Uzbekistan to use foreign investments for US$4.04bn in 2016. 2
Fresh Incentives for Investors. 2
investments
Uzbekistan to use foreign investments for US$4.04bn in 2016
Uzbekistan plans to use foreign investments at the volume of US$4.042 billion within the investment programme for 2016.
The resources will be utilized within implementation of 154 investment projects. In particular, Uzbekistan plans to use investments for US$1.339 billion due to foreign loans under the guarantee of the government.
The volume of foreign direct investments will make up US$2.793 billion on 85 projects in 2016.
Fuel-energy sector will use the most volume of foreign investments – US$2.29 billion on 34 projects. Foreign companies are planning to invest US$2.104 billion into 14 projects in oil and gas sector.
(Source: UzDaily.com)
Tender
Uzbekneftegaz National Holding Company has announced a tender for foreign oil and gas companies to undertake exploration at several investment blocks
The Uzbek side intends to engage a foreign partner in exploration at investment blocks Sechankul, Akjar and Chimbay, as well as in the development of Urga, and Akchalak and Chandyr group. The project will be implemented through the establishment of a foreign-invested enterprise on a parity basis.
The tender is open to oil and gas companies that practise advanced methods of work. Investors are requested to address Uzbekneftegaz with an official application for participation in the tender and present information about their activities.
Applicants are subject to sign confidentiality agreements. Upon that, they will be provided with supplies they need to prepare specific proposals for exploration and mining.
It is scheduled to carry out 54 projects totaling $18.5 billion in oil and gas sector by the end of 2020, $ 5.1 billion of which will be direct foreign investments.
(Source: «Uzbekistan Today» newspaper)
BUSINESS CLIMATE
Fresh Incentives for Investors
On July 1, 2016, Uzbekistan will introduce a new procedure for each joint-stock company to have no less than 15% of foreign investor shares in its statutory fund.
According to experts, it will enable the process of intensive involvement of foreign investors and managers in joint stock companies, create favorable conditions for their active participation in corporate governance, upgrade, technical and technological re-equipment, establishment of production of high-quality and competitive products and their promotion to foreign markets. There is another significant advantage: the presence of the state in the economy will drastically decrease through sales of state assets and stakes in joint stock companies.
The president instructed the government to submitting proposals for amendments and additions to the Law ‘On joint-stock companies and protection of shareholders’ rights’ and other related laws and regulations, and approve a joint-stock company standard statute, which was developed on their basis, by April 1, 2016. It is scheduled that certain schemes of assessment of joint-stock company shares for their further sales will be approved by the end of January.
The new procedure will not apply to the joint-stock companies that are engaged in the production and primary processing of strategic raw materials, as well as natural monopoly entities and providers of socially important goods and services at regulated prices.
The companies that do not to meet the requirements of selling 15% of shares to foreign shareholders will be reorganized into other legal forms and excluded from the register of joint-stock companies by July 1 2016 with the consequent provision of tax benefits and preferences.
Along with that, certain tax preferences will be granted to enterprises with foreign share. For example, a company with 15-33% of foreign share will receive benefits for profit tax payments, property tax, improvement and development of social infrastructure, single tax, as well as mandatory contributions to the Republican Road Fund.
Besides, foreign investors’ income in the form of dividends on shares they own in joint-stock companies have been exempted from from tax until January 1, 2020. Joint-stock companies with foreign investments are exempt from state fees for application to courts on violation of their rights and legitimate interests.
(Source: «Uzbekistan Today» newspaper)
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