DUSHANBE, June 4, 2009 Asia-Plus — The government is currently considering several options of financing creation of infrastructures in the areas intended for free economic zones (FEZ), Minister of Economic Development and Trade Ghulomjon Bobozoda said in an exclusive interview with Asia-Plus.
According to him, the ministry is carrying work on getting international organizations involved in the process of creation of FEZs and “providing technical assistance and expert support for overall planning and construction of modern infrastructures of FEZs.”
“In parallel, we are considering different options of financing creation of FEZs infrastructure such as preferential crediting, attraction grants or handing over FEZs management to private companies,” said the minister, “The option of budgetary financing of creation of the FEZs primary infrastructure in a form of one-time provision of funds or through preferential crediting is also cannot be ruled out. The issue is still under consideration.”
He added that the present situation that resulted from the financial crisis and the budget deficit required weighted approach to distribution of budgetary funds. “Therefore, priority is given to attraction of investments. A number of local and foreign companies are currently conducting negotiations with administrations the free economic zones Sughd and Panj on investing,” Bobozoda said.
We will recall that the government in March this year announced two regions of the country as free economic zones. Speaking at a ceremony of presentation of the FEZs Sughd and Panj in Dushanbe, Deputy Minister of Economic Development, Ms. Larisa Kislyakova, said on March 17 that that the government does not have enough funds for creation of primary infrastructure in the areas intended for the FEZs.
The FEZs Sughd and Panj will enjoy the status of free economic zones for 25 years. For the first seven years, companies operating in the regions will be exempted from taxes.
The FEZ Sughd will be located in the southwest part of the city of Khujand on an area of 320 hectares. It will be the productive-innovative zone and emphasis will be made on development of new productive capacities and attraction of innovative technologies. An annual ground rent has been determined at the rate of 1.00 US dollar per one square meter.
The FEZ Panj will be established on an area of 400 hectares in Khatlon’s Qumsangir district. It will be the productive-commercial zone and certificate for any type of activity irrespective of its volumes will be granted for 5,000 US dollars.
To comply with investment project requirements for the FEZ Panj the minimum authorized fund of legal entity should be 500,000 US dollars and in accordance with the business-plan and investment project requirements for the FEZ Sughd, the volume of investments for carrying out production activity should be not less than 500,000 US dollars.
