financing industrial sector projects in uzbekistan

Fund for Reconstruction and Development of Uzbekistan

FINANCING

INDUSTRIAL SECTOR PROJECTS

IN UZBEKISTAN

April 2013


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State programs aimed at industrial development and modernization


1.Industrial development priorities program #PP-1142 for 2011-2015 (with total of 500 projects for over 47bln. US dollars)

2. Industrial infrastructure program #PP-1446 for 2011-2015 (with total 85 projects for over 8.5bln. US dollars)

3. 16 Sectoral development programs in (oil and gas, chemical, energy, textiles, leather and foot-wear industry and etc.);

4. Projects implemented in special industrial zones (Navoi, Angren, Jizzakh);

5. Small and Medium size investment projects support by commercial banks, non bank financial institutions and other sources;

6. Annual investment program of Uzbekistan #PP1855 for 2013;(Total of 293 large projects)


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Investment projects financing breakdown by source in Uzbekistan in 2012


Companies29%

Commercial banks11%

Stock market5%

Population15%

Foreign direct investments

17%

Foreign investments and loans

5%

Non banking institutions

2%

Centralized funding 11%

UFRD5%


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About UFRD

Established in 2006 by the Presidential Decree

Charter capital 15 billion U.S. Dollars

UFRD’s participation ensures successful accomplishment of national projects

UFRD provides assistance with its expertise, analysis and liaison with local institutions at all levels



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Areas of Financing

Areas:

Oil and Gas

Chemical and Petrochemical

Energy & Power

Metals & Mining

Transport & Communications

Infrastructure



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Major objectives

Financing and co-financing investment projects with major contribution to economic development and structural reforms

Providing loans for modernizing industrial enterprises in the key sectors of the economy

Introduction of advanced, efficient and energy saving technologies

Contribution to sustainable growth



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Final review, Government approval, Board approval

Completion and evaluation

Feasibility studies, Due diligence, appraisal, (co) financing mechanism

Financing

Supervision, implementation monitoring

Monitoring

Board approval

Appraisal

Implementation

Project stages


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Project financing mechanism

BANKS Refinancing

Monitoring

5 authorised banks

UFRD

CO-FINANCING

Financial Institutions, Banks and

Investors

BORROWERS Loans provided for designated projects


Investors


Projects portfolio: 77 projects - $24.86 bln. in total, with the participation of UFRD - $5.3 bln.

Portfolio structure

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Transport and Infrastructure

20%

Oil and Gas and

Petrochemical33%

Energy23%

Chemical 10%

Mining and others14%

UZTRANSGAZ


Construction of Gas and Petrochemical Complex on the Ustyurt Surgil deposit with further field development

The project's outcome is a significant expansion in the value-added chemical process industry in Uzbekistan and the increase in value of a

key natural resource. As a result, 3,373 KTPA of natural gas will be processed into 387 KTPA of high-density polyethylene, 83 KTPA of

polypropylene, and 2,568 KTPA of methane-rich processed gas. The project will boost long-term employment by adding approximately 3,500 direct jobs during construction and 1,090 during operations, in addition

to indirect employment opportunities.

Uz-Kor Gas Chemical is a joint-venture company which is 50% owned by Uzbekistan’s UNG and 50% by a consortium of Korean companies:

Uz-Kor Gas Chemical was incorporated in Uzbekistan in May 2008 as a project company to build, own, and operate the project.

A consortium of foreign banks, including the Asian Development Bank, the Export-Import Bank of Korea, China Development Bank and others,

are providing loans for a total of $2.54 billion for 16 years.

Surgil gas chemical complex

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Project information

Value: over $4bln.

Completion: 2015

Shareholders: Kogas, Lotte, Uzbekneftegaz

Description


Dehkanabad Potash Fertilizer Plant (2007)

UFRD $62 mln.

Eximbank of China $42 mln.

Uzkimyosanoat $22 mln.

International Contractors

Co-Financing EPC

expansion to production of 600 000 tons

of potash fertilizers

2nd stage of project started in 2011

Resources

Future Results

1321 new jobs

Export of 200 000 tons of potash fertilizers

Modern Technologies

Area infrastructure

Potash salt depositTyubegatan

Potash salt depositTyubegatan

Project implementation

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Production of synthetic liquefied gas (GTL) on the base of methane processing at Shurtan Gas-Chemical Complex

Gas to liquids (GTL) is a refinery process to convert natural gas or other gaseous hydrocarbons into longer-chain hydrocarbons such as gasoline or diesel fuel. Methane-rich gases are converted into liquid synthetic fuels either via direct conversion or via syngas as an intermediate, for example using the Fischer Tropsch or Mobil processes.

