NEWS AND EVENTS
May 4, 2012
Investments in fixed assets in Uzbekistan increased by 4.4% in the 1st quarter
According to the State Statistics Committee, investments in fixed assets to the national economy in the 1st quarter of 2012 increased by 4.4% compared with the corresponding period last year and exceeded 3.8 trillion soums (Official exchange rate $1= 1859,07 UZS).
Investments in fixed assets, the main component of business activity in the society, include the cost of creation of the real capital - all types of construction, acquisition of machinery and equipment, vehicles, tools, household equipment and other capital works.
The share of centralized investments (budgetary funds, means of the Fund of reclamation of irrigated lands, off-budget funds, the Fund for Reconstruction and Development, and foreign investments and loans guaranteed by the government) was about 20%. The share of non-centralized investments (funds of enterprises and the population, foreign direct investments and loans, as well as loans of commercial banks and other borrowed funds) exceeded 80%. The priority was placed on industrial construction.
The increase of centralized investments, as analysis of official data shows, was provided mainly by the 7.6-fold increase of business activity of the Fund for Reconstruction and Development of Uzbekistan in comparison with the 1st quarter of 2011. It accounts for more than half the volume of capital investment in the centralized investments. FRDU plays an important role in the advanced development of new high-tech businesses and industries, accelerating the processes of modernization and technical renovation of existing facilities.
In 2012, the Fund provides co-financing amounting to more than $758 million within 29 projects of strategic investment in major industries and industrial infrastructure of the country. Those include the construction of Ustyurt gas and chemical complex at Surgil deposit, the second stage of Dehkanabad potash fertilizer plant and Kungrad soda plant, the plant for production of synthetic liquid fuel, two combined-cycle plants at Tolimarjon thermo power plant, the new power unit at the Angren thermo power plant, production of tires and conveyor tape. Particular emphasis is placed on expanding and deepening the capacity of the entire process chain at the textile factories.
In order to expand participation of the fund in the modernization, technical and technological rearmament of enterprises, this year measures to strengthen its resource base were taken. Under the Decree of the President of the country of March 9, 2012 \"On measures to further improve the operations of the Fund for Reconstruction and Development of the Republic of Uzbekistan\" its authorized capital will be increased to $15 billion in the 2012-2016.
As part of decentralized investments the main source of funding for this period were means of the enterprises with the proportion of 47% in the total capital investment (the share of the population exceeded 25.7%, loans of commercial bank - 14%, direct foreign investments and loans - 12.8%).
The flagship of financing the national economy in the 1st quarter became funds of enterprises. Domestic manufacturers solve a number of important tasks to improve the competitiveness of products, increase the volume and variety of exports, strengthening their positions on foreign markets and widening their export products.
A key role is assigned to replacement of fixed assets as part of the Resolution of Cabinet of Ministers of April 19, 2012 \"On additional measures to accelerate the renewal of obsolete equipment of enterprises of industries\". Implementation of the large-scale program to reduce costs in the industry by an average of 11.2% will increase the competitiveness of domestic goods on domestic and foreign markets.
The address program of major investment projects for 2012, implemented by companies\' own funds of $3.2 trillion soums, includes 228 projects of domestic enterprises. Of them $2 trillion soums worth 111 projects are implemented in the fuel and energy complex, chemical, petrochemical and metallurgical industries.
Companies operating in the field of transport, capital construction and building industry at their own expense (566.9 billion soums) are building new and modernizing existing production as part of 24 major investment projects.
Machine builders and power industry businesses participate in financing of 34 facilities worth 364 billion soums, the pharmaceutical industry and the Information Systems and Telecommunications - 25 facilities worth 158 billion soums. Textile and food businesses implement 21 projects at their own expense in the amount of 97.3 billion soums.
Official statistics recorded execution of construction work in excess of 1.8 trillion soums with a gain of 6.6% in the 1st quarter of 2012.
Since the beginning of the year, the country introduced 1,712.4 thousand square meters of housing. (Source: UzReport.com)