“TERMEZ” · 2020-07-07 · Center of the region Termez city Hakim (governor) of the region Mr. Bobolov Tura Abdievich Area of regional 20,1 thousand sq. km Population of region

FREE ECONOMIC ZONE

“TERMEZ”

FREE ECONOMIC ZONE “TERMEZ”

Area – 80,6 hectares

Industrial products60 lots

Food products 40 lots

Chemical products 20 lots

Lots area –

54,3 hectares

Термиз - Хайратон –

Мазари-Шариф – 500 м

Center of the region

Termez city

Hakim (governor) of the region

Mr. Bobolov Tura Abdievich

Area of regional

20,1 thousand sq. km

Population of region

2.5 million inhabitants

Consists of

14 districts and the city of Termez

Basic information

Official web-site

www.surxondaryo.uz

Termez

Islamic Republic of Afghanistan

Republic of Turkmenistan

SURKHANDARYA

REGION

GENERAL INFORMATION

COMPETITIVE ADVANTAGES OF “TERMIZ” FEZ

MARKET

Convenient location, access not only to the

domestic market of the Republic of Uzbekistan,

Tajikistan, Afghanistan, Iran, Pakistan.

LOGISTICS

The largest logistics center in Central Asia

operates in the free economic zone. Its area is

40,7 hectares. There is also a 3,2 hectare

container yard, 10,5 hectares of open space for

temporary parking, 4 hangars with a total area

of 6000 m2

FINANCIAL SERVICESHigh financial and banking services will be

organized for investors and buyers in the Free

Economic Zone.

QUALIFIED WORKFORCEThe population of the region is more than

2,5 million people. Higher education institutions

and professional colleges annually train more than

30,000 highly qualified specialists.

COMMUNICATION.External roads, power lines, gas pipelines,

telecommunications, water supply, etc. will be

delivered to the free economic zone at the expense

of state funds.

SOCIAL INFRASTRUCTURE.The free economic zone includes modern hotels,

entertainment centers, cafes and restaurants,

grocery stores and others for investors and buyers.

Electricity Gas supplyHeat supply Logistics Customs Restaurants

Law of the Republic of Uzbekistan “On Free Economic Zones”

Decree of the President of the Republic of Uzbekistan No. DP-4853 of 10.26.2016.

“On additional measures to revitalize and expand the activities of free economic zones”

Decree of the President of the Republic of Uzbekistan No. DP-3356 dated 10.25.2017.

“On additional measures to increase the efficiency of the free economic zones and small

industrial zones”

Decree of the President of the Republic of Uzbekistan No. DP-3175 of 08.07.2017.

“On measures to strengthen coordination and increase the responsibility of local ministries,

departments, and state authorities for the effective functioning of the activity of free

economic zones”

The Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 29 dated

January 16, 2018. “On measures to implement the resolution of the President of the

Republic of Uzbekistan No. PP-3356 dated October 25, 2017“ On additional measures to

improve the efficiency of the activity of free economic zones and small industrial zones ”

Basic regulatory acts governing activities in the free

economic zone

0

2000000

4000000

6000000

8000000

10000000

12000000

3 years 5 years 7 years 10 years

Benefits depending on the volume of investments made in the territory of the FEZ

(in equivalent dollars)

300

thous

.

Benefits in the FEZ are provided for a

period of 3 to 10 years depending on the

volume of investments made, including in

the equivalent (US dollar):

from 0,3 mln. dollars to 3 mln. dollars

- for a period of 3 years;

from 3 mln. dollars to 5 mln. dollars


from 5 mln. dollars to 10 mln. dollars


from 10 mln. dollars and above

- for a period of 10 years,

using the income tax rate and single tax

payment in the amount of 50% below the

current rates over the next 5 years.

3 mln.

5 mln.

10 mln.

+ mln.

+5 mln.

+2 mln.

+3 mln.

Benefits and preferences in the territory of FEZ

customs payments (except for customs clearance fees) for equipment,

raw materials, materials and components imported for own

production needs;

customs payments (except for customs clearance fees) for construction

materials not produced in the republic and imported as part of the

project;

In accordance with the Decree of the President of the Republic of Uzbekistan dated 10.26.2016. No. DP-4853, enterprises participating in free economic zones are exempt from payment:

Enterprises participating in the FEZ are exempted from paying for

the entire period of activity of free economic zones from paying

customs duties (except for customs clearance fees) for imported raw

materials, materials and components in part of products sent for

export.

The state provides guaranteed connection of enterprises

participating in the FEZ to engineering and communication networks

with timely supply to production sites and their uninterrupted

operation.

Governmental

support

land tax;

income tax;

tax on property of legal entities;

tax for the improvement and development of social infrastructure.

Tax

benefits

Customs

exemptions

Benefits and preferences in the territory of FEZ

Providing the necessary

documents to the Directorate of FEZ for consideration

Decision of the Administrative Council on the

placement of the project on the

territory of the FEZ

Granting to the project the status of a

participant in the corresponding FEZ

Start project

Stages of selection of investment projects in the FEZ

information on the state registration of a legal entity

(investor) or other document confirming the activities

of this investor;

business plan of the proposed investment project;

information confirming the investor's experience in the

relevant field and / or the implementation of similar

investment projects (if any);

information on the financial and economic activities of

the investor over the past three years.

