FINANCING
INDUSTRIAL SECTOR PROJECTS
IN UZBEKISTAN
April 2013
Fund for Reconstruction and Development of Uzbekistan
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)
Fund for Reconstruction and Development of Uzbekistan
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Investment projects financing breakdown by source in Uzbekistan in 2012
Commercial banks
11%
Centralized funding
11%
Non banking
institutions
2%
Foreign investments
and loans
5%
Companies
29%
Foreign direct
investments
17%
UFRD
5%
Stock market
5%
Population
15%
Fund for Reconstruction and Development of Uzbekistan
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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
Fund for Reconstruction and Development of Uzbekistan
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Areas of Financing
Areas:

Oil and Gas

Chemical and Petrochemical

Energy & Power

Metals & Mining

Transport & Communications

Infrastructure
Fund for Reconstruction and Development of Uzbekistan
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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
Fund for Reconstruction and Development of Uzbekistan
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Project stages
Appraisal
Feasibility studies, Due diligence, appraisal, (co) financing mechanism
Final review, Government approval, Board approval
Board approval
Financing
Implementation
Supervision, implementation monitoring
Monitoring
Completion and evaluation
Fund for Reconstruction and Development of Uzbekistan
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Project financing mechanism
UFRD
Investors
CO-FINANCING
BANKS
Financial Institutions, Banks and
Investors
 Refinancing
 Monitoring
 5 authorised banks
BORROWERS
Loans provided for designated projects
Fund for Reconstruction and Development of Uzbekistan
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Portfolio structure
Mining and
others
14%
Transport and
Infrastructure
20%
Chemical
10%
UZTRANSGAZ
Energy
23%
Oil and Gas
and
Petrochemical
33%
Projects portfolio: 77 projects - $24.86 bln. in total, with the participation of UFRD - $5.3 bln.
Fund for Reconstruction and Development of Uzbekistan
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Surgil gas chemical complex
Description
Project information
 Value: over $4bln.
Construction of Gas and Petrochemical Complex on the Ustyurt
Surgil deposit with further field development
 Completion: 2015
 The project's outcome is a significant expansion in the value-added
 Shareholders: Kogas, Lotte, Uzbekneftegaz
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.
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Project implementation
Dehkanabad Potash
Fertilizer Plant (2007)
Resources
Potash salt deposit
Tyubegatan
Co-Financing
Eximbank of China $42 mln.
EPC
International Contractors
UFRD $62 mln.
Uzkimyosanoat $22 mln.
Results
Future
expansion to production of
600 000 tons
of potash fertilizers
Export of 200 000 tons of potash fertilizers
1321 new jobs
Area infrastructure
2nd stage of project started in
2011
Modern Technologies
Fund for Reconstruction and Development of Uzbekistan
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Oltin Yol GTL
Description
Project information
 Value: $4bln.
 Completion: 2015
 Shareholders: Uzbekneftegaz, Sasol, Petronas
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.
Fund for Reconstruction and Development of Uzbekistan
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Talimarjan TPP
Description
Project information
 Value: over $1.28 bln.
Extension of Talimarjon TPP with the construction of 2 units of CCGT
capacity of 450 MW each
 Completion: 2015
 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.
 Shareholders: Uzbekenergo
 Generation: 900 MW
 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.
Fund for Reconstruction and Development of Uzbekistan
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Air fleet modernization of “Uzbekistan Airways”
Description
Project information
 Uzbekistan Airways is the country’s airline, which provides aviation needs for
 Value: over $1.1 bln.
 Completion: 2018
 Shareholders: Uzbekistan Airways
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.
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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
Fund for Reconstruction and Development of Uzbekistan
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
Fund for Reconstruction and Development of Uzbekistan
Our partners

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
Fund for Reconstruction and Development of Uzbekistan
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Fund for Reconstruction and Development of Uzbekistan
Contact Details:
E-Mail address: info@ufrd.uz
+998 71 2385648 (Fax) +998 71 234 0157
Address: 101 Amir Temur Street, Tashkent, Uzbekistan,100084
Web address: http://ufrd.uz
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