Investment Guide for Namangan Region

Namangan province is located in north-eastern part of Ferghana valley. The province borders with Ferghana province in the south, with Andijan province in the south-east, with Tashkent province of Uzbekistan in the west; state border with Kyrgyzstan and Tajikistan passes in the north.

Area of the province constitutes 7.9 thousand square kilometers. Population is more than 2 million people.

The province includes following 11 administrative districts: Kasansay, Mingbulak, Namangan, Norin, Pap, Turakurgan, Uychi, Uchkurgan, Chartak, Chust, Yangikurgan districts and following 8 cities: Namangan, Kasansay, Pap, Turakurgan, Uchkurgan, Chartak, Chust, Hakulabad; there are also 12 urban-type villages and around hundred villages. Namangan city is the administrative center of the province.

The terrain relief of the province is diverse. To the north of Chatkal Mountain Ridge its spurs stretch merging with the adyrs and planes. Climatic conditions of the western and eastern parts of the province significantly vary.

There is a mild climate in the eastern part of the province surrounded with mountain ridges. Precipitation level is up to 600 mm, this creates favorable conditions for development of dry land farming. The western part has significantly lesser precipitations, fewer rivers and mountainous and hilly lands are of a little use for farming.

Part of the lands in Syrdarya river high-water bed in the south of the province is boggy. At present time, the swamps are being drained and transferred into fertile fields.

As of January 1, 2008, the population of the province consists of 2 172.7 thousand people; the rural population constitutes around 62 %, and the urban population - 38%. Most densely populated districts of the province are Chust, Uychi, Namangan, Pap, Turakurgan and Yangikurgan.

The size of able - bodied population constitutes 1 199.8 thousand people or 55.2% of total population including 725.2 thousand employees or 60.4% of total able - bodied population.

The Uzbeks are predominant population of the province. The Tajiks, Russians and representatives of other nationalities inhabites as well. The province ranks the first place in population natality. In this connection, there is a constant growth of the able - bodied population

As in the whole of Ferghana valey  irrigated farming is predominantly developed in Namangan province. A lot of irrigational facilities such as North-Ferghana, Chust and Chartak canals as well as Urtatukay Water-Storage Reservoir (on Kasansay River) have been constructed.

Development of irrigation assisted in expansion of areas of irrigated lands and improvement of their reclamation conditions. There are more irrigated lands on the planes and elevations of the eastern part of the province than in the western one.
Agricultural product output amounted to 618.1 billion soums (more than 470 million US dollars excluding purchasing power parity) in 2007; which includes 331.6 billion soums of industrial products (or around 225 million US dollars), 184.1 billion soums of consumer goods (about 140 million US dollars).
Main sectors in agricultural production are growing of raw cotton, grain crops, fruit and vegetable products as well as manufacture of livestock products. Growth of agricultural production in 2007 amounted to 109.4% as compared to 2006.

460 thousand tons of grain, 100 thousand tons of potatoes, 330 thousand tons of vegetables, 100 thousand tons of fruits, 60 thousand tons of grapes are being grown on average in the province annually. 17% of vegetables, 38% of fruits and 53% of grapes of total volume of vegetables, fruits and grapes grown in the province are processed.

In Namangan province, there are more than 40 prospected fields of minerals and raw materials deposits. Main mineral resources are concentrated in foothills areas of Pap and Chust districts. Thus, there are basalts and diabases fields in Gava foothills (Chust district). Expected reserves constitute 6.7 million cubic meters.

There are fields of carbonate rocks of travertine-type limestone in Galaba (Chyust district) and Charkesar (Pap district) opencast mines which economic reserves constitute 7 613 thousand cubic meters

In the Chadak (Pap district) ore field of the Guzak Pirmirab deposit, there are silver and gold minerals which reserves constitute 25 tons.

In Mingbulak district, there are oil fields expected reserves of which constitute 173.2 million tons.

All the districts have mineral water deposits operating reserves of which amount to 4.5 thousand cubic meters per day.

There are  significant deposits of loess-type rocks of loamy soils almost in all districts used for production of construction bricks and other building materials.

