THE STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN FOR PRIVATIZATION, DEMONOPOLIZATION AND...
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Transcript of THE STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN FOR PRIVATIZATION, DEMONOPOLIZATION AND...
THE STATE COMMITTEE OF THE REPUBLIC OF UZBEKISTAN
FOR PRIVATIZATION, DEMONOPOLIZATION AND DEVELOPMENT OF COMPETITION
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PROMISING ENTERPRISES AND FACILITIES BEING OFFERED TO FOREIGN INVESTORS
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Mr. Khimmatov Abdisamat Khalilovich Deputy Chairman of the State Competition Committee of the Republic of Uzbekistan
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.
Tax Privileges
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OTHER PRIVILEGES AND PREFERENCES
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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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Additional Terms for the Investors
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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.
PROGRAM FOR EXPANSION OF THE PRIVATE SECTOR’S SHARE IN THE ECONOMY
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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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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)
OFFERS IN ASPECTS OF ECONOMIC SECTORS
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STOCKS AND
SHARES IN
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LARGE
ENTRPRISES
SAMPLE OFFER
Characteristics Data
Kind of Activity Production of Mineral Fertilizers, Chemical Agents, Small-Capacity Chemistry
Number of Personnel 10 068 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
Offered Stocks Package: 49 percent
JSC “NavoiAzot” Leading manufacturer of mineral fertilizers in Uzbekistan and the Central Asia
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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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SAMPLE OFFER
Offered Stocks Package: 48 percent
JSC “FerganaAzot” Leading manufacturer of mineral fertilizers in Uzbekistan and the Central Asia
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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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SAMPLE OFFER
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
Offered Stocks Package: 75 percent
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Leading manufacturer of glass items in Uzbekistan and the Central Asia. Located in Fergana Region
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SAMPLE OFFER
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 3.080.000 tons
Market Share 55 percent
Offered Stocks Package: 36 percent
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Leading manufacturer of cement in Uzbekistan and the Central Asia. Located in Navoiy Region
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SAMPLE OFFER
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
Offered Stocks Package: 44 percent
IPAK “SHARK”
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Largest Printing Enterprise in Uzbekistan, located in the Center of Tashkent City
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SAMPLE OFFER
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.
Offered Stocks Package: 38,3 percent
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Largest Exhibition Center in Uzbekistan, located in the Center of Tashkent City
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SAMPLE OFFER
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
Offered Stocks Package: 88,8 percent
Refrigerator-making Plant “Sino”
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Leading manufacturer of refrigerators in Uzbekistan. Located in Samarqand City
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SAMPLE OFFER
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
Offered Stocks Package: 55 percent
JSC “ONIX”
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Leading manufacturer of lamps, lusters and cut-glass ware in Uzbekistan. Located in Tashkent City
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SAMPLE OFFER
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
Share offered to Foreign Investors: 39 percent
JV LLC «Ipak Yo’li – Turizm Invest»
One of the best hotels of Uzbekistan, located in the center of Tashkent City
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SAMPLE OFFER
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
Offered Stocks Package: 49 percent
Angren Logistika Markazi
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One of the largest logistics hubs of Uzbekistan, located in Tashkent Region
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SAMPLE OFFER
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
Offered Stocks Package: 44,4 percent
JSC “URGENCH EXCAVATOR”
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Single manufacturer of excavators in Uzbekistan
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SAMPLE OFFER
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
Offered Stocks Package: 63,1 percent
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One of the largest banks in Uzbekistan, located in Tashkent City, possesses the developed affiliated branches in the Regions
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SAMPLE OFFER
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
Offered Stocks Package: 29.9 percent
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The largest Business Center of Uzbekistan, located in the center of Tashkent City
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SAMPLE OFFER
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
Offered Stocks Package: 32,2 percent
JSC “Photons”
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Leading manufacturer of electronic devices and equipment for trade in Uzbekistan. Located in Tashkent City
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SAMPLE OFFER
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 250.000 tons (ammoniated superphosphate with 16-percentage)
Share offered to Foreign Investors: 85,2 percent
JSC “Kokand Superphosphate Plant”
One of the largest manufacturers of phosphoric mineral fertilizers in Uzbekistan
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SAMPLE OFFER
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
Offered Stocks Package: 48,6 percent
JSC “CHIRCHIK TRANSFORMER PLANT”
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leading enterprise of the electro-technical industry in Uzbekistan, Central Asia and CIS
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SAMPLE OFFER - AT A “ZERO” PURCHASE PRICE
Characteristics Data
Kind of Activity former Textile Mill
Territory Overall 52,3 hectares
Space under the Roof 15,9 hectares
The Facility is offered at a “Zero” Purchase Price with undertaking the Investment Obligations
Buildings and areas of the former JSC “BukhoroTex”
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Large production facility with the developed infrastructure (former Textile Mill)
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SAMPLE OFFER - AT A “ZERO” PURCHASE PRICE
Characteristics Data
Kind of Activity former Textile Mill
Territory Overall 38,1 hectares
Space under the Roof 14,2 hectares
The Facility is offered at a “Zero” Purchase Price with undertaking the Investment Obligations
Buildings and areas of the former JSC “Bobur”
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Large production facility with the developed infrastructure (former Textile Mill)
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Key factors of Corporate Governance in Uzbekistan
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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 1999 - 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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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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Corporate Governance in Uzbekistan – the International Experts’ Opinions
In 2014, Uzbekistan rated in the 18th place regarding to indicators “Protecting Minority Investors”
Source: http://russian.doingbusiness.org/data/exploreeconomies/uzbekistan#protecting-minority-investors
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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 2016-2018 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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Thanks for your kind attention!
55, Uzbekistan Avenue, Tashkent, Republic of Uzbekistan, 100003Tel:(+ 99871) 259-20-90Fax: (+ 99871) 239-47-84