Investment opportunities / By Province

Syrdaryo province

1. Geographical location. Territory, climate

Syrdyarya province is located in center of Uzbekistan, on the left bank of Syrdarya, one of the longest rivers in the Central Asia, its length through the province is 94 km. The territory of province is 4,3 thousand square kilometers or 0,9% of the total territory of republic. The landscape of the province is characterized by presence of flat zones.

Syrdarya province borders with the Republic of Kazakhstan in the north, with Tashkent province in the east, with the Republic of Tajikistan in the southeast, with Djizzak province in the southwest. The capital city is Gulistan, which in Persian means the Flowering garden. Gulistan is a subject of pride for the city residents as well as for the entire population of independent Uzbekistan: the city is located in the center of Uzbek virgin lands Former Golodnaya Step (famine steppe) and it has become a beautiful green blossoming oasis during the years of national independence. 

Syrdarya region was established on February 16, 1963. The province consists of 8 districts: Aqaltyn, Havast, Bayaut, Mehnatabad, Mirzaabad, Sayhunabad, Syrdarya, Sharaf Rashidov and 5 cities Baht, Gulistan, Syrdarya, Shirin, Yangier, as well as 5 settlements and 75 villages. Administrative center is Gulistan city, which 118 kilometers away from Tashkent.   

Climate of the region is sharply continental, arid and low-cloudy. Average annual temperature equal to 13-15 degrees above zero (C), peak temperature reaches to 45-47 degrees.   

2. Social-economic development

Syrdarya region is one of the dynamically developing agrarian-industrial provinces of Uzbekistan at average annual increase of regional GDP by 5%. Within 2000-2010 total growth of regional GDP made up 162.7%. On the outcomes of 2010 Gross regional product (GRP) reached 1008.3 billion som. 

Investments to main capital are increased, that prove forming basic funds of enterprises, placing new process lines and social facilities into operation. So, investments to main capital increased by six times within 2005-2010.

Economic growth of Syrdarya region simultaneously has been provided by development of building sector. Total volume of constructed facilities in production and social spheres were increased by over 3.5 times for past years. 

Particular attention is driven to modernization and implementation of new projects in the field of infrastructure, building of motorway and railroads, high-voltage lines and other communications. 

Taking into view the fact, that Syrdarya region is largest power supplier, within the framework of implementation of the program of most significant investment projects in Uzbekistan construction of overhead transmission line at capacity of 500 kilowatt from Syrdarya thermo-power station to Sogdiana electric substation with 218 kilometer length (II circuit) and reconstruction of overhead transmission line at capacity of 500 kilowatt from Syrdarya thermo-power station to Tashkent electric substation with 69.4 kilometer length has been carried out and building of Sayilgoh overhead transmission line at capacity of 110 kilowatt and transformer capacity of 126 thousand kilowatt-ampere and two-cicuit cable power transmission line at capacity of 110 kolowatt and with 6.3 kilometer length.       

2.1. Population

Syrdarya province was formed on February 16th, 1963. The region consists of 8 districts: Akaltynsky, Bayautsky, Gulistan, Mirzaabadsky, Sayhunabadsky, Syrdarya, Sardobinsky, Khavast, of 3 cities of provinciall subordination: Gulistan, Shirin Yangiyer, 2 cities of district subordination: Bakht, Syr, 5 villages and 284 towns. The administrativecentre is Gulistan city, located in 118 kilometers from Tashkent.

The population of Syrdarya province is 725.7 thousand people.

2.1. Development of agrarian sector

Particular attention is focused to agricultural sphere, share of which in regions GDP made up 60%. Cotton, grain, gardening and wine-growing, milk and meat products are groundwork of agrarian sector.

 

 

 

2.3. Mineral and raw materials potential

There are scanty reserves of natural and raw materials resources, which in general ensure the potential of building materials development, including:

- brick and tile stuff, reserves of which in Bayaut and Gulistan districts as well as Dmitrovskoe deposit makes up 9.2 million cubic meters. Reserves of Bayaut, explored in 1970 and at 3 kilometers distance to north from Bayaut settlement on Sultonnauz lakeside makes up 1.75 million cubic meters. Reserves of Dmitrovskoe deposit, explored in 1983 and at 3 kilometers distance to north-west from Shirin town, makes up 4.7 million cubic meters. Reserves of Bayaut deposit, explored in 1985 and at 23 kilometers distance to south-east from Gulistan city make up 2.7 million cubic meters.        