South African energy and chemicals group Sasol concluded a joint venture (JV) agreement with Uzbekistan's national oil and gas company, Uzbekneftegaz, as well as with Petronas, of Malaysia, for the development of a new $3,985-billion gas-to-liquids (GTL) project.

(GTL) plant, located 40 kilometers south of Qarshi in Uzbekistan.This plant will be based on Sasol’s world leading GTL technology and will have a capacity of 1.4 million metric tons per year, a similar capacity of the Oryx GTL facility in Qatar implemented by Technip, with following product slate: GTL diesel, kerosene, naphtha and liquid petroleum gas.The plant, would tap into gas reserves of some 60-trillion cubic feet (tcf), with a typical GTL plant requiring only 3,5 tcf.

The facility could produce some of 1,4-million tons, or 40 000 bbl/d, of GTL diesel, kerosene, naphtha and liquefied petroleum gas according to Sasol.

Oltin Yol GTL

Project information

Value: $4bln.

Completion: 2015

Shareholders: Uzbekneftegaz, Sasol, Petronas

Description

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Extension of Talimarjon TPP with the construction of 2 units of CCGT capacity of 450 MW each

The aim of the project - the introduction of two blocks of steam-gas Combined Cycle Generating Turbine plants (CCGT) at Talimarjon TPP of 450 MW each.

The project will ensure reliability, efficiency, reducing the unit cost of energy (including gas) and electricity, reducing the impact on the environment.

Ensuring a reliable supply of electric energy to consumers of the southern regions of Uzbekistan.

Estimated power: the installation of two units, each with a capacity of CCGT 450 MW / h will allow output of 6,088 GWh of electricity annually.

Steam-gas installations and associated equipment manufactured by leading engineering firms in Germany, Japan and USA.

The project initiator - Uzbekenergo.

Total project cost – 1.280 billion dollars.

Talimarjan TPP

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Project information

Value: over $1.28 bln.

Completion: 2015

Shareholders: Uzbekenergo

Generation: 900 MW

Description


Uzbekistan Airways is the country’s airline, which provides aviation needs for the national economy.

Uzbekistan Airways/National Air Company (NAC) was founded on January 28, 1992.Soon after the airline's establishment the development of the state civil aviation program has begun.

The program included complete reconstruction of airport terminal complexes, equipping airports in accordance with International Civil Aviation Organization (ICAO) requirements and establishment of a base for training of professional personnel.

Today Uzbekistan Airways is the leading carrier in the Central Asian region.Uzbekistan Airways keeps a sound position on the international market and provides high quality competitive services. During the years of operation the company had been awarded the International fund for Aviation Safety Diploma and a Certificate from Airports International Association and "Euromarket-2000“.

The company operates flights to more than forty cities of the world including North America, Europe, Middle East, Southeast, Central Asia and the CIS. Uzbekistan Airways continues to establish long-term and reliable business contacts, to increase the number of countries where its aircraft flies to and to improves its services. That makes the company one of the world's dynamic airlines.

Currently UFRD co-financing acquisition of 16 planes from Airbus.

Air fleet modernization of “Uzbekistan Airways”

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Project information

Value: over $1.1 bln.

Completion: 2018

Shareholders: Uzbekistan Airways

Description


Perspective projects for co-financing and investments

Construction of the ammonia and urea plant in Navoi region

Estimated cost:$900-1050 mln.

Output: ammonia -2000 tons/day,Urea-3000 tons/day

Construction of new polyvinyl chloride (PVC) and caustic soda producing plant

Estimated cost : $468 mln.

Output: PVC -100 thousand tons/year


Perspective projects for co-financing and investments

Construction of combined cycle power plant with total capacity of 900 MW in the Namangan region

Estimated cost: $1000 mln.

Output: PVC -100 thousand tons/year

Construction of Gas-petrochemical complex at Mubarek

Estimated cost: $4000 mln.

Output: Polyethylene - 400 000 thousand tons/year


Asian Development Bank

Asian Development Bank

World Bank

Japan International Cooperation Agency

Islamic Development Bank

State General Reserve Fund of Oman

Korea Development Bank

Korea Export-Import Bank

International Petroleum Investment Company

KSURE

Malaysia Export-Import Bank

China Development Bank

The Export – Import Bank of China

Kuwait Fund for Arab Economic Development

Our partners

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Contact Details:

E-Mail address: [email protected]

+998 71 2385648 (Fax) +998 71 234 0157

Address: 101 Amir Temur Street, Tashkent, Uzbekistan,100084

Web address: http://ufrd.uz

financing industrial sector projects in uzbekistan

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