Industrial production is predominant with textile, food, processing, machinery building and building materials industries. According to results of 2007, growth of industrial production amounted to 107.5%.

 A number of enterprises carry on their activities. Among them  “Namanganmash” OJSS (pipeline armature, bolts), “Namangan Textile” (textile products), “Uzelectroterm” JSS (transformers, heating systems), “Arafa” company LTD. (tomato paste), “Uychi Yigiruv Tukuv” JSS (cotton fibre) and others.

“Namanganmash” OJSS one of the biggest producers of bolted pipeline armature made of carbon steel and titan floats. More than 15 types of products are manufactured for power energy, mining, metallurgy, chemical, oil and gas sectors of economy as well as for building materials industry. Bolts and bolted valves, assembly line rollers are produced from steel, cast iron and furrow metals. The products of enterprise are of international standarts.

According to results of 2007, external trade turnover of the province amounted to 148.7 million US dollars and grew by 10.1% as compared with 2006. Balance surplus constituted 61.4 million US dollars. Exports increased by 9.1%, and imports increased by 12.6% as compared with 2006.

Export growth was achieved due to growth of supplies of cotton fiber, products of textile industry, machinery and equipment, products of food and processing industries

The import structure has predominance of following articles: machinery and equipment (32.1%), chemical products (22%), foodstuff products (17.7%).
Share of enterprises with foreign investments in external trade turnover of the province in 2007 amounted to 23.7%.

Total length of automobile roads is more than 3 thousand km. Main automobile roads connect Namangan with district centers. Tashkent-Kokand main automobile road connecting Ferghana valley with Tashkent province via Kamchik Passway trespasses the south-west of the province.

Total length of railways equals to 144.6 km. Kokand-Namangan-Uchkurgan-Andijan railway trespasses Namangan province.

Tashkent-Namangan-Andijan air route passes through the province. There is an airport with capacity of 200 passengers per hour in Namangan

Regular flights connect Namangan with capital Tashkent and a number of cities of Russian Federation.

There are about 680 secondary schools, 400 libraries, a natural history museum, a drama and comedy theater in Namangan city as well as 250 clubs In the province.

There are about 100 hospitals, sanatoriums and recreational houses

On the southern slope of the Chatkal Ridge a tourist path leading to splendid places such as upper mountain stream of Padshaata, Kapchagay Gorge, mountain lakes with crystal-clear water and alpine meadows begins. Here at altitude of 1925 m, Sary-Chelyak Reserve is located. Owing to its incomparable beauty these places are often called “Asian Alps”.

There is the Chartak resort with mineral waters which is recommended for treatment of digestive tract and osseous tissue diseases.

Among main sightseeings of the province, it is to mention Khaji Amin mausoleum, Mulla Kiriz Madrasah in Namangan city, Kok Saray palace on the southern slope of Chatkal Ridge in Nanay village.

In 2007 10.4 million US dollars of foreign investments and loans were attracted to the province.

Foreign investments in the Republic of Uzbekistan enjoy the national treatment which provides foreign investors with conditions not less favorable, than corresponding conditions for investments, made by legal entities and natural persons of the Republic of Uzbekistan

Moreover, enterprises with foreign direct investments located in rural residential areas of Namangan province (with the volume of investments of USD 300,000 and more) are exempted from single tax payment, income (profit) tax, property tax, infrastructure development tax, road tax.

To be eligible for this privilege the investor's share in the capital fund must be at least 50%, the investment must be made in hard currency or new modern equipment, tax savings re-invested, no governmental guarantee and the investments should be made in the following industries:

1)electronics and computer parts production,
2) light industry,
3) silk industry,
4) construction materials,
5) industrial production of poultry and eggs,
6) food industry,
7) production of meat and dairy products, cheese and meat fat,
8) chemical and pharmaceutical production.
   The period of tax incentives provided is based on the actual amount invested:
     - from USD 300,000 - exempt for three years;
     - from USD 300,000 to 3 million - exempt for five years;
     - more than USD 10 million - exempt for seven years

At present there are 54 enterprises with foreign investments created with the help of foreign investors from 23 countries of the world. 48 enterprises carry on their activities in the sphere of industry, 2 – in the sphere of transport services and communication, 2 – in the sphere of construction and 1 – in the sphere of trade.