- sand-gravel materials are available in Verhnovolinsk deposit of Sayhunabad district of region. Deposit has been explored in 1987 and at 32 kilometers distance from south-east from Baht railroad station Syrdarya high-water bed. Reservesmake up 5.5 million cubic meters. The sand can be used as fine aggregate at concrete production.   

- mineral groundwater available in Malek deposit of Syrdarya district at 5 kilometers distance southward of Syrdarya town. Reserves on Malek field were approved by Uzbekgidrogeologiya scientific and technological center at the amount of 193.54 cubic meters per day and on Syrdarya field - 3.15 cubic meters per day.

2.4. Industrial potential

The main sectors of industry are power-engineering (53.6%), light industry (26.4%), food industry (11.7%), flour-and-cereals and feed mill industry (4.3%), building materials industry (26.4%).

For the past period intensive development of aforesaid fields enabled stable growth of industrial sector at average annual growth rate by 7%. 

 

 

Trends of industrial sector increase, %

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

106.7

101.3

122.4

98.9

103.8

103.7

113.8

105.1

105.1

109.3

111.6

Significant role on economic development of region played by small-scale business, which to enhance own position year by year contributing to strength industrial and agricultural sectors. To 2010, number of small-scale enterprises and micro-firms in the territory of Syrdarya region exceeded 16.7 thousand. On the outcomes of 2010 the share of small-scale and medium business companies on regions GRP reached to 77.4%.     

Small-scale business and private entrepreneurship hold not only essential position in regions economics, but also serving as main source of providing domestic market with necessary goods and services, increasing incomes and welfare, as well as employment.   

Share of small-scale business in total volume of industrial production of the region makes up 20.4%, consumer goods 48.4%, building 64.9%, retail turnover 50.1%, paid services 23.1%. 

Syrdarya thermo-power station is largest electric station in Central Asia. Stations installed capacity is 3.000 megawatt. Annual volume of electric power delivery to Uzbek united power grid makes up 32% out of total volume of power energy, produced in the country. There is also Farhad hydro-power station on SyrdaryaRiver, with capacity of 126 megawatt nearby Shirin town.

Textile industry. Syrdarya region is a large base of production of raw materials for textile industry.

As a result of processing of cultivated cotton-wool over 75.0 thousand ton of cotton yarn has bee manufacturing at the regions cotton-cleaning plants. Now, due to available raw materials potential about 50 textile factories are operating in province, including, those which established with contribution of investors from Turkey, UAE, Great Britain and etc.  

Silk industry. Development of silkworm breeding, which rapidly carried out for past period in our country is already giving its incomes.

To date over 80% of total volume of cocoon, manufacturing around Central Asia falls to Uzbekistans lot, where sericulture has been practiced from the earliest times.  This is sure result of reforms, carried out from the point of view of Presidential resolution On measures of further reform of silk sector of the country.   

Over 20 thousand cocoons are produced in Uzbekistan per year.

Simultaneously with development of raw materials base of silkworm breeding stuff resources in the country the program of modernization of manufacture on producing filoselle and silks by attraction of foreign investments has been implementing. 

Altogether, there are 14 large filatures and 6 silk-weaving mills of various property forms.

Within the next few years new high-end manufactures are projected to introduction in Syrdarya region too. Its necessary to note, that available silkworm breeding farms of Bayaut, Aqaltyn and Sardoba districts are producing more than 500 ton of cocoons per year.    

Processing of fruit and vegetable products. Uzbek fruit and vegetable sector to actively develop due to structured reforms and increase of farms. 

Uzbekistan has substantial agricultural resource potential and able to manufacture over 10 million ton of fruit and vegetable goods per year. At the present-time more than 1.7 million ton of gardening and wine-growing products, about 5 million ton of vegetables, melons and gourds, as well as potatoes are produced per year in the country. Fruit and vegetable, manufactured has unexcelled flavoring qualities. Since olden times Uzbekistan was renowned in foreign markets for its grapes, apples, peaches, pears, cherries, plums, quinces, water-melons and melons. Such subtropical crops as fig, pomegranate and persimmon are also growing in Uzbekistan.       

Countrys fruit and vegetable potential is much exceeding current indicators. In this regard it is necessary to organize deep processing of grown fruit and vegetable products by manufacture compatible in foreign markets kinds of goods, for instance such as juices, jams, quick-frozen, sublimated and other dry fruits.      

