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Saturday 26 January 2013

Uzbekistan, China to Develop Special Economic Zone in Jizzakh


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TASHKENT (RIA Novosti) – Uzbekistan and China will work together to jointly establish a Special Economic Zone (SEZ) in central Uzbek city Jizzakh. This high-tech industrial park will be formally established by March 2013 and will be the third of the sort to be established in Uzbekistan, after those in Navoi and Angren.

Jizzakh Province is located in the east-half part of Uzbekistan. It borders with Tajikistan to the south and south-east, Samarqand Province to the west, Navoi Province to the north-west, Kazakhstan to the north, and Sirdaryo Province to the east. It covers an area of 20,500 km². The population is estimated to be around 910,500, with some 80% living in rural areas. Its capital is the city of Jizzakh (pop. est. 127,500). The city has two universities with a total of approximately 7,000 students.
The economy of Jizzakh Province is primarily based on agriculture. Cotton and wheat are the main crops, and extensive irrigation is used. Natural resources include lead, zinc, iron, and limestone.

The China Development Bank will provide a $50 mln loan to finance several of the joint projects in the construction, agro-industrial and mechanical engineering sectors. Uzbekistan and China have set regime of favourable trade. Currently near 400 enterprises with Chinese participation operate in Uzbekistan, of which some 60 are with 100% Chinese capital. They operate in such areas as production of construction materials, light industry goods, processing agriculture good…

A SEZ is a geographical region that has economic and other laws that are more free-market-oriented than a country’s typical or national laws. Nationwide laws may be suspended inside a special economic zone. Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a multinational corporation (MNC), development of infrastructure and to increase the employment. The category SEZ covers, including free trade zones (FTZ), export processing Zones (EPZ), free Zones (FZ), industrial parks or industrial estates (IE), free ports, free economic zones, urban enterprise zones and others.

In late 2008, Uzbekistan has taken the first step towards the creation of the fundamentally new conditions for foreign and domestic investors. The starting point for the movement of the domestic economy on the new path was the Presidential Decree on the creation of the Navoi Free Industrial and Economic Zone (Navoi FIEZ). Navoi FIEZ territory is subject to special legislative regulations including for taxing, currency, customs and simplified order for entry, stay and departure for non-residents of Uzbekistan. Comprehensive preferences apply for tax, customs and other obligatory payments. Operation period of Navoi FIEZ is 30 years with possibility of further extension. Land parcels at the territory of Navoi FIEZ are provided for rent to businessmen for the period of investment activity at very low rates or free of charge.

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