The most important tool for a dynamic and balanced economic growth, the implementation of deep structural transformation and diversification of the economy is the conduction of active targeted investment policy. The main priorities of the investment policy for the current year are defined in the Decree of the head of state “On the Investment program of the Republic of Uzbekistan for 2015″ dated November 17, 2014.
The head of the Department on monitoring the implementation of investment projects of the Ministry of foreign economic relations investments and trade of the Republic of Uzbekistan Alisher Mursaliyev told about the goals and directions of this document to the correspondent of News agency UzReport.
– According the Investment program, which is adopted each year, significant amounts of investments are attracted to the economy of the Republic. Tell us, please, how the Investment program of Uzbekistan is developed and what are its main goals and objectives?
– In accordance with the regulations the Investment program is a set of interrelated measures designed to achieve sustainable and dynamic development of the economy, the implementation of the main priorities and strategic objectives for the structural transformation of individual industries and regions of the Republic through the rational use of natural, raw, financial and labor resources.
Essentially this program is a tool for the implementation of the state investment policy. It includes a list of priority investment projects and is based on such principles as:
– support of the most important sectors of the economy with priority for production of deep processing of raw materials, agricultural products, production of competitive products;
– priority investment to socially important sectors (education, health);
– further development and improvement of municipal and transport infrastructure.
Sources of funding for the Program, as a rule, are funds of the state budget and state extra-budgetary funds, foreign loans guaranteed by the government, loans from commercial banks, including foreign and direct investments of individuals and legal entities, including foreign.
– What are the total volumes of foreign investments into the economy of our state according to the Investment program for 2015 and what are their sources?
– In the framework of the Investment program for 2015, 446 projects are planned for implementation through all sources. Of these, 156 projects will be implemented through the participation of foreign investments and loans. The total amount of these projects is more than 29 billion dollars.
If you look at the sources of financing of the Investment program for the year 2015, within 80 projects it is planned to attract foreign direct investments of foreign companies and loans from commercial banks of European and Asian countries.
I would like to note, that foreign direct investments are generally attracted for the organization of modern production using advanced technologies for the further development of basic industries and the production of competitive consumer goods, which are in constant demand in domestic and foreign markets.
The remaining 76 projects are financed by concessional loans under the guarantee of the government of the Republic of Uzbekistan. Sources of these investments are loans of such international financial institutions as the World Bank, the Asian Development Bank, Islamic Development Bank and credit institutions of several countries, such as Japan, Korea, China, Japan, Germany, France, Arab countries, etc.
Preferential credits, mainly used for the implementation of projects in the social sector: health, education, drinking water, irrigation and improving land conditions, improvement of municipal and road infrastructure.
– In what industry and what purpose will be directed foreign investment in accordance with the Investment program?
– If to analyze the projects included in the Investment program for 2015, we can see that the largest volume of foreign investments will be attracted to oil, gas and petrochemical industry, followed by energy, ICT, road and transport infrastructure, construction and production of building materials, light and leather industry, chemical industry, etc.
In the social sphere, the largest volume of foreign loans will be utilized in the drinking water supply, followed by irrigation and improving land conditions, as well as health care, education.
It should be noted that the Investment program also includes projects for the construction of housing in rural areas with loans from ADB and IDB. In the current year, the construction of 12 thousand houses across the country is planned.
– One of the priority directions of the economy of our country is an active development of small business and private entrepreneurship. Please, tell us how entrepreneurs can benefit from foreign investments, provided in the program?
– Of course, public policy on support of small business and private entrepreneurship also reflected in the Investment program for 2015.
In addition to supporting entrepreneurship in rural areas, 11 projects on attraction of foreign currency loans with the involvement of funds of the ADB, as well as the leading financial institutions of Germany, Holland, China will be implemented this year. Their total amount is over $500 million.
Loans will be directed for such purposes as the purchase of technological equipment and replenishment of the floating funds of entrepreneurs.
In conclusion, I would like to mention, that the volume of credit lines of international financial institutions and foreign commercial banks for the financing of small business and private entrepreneurship is increasing annually.