Today.Az » World news » Foreign investments in Uzbekistan increase by over 90%
24 April 2019 [12:51] - Today.Az
The volume of foreign investments and loans attracted to Uzbekistan in January-March 2019 amounted to $1.2 billion, which is 91.2 percent more than the same period last year, Trend reports with reference to State Statistics Committee of Uzbekistan.
The highest growth rates are observed in the Jizzakh region, where the inflow of foreign investments increased 20.7 times.
Almost all regions of the country recorded an increase in foreign investments and loans. The flow of investments has declined only in Bukhara region. In monetary terms, the largest amounts were provided to the Kashkadarya and Navoi regions, over $473 million and $236 million respectively.
Most of the investments from abroad were made in the form of loans (over $946 million), of which $887 million were provided under the guarantee of the state. Direct investments amounted to $284 million.
In the first quarter of 2019, about $3.5 billion was spent, mainly due to centralized sources of financing (41.8 percent share) including, among others, state budget funds and the Fund for Reconstruction and Development of Uzbekistan.
The share of foreign investment is barely more than a third of the total disbursed funds. Slightly less than a third of the investment falls on the money of enterprises and the population.
In the technological structure of investments in fixed assets, about 50 percent of the total volume, which amounted to almost $1.7 billion, was aimed at modernizing production and the purchase of machinery, equipment and inventory. The construction industry received $1.4 billion (over 40 percent) of the investments.
Special attention is paid to investments in the Jizzakh region. At the beginning of the year, President of Uzbekistan Shavkat Mirziyoyev signed a decree according to which it become a leading region in the country. The project involves accelerated development of the region and the improvement of the living conditions of its residents.
In August last year, International Investment Forum was held in the region. It resulted in signing 28 agreements and memorandums worth over $800 million including $600 million of foreign direct investments.
The volume of investments attracted to Jizzakh for the three months of this year could have been more, but for two major projects that were never implemented. For example, the construction of Uzbek-French automobile plant Uzbekistan Peugeot Citroen Automotive came to a standstill.
According to JSC "Uzavtosanoat", the reason for the freezing the construction lies in the revision of the project concept and the optimization of economic parameters. According to other information available, the French counterpart has found the project unprofitable and the company fears that it will not be able to return the investments in 30 years.
The suspension of another project, namely the construction of the Jizzakh oil refinery, was announced in March this year. This decision was connected with the plans of the state to modernize the refineries operating in Fergana and Bukhara.