DUSHANBE, July 19, 2016, Asia-Plus – Prime Minister Qohir Rasoulzoda yesterday visited the Danghara Free Economic Zone (FEZ Danghara) in the southern Khatlon province.
According to the Prime Minister Secretariat, Rasoulzoda got acquainted with the progress of implementation of the projects for establishment of three corporate residents in FEZ Danghara – oil refinery, cement plant, and constructional ironworks.
Tajikistan and China have jointly invested in construction of these enterprises.
The cement plant is expected to produce up to 1.6 million tons of cement per year, and the constructional ironworks is expected to produce 100,000 tons of metal per year.
As far as the oil refinery is concerned, the project consists of two stages. In the first stage, worth over $160 million, the refinery’s capacity will be 500 thousand tons of crude oil per year and in the second stage, worth over $300 million, it will reach 1.2 million tons.
The Chinese company reportedly already signed contracts with partners in Kazakhstan and Russia on the delivery of crude oil to the Danghara oil refinery. Construction is expected to be completed by the end of 2018.
Currently, there are four free economic zones in Tajikistan — Sughd, Panj, Danghara, and Ishkashim, which provide preferential terms for economic, financial, trade, information, and other activities for investors. The FEZs offer incentives to investors, including preferences on taxation and customs procedures.
In the early 2000s, foreign direct investment has remained low because of political and economic instability, the poor domestic financial system, and Tajikistan’s geographic isolation. To attract foreign investment and technology, Tajikistan has offered to establish free economic zones in which firms receive advantages on taxes, fees, and customs. In 2004, the parliament passed a law on free economic zones. The zones reportedly offer customs and tax incentives to qualified investors that invest at least 500,000 USD and import at least 90% of the technology and equipment.
