Auto parts manufacturing cluster to be launched in Nukus

In accordance with the presidential decree, enterprises implementing projects within the cluster will receive the status of participants in the Nukus Free Economic Zone.

The technological cluster will focus on the production of components for the automotive industry. Infrastructure for the cluster will be financed through funds allocated in the state budget parameters for special industrial zones and major manufacturing projects involving direct foreign investment.

Authorities noted that the necessary engineering and communication networks will be built to support industrial activities within the cluster.

To support the purchase of production machinery, a $60.1 million credit line will be allocated to the Industrial Development Fund of Uzbekistan from resources of the Fund for Reconstruction and Development of Uzbekistan.

The loan will be issued for 10 years, with a 3 year grace period and an annual interest rate of 7 percent.

The presidential decision also provides for the expansion of the Nukus Free Economic Zone. Its territory will be increased by 13 hectares through the allocation of unused non agricultural land in the Beruniy District.

The document outlines several economic development targets for the Republic of Karakalpakstan in 2026.

Authorities plan to:

• Increase the region’s gross regional product by 8.1 percent
• Expand industrial production by 8 percent
• Attract $3.5 billion in direct foreign investment

In addition, the government aims to reduce unemployment to 4.2 percent and cut the poverty rate to 3.2 percent.

Plans also include transforming Nukus, as well as Kungrad district and Chimbay district, along with 109 neighborhoods, into areas free of unemployment and poverty.

Another measure envisages training 5,400 specialists in professions that are in high demand in the labor market.