1. PROMISING ENTERPRISES AND FACILITIES
THE STATE COMMITTEE OF
THE REPUBLIC OF UZBEKISTAN
FOR PRIVATIZATION, DEMONOPOLIZATION AND DEVELOPMENT OF COMPETITION
PROMISING ENTERPRISES AND FACILITIES
BEING OFFERED TO FOREIGN INVESTORS
Mr. Khimmatov Abdisamat Khalilovich
Deputy Chairman of the State Competition Committee of the Republic of Uzbekistan 1
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2. Tax Privileges
Enterprises belonging to Priority Economic Branches attracting the Direct Private Foreign Investments are exempted since July 1, 2005 from Tax Payment, including the Single Tax Payment meant for Micro-Firms and Small Enterprises.
The abovementioned Tax Privileges are awarded at volumes of the Direct Private Foreign Investments being at sizes:
from 300 thous. US Dollars to 3 mln. US Dollars – for the period of 3 years;
over 3 mlln. US Dollars to 10 mlln. US Dollars - for the period of 5 years;
over 10 mlln. US Dollars - for the period of 7 years.
Foreign Companies performing the Oil and Natural Gas Searching and Exploration Works, as well as the Foreign Contractor and Sub-Contractor Organizations involved by them are exempted from Payment of:
all kinds of Taxes and Compulsory Payments into the Off-Budget Funds for the period of performance of Geological Exploration Works;
Customs’ Payments (excluding Fees for Customs’ Procedures) at imports of the Equipment, Material and Technical Resources and Services needed for performance of Searching, Exploration and other Accompanying Works. 2
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3. OTHER PRIVILEGES AND PREFERENCES
The Investment Projects with the cost of over 50 million US Dollars and the Share of a Foreign Investor being at size of not less than 50 percent, stipulate construction of the needed External Engineering and Communications’ Networks at the expense of the Budget Cash Means.
The Low-Liquid Facilities shall be sold at a “Zero” Purchase Price under the Term Undertaking the concrete Investment Obligations.
Custom Preferences are granted for a period of two years since a Registration Date in respect of Property and Goods to be imported by the Enterprises with a Share of the Direct Foreign Investment being at size of not less than 33 percent.
Staff-members of Foreign Companies shall be granted with Entry and Multiple Visas for a period of 12 months.
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4. Additional Terms for the Investors
Sales of the State-owned Assets are allowed to be performed by their splitting into separate parts;
Period defined for performance of the Purchase Payment, except the amount of the Initial (Advance) Payment, for the State-owned Assets may constitute up to 24 months.
In case if the Purchase Payment has been made by an Investor within a one-month period since a date of conclusion of the Agreement on Sale-Purchase of a State-owned Asset, - it / he / she shall be granted with a discount from the amount of a Purchase Payment at size of the Annual Re-Financing Rate of the Central Bank of the Republic of Uzbekistan. 4
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5. State-owned Shares in 68 Enterprises - offered to Foreign Investors;
PROGRAM FOR EXPANSION OF
THE PRIVATE SECTOR’S SHARE IN THE ECONOMY
On April 28, 2015 President of the Republic of Uzbekistan approved the Program for Expansion of the Private Sector’s Share in the Economy, which stipulates transfer into the Private Ownership of 1247 Enterprises and Facilities, including:
State-owned Shares in 68 Enterprises - offered to Foreign Investors;
State-owned Shares in 343 Enterprises – subject to be put onto Sales for their purchase by Foreign and Domestic Investors;
512 State-owned Facilities – offered to Foreign and Domestic Investors at a “Zero” Purchase Price with Undertaking the Investment Obligations;