In 2007 10 new enterprises with foreign investment have been created in the production of cotton fiber, textile products, towels, recycling of silk cocoons, in production of chicken meat and in production of building materials in the prov

Uzbek–Swiss JV “Nestle – Uzbekistan” with total cost of more than 30 mln. US dollars started to operate in February 2002. Join venture produces long term preserved milk, yogurt and other dairy products. Moreover, a technological line on production of drinking water with total project capacity of 22 mln. litres per year had been put into operation.

One of the biggest enterprises in the province is “Namangantextile”. The manufacturing premises of the enterprise are located on the area of 55 hectares. South-Korean Company “Hain Tex Co.Ltd” has bought the property complex of the enterprise in 2007. At present foreign company plans to invest 34 mln. USD into modernization of the enterprise and increase of the manufacturing capacities more than 4,5 times.

Uzbek-Russian JV “Toshbulok-TEKS” (production of the cotton fiber), “Golden Silk” - Subsidiary of the Vietnamese enterprise Asia Silk (cocoon processing) and Turkish enterprise “Mega textile” (cotton fiber production) also operate in the province.

Uzbek-American JV “Mushtariy International Ltd.” specializing on production of men’s shirts was put into operation on the base of the same-named joint stock company in 2007. Total sum of investments made by American Company “Impro Invest LLC” will made up 450 thousands USD.

Moreover, following enterprises operate in the province:
- Uzbek-Russian JV “Barkas Teks” (double-tyed towels);
- Turkish foreign enterprise “MRT textile” (cotton fiber);
- Uzbek-Chinese JV “Helil Silk” (silk production);
- Uzbek-American JV “Chust Golden Fruit Ltd.” (fruits and vegetables);
- Uzbek-German JV “Orom Chicken and Eggs” (poultry);
- Uzbek-Luxembourg JV “Saydana” (medical services).
 

The projects in textile, silk, electro technical and other industries are proposed for implementation with attraction of foreign investments.

TEXTILE INDUSTRY

1. Auction sale of the property complex of Uychi ip yigiruv tukuv OAO (production of cotton yarn and grey fabrics)

• Legal Address        -        Namangan Province, Uychi
• Business Object     -        Production of yarn and grey fabrics
• Capacity                -        3,2 kg/h
• Area of land plot     -        8,33 ha
• Area of buildings and facilities  -  2,9 ha
• Availability             -        of production infrastructure       - 100 %,  -    of labour resources    - 100 %
• Equipment        -      Made in Russia
• Conditions of sale     -        complex
• Assessed value     -    USD 2 105 200

TEXTILE INDUSTRY

2. Organization of production of 3647 metric tons of cotton yarn on the basis of Uychi yigiruv tukuv Joint-Stock Company

I. Information of Investment Project Initiator 

Brief Information of the Company       

Production volume:                                     

Infrastructure and other conditions:

 Financial position of the Company:           million Soums

II. Description of the Investment Project 

Investment requirements

• Project cost   

• Requirement of investment

• Form of financing

• Contribution of participation share of initiating enterprise

• Contribution of participation share of attracted investor

Proposed sources of funding

Utilization of investments 

 Anticipated financial results of implementation of the Project        million Soums

  Payback of the Project  (in months)  

Stage of preparation of design and cost              
Estimate on documentation for the
Project 

TEXTILE INDUSTRY

3. Auction sale of the property complex of Iskovutteks JV (production of cotton yarn)

• Legal Address                 -        Namangan Province, Pap District
• Business Object               -        production of cotton yarn
• Area of land plot              -        3,6 ha
• Area of buildings and facilities  - 2 ha
• Availability                       -        of production infrastructure       - 100 %, of labour resources         - 100 %
• Conditions of sale  -        Complex
• Assessed value                -        USD 6 980 000

