Tashkent, Uzbekistan (UzDaily.com) -- Bosch Termotechnik GmbH (Germany) signed a contract with Uzkommunhizmat Agency for modernization of heating system in Chirchiq city (Tashkent region), RIA Novosti reported. The report said quoting source in Uzkommunhizmat that within the contract the Germany company will reconstruct heating system of Chirchiq city through transfer of the system to closed heating. The cost of contract was not disclosed. Bosch Termotechnik will supply equipment to modernization of main and auxiliary equipment of boilers, which serve 725 houses in the city. The project will be implemented in three years. The project is the first in Uzbekistan, which is directed at transferring city heating system to closed scheme. The agency said that at closed scheme, the heating system will be constructed for one or several houses. This will help to decrease losses by 30% and improve quality of heating water. The project with total cost of US$20 million will be financed due to state budget and loans of Uzbek banks. Bosch Termotechnik GmbH and Uzbekneftegaz national holding company are planning to create joint venture on production of heating equipment in 2012. The project with the cost of US$15 million envisages production of heating and water-heating boilers of industrial and domestic purpose. The venture’s capacity is 120,000 sets a year. The project will be implemented in two years. The venture will be located in Navoi free industrial and economic zone. The project will be financed due to own resources of Uzbekneftegaz for US$10 million and direct investments of Bosch Termotechnik for US$5 million as know-how.