324 Facilities – offered to Sale through the Public Auctions to Foreign and Domestic Investors.
Costs of the State-owned Assets offered for purchase
by Foreign Investors will be evaluated with participation
of the International Appraisal Companies
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6. OFFERS IN ASPECTS OF ECONOMIC SECTORS
Printing Industry (1)
Agro-Industrial Sphere (1)
Financial Institutions (4)
Automobile Industry (1)
Electrical Engineering (4)
Winery Plants (2)
Branch of Construction (5)
Chemical Industry (4)
Food Production (15)
Transports Sphere (3)
Foreign Trade Sphere (2)
Oil and Natural Gas Sphere (16)
Light Industry (2)
Enterprises of Other Spheres (8)
STOCKS AND
SHARES IN
68 LARGE
ENTRPRISES
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7. Offered Stocks Package: 49 percent
SAMPLE OFFER
Leading manufacturer of mineral fertilizers in Uzbekistan and the Central Asia
JSC “NavoiAzot”
Offered Stocks Package: 49 percent
Characteristics
Data
Kind of Activity
Production of Mineral Fertilizers, Chemical Agents, Small-Capacity Chemistry
Number of Personnel
persons
Territory
895,6 hectares
Net Revenues
$ 252,7 million
Production Capacity
ammonia (550 thous. tons), nitric acid (870 thous. tons), ammonia nitrate thous. tons (950 thous. tons), other fertilizers (200 thous. tons), chemical agents (52 thous. tons), and other chemical products (102 thous. tons)
Market Share
80 percent
According to the Investment Program, during 2015 – 2019 at JSC “NavoiAzot” implementation of projects for the total amount of $1,8 billion is planned
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8. Offered Stocks Package: 48 percent
SAMPLE OFFER
Leading manufacturer of mineral fertilizers in Uzbekistan and the Central Asia
JSC “FerganaAzot”
Offered Stocks Package: 48 percent
Characteristics
Data
Kind of Activity
Production of Mineral Fertilizers, Defoliants, Cellulose Esters
Number of Personnel
7 767 persons.
Territory
454,5 hectares
Net Revenues
$ 28,9 million.
Production Capacity
ammonia (450 thous. tons), carbamide (330 thous. tons) and other chemical products (580 thous. tons)
Market Share
over 65 percent
According to the Investment Program, during 2015 – 2020 at JSC “FerganaAzot” implementation of projects for the total amount of $107,5 million is planned
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9. Offered Stocks Package: 75 percent
SAMPLE OFFER
Leading manufacturer of glass items in Uzbekistan and the Central Asia. Located in Fergana Region
Offered Stocks Package: 75 percent
Characteristics
Data
Kind of Activity
Output of Glass Items
Number of Personnel
2097 persons
Territory
50,6 hectares
Net Revenues
$ 60,5 million
Production Capacity
130 thous. tons
Market Share
99 percent
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10. Offered Stocks Package: 36 percent
SAMPLE OFFER
Leading manufacturer of cement in Uzbekistan and the Central Asia. Located in Navoiy Region
Offered Stocks Package: 36 percent
Characteristics
Data
Kind of Activity
Production of Cement
Number of Personnel
3 497 persons
Territory
1,3 thous. hectares
Net Revenues
$ 397,5 million
Production Capacity
tons
Market Share
55 percent
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11. Offered Stocks Package: 44 percent
SAMPLE OFFER
Largest Printing Enterprise in Uzbekistan,
located in the Center of Tashkent City
IPAK “SHARK”
Offered Stocks Package: 44 percent
Characteristics
Data
Kind of Activity
Publishing and Printing Activity
Number of Personnel
777 persons
Territory
10,6 hectares
Net Revenues
$ 15,4 million
Market Share
Less than 35 percent 11
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12. Offered Stocks Package: 38,3 percent
SAMPLE OFFER
Largest Exhibition Center in Uzbekistan,
located in the Center of Tashkent City
Offered Stocks Package: 38,3 percent
Characteristics
Data
Kind of Activity
Render of services related to Exhibition Activity
Number of Personnel
309 persons
Territory
43,4 hectares
Space under the roof
28 thous. sq. ms.
Net Revenues
$ 4,2 million
Brief description
Annually holds over 50 large Exhibitions, including the Innovations’ Fares, International Industrial Fairs, Cooperation Exchange, International Uzbek Cottons Fairs, Exhibitions-Fairs “Uzbekistan AgroMiniTech Expo” and “Uzbekistan AgroTechMash Expo” and others. 12
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13. Offered Stocks Package: 88,8 percent
SAMPLE OFFER
Refrigerator-making Plant “Sino”
Leading manufacturer of refrigerators in Uzbekistan. Located in Samarqand City
Offered Stocks Package: 88,8 percent
Characteristics
Data
Kind of Activity
Manufacture of Refrigerators and
Air-Conditioners
Number of Personnel
503 persons
Territory
7,8 hectares
Net Revenues
$ 4,3 million
Production Capacity
200 thous. pcs of Refrigerators an 50 thous. pcs of Air-Conditioners per annum.
