PRESENTATION THE INVESTMENT POTENTIAL OF SYRDARY O PROVINCE OF THE REPUBLIC OF UZBEKISTAN

1. ADMINISTRATION OF EXTERNAL ECONOMICAL RELATIONS, INVESTMENTS AND TRADE OF SYRDARYA REGION PRESENTATION THE INVESTMENT POTENTIAL OF SYRDARYOPROVINCE OF THE REPUBLIC OF UZBEKISTAN Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

2. SYRDARYA R E G I O N

3. BASIC DATA Syrdarya region was founded on February 16, 1963 and is located in the centre of Hunger Steppe oasis TERRRITORY:Total area of the region is 4,3 thousand square km. or 0,9 of total territory of the Republic. BOUNDARY:In the North Syrdarya region borders on the Republic of Kazakhstan, in the East it borders on Tashkent region, in the South-East on Republic of Tajikistan, in the South-West it borders on Djizak region. POPULATION:the number of population consists of 683,6 thousand manpower resources. ADMINISTRATIVE DIVISION:There are three cities of region submission, two cities of regional submission, 8 tumans, 5 urban settlements, and 284 populated area. REGIONAL CENTRE:The status of a city Gulistan got in 1952. The population of number is 76,5 thousand. There is motor car highway and main arterial highway, which connects all regions of the Republic, passes through the city. CLIMATE: Climate is sharp continental, dry and fair with some cloud. Annual temperature is 13-15 degrees of warmth. Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

4. NATURAL CLIMATIC PECULIARITIES Syrdarya region is situated in the centre of Hunger steppe oasis. The relief is wavy plain. Climate is dry and steady, differs with fair with some cloudiness. Cloudless days in a year consist of 60-80 days. Cold cyclone comes from the North and North West, precipitations consist of 300-345 mm. in a year, 47 days in the region the most windy, 20-40 days in a year the ground is covered with snow. Dampness of air during their vegetation time consists of 45-61 per cent, in hot summer days 14 – 16 per cent. There are 2000 kinds of plants, more than 41 variety of fish, more than 300 kinds of birds in Syrdarya region. Syrdarya region is located in the centre of Uzbekistan, Syrdarya river, the longest river in Central Asia is on the left side. The extent of the river, within region consists of 94 km. “Dustlik” canal, South Mirzachul Canal (92km) collectors CChC (84 km), Bayavut (30km), Yetysay (35km) are there in Syrdarya region. There are “Kolgansyr” lake (occupies the area of over 350 hectares), Crane lake in Mirzaabad farming district, with the area of 30 hectares, Salt lake in Sayhunabad farming district (with the area of 150 hectares) and Obitovlennoye lake in the region. Waters from rivers, canals and manifolds are mainly used for irrigation of agricultural lands. Land resources of the region are subdivided into the following 3 groups of the soil structure: 1. Mirzachul; 2. Central; 3. Dalvarzin. Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

5. TRANSPORT INFRASTRUCTURE Transport infrastructureof the region is presented with ramified structure of road and railroad ways. Total extent of the railways is 400 km, of the solid covered highways is about 2,000 km. The “Great Uzbek Highway” arterial road crosses over the territory of the region. All the large enterprises have spur-tracks.Internal regional transport communications have wayouts to all neighbouring states and via them to large sea ports. Transport infrastructure got a good development for the account of terminals “Akaltyn cotton recycling base” and “Syrdarya Akaltyn Tola” enterprises. The sharpest problem of agricultural manufacturing is a shortage of transport for the removal of fresh fruit and vegetables output during the period of mass harvesting. Actual problem is the creation of near-by station fridges providing fast cooling of agricultural products before their piling into railway refrigerators. Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

6. EXTERNAL ECONOMIC DEVELOPMENT OF THE REGION During the independence periods all necessary structures for the external economic activity were in fact formed all over again. Within this regional accent is primarily directed to the supporting and encouraging of central export. The essential growth of the external economic activity is observed in the region. Within the structure of the external trade export is developed with especially high rates. EXTERNAL TRADE TURNOVER: External trade turnover of Syrdarya REGION in 2006 contained 169 per cent, in comparison with the previous year. The growth of the external trade turnover is provided for the account of export intensifying, which grew up to 185 per cent in comparison with the previous year, while the import volume reduced and contained 96 per cent in comparison with the rates of the previous year. As a result of these changes in the external trade of the region the positive balance was formed. EXPORT: Though manufacture goods prevail in the export structure of Syrdarya region, positive changes happened for the last years. For 2006 export rates of the region enlarged and contained 185 per cent in comparison with 2005 rates. In particular, the part of cotton fiber in the total number of export reduced noticeably, while the part of machines and engineering has been enlarging year by year. IMPORT: The import structure of the region corresponds to the aims carried out in the region of structural changes and strategy of the reforms held. Thus for 2006 regional import rates contained 96 per cent in comparison with the previous year. Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

