Speaker Name: Mirodil Mirakhmedov, UZACE

SITUATION OF THE NEW MARKET IN ASPAC REGION

Presentation of UZACE

at the FIDIC Centenary Conference in Barcelona

GENERAL REVIEW

CENTRAL ASIA POPULATION

Countries Population, mln

Uzbekistan 29,559.100

Kazakhstan 17 010 564

Tajikistan 8,000.000

Kyrgyzstan 5 663 100

Turkmenistan 5 169 660

Total population: about 64 million people

GENERAL REVIEW

CENTRAL ASIA TERRITORY

Total territory of each country: km2

Kazakhstan – 2,724,900

Turkmenistan –491,210

Uzbekistan - 447,400

Kyrgyzstan –199,900

Tajikistan –143,100

GENERAL REVIEW GDP BY CENTRAL ASIA COUNTRIES

GDP per capita in 2012 ($)

Kazakhstan 13,892

Turkmenistan 7,846

Uzbekistan 3,536

Tajikistan 2,066

Kyrgyzstan 2,372

GENERAL REVIEW

CHALLENGES OF CA ECONOMY GROWTH

In 2011-2012 the CA region level of growth was at the level of 7,2-7,4%.

International Financial Institutions (ADB, WB) are forecasting the continuing

economic growth in CA. World prices increasing on such main export goods as

metal, oil, cotton will lead to recover the economy of CA countries and facilitate

their further growth.

COUNTRIES PROFILE KAZAKHSTAN

The International Monetary Fund, the Asian

Development Bank forecast that Kazakhstan's

GDP growth will be around 6-6,3%. In the GDP

of Kazakhstan almost 20% is the mining industry,

so, much the economic growth of Kazakhstan

depends on the world price of oil, minerals and

metals.

COUNTRIES PROFILE

UZBEKISTAN

Good performance in 2012 due

mainly sustainable growth in the

services sector (10.3 per cent),

construction (11.5 per cent) and

agriculture (7 percent). Total

investment grew by 7.9 percent in

2011 and 11.6 percent in 2012.

COUNTRIES PROFILE

KYRGYZSTAN

The last two revolutions affected economy

situation in country.

In January-June 2012, maintained an

economic slowdown.

Real GDP in the first half of 2012 decreased

by 5.6%, due to the fact that the volume of

gold production at Kumtor fell to 60%.

With new Government elected, the GDP

growth in 2013 shows 5% growth.

COUNTRIES PROFILE

TAJIKISTAN

The development of the national economy

up to 2012 was because of the growth of

industrial production, agriculture, retail trade

and the growth of foreign trade.

But in 2012, there was a decline of 24.5% of

the volume of overall capital investments in

the country.

Real GDP growth in 2012 compared to 2011

was 7.5%.

COUNTRIES PROFILE

TURKMENISTAN

A kind of engine of growth for the economy,

except export of gas, remains the construction

sector, infrastructure, industrial and civil

projects.

In recent years, the economy of Turkmenistan

is developing rapidly. In 2010, GDP grew by

9.2%, in 2011 - 14.7%.

COUNTRIES PROFILE

INVESTMENTS

Total Foreign Direct Investment flow in 2009-2012 CA countries - were increased

by 6 times comparing the years of 2000-2005.

CA region has considerable resources of energy, including oil, gas and hydropower.

The mining industry will further attract the foreign investments to CA. The services

sector is also rapidly developing in the region.

Experts underline the active flows of investments into automobile roads and

railway sector.

COUNTRIES PROFILE

INVESTMENTS

UZBEKISTAN

The construction of the railway line Angren-Pap ( length of about 125 km) has to go through the mountain pass Kamchik and link the three areas in the east (Andijan, Namangan and Ferghana) with the rest of Uzbekistan which will connect the Fergana Valley from the rest of the country, bypassing Tajikistan, this is a strategic project and will be implemented in 2014-2016.

The cost of the project is about $1.9 billion.

Angren Free Economic Zone. Ten investment Projects with the overall cost of 200 mln USD

Navoi Free Econnomic Zone. Twenty three Projects with the overall cost of 1,1 bln USD

Djizzakh Free Economic Zone. Fourteen high technology parks will be developed by China. The new investment package signed between China and UZB for the period 0f 2013-2020 is 15 bln USD.