Market Share
20 percent
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14. Offered Stocks Package: 55 percent
SAMPLE OFFER
Leading manufacturer of lamps, lusters and cut-glass ware in Uzbekistan. Located in Tashkent City
JSC “ONIX”
Offered Stocks Package: 55 percent
Characteristics
Data
Kind of Activity
Design and production of the cut-glass ware made of crystal, production of home and office lamps and lusters
Number of Personnel
360 persons
Territory
14,5 hectares
Net Revenues
$ 2,5 million
Market Share
Less than 35 percent 14
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15. JV LLC «Ipak Yo’li – Turizm Invest»
SAMPLE OFFER
JV LLC «Ipak Yo’li – Turizm Invest»
One of the best hotels of Uzbekistan, located in the center of Tashkent City
Share offered to Foreign Investors: 39 percent
Characteristics
Data
Kind of Activity
Hotel services
Number of Personnel
175 persons
Territory
11,8 thous. sq. ms
Space under the roof
20 thous. sq. ms
Net Revenues
$ 6,1 million.
Number of rooms
206, including 100 standard, 98 semi-suits, 2 suits and 1 Presidential Suit, 5 apartments
Infrastructure
Restaurant, café, confectioner's shop, four conference-halls, banquet hall for 750 seats
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16. Angren Logistika Markazi
SAMPLE OFFER
Angren Logistika Markazi
One of the largest logistics hubs of Uzbekistan, located in Tashkent Region
Offered Stocks Package: 49 percent
Characteristics
Data
Kind of Activity
Loading-unloading, transportation and forwarding services
Number of Personnel
1604 persons
Territory
36.9 hectares
Net Revenues
$ 30,2 million
Market Share
100 percent
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17. Offered Stocks Package: 44,4 percent
SAMPLE OFFER
JSC “URGENCH EXCAVATOR”
Single manufacturer of excavators in Uzbekistan
Offered Stocks Package: 44,4 percent
Characteristics
Data
Kind of Activity
Excavators and various metal items
Number of Personnel
136 persons
Territory
6,6 hectares
Net Revenues
$ 1,1 million
Market Share
100 percent 17
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18. Offered Stocks Package: 63,1 percent
SAMPLE OFFER
One of the largest banks in Uzbekistan, located in Tashkent City, possesses the developed affiliated branches in the Regions
Offered Stocks Package: 63,1 percent
Characteristics
Data
Kind of Activity
Banking Activity
Number of Personnel
70 persons
Territory
2,9 hectares
Net Revenues
$ 62,3 million
Attainments
Awarded by positive rating score by “Moody’s”, “Standard & Poor’s” and other Agencies 18
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19. Offered Stocks Package: 29.9 percent
SAMPLE OFFER
The largest Business Center of Uzbekistan, located in the center of Tashkent City
Offered Stocks Package: 29.9 percent
Characteristics
Data
Kind of Activity
Lease of Office and other room spaces
Number of Personnel
70 persons
Territory
3,6 hectares
Space under the roof
8,2 thous. sq. ms
Net Revenues
$ 5,4 million
Occupancy rate
85 percent
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20. Offered Stocks Package: 32,2 percent
SAMPLE OFFER
Leading manufacturer of electronic devices and equipment for trade in Uzbekistan.
Located in Tashkent City
JSC “Photons”
Offered Stocks Package: 32,2 percent
Characteristics
Data
Kind of Activity
Manufacture of the radio-electronic devices, home applicants, TV-sets and control-cash registers
Number of Personnel
539 persons
Territory
0,8 hectares
Net Revenues
$ 7,4 million
Market Share
Diodes and cash registers – 100 percent,
TV-sets – 5 percent 20
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21. JSC “Kokand Superphosphate Plant”
SAMPLE OFFER
JSC “Kokand Superphosphate Plant”
One of the largest manufacturers of phosphoric mineral fertilizers in Uzbekistan
Share offered to Foreign Investors: 85,2 percent
Characteristics
Data
Kind of Activity
Production of Superphosphate Fertilizers
Number of Personnel
497 persons
Territory
44,1 hectares
Net Revenues
$ 7,7 million
Production Capacity
tons (ammoniated superphosphate with 16-percentage) 21
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22. JSC “CHIRCHIK TRANSFORMER PLANT”
SAMPLE OFFER
JSC “CHIRCHIK TRANSFORMER PLANT”
leading enterprise of the electro-technical industry in Uzbekistan, Central Asia and CIS
Offered Stocks Package: 48,6 percent
Characteristics
Data
Kind of Activity
Manufacture of Electro-technical Products
Number of Personnel
538 persons
Territory
31,5 hectares
Net Revenues
$ 36,1 million
Production Capacity
3000 MegaVoltAmper (МВА) of the modern high-voltage products: power, measuring, special transformers, complex transformer sub-stations, other high-voltage component items
Market Share
15 percent 22
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23. SAMPLE OFFER - AT A “ZERO” PURCHASE PRICE
Buildings and areas of the former JSC “BukhoroTex”
Large production facility with the developed infrastructure (former Textile Mill)
The Facility is offered at a “Zero” Purchase Price
with undertaking the Investment Obligations
Characteristics
Data
Kind of Activity
former Textile Mill
Territory Overall
52,3 hectares
Space under the Roof
15,9 hectares
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24. SAMPLE OFFER - AT A “ZERO” PURCHASE PRICE
Buildings and areas of the former JSC “Bobur”
Large production facility with the developed infrastructure (former Textile Mill)
The Facility is offered at a “Zero” Purchase Price
with undertaking the Investment Obligations
Characteristics
Data
Kind of Activity
former Textile Mill
Territory Overall
38,1 hectares
Space under the Roof
14,2 hectares
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25. Key factors of Corporate Governance in Uzbekistan
More than 700 Joint-Stock Companies are operating in Uzbekistan.
