Huawei Technologies Co. Ltd is planning to invest US$1 million to project on organization of assembly and production of GPON equipment at Jizzakh special industrial zone. The Uzbek side will invest US$1 million to the project with total cost of US$2 million.

The enterprise will produce up to 12,000 various products a year.

Gigabit Passive Optical Network (GPON) provides unprecedented bandwidth (up to 2.5 Gbps downstream rate, shared by up to 128 premises), and a greater distance from a central office (20 to 40 kilometers, as opposed to 4~5 kilometer for DSL), allowing service providers to enable bandwidth-intensive applications and establish a long-term strategic position in the broadband market.

Jiangsu Zhongtian Technology Co. will direct US$0.5 million to project on organization of production of telecommunication equipment. Contribution of the Uzbek side will make up US$0.5 million.

The capacity of the plant will make up 141,000 units of various equipments a year.

President of Uzbekistan Islam Karimov signed a decree for creation of new special industrial zone Jizzakh on 18 March 2013.

The zone was created in line with a memorandum of understanding on implementation of project on creation of Uzbek-Chinese industrial park in Uzbekistan. It was created to form favourable conditions for attracting foreign and local investments to creation of high technologic industrial capacities, production of competitive products with high added price, complex and effective use production and resource potential of Jizzakh and Syrdarya regions.

The special zone was created for 30 years with possibility of extension. The decree set tax and customs preferences for enterprises, operating in the zone. The enterprises, located in the zone, will be exempted from payment of income tax, property tax, tax for accomplishment and social infrastructure, single tax, and mandatory payments to Road Fund.

They will be also exempted from payment of customs duties for imported materials, equipment and spare parts, which are not produced in Uzbekistan.