7. INVOLVMENT OV FOREIGN INVESTMENTS AND CREDITS Formed regional level of exported goods and services, export is mainly connected with the volume of investments involved to the economy of region. Syrdarya region has great opportunities for the wide involving of foreign investments what increases the export potential. The volume of foreign investments and credits involved in Syrdarya region has increased to 4,6 points during 2003-2006. In addition, large investment projects directed to improvements of social and manufacture infrastructure in region are on realization now, they are sponsored by ADB and IDB. Presently Syrdarya region 38 enterprises with foreign investments are registered, 9 of them are entirely based on foreign investments. The enterprises with foreign investments provide over 2000 capable citizens of the region. In 2006 the volume of goods and service production of such enterprises has risen to 31,4 billions sums, the volume of exported goods and service to 7,6 million dollars, the volume of import to 3,4 million dollars. The products of entrepreneurship business are mainly oriented to internal market. Entrepreneurship share in export has increased to 2,7 points and the sum of exported products is 1117,8 thousand dollars, that is 1 per cent of total export volume of the region. Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

8. BASIC ENTERPRISES WITH FOREIGN INVESTMENTS - Uzbek-Swiss joint venture “Sarruna Textiles” (cotton thread, knitwear cloth); - Uzbek-Russian joint venture “Sarbontex” (cotton thread. cotton wool, bondage materials); - Uzbek-Turkish-American joint venture “Lola Modele” (knitwear products); - Uzbek-Kazakh joint venture “Gulistan Bakara Uni” (flour of high quality); - Uzbek-Russian joint venture “Turkiston. S-Ross Fahri” (pastries); - Uzbek-Turkish joint venture “EMEK Guliston” (flour of high quality); - Uzbek-Russian joint venture “MosYantex” (knitwear products); - Uzbek-Russian joint venture “Reka Med Farm” (pharmaceutical products); - Uzbek-Arabic joint venture “Akaltyn base of cotton products” (logistics service). Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

9. THE DISTRIBUTION OF THE AMOUNT OF ORGANIZED VENTURES WITH THE FOREIGN STOCK IN DIFERENT COUNTERIES Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

10. 2004 2005 2006 Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

11. THE DISTRIBUTION OF INVOLVED FOREIGN INVESTMENTS AND CREDITS IN THE ASPECT OF ECONOMICS BRANCHES Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

12. THE AGRARIAN SECTION The region is the essential base of producing electrical energy, cotton fiber, corn, melons, fruit and vegetable production, etc. The role and place of the region is mainly determined by specific regional peculiarities: favorable agroclimatic peculiarities, making it possible to cultivate cotton, corn, fruits, vegetables, melons; significant rate of reproduction of the population and labor resources; availability of limited natural and recreation resources; existence of virgin lands in the region, predominance of small towns in the settlement systems, which requires the corresponding distribution policy; limitedness of water resources, extreme ecological conditions of certain regional sections. The region is characterized by the prevailing agricultural trends. The annual store is formed of 273.9 thousand tons of corn (293.2 thousand tons of wheat, 24.1 thousand tons of rice, 9.3 thousand tons of maize reserved for corn). 144 thousand tons of raw cotton, 14.3 thousand tons of potatoes, 101.4 tons of vegetables, 106.8 thousand tons of melons, 4.7 thousand tons of grapes, 12.4 thousand tons of fruit and berries, 28.1 thousand tons of meat and poultry, 136.2 thousand tons of milk, 31.4 mln. eggs, 230 tons of wool and 347 thousand tons cocoon. EKSPORT FOR 2006 The total number of cattle is 181.1thousand, 5.9 thousand pigs, 120.9 thousand sheep and goats, 6.1 thousand horses are breading in this region; the total number of poultry is 376.6 thousand. More than a half of the regional gross output is produced in the agrarian sector of the region. More than 7000 tons of fruit and vegetable production at the sum of 2.7 million US dollars was exported in 2006. Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

13. SIRDARYA REGION IS A HUGE SPHERE FOR THE INVOLVEMENT OF INVESTMENTS AND DEVELOPING SMALL AND MIDDLE BUSINESS The first measures aimed at using the own cotton fiber for the production of thread have been realized in our country since getting independence. A point-stock company “Zilola” organized the production of thread from raw cotton several years ago which recycles 300 tons of this raw-material a year because shortage of own means in forming powerful corporations brings to invest foreign capital. That’s why the widest perspectives are being opened to foreign investors. There are 38 corporations with foreign investment which are in effect in different spheres of economics. Year by year their number is increasing. There are all conditions for this good sunny climate, irrigated lands, modern rail-traffic infrastructure, emplaced nearly Tashkent city, having high-qualified working hands, own electro-energy, gas and the most important-stead state in our country sociability and hospitality of our people. In addition to it we can point out high educational and cultural level of our people: there is a university, several colleges, a theatre and other cultural institutions. Many of them were achieved in the years of independence of our republic. Economic reform is actively carried out in the region – the process of privatization and formation of different property forms, joint-stocks, private, with mixed capital including foreign investment. Many joint stocks, including such prominent and rather attractive with its economic effectiveness joint-stocks as Syrdarya TES promotes their shares for free sales in stock- exchanging trades. Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru

14. REGIONAL INSTITUTION ON EXTERNAL ECONOMIC RELATIONS, INVESTMENTS AND TRADE OF SYRDARYA REGION IS READY TO ASSIST TO THE REPRESENTATIVES OF BUSINESS CIRCLES IN PAVEMENT OF MUTUAL PROFITABLE COOPERATION IN THE FIELD OF EXTERNAL ECONOMIC ACTIVITY. Heroes Alley 1 Gulistan Syrdarya region 120100 Tel/fax: (8-3672) 25 25 66; 25 08 37; 25 09 51 E-mail: sirdmves@yandex.ru