Government approves feasibility study of project “Development of Muruntau open-cast mine” (stage V) phase I”; Uzbekistan intends to invest millions of dollars in the development of fish farming; Malaysian Serba Dinamik plans to build $ 250 million caustic soda plant in Uzbekistan; A project to modernize heat supply worth $ 140 million starts in Uzbekistan; Uzbekistan intends to seek zero customs duties on textile products from the EU; Best Western hotel chain enters Uzbekistan via franchise;
Government approves feasibility study of project “Development of Muruntau open-cast mine” (stage V) phase I”
The Government of Uzbekistan has approved a feasibility study (FS) of the investment project “Refining the Muruntau open-cast mine (stage V) phase I”. According to the document, the Navoi Mining and Metallurgical Combine (US$) in 2018–2027 will implement a project to expand gold production at the Muruntau open-pit mine.
The cost of the project is US$733.9 million. The feasibility study envisages completion of the fifth stage of the Muruntau open-pit mine (the first phase). The project will increase production to 47 million tonnes of ore per year.
NGMK will allocate US$445.9 million of its own funds for the project. The Fund for Reconstruction and Development of Uzbekistan (FRRU) will provide a loan in the amount of US$288 million. It should be mentioned that the Muruntau quarry is one of the largest gold ore deposits in the world.
Uzbekistan intends to invest millions of dollars in the development of fish farming
Mirziyoyev instructed to prepare by February 1, 2019 a draft targeted program for the organization of fish farms in 2019-2021. It will focus on the creation of full-cycle clusters – with hatcheries, fish and fry production, fish food with high protein content production, processing and storage.
Fish breeding clusters with a capacity of annual production of at least 50 tons of fish will be exempt from January 1, 2019 from all types of taxes and mandatory contributions to state trust funds.
In addition, the president instructed the government to make a proposal in early January next year on the introduction of a differentiated rate of a single land tax for fish farms, based on the number of fish produced in artificial reservoirs of fish farms.
Malaysian Serba Dinamik plans to build $ 250 million caustic soda plant in Uzbekistan
This news became known after negotiations between the first deputy chairman of the State Investment Committee of Uzbekistan Sunatulla Bekenov, khokim of the Khorezm region Farhod Ermanov and the vice president of the Malaysian company Serba Dinamik group Berhad Palendran Palachandran.
Palendran Palachandran said that in December it is planned to sign a cooperation agreement on the implementation of this project, and in April 2019 an investment agreement. The project implementation period will be 18 months after the signing of the investment agreement.
According to Palendran, 120 new jobs will be created at the new plant, and all products will be export-oriented. The equipment for the plant will be manufactured by Thyssen Krupp AG (Germany). The industrial residue in the production of caustic soda, chlorine, will be exported to North African countries by this company.
A project to modernize heat supply worth $ 140 million starts in Uzbekistan
During the working visit to Bukhara of the head of the World Bank’s office in Uzbekistan, Hideki Mori, started the project “Improving Energy Efficiency and Modernizing Centralized Heat Supply”. The project will have the financial assistance from the World Bank (at the expense of an International Development Association loan of $ 140 million).
The project will help to connect more than 2,000 apartment buildings and social infrastructure facilities, including kindergartens, schools and hospitals, to energy efficient heating and hot water supply systems in Andijan, Bukhara, Samarkand, Tashkent and Chirchik.
“The World Bank is pleased to support the modernization of the district heating sector. These measures will help improve the living conditions of hundreds of thousands people across the country,” Mori said in January when the project was announced.
Uzbekistan intends to seek zero customs duties on textile products from the EU
This became known after the talks of the First Deputy Minister of Economy Mubin Mirzaev with members of the delegation of the European Parliament on relations with the countries of Central Asia and Mongolia headed by Iveta Grigule-Peters.
During the meeting, the European side was proposed the following priority areas for further expansion of economic cooperation:
- creating equal conditions for access of Uzbekistan’s textile products to the markets of EU countries, taking into account the ongoing reforms in agriculture. For example, currently individual countries have zero rates of customs duties on textile products and for Uzbekistan the amount is 7-12%;
- rendering assistance in ensuring the conformity of the quality of agricultural products to EU standards, increasing the personnel potential in this area;
- attracting foreign investments from the EU countries for the implementation of projects under the PPP framework for the development of road and transport infrastructure, social services, housing and utilities, the development of alternative and renewable energy sources;
- providing technical assistance to study the advanced European experience in improving the conditions of foreign trade and the liberalization of exchange controls.
Best Western hotel chain enters Uzbekistan via franchise
Representatives of Tashkent city administration met with the Best Western and Yuco Alliance companies. In the meeting, the parties discussed the prospects of building a three-star hotel in the capital.
It is planned that there will be 120 rooms for guests according to Best Western standards. The total amount of investments will be $ 5-6 million, financing will come from own funds of Yuco Alliance. Best Western will provide a franchise and standards for construction and workflow.
In this regard, the companies requested the assistance of the khokimiyat in the selection and provision of a suitable site for construction. The leadership of the capital welcomed the plans for the construction of the hotel and agreed to provide the assistance.