DUSHANBE, May 25, 2016, Asia-Plus – Tajikistan will attract one billion U.S. dollars in foreign direct investment (FDI) in the minerals sector in the coming three years, Deputy Chairperson of the State Committee on Investment and State-owned Property Management (GosKomInvest), Ms. Nigina Anvari, announced at the 7th session of the Regional Platform of the Public-Private Dialogue (PPD) that took place in Dushanbe on May 24.
She, in particular, noted that two oil refineries with a total capacity of 2 million tons, three cement tons with a total capacity of 3 million tons, and three enterprises of the chemical industry will be introduced into operation in the country during 2016-2018.
Besides, enterprises for processing non-ferrous metals, metallurgical plant with capacity of producing 50 tons of zinc and 50 tons of lead per year, as well as a large metallurgical plant with capacity of 400,000 tons will be built in the country, Anvari said.
“Successful implementation of these projects will allow creating more than 4,000 new jobs and one billion U.S. dollars in foreign direct investment will be attracted in the country’s economy,” she said, adding that Tajikistan has attracted more than US$765 million in foreign direct investment in the minerals sector over the past nine years.
She further stressed that the Government of Tajikistan had singed six agreements with large investors on enhancement of the minerals sector.
The Public-Private Dialogue in Tajikistan started in 2007 by EBRD by establishing the national PPD platform. In 2010, GIZ and IFC provided technical support to establish Consultative Councils on Improvement of the Investment Climate and Business Environment under the Governors (CC), including their Secretariat, in Sughd and Khatlon provinces. During 2012-2013, GIZ extended the technical support to the Gorno-Badakhshan Autonomous Region (GBAO) and Rasht Valley, thus covering regional PPD platforms countrywide.
A foreign direct investment is a controlling ownership in a business enterprise in one country by an entity based in another country. Broadly, foreign direct investment includes mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra company loans. In a narrow sense, foreign direct investment refers just to building new facility, a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. FDI is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of payments. FDI usually involves participation in management, joint-venture, transfer of technology and expertise.
The investment may be made either “inorganically” by buying a company in the target country or “organically” by expanding operations of an existing business in that country.