TEXTILE INDUSTRY

4. Auction sale of the property complex of SAP Kosonsoy Textile (production of Turkish towels)

• Legal Address                 -        Namangan Province, Kasansay District
• Business Object               -        production of Turkish towels
• Capacity                         -        3,5 m/h
• Area of land plot              -        9,33 ha
• Area of buildings and facilities  - 4,1 ha
• Availability                       -        of production infrastructure- 100 %, of labour resources    -   100 %
• Equipment                       -        made in Russia
• Conditions of sale            -        Complex
• Assessed value                -        USD 3 698 700

 GARMENT INDUSTRY

5. Organization of production of knitted goods in the basis of Choshgoh LLC
 
1. Information of the initiating enterprise:

2. Authorized Capital and Founders of the company:

3. Product: 

4. Subject matter of proposed project:
Organization of production of towels
5. Techno-economical parameters of the Project: 

6. Provision of the projected production with feedstock resources: 

7. Finished product sale markets:

8. Available infrastructure and availability of business plan:

 GARMENT INDUSTRY

6. Organization of production of 821 thousand men’s shirts on the basis of Tehnologiyalar markazi-Namangan LLC
  
1. Information of the initiating enterprise:

2. Authorized Capital and Founders of the company:

3. Subject matter of proposed project:
 Organization of production of 821 thousand men’s shirts
4. Techno-economical parameters of the Project: 

5. Provision of the projected production with feedstock resources: 

6. Finished product sale markets:

7. Available infrastructure and availability of business plan:

SILK INDUSTRY

7. Auction sale of the property complex of Atlas Joint-Stock Company (production of raw silk, silk fabrics)

• Legal Address                 -        Namangan Province, Namangan city
• Business Object               -        Production of silk, silk fabrics
• Capacity                        -        3000 thousand linear m per annum
• Area of land plot              -        30,3 ha
• Area of buildings and facilities - 12,3 ha
• Availability                       -        of production infrastructure- 100 %, of labour resources     -  100 %
• Equipment                      -         made in Russia, Czechia, Korea, Japan, Uzbekistan
• Conditions of sale  -        Complex
• Assessed value                -       USD 6 010 800

SILK INDUSTRY

8. Auction sale of the property complex of Silk Road JV (treatment of silk waste)

• Legal Address                 -        Namangan Province, Namangan city
• Business Object               -        Processing of silk and cocoon waste
• Area of land plot    -        7,2 ha
• Area of buildings and facilities   -         7,2 ha
• Availability                       -        of production infrastructure       - 100 %, of labour resources     -  100 %
• Conditions of sale            -        Complex
• Assessed value                -        evaluation is in progress

 TANNING INDUSTRY

9. Auction sale of the property complex of Kasmir-deri JV (processing of leather and production of leather goods)

• Legal Address        -        Namangan Province, Kasansay District
• Business Object     -        processing of leather and production of leather goods
• Area of land plot     -        2,02 ha
• Area of buildings and facilities  - 2 160 sq.m
• Availability             -        of production infrastructure- 100 %, of labour resources   - 100 %
• Equipment             -        made in 1994 in Turkey and Germany
• Status                  -         transferred to balance sheet of the National Bank of Uzbekistan
• Conditions of sale - Complex
• Assessed value      -        USD 991 400

 TANNING INDUSTRY

10. Auction sale of the property complex of Kosonsoy tekmen JV (processing of wool and production of woolen goods)  

• Legal Address        -        Namangan Province, Kasansay District
• Business Object     - processing of wool and production of woolen goods
• Capacity                -   3 400 MT per annum
• Area of land plot     -  27,8 ha
• Area of buildings and facilities   -  3 ha
• Availability             - of production infrastructure - 100 %, of labour resources     -  100 %
• Equipment    -   made in Germany. Italy, Switzerland, Turkey. Wear – 40%
• Conditions of sale   -  Complex
• Assessed value      - evaluation is in progress

