OREANDA-NEWS. December 8, 2010. According to the Ministry of Economy, 156 projects worth USD 789.3 million have been implemented in Uzbekistan during the period between January and September 2010 under the program to modernize basic sectors of economy for 2009-2014.

In early 2009, the Uzbek government approved a program of modernization, technical and technological upgrading of key industries to take place between 2009-2014. The total value of 327 investment projects included in the program is USD 42.5 billion, of which USD 20 billion will be foreign investments. In early 2010 the government adjusted the cost of the program to USD 55.4 billion.

In 2009, 147 projects worth USD 1.1 billion were implemented as part of the program, TCA reported. 22 major industrial projects in oil and gas, chemical, and metallurgical industries, and in machine building and the construction industry were put into operation.

This year the list grew with the new facility worth USD 125.4 million producing Chevrolet Spark cars at the GM Uzbekistan, the Dehkanabad potash fertilizer plant worth USD 123.7 million in the Kashkadariya region, and a project of the Navoi Mining and Smelting Combine worth USD 362 million on the basis of Zarmitan gold zone deposits in the Samarkand region.

According to government forecasts, around 100 other projects worth USD 5.1 billion will be implemented as part of the modernization program by the end of 2010.

In particular, the Asia Trans Gas Uzbek-Chinese joint venture created by the Uzbekneftegaz national holding company and CNPC will commission the second turn of the Uzbek section of the Central Asia-China gas pipeline worth USD 2.86 billion.

The Navoi Mining and Smelting Combine will complete the second turn of the gold mining enterprise on the basis of Kokpatas and Daugyztau gold deposits worth USD 268 million in the Central Kyzyl Kum.

Nearly USD 3 billion of foreign capital will be attracted by the end of 2010. For the first nine months of 2010 this figure rose by 13.8% compared with the same period of 2009, totaling USD 1.98 billion.

According to experts, the most important role in modern competition is played by lower production costs compared with the existing analogs. "That is why Uzbekistan seeks to develop potentially competitive sectors of the economy, and even to revive some of those sectors due to budget programs and direct investments," said analyst Anvar Jumayev.

According to Jumayev, considering the structure of the national economy Uzbekistan has chosen a strategy of switching from the production of raw materials to the production of finished products.

As part of the modernization program in 2010, the largest amount of foreign investment - USD 2.3 billion - will be in the energy sector, of which USD 2.1 billion will be in the oil and gas industry. Major areas of investment of oil and gas companies are the acquisition of existing assets and the commissioning of new deposits.