COUNTRIES PROFILE

INVESTMENTS

UZBEKISTAN

More then 16 bln USD of investments were signed in 2012.

By sectors:

Geology, Chemical, Oil&Gas, Metallurgy – 11,5

Uzbekenergo - 2,1

Machinery, Electrotekhprom, aviation - 0,6

Uzbek Railway - 0,6

Uzbek Communal services - 0,83

Rural sector and Agriculture - 1,6

Road Fund - 0,3

INVESTMENTS

KAZAKHSTAN

Presidential “high priority” project. Length – 66 km (4/6 lanes), CAPEX – $745m,

Construction – 3 yrs - 4.5 years.

Contractual structure – BTO

Road Construction.

Start of construction of BAKAD, Almaty Ring

Road, is planned for 2014-2017.

INVESTMENTS

KAZAKHSTAN

Kashagan Field, discovered in 2000, is located in the

northern part of the Caspian Sea close to Atyrau and it is

considered the world's largest discovery in the last

30 years, combined with the Tengiz Field.

It is estimated that the Kashagan Field has recoverable

reserves about 13 billion barrels (2.1×109 m3) of crude

oil. Commercial production is expected to start in the

first half of 2013.

The Kashagan contract area covers an area of over 5,500 square kilometres (2,100 sq mi)

and consists of five separate fields, producing formations from the Precaspian Basin. These

fields are Kashgan, Kalamkas A, Kashagan Southwest, Aktote and the Kairan.

The field is developed by international consortium under the North Caspian Sea Production

Sharing Agreement. The Agreement is made up of 7 companies consisting of Eni (16.81%),

Royal Dutch Shell (16.81%), Total S.A. (16.81%), ExxonMobil (16.81%), KazMunayGas

(16.81%), ConocoPhillips (8.4%), Inpex (7.56%).

INVESTMENT PROJECTS

KYRGYZSTAN

The project is the construction of the railway

"China-Kyrgyzstan-Uzbekistan"

The idea of building the railway "China-

Kyrgyzstan-Uzbekistan", as the southern corridor

of the Eurasian railway, originated in 1996 after

the announcement by the Government of the

PRC on the official start of construction of the

South Xinjiang Korla railway Kashgar.

INVESTMENT PROJECTS

TAJIKISTAN

Glinozem production factory – 1,8 bln USD

Plant on Cathode blocs production – 40 mln USD

Plant of H2SO4 production – 40 mln USD

Plant on Aluminum Ftoride

Production - 30 mlnUSD

Chemical plant - 110 mln USD

Construction of Rogun power station – 2,2 bln.USD

Aluminum Industry Development

Planned Investments:

INVESTMENT PROJECTS

TURKMENISTAN

Main investment projects in Turkmenistan to be implemented in 2012-2016 by

sectors:

Gaz Sector “Turkmengas” – 758,391,608 USD

Oil Sector “Turkmenoil” – 31,468,531 USD

Energy sector - 1,858,200

Chemical Industry – 3,696,880

REGIONAL PROJECTS

Tajikistan-Turkmenistan

Tajikistan, Afghanistan, Turkmenistan signed

an agreement on the construction of the

railway pass. The shortest portion has a 160

km. The railway will pass through two bridges

length of 700 meters each. Connect

Turkmenistan and Tajikistan to the segment

will allow Tajikistan to have access to a

network of railways of the CIS and the

Caspian Sea via the Turkmen port of

Turkmenbashi. After completion of this Porject

up to 90% of foreign trade of goods in

Tajikistan will pass thouth this railway, about 7

million tons per year. The investment amounts

to $270 million.

OUTPUTS AND PROPOSALS

Needs for regional cooperation strengthening;

Taking into account the FIDIC indirectly presence through its standards and

norms needs to organize the FIDIC actual presence in the region by organizing

the introductory seminars, round tables etc.;

Initiation of the assembling of National Association of Consulting Engineers in

the rest of the Central Asia countries;

Establishing the Central Asian Regional FIDIC Training Centre;

Establishing the “FIDIC Contact” point for the further consultations (FIDIC

documents in native languages, use of the FIDIC contracts and procedures in

construction);

Organizing the coming FIDIC, ASPAC forums in one of Central Asian

countries.

Thank You!