FRUIT AND VEGETABLE PRODUCTS PROCESSING

11. Auction sale of the property complex of Yanes-JV (wine production)

• Legal Address        -        Namangan Province, Yangikurgan District
• Business Object     -        Wine production
• Capacity                -        32 thousand dall per annum
• Area of land plot     -        5,5 ha
• Area of buildings and facilities   -         0,3 ha
• Availability             -        of production infrastructure - 100 %, of labour resources   -  100 %
• Equipment             -        made in Spain (Revinsa), wear – 18,7%
• Conditions of sale   -        Complex
• Assessed value      -        USD 2 366 100

ELECTROTECHNICAL INDUSTRY

12. Sale of 58.71% of UzElectrotherm JSC shares

Investment commitments: as per decision of State Tender Commission

1. Major Company information

2. Securities issue and placement information

3. Financial information  (ml soums)

4. Information on sale of shares

Uzbek Research/Production Amalgamation Eletrotherm was established in 1963 by merging the electrotechnical and transformer factories. It manufactured a electrothermal equipment broadly ranging from industrial  to household use: tubular electric heaters, electrical furnace step-down transformers, capacities ranging from 10 to 160 kWt, electrical heat exchanger heaters, production process electrical heaters, electrical immersion water heaters, electrical hot plates. In 1994, the amalgamation was transformed into UzEletrotherm OJSC.
It is situated in the city of Namangan 500 m from the railway. A highway runs near the plant. The plant has warehouses, storage area is 1.34 ha.
The plant has various types of production equipment: metal-cutting, metal-working, forging/press, galvanizing, etc. It is connected to utilities: water, power, gas supply and sewer systems.
 

6. Long-term development plans of Company

 ELECTROTECHNICAL INDUSTRY

13. Establishment of a JV on the basis of UzElectrotherm JSC for manufacture of 120,000 tubular electric heaters a year.
 
1. The initiating company data:

2. Value of fixed assets:

3. Subject of the offered project:
Establishment of a JV for manufacture of 120,000 electric tubular heaters a year
4. Technical/economic parameters of the project: 

5. Material supplies of the planned operation: 

6. Finished product sale market:
Domestic market
7. Available utilities connections and business plan:

 MANUFACTURE OF CONSTRUCTION MATERIALS

14. Auction sale of property complex Roll Roofing Material OJSC (Manufacture of roll roofing materials)

• Legal address:       City of Pap, Namangan Province
• Type of business: manufacture of roll roofing materials
• Land plot area:        64.2 ha
• Area of buildings and structures: 33.6 ha
• Facilities utilities and labor force: on-site utilities: 100% available, labor force: 100% available
• Sale terms: the whole complex
• Assessed value: US$ 4,959,700

MANUFACTURE OF CONSUMER GOODS

 15. Auction sale of property complex NamBum(Namangan Paper JV (Manufacture of standard copying paper)  

• Legal address: Namangan city, Namangan Province
• Type of business: Manufacture of standard copying paper
• Land plot area:        1.65 ha
• Area of buildings and structures: 4,060 sq m
• Facilities utilities and labor force: on-site utilities: 100% available,labor force: 100% available
• Status: owned by the National Bank of Republic of Uzbekistan for Foreign Economic Activity
• Sale terms: the whole complex
• Assessed value: US$ 2,366,100

 MANUFACTURE OF CONSUMER GOODS

16. Auction sale of property complex Namanganshina JV (manufacture of tires)

• Legal address: Pap District, Namangan Province
• Type of business: Manufacture of tires
• Facilities utilities and labor force: on-site utilities: 100% available, labor force: 100% available
• Status: owned by Pakhta Bank
• Terms of sale: by parts
• Assessed values: US$ 139,100

1. The telephone system in Namangan Province is 7-digit. The procedure of calling to Namangan Province from another province of the Republic of Uzbekistan is as follows:
2. 8 → long beep → 369 → telephone number.
3. The international call to Namangan province is made as follows: +99869 → telephone number.
4. For mobile phone cummunication subscribers codes differ depending on mobile operator and are dialed as for international calls:
5. - for MTC Uzbekistan mobile operator subscribers: +99869 → telephone number;
6. - for Beeline mobile operator subscribers:  +99890 → telephone number
7. - for U-cell mobile operator subscribers:  +99893 → telephone subscriber

Telephone numbers: