FINANCING INDUSTRIAL SECTOR PROJECTS

IN UZBEKISTAN

BANKING & FINANCIAL SECTOR

1. Central Bank of Uzbekistan

2. 30 commercial banks:

• 3 state-owned banks

• 13 joint stock banks

• 5 banks with foreign capital

• 9 private banks

3. Fund for Reconstruction and Development

4. Leasing companies, Investment Funds

BANKING & FINANCIAL SECTOR

13%

9%

9%

5%

24%

40%

NBU Asaka bank Agrobank UzPSB Ipotekabank Others

14%

7%

6%4%

25%

44%

Capital

Assets

BANKING & FINANCIAL SECTOR

20092010

20112012

8,70

13,20

18,219,90

0,00

2,00

4,00

6,00

8,00

10,00

12,00

14,00

16,00

18,00

20,00

• Establishing of Deposit Guarantee Fund– since 2002 • Full guarantee of population deposits in commercial banks – since 2009• Annual growth rate of assets, deposits and credits - on average 35-40%•Share of long term loans to real sector in credit portfolio – 76%•Overall assets significantly grew since 2009 by 2012 - to 200%

Dynamics of deposits, assets and credit portfolio Dynamics of deposits, assets and credit portfolio

BANKING & FINANCIAL SECTOR

Selected list of credit lines by international banks provided to local banks:

• Asian Development Bank, IFC, World Bank, Islamic Development Bank

• Korea Exim Bank, Korea Development Bank

• China Development Bank, The Export-Import Bank of China

• Japan Bank for International Cooperation (JBIC)

• Export-Import Bank of India, Exim Bank of Malaysia  

• Commerzbank, Deutsche Bank

BANKING & FINANCIAL SECTOR

COMPREHENSIVE REGULATIONS

• Conservative approach to the development of banking sector - No single bank bankruptcy since 1991

• Strict bank licensing regulations aimed at quality rather than quantity

• Comprehensive regulations based on Basel committee recommendations and regular CAMELS rating system on site audit

• Compulsory annual international audit of all commercial banks since 1998

BANKING & FINANCIAL SECTOR

HIGH LIQUIDITY AND CAPITAL ADEQUACY RATIOS

• Risk-weighted capital adequacy ratio is 24,3% (Central Bank regulation is 10%, Basle Committee standard is 8%)

• Current liquidity is above 72.8% (Central Bank requirement is 30%)

• 26 commercial banks in the country, received "stable“ rating from leading international rating companies ( "Moody's", «Standard & Poor’ s» and « Fitch ratings»)

GOOD PERFORMANCE OF CREDIT PORTFOLIO

• High quality and diversification of credits

• National Institute for Credit Information (NICI) – established as a real-time database for credit histories networking and used by all banks and bank branches

• Established in 2006 by the Presidential Decree

•Charter capital 15 billion U.S. Dollars

Main tasks: -financing strategic

investment projects in key areas

- promotion of projects co-financing by investors and

financial institutes

Fund for Reconstruction and Development

I. Core sectors •Oil & Gas

• Chemical and Petrochemical

• Energy & Power

• Metals & Mining

• Transport & Communications

II. Infrastructure projects

AREAS of FINANCING

BANKS Refinancing

Monitoring

5 authorised banks

UFRD

CO-FINANCING

Financial Institutions, Banks

and Investors

PROJECT FINANCING MECHANISM

BORROWERS Loans provided for designated

projects

PORTFOLIO STRUCTURE

Mining: 9%

Transportation& Infrastructure: 26%

Energy: 23% Oil&Gas: 25%

Machinery: 3%

Chemicals: 14%

Credit portfolio: over 71 projects at financing and project development stages

PROJECT IMPLEMENTATION SCHEME

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

Description Description

Transaction termsTransaction terms

Building 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: Honam Petrochemical Corporation (45% of the Korean consortium), Korea Gas Corporation (45%), and STX Energy (10%). 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

PROJECT EXAMPLES

DescriptionDescription

Transaction termsTransaction terms

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 $2,7-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.

Uzbekistan GTL

PROJECT EXAMPLES

Description Description

Transaction termsTransaction terms

Navoi Thermal Power Plant Modernization Project

The project considers construction of Combined Cycle Power Plant 478 MW capacity.

The facility is being built at the Navoi Thermal Power Plant of State Joint Stock Company Uzbekenergo (SJSC Uzbekenergo), the authority under which the power industry of Uzbekistan operates.

The natural gas-fired CCGT power plant currently under construction in Navoi City, the capital of Navoi Province, which is in southwestern Uzbekistan and is one of the country’s largest industrial centers. The economy of the Navoi region is currently enjoying a boom fueled by production of natural resources, including oil, natural gas and precious metals, as well as chemical fertilizer and other material manufacturing.

When completed, the new power generation system will supply electricity and heat (hot water) to the Navoi Free Industrial Economic Zone and thereby contribute to the development of industry in the region.

The CCGT power generation plant to be built in Navoi consists primarily of one M701F gas turbine, one steam turbine, one heat recovery steam generator and two generators. MHI will provide the gas and steam turbines and Mitsubishi Electric Corporation will supply the generators. INITEC Energia, an ACS Group company, will be responsible for overall engineering of the facility and Calik Enerji Sanayi ve Ticaret A.S., a Turkish construction company, will perform civil engineering and installation work at the site. Mitsubishi Corporation will handle the trade particulars.

NAVOI CCPP

PROJECT EXAMPLES

OUR PARTNERS

Asian Development Bank

World Bank

Japan International Cooperation Agency

Qatar Investment Authority

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

Czech Export Bank

FUND FOR RECONSTRUCTION AND DEVELOPMENT

OF THE REPUBLIC OF UZBEKISTAN

Tel:   +998 71 2385648Tel:   +998 71 2385648

Fax:  +998 71 234 0157Fax:  +998 71 234 0157

101 Amir Temur Street101 Amir Temur Street

Tashkent |Uzbekistan|100084Tashkent |Uzbekistan|100084

info@ufrd.uzinfo@ufrd.uz

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