Effective reforming

32_Shukurov_eng

The City of Jizzakh

     The city of Jizzakh, a provincial capital of Jizzakh province, is a cultural, economic and administrative centre of the province. The name of the city comes from the Sogdian word “dizak” which is translated as a small fortress, a small fort. The modern city is multinational; representatives of many nationalities live here — Kazakh, Uzbek, Kirghiz, Russian, Tatar, Tadjik and others.
The city has several higher education institutions. The Jizzakh Higher Military Aviation School trains future officers for the armed forces of the Republic of Uzbekistan. The School of pilots was established in September 1994 at the initiative of the president of the Republic of Uzbekistan, Commander-in-Chief of the armed force, trains high certificated pilots. There are also the Polytechnic Institute and State Pedagogical Institute in Jizzakh.
Jizzakh is a large transport hub. Railway and motor road that connect central and western regions of the country with eastern regions pass through the city. The motor road which is the Big Uzbek Tract and the electrified railroad line are interlink between two largest cities of Uzbekistan, two capitals: modern and ancient – Tashkent and Samarkand
Jizzakh is considered to be one of the most beautiful cities not only of the province, but probably, and of our country. Established approximately in the beginning of the nineteenth century, this big city has become even more beautiful throughout the years of independence. Today if you arrive to Jizzakh you will enjoy contemplation of benefits given by the independence, you will admire prosperous city and sincere people who focus on good deeds only, such as creative activities. People looking ahead with the confidence and aspiring to create the great future will fill your heart with pride. The great gains have emerged out of the great deeds of our people on path towards their happiness.
As a result of large-scale reforms, image of Jizzakh changes from year to year and living standards of its citizens are being improved. Similar positive changes can be observed in each field of activities. This means that the city makes the most of technological and labour potential, develops in consistence with market relations. Particularly great attention has been paid to development of such economy sectors, as industry, construction, communication and services, trade, entrepreneurship, employment, social services and also foreign economic relations.
Last year steps were successfully taken to expanding production of industrial and agricultural goods, modernization of large operating capacities and commissioning new ones, including facilities processing raw materials available in the province, and also to support small and private business. Measure taken in all sectors of activities have provided for growth of all economic indicators. The volume of output of industrial goods in comparative prices has made 543.9 billion UZS or 121.1 % compared to 2016, production of consumer goods – 119.5 %, agricultural goods – 106.5 %, construction-contract works – 106.9 %, commodity turnover of retail business – 115.2 %, commercial services – 113.3 % and 11.9 % of rendered services.
A number enterprises producing goods for export annually increases. In particular, last year over 10 enterprises exported goods and services at the amount of 10.3 million USD. These enterprises have managed production of 16 types of goods and services for sale in foreign markets. During the current year three more types have been added to exported goods. It is necessary to underline that 95.1 % of export are finished products.
The geography of the export has been more expanded due to the access to the markets of such countries as Korea, Kazakhstan, Tajikistan, China and Kyrgyzstan. Presently this list includes eight countries.
In Jizzakh, along with other regions of our country, high attention is focused on comprehensive implementation of state programs on social and economic development, working out and introducing investment projects in territories and increasing volumes of credit. In particular, performance of 9 branches of commercial banks and 15 minibanks promote management and development of activities of private business entities.
32_Shukurov1_eng     With a view to improve business environment and development of small business during 2016 commercial banks allocated credits at the total amount of 176.2 billion UZS to 1 384 business entities including 35 billion UZS to be used for industrial development. That allowed implementing 181 projects during the reporting period, including 82 projects – in the field of industry and 99 – in the service delivery sector. 3 278 citizens got permanent job. It is noteworthy that under the Adaptation Program the manufacture of new goods amounting to 1.1 billion UZS has been managed.
On the basis of the Ordinance of the Cabinet of Ministers dated January 24, 2013 “About change of architectural appearance of the central part and development of infrastructure of the city of Jizzakh”, multipurpose sports complex with a capacity of 10 thousand visitors has been constructed and opened in the city. Cost of the project is 37.9 billion UZS. The complex offers two universal gyms and an indoor swimming pool.
Under implementation of the program on service sector development 99 outlets of trade and public service have been constructed last year. This provided employment for 432 people. Moreover, 37 retail sale outlets, 16 public catering outlets, 7 car and other equipment repairing shops, 39 outlets of other services have been opened. In 2016 the commercial bank of the city has allocated 7.9 billion of credit for development of this economic sector.
It should be highlighted that in the city of Jizzakh there are ample opportunities for development of small business and private entrepreneurship (SBPE) and the initiatives directed on development of this field and improve the welfare of population are supported. Today enterprises of small and private business produce goods and render services practically in all sectors of economy. The statistics in figure below testify to that.
32_Shukurov2_eng     Specialists of Jizzakh have solid experience in the sector of consumer goods manufacturing. Last year 42 projects directed on modernization of operating enterprises and establishment of new modern enterprises specializing in this industry have been implemented. As consequence, 11 new enterprises have been created and 21 existing enterprises have been technically and technologically renewed with upgrading and expanding of production volume. The initiators of projects have financed purchase of 324 units of modern machine tools and provided 867 people with new job.
In pursuance of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated July 15, 2014 “About measures on further optimization of unused and excessive production space of organisations operating at a loss, economically weak and producing low return” in Nurliobod mahalla on the area of 4 hectares 18 business entities have been allocated land lots to develop small industrial zone. Currently nine of them have been already operating.
According to the Decree of the president of the Republic of Uzbekistan dated March 18, 2013 “About creation of “Jizzakh” Special industrial zone” the city has provided land area of 363.7 hectares to introduce 25 projects costing 326.1 million USD including 165.5 million of foreign investments. Presently 19 projects at the total cost of 91.3 million USD have been implemented. Fulfillment of these projects has resulted in creating of 1 324 new jobs.
The plan of actions for 2017 included implementation of 5 investment projects at the cost of 52.1 million UZS, manufacture of industrial goods at the amount of 528.1 billion UZS by 21 enterprises and export worth 24.2 million USD.
In 2018 it is scheduled to have 7 more enterprises put into operation, 5 of them are located in “Jizzakh” Special Industrial Zone (SIZ).
By the decision of the Governing Body of “Jizzakh” SIZ 25 perspective investment projects are being worked out, their preliminary cost is 213 million USD.
Within the framework of business forum held in December 16, 2016 the memorandum was signed with Chinese businessmen with the objective to implement 10 projects worth 74 million USD, including 4 projects in “Jizzakh” SIZ. The status of the projects is as the following:
* business plan development of 3 projects is on the final stage;
* work on development of business plans of 3 projects is continuing;
* feasibility study of 4 projects has been proposed.
With aim of development of “Jizzakh” SIZ and building of transport, engineering-communications infrastructure, the amount financed in this territory is 104.2 billion UZS, including 15.9 billion UZS of capital funds in 2016. These allocated funds have been used for the following:
* reconstruction of external roads leading to “Jizzakh” SIZ with the length of 12 km. Currently 7 km of internal roads are being reconstructed;
* construction of portable water pipeline of 5,7 km; this has solved the water supply issue;
* completion of construction of high-pressure gas pipeline of 8 km;
* construction of power distribution station.
These activities have addressed issues of water, gas and power supply of “Jizzakh” SIZ.
Additionally, under the “Manufacture of assorted glass products” and “Production of glass-ware” projects foreign enterprise “MingYuan Silu Industry” LLC will disburse investments at the total amount of 109.7 million USD. The first stage provides setup for production with capacity of 1 161.1 thousand glass sheets or 4 million sq. m of frosted glass costing 28.9 million USD. Introduction of these projects will ensure employment of 120 people.
The cost of the “Production of glass-ware” project amounts to 10 million USD. The implementation of the project has been started in March 2018 after studying market demand and business plan presentation. A draft resolution on applying privileges for supply of assembled metal constructions required for building of the site has been already submitted to the Cabinet of Ministers.
Presently constructions made in China are being delivered to Jizzakh. The mentioned projects are included into the Resolution of the president of the Republic of Uzbekistan “About Investment Program of the Republic of Uzbekistan for 2017” of December 23, 2016. Sectorial project implementation schedules have been elaborated and approved by Ministry of Economic Affairs and Ministry for Foreign Economic Relations, regional administration of the Jizzakh province and board of directors of “Jizzakh” SIZ.
