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Uzbekistan offers benefits to investors from Azerbaijan in major IT project

Business Materials 30 November 2018 14:02 (UTC +04:00)

Baku, Azerbaijan, Nov. 30

By Azad Hasanli - Trend:

The State Committee of Uzbekistan for Investments has invited Azerbaijani entrepreneurs to invest in the creation of a major data processing center (DPC) on preferential terms, the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) said in a message.

The DPC will be located in Tashkent, and the total cost of the project is $407 million. The investor will receive ownership of the entire business.

The project implementation period is five years - until 2023. At the same time, it is planned to commission the DPC from 2020 to 2023 (one of the four modules with capacity of 10 megawatts per year is expected to be commissioned every year).

The estimated NPV (net present value) will be $266 million.

Azerbaijani IT companies willing to invest in the project will receive substantial financial benefits which include exemption from taxes on income, property, improvement and development of social infrastructure, as well as exemption from contributions to the Republican Road Fund and various customs duties until 2028.

Investors will also be exempted from paying a single tax payment for micro-firms and small enterprises, a single social payment, and will also get benefits for foreign exchange transactions.

The growth rate of the DPC market is ten percent per year and is primarily due to the increasing volumes of data and the transition to cloud technology and the use of outsourcing.

Implementation of the project in Uzbekistan makes it possible to create a hub for Asian and European DPCs and to enter new markets.

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