Andijan Expands Hydropower, Logistics and Business Support

Uzbekistan

Industrial growth in Andijan Region is driving higher demand for electricity. The region plans to make greater use of its rivers and canals, expand access to business financing and strengthen transport and logistics infrastructure.

Andijan Expands Hydropower, Logistics and Business Support
Andijan’s hydropower potential is estimated at 200 MW, enough to generate up to 500 million kWh of electricity annually. There are already 400 applicants for small and micro hydropower projects with a combined capacity of 44 MW. Under a two-year programme, micro HPPs will be built on a turnkey basis and leased to entrepreneurs. A cascade of hydropower plants is planned along 81 kilometres of canals scheduled for concrete lining.

Buildings and sites freed up after state organisations are relocated from Andijan to Bobur will be used to develop trade and services. The relocation of 30 administrative buildings will free 13 hectares of land and 70,000 square metres of space. This could attract an additional $1 billion in investment and create at least 20,000 jobs.

The centres of Asaka, Shakhrikhan and Kurgantepa, along with Khanabad city, will be developed as high-income business areas. Their master plans will be adapted for trade and service projects capable of creating at least 20,000 jobs.

State banks will be transformed around the principle of helping their clients grow. Since the beginning of the year, 35,000 people have been denied loans because they lacked collateral or a guarantor. Banks will now consider cash flows, orders and contracts, receivables, turnover and business chains. Long-term contracts between small businesses and major buyers will be accepted as loan security. Business plans will not be required for projects worth up to 500 million soums.

Nine state banks have been tasked with introducing 20 new products within a month to support business growth. Mahalla tax officers will assist companies facing declining revenues or employment, including with tax deferrals, loan extensions, working capital and access to markets or exports.

The China–Kyrgyzstan–Uzbekistan railway will make it possible to increase freight volumes tenfold to 15 million tonnes a year. A $600 million logistics complex will be launched on 300 hectares in Kurgantepa and Khanabad. The new Keskanor border post with Kyrgyzstan will be twice the size of Dostlik, potentially increasing freight traffic two- to threefold and reducing delivery times by one week.

A 78-kilometre toll road between Khanabad and Andijan will also be designed. The Tashkent–Andijan high-speed train has already cut travel time from six to four hours.

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