In the beginning of July of the last year building of Uzbеkistan Peugeot Citroёn Automotive Joint Venture has been started. The joint venture will specialize on production under Peugeot and Citroёn brands commercial cars for passengers and cargo transportation. Car factory in “Jizzakh” SIZ is being built on the basis of the arrangement between “Uzavtosanoat” JSC and Peugeot Citroen Automotive group according to the Resolution of the president of the Republic of Uzbekistan dated June 13, 2017 “About establishing Uzbekistan Peugeot Citroёn Automotive enterprise with involvement of foreign investments”
This is not a coincidence that Uzbekistan has been chosen as the partner to produce modern cars. Our country has favorable business and investment environment, material and human resources and also considerable experience in motor vehicle industry. By all means, this project can be considered as confidence of foreign business community in perspective of auto industry of Uzbekistan.
“Determinative factors of establishing the joint venture are personal support of the president of the Republic of Uzbekistan and achievement of fruitful arrangement with our Uzbek partners, we highly appreciate all of this, – Kristof Berjeran, Peugeot Citroёn vice president, said. – This project completely meets our strategic plans, undoubtedly, it will promote development of commercial vehicle business and increase of economy of the region”.
Authorised capital of the joint venture constitutes 30 million EUR, cost of project implementation – 130 million EUR. 45 hectares of land area has been allocated for car manufacturing plant in “Jizzakh” SIZ.In accordance with of the presidential resolution a number of tax and customs privileges and preferences is granted to participants of the project. Peugeot Citroёn group will provide new technologies, modern processes of production and also training of employees. Production and quality management in the plant will be performed according to modern systems of procurement, delivery, production and sale.
Under the investment program construction and installation works will be implemented and design and estimate documentation have been prepared in May 2018. In 2019 the plant will start producing 16 thousand cars per year. In addition to domestic market vehicles will be exported to near and far abroad countries.
Since the first year of starting operation, by involving about 30 large and 160 medium-sized and small enterprises of “Uzavtosanoat” system that produce car components, it is planned to provide at least 50% of level of the localization. Car repair and maintenance by official dealers of UzPCA LLC, including production of spare parts, units and powerplants and also their selling through trade network will be released from VAT payment.
Establishment of a new joint venture is one more major step towards development of car industry in our country and will make significant contribution to providing employment to population. Over 600 new jobs will be created in a new enterprise.
Consistently developing various sectors of economy and using all available resources, citizens of Jizzakh achieve good results and data in the Figure 2 testify to this.
The territory of Jizzakh is considered a cradle of ancient civilization. Architectural landmarks of this corner of the world, monuments of antiquity preserved until nowadays as legacy of our ancestors, a science and rich cultural heritage, and also unique nature of our country, its geographical location, sincere hospitality of our people – all this is conducive to development of tourism industry. Our government gives great attention to effective use of these opportunities, their mobilizing in order to improve the well-being of our people. Therefore, in Jizzakh new hotels and motels are being constructed and tourism infrastructure is being developed. With a view to develop tourism sector capital investments amounting to 2.1 billion UZS have been directed last year.
Recent years thanks to work on providing employment to population and implementation of accepted programs, a significant number of new jobs has been created. The attention given to this sphere and, in particular, to providing job to graduates of colleges who only start their independent life, is highly appreciated. In 2016 in the city 9 430 new jobs have been created and the plan has been 101.1% implemented. New workplaces are created by putting into operation of new large facilities, modernization and expansion of current enterprises, restarting in-active ventures, expansion of social market infrastructure, development of small and private entrepreneurship and also home based business and workmanship on the basis of cooperation contracts.
Entrepreneurial spirit of Jizzakh citizens, their sincere desire to improve their city can be observed in each field. This attitude encourages active engagement of our compatriots in creative activities, aspiration for making dreams true and achieving goals, increasing economic power of the motherland. Success and achievements of our country are derived from success and achievements of each of us, and finally determine development and prosperity of our people and country!
 
Akbar SHUKUROV,
khokim of the city

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