The results of the investment activity of the Republic of Uzbekistan for January-September 2020
During the period from January to September this year, the total assimilated foreign investments in the Republic of Uzbekistan amounted to USD 7.2 billion (of these, USD 5.7 billion in fixed assets), including USD 4.9 billion - foreign direct investment, and USD 2.3 billion - funds of international financial institutions and foreign government financial organizations.
When it comes to foreign direct investment, sectoral enterprises assimilated USD 1.8 billion of investments, of which USD 1.3 billion are fixed assets (growth rate - 126% as related to the same period last year), and USD 3.1 billion under regional investment programs , of which USD 2.5 billion are fixed assets (growth rate - 93% as related to the same period last year).
According to the results of the reporting period, the most attractive for foreign investors were the electrical industry (growth - 25 times compared to the same period in 2019), the ICT sector (growth - 3.6 times) and the chemical industry (growth - 1.2 times). When considering the region-wise indicators, we should note the high dynamics of growth of direct foreign investments in Surkhandarya (1.1 times), Navoi (1.7 times) and Namangan regions (1.3 times).
A significant increase in investment activity is attributable to an increase in the inflow of funds allocated to Uzbekistan by international financial institutions and foreign government financial organizations with the main part falling on the financial institutions of the Japanese government - JICA and JBIC (20% as related to the total volume, or USD 470.8 million), Asian Development Bank (16.6%, or USD 380.0 million), World Bank (11.2%, or USD 256.8 million), Islamic Development Bank (3.6%, or USD 81,2 million), etc.
These funds were spent to implement projects in the oil and gas industry (USD 884.3 million), agriculture and water management (USD 461.9 million), chemical industry (USD 272 million), power sector (USD 205.7 million), transport and the logistics sector (USD 171 million), healthcare (USD 70.0 million) and education (USD 32.4 million).
Totally, 65 large investment projects worth USD 3.3 billion were completed in the reporting period. This provided the creation of more than 13 thousand new jobs. In particular, the Republic of Karakalpakstan launched the project 'Construction of two 230-280 MW combined cycle gas turbines at the Takhiatash TPP', Navoi region established the production of nitric acid at the Navoiazot JSC, Tashkent city established the production of household refrigerators worth USD 62.1 million in Technopark LLC and its subsidiaries. There is a constriction of an overhead railway worth USD 466.1 million (Phase 1), second stage construction of the Yunusabad line of the Tashkent metro worth USD 103.8 million. Jizzakh region established the production of cement at LLC Huacin Cement Jizzak worth USD 150 million.
Totally, by the end of 2020, it is planned to assimilate USD 10.1 billion of foreign investments, of which USD 9.2 billion are in fixed assets, including foreign direct investment assimilation will amount to USD 7.0 billion, of which USD 6.6 billion are in fixed assets (102% as of the results of 2019).
In order to stimulate raise and development of foreign investments, the Government Commission for the Development of Exports and Investments on-site continues systematic work to review and solve the problems of entrepreneurs and initiators of investment projects. The Ministry of Investment and Foreign Trade supported by sectoral ministries, departments and local authorities implements special monitoring of 206 large investment projects planned for commissioning this year worth USD 10.1 billion, which will create more than 30 thousand new jobs. These projects include the construction of a Tashkent Metallurgical Plant worth USD 359.4 million (672 jobs), organization of ammonia and urea production based on Navoiazot JSC worth USD 985.7 million (491 jobs), the organization of the production of textiles at the Jizzakh Kentex LLC worth USD 25.0 million (400 jobs), etc.
It is also worth noting that according to the Decree of the President of the Republic of Uzbekistan No.UP-5717 dated May 14, 2019 on Measures to Switch to a Qualitatively New System for the Buildup and Implementation of Investment Program of the Republic of Uzbekistan by the end of 2020, it is planned to introduce an automated information system integrated with the information systems of state authorities 'Control and monitoring of the Investment Projects'.
This program complex is a component of the Unified National Information System for Project Management, which will include both project initiators and all state authorities involved. This system will be able to monitor the timing, budget, goals and the progress of projects, generate reliable data on raised and assimilated investments, identify the risks of late commissioning of projects, and track the achievement of the target indicators provided for by the project documentation in the post-investment period.