embroidered here won gold medals in international exhibitions in Canada, Turkey and Japan. Copper, earthenware made with great skill were the winners of many exhibitions.

In the foothills of Kashkadarya Kitab, Shakhrisabz, Yakkabag, Dekhkanabad, Chirakchi, Kamashi, natural conditions and a favorable climate allow to develop eco-tourism, there are health centers, sanatoriums and rest homes there.

4. Foreign investments in the region

In 2010 the province attracted USD 304.6 million of FDI for implementation of 54 projects in such sectors as oil and gas, agriculture, light industry, services and other industries.

In KashkadaryaProvince there are about 46 enterprises with foreign capital established with participation of investors from China, USA, Iran, Afghanistan, Pakistan, Turkey, Lithuania, Russia, Syria, etc.

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 Kashkadarya 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.

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO