The authorities of Uzbekistan will revise the rules for allocating land and reduce infrastructure payments for investors in New Tashkent — a project to build a new city next to the country's current capital. President Shavkat Mirziyoyev also instructed the introduction of a Swiss Challenge mechanism, which provides for the open consideration of proposals for the use of land plots.
WHAT CHANGES ARE ENVISAGED FOR INVESTORS
According to Gazeta.uz, Shavkat Mirziyoyev announced the new measures on 12 October at a meeting with entrepreneurs. The changes will affect the consideration of investment initiatives, the provision of land plots and the size of infrastructure payments.
The President noted that the master plan for New Tashkent should ensure the comprehensive development of the city, but not restrict the implementation of promising projects. If an initiative serves the interests of the city, investors should be allowed to change the area of the plot or the purpose of the facility.
At the same time, the current procedure for considering proposals remains complex and insufficiently transparent, and the adoption of individual decisions is delayed for months. To address this problem, instructions were given to speed up the consideration of initiatives on the basis of clear criteria.
HOW LAND PLOTS WILL BE ALLOCATED
To attract major investment in New Tashkent, a Swiss Challenge mechanism will be introduced. It involves publicly announcing the initial investor's proposal, after which other participants can submit alternative terms.
If no more advantageous proposals are received, the land plot will be granted to the original initiator.
The President linked the need to attract major investors to the development of the city's commercial infrastructure. According to data presented at the meeting, out of 54 land lots sold, only three include projects worth more than $100 million.
BY HOW MUCH WILL INFRASTRUCTURE PAYMENTS BE REDUCED
The size of payments will be revised taking into account the purpose of the facilities. The new base rates provide for the following reduction:
- By 3 times — for retail, service and business centres.
- By 5 times — for hotels and tourism facilities.
- By 10 times — for cultural and entertainment facilities.
- Up to 1% — for private kindergartens, schools and hospitals: this payment rate will be set for these institutions.
According to the President, the construction of residential buildings and facilities serving the city creates a different economic burden. Therefore, it was decided to revise the infrastructure payments for hotels, shopping centres and other socially significant facilities.
The new procedure will also apply to projects whose construction has already begun.
WHAT OTHER PROCEDURES WILL BE SIMPLIFIED
For unique projects developed by leading world architects, accelerated procedures for the design, construction and commissioning of facilities will be introduced.
In addition, the President instructed an end to the practice of repeatedly requesting the same information when going through permitting procedures.
The St Petersburg quarter, where the concept, project documentation and construction permit were prepared in advance, was cited at the meeting as an example of successful preparation for the implementation of projects. The Directorate of New Tashkent was instructed to increase the number of similar projects.
