Special Management Department was created for the implementation of infrastructure projects for the Karakul free economic zone

President of Uzbekistan Shavkat Mirziyoyev approved establishment of a special Management Department under Uzbekistan’s Ministry of Economy and Finance for the implementation of infrastructure projects (hereinafter – The Department).

Acting as a contracting authority, the Department will oversee the process of the development, construction and maintenance of infrastructure for the Free Economic Zone “Karakul” in the Karakul district of the Bukhara region (FEZ “Karakul”) from start to finish.

The area of responsibility of the Department includes the development of transport, engineering and communications infrastructure for the FEZ itself and its participants as well.

By creating the Department, the State seeks to solve the task of providing large investment projects with the necessary resources for the functioning of the FEZ. For the FEZ “Karakul”, the Department is implementing the construction of railways, as well as the installation of power network, water supply and sewerage networks.

The creation of infrastructure during the construction of enterprises on the territory of the FEZ will allow to create all the necessary conditions so that both domestic and foreign investment companies can operate effectively and implement the most complex projects.

FEZ “Karakul” is the first free economic zone in Uzbekistan, designed for the implementation of complex projects in the gas-chemical industry. On the territory of the FEZ will be located both the producer of polymer raw materials – the Gas Chemical Complex based on MTO technology, and its main consumers – manufacturers of textile products, clothing and footwear, medical products, auto components and many others.

In addition to the preferences provided by the FEZ “Karakul”, such a “cluster” model of production organization, in which the production of raw materials and their processing into final products occurs within one territory, allows significantly optimize costs throughout the entire production chain due to the direct supply of raw materials, simplified logistics and warehousing.

According to the General Director of the FEZ “Karakul”, Bakhodur Hafizov, “The creation under the Government of the Republic of Uzbekistan of a special structure responsible for overseeing the development of the infrastructure of the free economic zone demonstrates the important role played by the FEZ “Karakul” in the implementation of the Presidential policy of “New Uzbekistan” and the establishment of a knowledge-intensive and high-tech industry in the country and will give an additional impulse to the development of enterprises focused on strengthening their positions and increasing their competitiveness both within Uzbekistan and in international markets.”