New opportunities for investors will be created in New Tashkent

President Shavkat Mirziyoyev held an open dialogue with investors and entrepreneurs on accelerating the construction of New Tashkent, the press service of the head of our state reports.

As part of the New Tashkent construction project, launched three years ago, the state is allocating substantial funds to develop infrastructure and build key social facilities. More than $2 billion has been invested in the new city to date. However, it was noted that the pace of private-sector involvement in construction does not match the existing potential.

A total of 20,000 hectares of land has been allocated for New Tashkent. During the first phase, projects worth $50 billion are planned across an area of 6,000 hectares. At present, construction is being carried out mainly with public funding across more than 1,000 hectares, while entrepreneurs have been allocated 94 hectares.

“New Tashkent is an area intended for more than just the construction of new housing,” the President emphasized.

The new city is expected to become an independent economic hub bringing together business, education, healthcare, tourism, and services. In this regard, it was noted that two-thirds of the land plots allocated to investors are intended for residential projects, while active construction has yet to begin on 28 lots.

The head of state noted that it would be wrong to explain the current situation by claiming that investors lack funding or interest. Obstacles to project implementation include outdated requirements, delays in issuing permits, and the approach of certain government agencies that act as regulators rather than partners. In this connection, instructions were given to review all procedures, from allocating land to entrepreneurs to commissioning completed facilities.

By the end of the year, 20,000 apartments are expected to be completed in New Tashkent. This will create a new living environment for at least 70,000 people. The President emphasized that housing construction must go hand in hand with the provision of essential services in recreation, sports, retail, education, and healthcare.

A 55,000-seat stadium meeting FIFA requirements is under construction in the city. In view of the FIFA U-20 World Cup scheduled to take place next year, officials were instructed to assess demand for hotels, restaurants, and entertainment facilities and present entrepreneurs with specific investment proposals.

The relocation of government agencies will also play an important role in establishing New Tashkent as a center of business activity. The ministries of construction, transport, and energy are already operating there, while buildings for employees of other agencies are under construction. Instructions were given to begin relocating the remaining ministries and government organizations to New Tashkent.

During the dialogue, the need to expand opportunities for investor-led initiatives in implementing the city’s master plan was highlighted.

When unique projects that serve the city’s interests are proposed, requests to change the size of land lots or the designated use of facilities should be considered promptly and according to clear criteria. Instructions were given to increase the number of plots for which concepts, project documentation, and construction permits have been prepared in advance.

To attract major commercial developments, a mechanism will be introduced for allocating land plots through open investor initiatives and the “Swiss Challenge” principle. Following the public announcement of an investor’s proposal, other participants will be given the opportunity to offer more favorable terms. If no competing proposals are submitted, the land plot will be allocated to the original initiator.

Infrastructure fees will be revised to encourage the construction of service-sector facilities and social infrastructure. The base rate will be reduced threefold for retail facilities, service businesses, and business centers; fivefold for hotels and tourism facilities; and tenfold for cultural institutions and entertainment venues. Private kindergartens, schools, and hospitals will be charged a fee of 1 percent. The new procedure will also apply to projects already under construction.

Measures were also outlined to reduce costs associated with applying green building standards in New Tashkent. For non-residential facilities costing more than $50 million, the state will fully cover the cost of obtaining a green certification. The requirement for investors to landscape 30 percent of each acquired plot will not apply in New Tashkent. Instead, the state will ensure that 30 percent of the city’s territory is landscaped in accordance with the master plan.

Each project worth more than $50 million will be assigned a designated representative responsible for supporting the investor through to the commissioning of the facility. Separate investment agreements will also be concluded for these projects, setting out the obligations of the parties and conditions tailored to each project’s specific features.

To ensure that entrepreneurs from across the country can benefit from the new opportunities, 100 hectares of land in New Tashkent will be allocated to each district of the capital and to each of the country’s other 13 regions. Entrepreneurs from the respective regions will be eligible to participate in the initial auctions for these plots.

The first 50 lots for foreign investors have been identified. A package of proposals containing their locations, economic calculations, and information on the opportunities available will be distributed through Uzbekistan’s diplomatic missions. Ministers have also been instructed to systematically present New Tashkent projects at meetings with major foreign companies.

The construction of the Shirin residential development in Samarkand was also reviewed. The slow pace of work was criticized, and a decision was made to extend to this development the incentives and opportunities provided for New Tashkent.

Addressing the issue of distinguishing between domestic and foreign investors, the President emphasized: “Capital, innovative ideas, and honest work have no nationality!” He noted that every entrepreneur involved in the construction of New Tashkent and the Shirin development is contributing to the development of the country.

The head of state then held a dialogue with investors and listened to their proposals and initiatives.