Syrdarya region is a largest resource for manufacture raw materials, which are used in fruit and vegetable processing industry.

More than 154.6 thousand ton of vegetables, 187 thousand ton of melon and gourds, 17 thousand ton of fruits, 7 thousand ton of grapes and 24.6 thousand ton of potatoes have been growing in region. 

Meat and milki ndustry.For the purpose of development of meat and milk industry the address program on establishment of new and modernization of existed enterprises, which are producing meat and milk, as well as agricultural products has been designed and approved.

At that, on the whole on program within 2011-2012 launching of 223 new enterprises, which manufacturing meat and milk products, at total amount of over 29.0 million USD are planned. In particular, implementing of 8 projects worth 2.2 million USD projected in Syrdarya region. Among them - 3 projects meat process, production capacity of which will make up 1.2 thousand ton per year and 5 projects on milk process with capacity of 3.7 thousand ton per year.       

According to Resolution by the President of the Republic of Uzbekistan number of tax remissions and customs facilities were granted meat and milk producers up January 1, 2012. Particularly, importation of technological outfits, their spare parts, auxiliary materials, ingredients, components, used at production and processing of meat and milk, non-produced in country exempted from customs fees.       

Volume and forecast of meat and milk production in Syrdarya region for 2009-2015 (thousand ton)

Product name

2009
(in fact)

2010

2011

2012

2013

2014

2015

Meat

22.6

24.7

26.1

28.6

30.2

28.6

34.3

Milk

187.5

195.9

210.0

220.0

230.0

220.0

263.4

Pharmaceutical industry. Pharmaceutical industry is among promising directions in Uzbek market for foreign investors and priority significance attached and all possible government support given to this sphere.  

Uzbekistan has rich local raw materials resources, scientific and technical potential, high-qualified personnel and large scientific source. Efficient use of scientific and technical potential of profile scientific organizations on the groundwork of inter-sectoral cooperation and integration enables to create conditions for science intensive and high-end pharmaceutical production growth.      

Uzbek pharmaceutical market capacity amounted to about 500 million USD and defines by sufficiently high growth rates. On the stipulation that  domestic demand will be grow by 10-15% per year, the volume of market reach to about 1 billion USD in 10 years in comparable with current conditions prices, or exceed three times more.   

Paper-carton manufacture. Need for paper and carton goods in Uzbekistan makes up 114 thousand ton and for cellulose 36 thousand ton. Local printing market use 110 thousand ton of printing and offset paper per year. Share of Uzbek paper industry outputs makes up just 10-12% now and rest of paper importing mainly from Russia.   

Tanning industry. Uzbek tanning industry to develop dynamically. On the whole, within 2009-2010 modernization has been conducted on 23 mills of Uzbekcharmpoyabzali Association, including on 10 footwear, 10 tanning and 3 ltanning and fancy factories.    

Exportation of leather goods is developing due to taken measures. So, in 2009 the sector exported leather goods worth 6 million USD and in 2010 worth about 12 million USD. According to forecasts by experts, the sector is planning to export leather stuff worth 14.2 million USD in 2011.     

The main consumers of the leather goods are footwear producers of India, China, Turkey and Pakistan.

Taking countrys raw materials source into view, need for primary processing has been satisfied. About 9 million pieces of skin gathered per year and nearly 30-40% of them are worked up at the mills of the country and as planned whole raw materials will be processed in local factories up to 2013.   

It is necessary to note, that despite to dynamic development, the tanning sector along with primary leather stuff processing has a great potential for further attraction of investments to set manufactures of finishing leather commodities produce.   

Wool processing. Another direction of the light industry development is wool manufacture. Annual capacity of wool producing in Syrdarya region reached to 200.0 thousand ton in 2009.  Practically whole volume of manufactured stuff has been removing beyond the region. Establishment of mills on wool processing, worsted manufacture, producing carpets and thick woolen cloth are priority directions for attraction of investments to Syrdarya region.

