OREANDA-NEWS. February 03, 2010. In 2010 investments in Uzbekistan's economy will exceed USD 12 billion, over 30% more than last year. Foreign investments are expected to reach USD 3 billion in 99 projects.

Investment plans for this year reflect government policies aimed at restructuring the economy amid the world financial crisis. Early in 2009, the Uzbek government adopted a program of modernization and technological reequipping of basic industries in 2009-2014. The program includes 327 investment projects worth USD 42.5 billion, including USD 20 billion of foreign investments.

The USD 3 billion foreign investments expected in 2010 will include USD 555.2 million in foreign loans provided under Uzbek government guarantees and USD 2.43 billion in foreign direct investment (FDI). Priority is given to FDIs due to the country's large foreign debt (around 30% of the export).

According to Uzbekistan-based Central Asia Investment analyst Ilkhat Tushev, under conditions of the world crisis, Uzbekistan's investment program relies on advantages of the country's energy sector and aims to increase the export of raw materials and improve transport infrastructure. Experts believe that with this scenario, Uzbek production and exports will keep a significant percentage of products with low added value.

In 2010 the largest volume of foreign investments - USD 2.3 billion - will go to the fuel and energy sector, including USD 2.1 billion to the oil and gas industry. Russia's Lukoil will continue two product-sharing agreement (PSA) projects in Uzbekistan totaling USD 4.3 billion: the development of the Kandym gas field in Bukhara region and exploration works in Ustyurt worth USD 3.1 billion, and the development of South Gissar fields worth USD 1.2 billion.

Malaysian Petronas in 2010 plans to start hydrocarbon extraction in Uzbekistan within two PSA projects worth USD 1.16 billion.

Such investors as Russia's Gazprom, Korea's Kogas and KNOC, and China's CNPC are still estimating reserves of proposed Uzbek fields.