The agricultural sector of Uzbekistan was invested more than 406 billion soums

UzReport 07.09.2012

      By investment in fixed assets agricultural sector of Uzbekistan in the first half of 2012 for the first time entered the top five. According to official figures, the investment in capital assets of enterprises and organizations of the agricultural sector exceeded 406 billion soums - 4.1% of the total capital investment in the economy. According to this index, agriculture is on par with mechanical engineering (4.5%) and trade, and catering (4.2%).

     To investments in fixed assets, which are considered a barometer of business activity, experts consider the cost of creating real capital - construction work of all kinds, the purchase of machinery and equipment, vehicles, tools, household equipment and other capital works.

     According to the information provided by the Ministry of Agriculture and Water Resources in the Investment Program of the Republic in 2012 in the agricultural sector are implemented 10 long-term projects involving foreign loans guaranteed by the government. Most of them are aimed at improving the water supply system.

     The largest is the project 'Management of water resources in the Fergana valley and Zarafshan' with total cost of $ 144 million, to the realization of which, the government has attracted the Asian Development Bank (ADB). ADB loans are also involved in the rehabilitation of the machine canal Amu Zang with the cost of $ 112.6 million. With the ADB funds, the Government is improving the land reclamation conditions in Bukhara, Navoi and Kashkadarya ($ 76.18 million).

     The World Bank has been involved in lending to Uzbekistan government implemented three major projects. One of them is the 'drainage project' in southern Karakalpakstan worth $ 74.55 million. Funds of this international financial institutions also involved in improvement of water management in the Ferghana Valley (Phase 1) with a total cost of $ 81.8 million and to support agricultural enterprises (phase 2) - $ 76.9 million. Restoration of irrigation network and drainage system in Jizzakh and Syrdarya regions worth $ 94.3 million is conducted with the involvement of the Kuwait Fund for Arab Economic Development, the Islamic Development Bank and the OPEC Fund for International Development. To rehabilitate the pump station 'Alat' in the Bukhara region ($ 17 million) attracted funds of the Saudi Fund for Development.

     Two projects on 'Acquisition of pumping equipment for reconstruction of the pumping station' Karakul 'in Bukhara region' ($ 13.9 million) and 'Reconstruction of pumping stations' Navoi 'and' Uchkara 'in Navoi region' ($ 25.1 million) are carried out with the involvement of loans from China. Previously was reported that foreign companies are dynamically attracted at the implementation of investment projects in the water supply facilities. By the program of contractual construction works in Uzbekistan it is planned to spend 92.7 billion soums in 2012.

     Japanese 'Kubota Corp' and Chinese 'CNTIC' under the ADB loan upgrade the machine feed the Amu Zang in Surkhandarya with the volume of development 45.5 billion soums in 2012. Irrigation system Amu Zang includes three pump stations to lift water from the Amu Darya. It was built in 1973. In 2005 – at the beginning of modernization - up to 80% of the equipment of the channel needed technical rehabilitation, informed 'BVV' at the Ministry of Agriculture and Water Resources (MAWR).

     Under the terms 'delivery of equipment under turnkey' the 'Kubota' earlier has completed the reconstruction of pumping station 'Babatag','CNTIC'- the pumping stations of the first and second lift channel with total capacity of 120 cubic meters of water per second. Besides the reconstruction of pumping stations, treatment plants and irrigation drainage system are also modernized and created agro service centers in the farms of Angora, Jarko'rgo'n, Kumkurgan, Muzrabad and Termez districts. Modernization will provide a steady supply of irrigation water for the area of 100 hectares, stated at the MAWR.

     The second largest is a project to improve the water infrastructure around 67,000 hectares of Baghdad, Rishtan and Altiarik districts of Fergana region. Contractor General of Chinese company 'Sinohidro Corporation' should spend 27.9 billion soums in the credit from the International Development Association of the World Bank on 'Water Resources Management in Ferghana region, Phase 1.'

     Iranian companies 'Shimbar' and 'Gavharud', Slovenian 'Primorje' together with consortium of local construction companies in 2012, work on updating of the irrigation and drainage infrastructure in Syrdarya and Jizzakh regions with a planned investment of 19.3 billion soums.

     Amelioration of lands is directly related to increase in the capacity of the agricultural sector.

     In first half-year growth of agricultural production in Uzbekistan, according to official data, was 7.1% to the level of 2011. Agricultural production constituted 9.8 trillion soums.

     Under the forecast approved by the president of the state on key macroeconomic indicators and parameters of the state budget of Uzbekistan for 2012 growth in agricultural production is planned in the amount of 5.8%.

     The increase in agricultural production, in turn, expands the horizons of a number of key technology-related industrial sectors of the republic - cotton, textile and light-industry, food, chemical and other.

     Experts of the Ministry of Economy state the characteristic tendency to decrease in the years 2000-2011 the share of agriculture in GDP of the country in the steady growth of the absolute volume of production from 30.1% to 17.6%. According to this indicator, the national economy is approaching the structure of economies of rapidly developing countries where agricultural production in GDP does not exceed 10%.