Volume and forecast of wool production in Syrdarya region for 2009-2015 (thousand ton)

Product name

2009
(in fact)

2010 (forecast)

2011

2012

2013

2014

2015

Wool

200.0

210.0

220.0

225.0

230.0

225.0

250.0

Building materials manufacture. Building materials production sector has been dynamically developing. It is necessary to note, that Uzbekistans need for ceramic tile makes up about 10 million square meters up to current time and 95% of this requirement covered owing to importation. Taking into view current need in domestic market and potential of neighboring countries market, as well as availability of high-qualified manpower and other factors of manufacture in Uzbekistan the investment to this sector is attractive. By now along with Chinese partners Russian and Iranian investors are showing interest in very sector.     

Raw materials source for building materials production

Field of application in manufacture

Raw materials

Deposits with volume of reserves

Manufacture of facing ceramic brick

loams

Bayaut deposit

volume of reserves - 7820 thousand ton

Manufacture of sand-gravel building materials

 

sand-gravel materials

VerkhnovolinskandYangiabaddeposits

Volume of reserves 6676 thousand cubic meters

Manufacture of brick and tail

Brick and tail stuff

Dmitrovskoe, Ursatevskoe, Bayaut and Gulistan deposits

Volume of reserve 13363 thousand cubic meters

Other significant directions are manufacture of roofing, wall and other facing materials.

2.5. Transportation and communication

The transport infrastructure of area is presented by a sophisticated network of rail and automobile roads. The general length of railways is 400 km, and highways with firm covering nearly 2 thousand km. Provinces territory is crossed by the main highway - Big Uzbek Track. All large enterprises have railway access roads. Intraregional transport communications have exits to neighboring states and through them - exits to large seaports.

Motor transportation and railway highways connecting area with all areas of Uzbekistan pass through the city of Gulistan. Buses, minibuses and taxi render transport services to the population.

 2.6. Social infrustructure

For residents and visitors Syrdarya region offer their services to theaters, parks, recreation, sports complexes, museums, cultural centers and libraries.

There are working 304 comprehensive schools, 4 academic lyceums, 48 vocational colleges and 1 high educational institution in Syrdarya region.   

Here also number of health-protective institutions, in particular 41 hospitals, 222 ambulance stations and out-patients' clinics.   

3.Investment potential

3.1. Foreign investments in the region

Foreign investments at the total amount of 22.4 million USD have been attracted to Syrdarya region in 2009 and in 2010 this indicator reached to 23.7 million USD. 

 

 

 

3.2. Enterprises with contribution of foreign investments

At the present-time following enterprises, established with contribution of foreign investments are operating in Syrdarya region:

Ursa-Minor JV, that established with contribution of the Turkish partners. Total investment volume - 1.6 million USD. Daily capacity of processing and drying of fruits makes up 30 tons. The main part of production isexported.  

JMP International JV, that established with contribution of Canadian and British partners and oriented to produce fruit juices. Here processing 24 ton of fruit sauce for an hour. Three kinds of finished goods are manufactured. Thevolumeofinvestmentmakesupabout 5 millionUSD.

 Inter milk LLC cattle-breeding complex that established within Haqiqat water consumers association in Syrdarya district meant for keeping of 1000 heads of cattle. The investment volume makes up 5 million USD.  

JMP International JV that established with contribution of Canadian and British partners is going to put milk-processing shop into operation.

Novopharma Plus, Universal-Pharma and Pharm GlassJVs are producing wide range of injection and infusion solutions, medications in the form of dry powdered antibiotics and pills, bandaging materials, medical glassware and ampoules.

Uzbek-Russian-British Reka Med Pharm JV on producing solutions of glucose (5 and 10%) and sodium chloride (0.9%) in scent-bottles with capacity of 200 and 400 ml. Plants productive capacity makes up 10.5 million scent-bottles per year. Issues of further enhancement of mill are considering.     

Uzbek-Chinese Asl qogoz JV on manufacturing paper out of agricultural production wastes as cotton-plant stalk and wheat straw. Worth of whole project estimated of 21 million USD, 4 million USD of which are direct investments.   

Uzbek-Chinese Peng Sheng JV worth 26 million USD. Productive capacity of new manufacture makes up 4 million square meters of ceramic tiles per year. On September, 2010 the new integrated production complex on producing tanning and footwear goods has been put into operation on the ground of Peng Sheng company.  On established production facilities of Syrdarya region since on achieving production capacity in 2011-2012 is planned to process 600 thousand pieces of cattle skin, produce 400 thousand pairs of shoes. The new company is going to export at least 70% of its goods. 

MFERITMEDEF InternationalInternational Business CenterGov.uzPress ServiceOliy MajlisUzASARIO