Placement in the territory of FEZ

and registration of participants

Documents Provided

HOW TO BECOME A RESIDENT

OF FEZ?

INVEST NOT LESS THAN 300 THOUSAND DOLLARS IN

PRODUCTION

GET THE INVESTMENT PROJECT APPROVED BY MINISTRY OF

INVESMENTS AND FOREIGN TRADE

PREPARE BUSINESS PLAN AND SUPPORTING DOCUMENTS

CONCLUDE AGREEMENT ON CONDUCTING

INDUSTRIAL AVTIVITIES

REGISTER WITHIN THE TERRITORY OF TERMEZ

DISTRICT

the creation of import-substituting, high-tech

industries in accordance with the parameters

established by law for localization projects;

the volume of export after the start of production

activity is at least 20 percent in the second and at

least 30 percent in the third and subsequent years;

the creation of new jobs in the amount

determined by the administrative councils,

including the establishment of a 10 percent quota

for those in need of employment on the lists

provided by the Council of the Federation of

Trade Unions;

staffing of the organization being created from

among citizens of the Republic of Uzbekistan in

the amount of at least 95 percent of the total

number of employees involved, with the provision

of the possibility of internships and advanced

training.

Mandatory criteria for the placement of investment

projects in the territory of FEZThe business plan should be reflected

information about the organization of a legal

entity;

number of jobs created;

name, specificity and volumes of products;

estimated prices and markets;

marketing research;

availability of raw materials;

calculations of the level of production

localization and changes in the final

commodity position (code according to the HS

code version 2017);

logistics and transportation;

necessary volumes and parameters

of engineering and communications support

tools;

production emissions;

preliminary layout;

production technology description;

process equipment characteristic;

estimated volumes, type and terms

of investment;

financial and economic calculations.

Mandatory criteria and project information

COST OF THE PROJECT

PRODUCTION CAPACITY

ECONOMIC INDICATORS

PAYBACK PERIOD

NEED FOR INVESTMENT

PROJECT LOCATION

PRODUCT MARKETS

NECESSARY INFRASTRUCTURE

Establishing production of sewing machines and equipment

The main objectives are to develop a strategy for the sustainable development of the electro-technical industry, implement comprehensive measures to promote the

development of new types of electro-technical products to saturate the domestic market.

$ 12,0 mln.

200 thousand pcs per year

61 months

$ 8,2 mln.

Free Economic Zone “Termez”

Local market: 50%Export: 50%

Will be clarified

IRR- 21,9%NPV- $10,6 mill

COST OF THE PROJECT

PRODUCTION CAPACITY

ECONOMIC INDICATORS

PAYBACK PERIOD

NEED FOR INVESTMENT

PROJECT LOCATION

PRODUCT MARKETS


Glass production based on “FLOAT” technology

Currently Uzbekistan imports glass to cover construction and other industries needs. Local production is limited and depends on, some times, imported components. A new production shall cover high demand on the local market. New technologies shall ensure

the quality and reduce costs of production and energy consumption.

$32 mln

3’800’000 square meter glass

IRR: 12%NPV: $10 mln

60 month

$32 mln



Available

COST OF THE PROJECT

PRODUCTION CAPACITY

ECONOMIC INDICATORS

PAYBACK PERIOD

NEED FOR INVESTMENT

PROJECT LOCATION

PRODUCT MARKETS


Production of circuit breakers of different capacities and switches

A circuit breaker is an automatic circuit breaker designed to protect an electric current from damage caused by overcurrent or short

circuit.

$4,69 mln

IRR: 37,9 %NPV: $4,9 mln

42 months

$4,5¥05 mln



Available

1,4 mln. units

COST OF THE PROJECT

PRODUCTION CAPACITY

ECONOMIC INDICATORS

PAYBACK PERIOD

NEED FOR INVESTMENT

PROJECT LOCATION

PRODUCT MARKETS


Establishing of electronic printed circuit boards production

The main objectives are to develop a strategy for the sustainable development of the electro-technical industry, implement comprehensive measures to promote the development of new types of electro-technical products to

saturate the domestic market

$ 12,8 mln.

2500 thousand pcs per year

73 months

$ 12,8 mln.



Will be clarified

IRR- 14,2%NPV- $7,5 mln

COST OF THE PROJECT

PRODUCTION CAPACITY

ECONOMIC INDICATORS

PAYBACK PERIOD

NEED FOR INVESTMENT

PROJECT LOCATION

PRODUCT MARKETS


Production of plumbing

Plumbing products are highly demanded on the local market, boosted by the blooming construction sector. The project can benefit from availability of qualified personnel as well

as low operational costs

$2 mln

48’000 pieces sanitary goods

IRR: 47%NPV: $5 mln

24 months

$2 mln



Available

Thank you for your attention