Uzbekistan Road-building & municipal machinery and equipment - UzComak

The economic and industrial development depends upon advancing of infrastructure and modern roads. Nowadays, the large-scale program on development of rural infrastructure and road upgrading in Uzbekistan has been approved. The International Exhibition Road-Building and Municipal Engineering UzComak will be the unique project in Uzbekistan aimed at promotion of special machinery in the domestic market.

The first Uzbekistan International Exhibition Road-building & municipal machinery and equipment - UzComak is the only specialized exhibition in Uzbekistan, which is supposed to receive the leading international and domestic companies working in the field of manufacture and supply of building, road, municipal, earth-moving machinery, hoisting machines and equipment. The exhibition will become the basic platform for demonstration of new materials and technologies in construction and repair of automobile roads, construction of bridges, driving trenches, quarrying, asphalt production, lifting-and-shifting machines and appropriate equipment, highway engineering, housing and municipal construction; it will also be the platform for finding solutions targeted towards area development, roadside services, engineering and road facility construction.

This year is declared in Uzbekistan by year of development and a village accomplishment. Within the limits of the program large objects of an industrial and social infrastructure are planned. For realisation of projects from total amount of capital investments 72,4 % of investments are directed to economy on industrial building, including on modernisation – 33 %.

Brief Survey about the Market

- In January-March 2011, in general, the Republic of Uzbekistan used investments in fixed assets in U.S. dollar equivalent of $ 1.97 billion, including of the total volume of investments unproductive used in the construction of educational facilities - $ 43.6 million (7.4% of the total), in the municipal building - $ 28.1 million (4.8).

Built and put into operation 13,1 thousand homes or 13.3 thousand apartments with total area of 1642.2 thousand sq.m, including in rural areas - 1242.6 thousand sq.m of $ 904.3 million.

Of the total volume of construction work accounted for 81.1% of new construction, reconstruction, expansion and modernization of enterprises, 15.8% - for repair, maintenance, and 3.1% - on other contract work.

- There are six cement plants operating in Uzbekistan with the general established capacity about 7 million tons. Now the largest factories - manufacturers of cement are JSC "Kyzylkumcement" (3,1 million tons), JSC "Akhangarancement" (1,74 million tons) and JSC "Kuvasaicement" (920 thousand tons).
The market share of Cement industry is 72% in total amount in building market of Uzbekistan.

- Modernisation of JSC "Akhangarancement" technological line will allow to increase life cycle of the installed equipment and raise quality of production. The project will be realized till 2013.

- The large-scale project of construction Cement Plant in Republic Karakalpakstan launched in 2009. The project will be realized till 2013. Estimated cost of the project is 128 million dollars, and 79 million dollars of them are foreign investments.

- Another important project is modernisation of grinding line and installation modern equipment at JSC "Kyzylkumcement". The project will be realized till 2013. Expected result –increasing capacity of cement grinding on 1 million tons per year and increasing production of fine grounding cement on 0,5 million tons per year. Estimated cost of the project is 143,3 million US dollars.

- Uzbekistan annually constructs and reconstructs 220-270 km of roads on average. Wide and straight roads, overpasses, bridges, and modern transportation hubs constructed and commissioned over the past few years ensure the road safety. Today it is especially important due to the increase of the traffic flow.

- The Board of Directors of the Asian Development Bank (ADB) approved a US$240 million loan to Uzbekistan to construct national highway, which will link the country with neighboring states, in late March.
The loan is issued within the multitranche financing facility \"Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program\", which was approved by the ADB in April 2010.

The program comprises of three projects. The objectives are to reconstruct over 220 kilometers of the Guzar-Bukhara-Nukus-Beinau (A380) highway, and to provide training support for improved planning, project management, road asset management, and community facilities.

The second tranche has been issued for 25 years, including five year grace period. The funds will be used to reconstruct 85-km part of A380 highway (from 355 km to 440 km).

The A380 highway forms part of the Central Asia Regional Economic Cooperation Program (CAREC) and one of its corridors – Corridor 2. This connects Uzbekistan to Afghanistan, Kazakhstan, the Kyrgyz Republic, Tajikistan, and Turkmenistan.
Upgrading the highway into a four-lane international design-standard road, rehabilitating other sections, and improving road planning and management will shorten travel time, reduce transport costs, improve safety, and support growth and poverty reduction.

Another ADB-assisted road project being processed in Kazakhstan will connect this country with the A380 in Uzbekistan. Once the two highways are completed, they will allow Uzbekistan and other Central Asian countries direct access to the Caspian Sea via Aktau, and eventually the Black Sea, via corridors to be built in Azerbaijan and Georgia.

- In March 2009 the President of the Republic of Uzbekistan approved the integrated program of development and modernization of the railway industry for 2009-2013. One of the main directions of this document is construction of new railways and electrification of railways, introduction of modern signaling and telecommunications.

- Uzbekiston Havo Yollari (Uzbekistan Airways), national airline of Uzbekistan, is planning to invest $148.5 million in the development of ground infrastructure in 2011-2015.

The company plans to implement 13 projects with total cost of $179.1 million within the program on speeding up development of infrastructure, transport and communication construction for 2011-2015.

At the same time, own resources of the Uzbek airline in the total volume of attracted investments will make up $68 million, loans of the Fund for Reconstruction and Development of Uzbekistan $52.5 million, foreign loans $5.2 million and resources of the state budget $22.8 million