Authorized Capital of a Joint-Stock Company according to the Law should not be less than USD 400,000.
More than 1 million persons present being the Shareholders in Uzbekistan.
In Uzbekistan the Governing Bodies of a Joint-Stock Company include: a Stockholders Meeting, a Supervisory Board and an Executive Board. Employees of a Company or members of an Executive Board can not be members of a Supervisory Board.
According to the Law of Uzbekistan, Inspection System at a Joint-Stock Company embodies an Auditing Committee, an Internal Audit Service (Standing Body) and an annually engaged Independent Auditing Organization.
Stocks are emitted in non-documentary forms in Uzbekistan. Since 1994 – the Stock Exchange, since the Central Depository and more than 100 Investment institutions such as brokers, counselors, management companies have been operating in Uzbekistan.
Regulatory framework is based on unified laws and includes the Civil Code, Laws “On the Joint-Stock Companies and Protection of Shareholders’ Rights”, “On the Securities Market” and over 60 by-laws.
Legislation on the Joint-Stock Companies is characterized by detailed and transparent regulation of the legal relationships.
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26. Corporate Governance in Uzbekistan – International experts opinions
EBRD Experts’ research shows that level of Corporate Governance in Uzbekistan with respect to OECD standards relates to countries which are “medium scale harmony”. To compare with other transition economy countries, legislation of Uzbekistan creates more perspective basis for development of the Corporate Governance practices
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27. Corporate Governance in Uzbekistan – the International Experts’ Opinions
In 2014, Uzbekistan rated in the 18th place regarding to indicators “Protecting Minority Investors”
Source:
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28. Corporate Governance – as a Focused Priority in the Government of Uzbekistan
On April 24, 2015 the Decree by President of Uzbekistan on “On Measures Aimed at Introduction of the Modern Methods of Corporate Governance at Joint-Stock Companies” was issued, which stipulates:
Updating Organizational Structure and Managing Staff at the JSCs with State-owned Shares.
Elaboration of the Corporate Governance Code.
Transition in to publication of the JSCs Financial Statements in accordance with the International Accounting Standards and the International Auditing Standards (IAS).
Creation of the Scientific-Educational Center of Corporate Governance in Tashkent (executive education) in cooperation with the Higher Education Institutes of Germany and other developed countries.
Wide introduction of Competitive Selection of Managing Staff at JSCs, including participation of Foreign Managers in it.
Additional Tax Incentives at hiring Foreign Managers (Exemption from Income Tax and Social Payments).
Implementation of the System for Evaluation of the Efficiency of a JSC’s Activity such as Key Performance Indicators.
Establishment of the e-portal for Disclosure of the Corporate Information.
Development of Managing Information System at JSCs such as Enterprise Resource Planning.
Implementation of other measures on wide spectrum of issues related to Corporate Governance (46 paragraphs according to the approved Program of Measures).
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29. THE ADDITIONAL INFORMATION ON THE ASSETS OFFERED FOR SALE
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30. INFORMATION ON THE ASSETS OFFERED FOR SALE
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31. Thanks for your kind attention!
55, Uzbekistan Avenue, Tashkent, Republic of Uzbekistan,
Tel:( )
Fax:  ( )