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The Asian Development Bank (ADB) today approved a $154 million loan to enhance horticulture value chain development in all 12 regions in Uzbekistan and the autonomous region of Republic of Karakalpakstan.
"ADB's support will help increase access to long term financing for horticulture farmers and enterprises along the horticulture value chain," said Bui Minh Giap, Senior Natural Resources and Agriculture Economist with ADB's Central and West Asia Regional Department. "It will allow them to increase their investments, maintain and expand employment, and generate stable incomes for themselves, their employees, and suppliers."
The government will relend the ADB loan to participating financial institutions (PFIs) that will extend the subloans to interested and qualified farmers and enterprises to finance horticulture operations, including planting materials, processing and storage equipment, and mechanical equipment.
Eight PFIs were selected among commercial banks that expressed interest to participate in the project. They are Asaka Bank, Davr Bank, Hamkorbank, Ipak Yuli Bank, Ipoteka Bank, National Bank of Uzbekistan, Turon Bank, and Uzpromstroybank.
Agriculture is an important sector in Uzbekistan, accounting for 32% of total employment. It is also a key income source in rural areas, where 49% of the population resides.
Although it is expected to continue growing, the country's agriculture sector is characterized by low productivity and has remained labor intensive. The horticulture sector is constrained by limited access to long-term debt financing, quality land, specialized horticulture machinery, and appropriate inputs. Many producers and enterprises along the horticulture value chains also lack business and managerial skills and access to information on market opportunities and technology which hamper the sector's growth.
Uzbek horticulture exports could expand significantly by capturing a larger share of the Russian Federation market and entering European markets. However, it will require improvements in horticulture quality, safety standards, certification systems, storage, processing, and marketing technologies.
In addition to access to financing, the project will provide support to farmers and enterprise subborrowers to improve their business planning, horticulture agronomic techniques, post-harvesting operations, and export market penetration.
Since Uzbekistan joined ADB in 1995, the country has received $5.1 billion in loans and $64.9 million in technical assistance grants.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members-48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.
Uzbekistan Airways has performed the charter flight to Dushanbe for the first time since 1992, the Foreign Ministry of Uzbekistan reported.
The Tashkent - Dushanbe - Tashkent charter flight was carried out by the national airline on November 30.
The Uzbek Foreign Ministry reported that earlier the Uzbek and Tajik delegations held negotiations in Dushanbe on legal-organizational and economic aspects of further cooperation in the civil aviation sector.
The sides signed a protocol on cooperation between the civil aviation authorities of of Tajikistan and Uzbekistan in the air transport sector.
Under the signed Protocol, the Dushanbe -Tashkent - Dushanbe flight will be operated twice a week by Somon Air, Tajikistan, and Uzbekistan Airways.
Flights between the two countries were terminated in the autumn of 1992, and in 2000, Uzbekistan introduced a visa regime for travel to Tajikistan.
The Tajik Transport Ministry reported that the first flight Dushanbe - Tashkent will be performed in January 2017.
Diplomatic relations between the Republic of Tajikistan and the Republic of Uzbekistan were established on October 22, 1992.
The legal base of bilateral Tajik-Uzbek relations includes 111 contracts and agreements signed at the interstate, intergovernmental and interdepartmental levels in the period from 1992 to the present.
The approved documents between two countries cover all the key areas of cooperation between two countries and provide a solid legal basis for the further strengthening of bilateral cooperation between Tajikistan and Uzbekistan in the political, economic, trade and other areas.
The trade turnover between the two countries reached the amount of $167, 1 million in 2015.
In this document, Deloitte presents a brief overview of tax and customs concessions applicable to foreign investment in Uzbekistan.
As the taxation system in Uzbekistan is subject to frequent changes, we recommend using this overview for general purposes only. We will be glad to discuss any tax-related issues you may have in more detail.
To attract direct foreign investment, Uzbekistan operates a system of various tax and customs concessions. Tax concessions extend to specific industries or areas, for example, when registering a company in one of the industrial zones. Deloitte helps investors chose the best business model for operations in Uzbekistan and to analyse the best options for business development.
Investment in specific industries
Presidential Decree УП-3594 dated 11 April 2005 provides tax concessions to production companies in the chemical and petro-chemical, engineering, light, food, alternative energy and other industries.
Qualifying companies are exempt from:
- corporate profits tax;
- property tax;
- tax on improvements and the development of social infrastructure;
- obligatory contributions to the National Road Fund;
- the integrated tax payment for micro-firms and small businesses;
The tax concessions in question are awarded based on investment amounts and apply for between 3 and 7 years, provided:
1. the companies in question are represented in all towns and rural areas of the country, except for Tashkent and Tashkent Oblast;
2. foreign investors make private direct investments without state grants;
3. foreign participants' interest in share capital should be at least 33%;
4. foreign investments are made in freely convertible currency or in the form of new and modern production equipment;
5. at least 50% of income generated as a result of application of the concessions is reinvested for further company development.
Investment in specific economic zones
Special concessions have been approved for the development of specific regions of Uzbekistan. The following Special Economic Zones have been created:
- Navoi Free Industrial and Economic Zone1
- Angren Special Industrial Zone2
- Jizzakh Special Industrial Zone3
Subject to the value of foreign investment, companies are eligible for concessions of varying duration on:
- land tax
- property tax
- corporate profits tax
- tax on improvements and the development of social infrastructure and others
As an additional stimulus, special rules for making payments in foreign currency have been introduced for companies registered in the above zones.
Companies are entitled not to apply items of tax law that worsen their tax position.
In addition to the general concessions applicable in all zones, special concessions apply in specific zones.
At your request, we can prepare more detailed information on current tax and customs concessions, registration conditions and foreign company operations in Uzbekistan for specific companies and activities.
ANNUAL BUSINESS FORUM:
"Integrating Best Practices, Strategies and Technological Solutions for Success
AUCC Members are honored to be the first international business delegation to be invited by the people of Uzbekistan to visit the country after Presidential Election on December 4.
AUCC looks forward to meeting with the country's new leadership to address and advance commercial opportunities of mutual interest. Please join AUCC as a member and be part of our delegation to Uzbekistan.
ANNUAL BUSINESS FORUM
will be held on
Wednesday, February 1, 2017 in Tashkent
[Note: There will be no forum on Wednesday, November 30, 2016.]
8.00 am - 4.00 pm
Agenda to follow
The AUCC delegation to Uzbekistan will be led by the chamber's Chairperson Carolyn B. Lamm and President Steven T. Nadherny.
Minister of Foreign Economic Relations, Investments and Trade, Elyor Ganiev, is expected to represent the Government of Uzbekistan.
AUCC is a private, non-governmental, 501 (c)(6) trade association that was established in 1993 in Washington, DC. The chamber is the oldest business group in the US and the Republic of Uzbekistan that exclusively represents commercial interests of the US corporations before the governments of our two countries.
to indicate your interest in the event. Registration deadline is
Monday, December 19, 2016.
For sponsorship opportunities, please contact AUCC at email@example.com.
VISA, HOTEL AND TRANSPORTATION IN TASHKENT:
AUCC will provide assistance with visa, hotel and transportation for AUCC members and guests. Please contact AUCC at firstname.lastname@example.org for details.
Free for AUCC members (will be verified) and US Government representatives.
$1,000 per person for all other guests and participants - The fee is non-refundable.
Click here to make a payment and register for the event.
Chamber of Commerce
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