New Tashkent to create new opportunities for investors

Development of New Tashkent began three years ago. The state is investing significant resources in infrastructure and key social facilities. To date, more than $2 billion has been invested in the new city. The President noted that private sector involvement in its development has yet to match the opportunities available.

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 6,000 hectares. Currently, construction on more than 1,000 hectares is being financed mainly from state funds, while 94 hectares have been allocated to entrepreneurs.

“New Tashkent is not just a place for building new housing,” the President emphasized.

The new city should become an independent economic center bringing together business, education, healthcare, tourism and services. President Shavkat Mirziyoyev emphasized that two-thirds of the land plots allocated to investors are intended for housing projects, while active construction has yet to begin on 28 plots.

The Head of State noted that the current situation cannot be attributed to a lack of funding or investor interest. Obstacles to project implementation include outdated requirements, delays in issuing permits and some agencies acting as regulators rather than partners. He therefore instructed officials to review all procedures – from allocating land to entrepreneurs through to commissioning completed facilities.

By the end of the year, 20,000 apartments are expected to be commissioned in New Tashkent, providing housing for at least 70,000 people. The President stressed that alongside residential development, residents must have access to essential facilities and services for recreation, sports, retail, education and healthcare.

55,000-seat stadium meeting FIFA requirements is under construction in the city. In preparation for next year’s FIFA U-20 World Cup, the Head of State instructed officials to assess the need for hotels, catering and entertainment facilities and present entrepreneurs with concrete investment proposals.

The relocation of government bodies will also play an important role in shaping the business environment of the new city. The Ministries of Construction, Transport and Energy are already operating in New Tashkent, while buildings are being constructed for employees of other agencies. The President instructed officials to begin relocating the remaining ministries and government organizations to New Tashkent.

During the dialogue, the need to create greater opportunities for investor initiatives in implementing the city’s master plan was emphasized.

For unique projects that serve the city’s interests, proposals to adjust the size of land plots or the designated use of facilities should be considered promptly and on the basis of clear criteria. President Shavkat Mirziyoyev also instructed officials to increase the number of plots for which concepts, design documentation and construction permits are prepared in advance.

To attract major commercial projects, a mechanism for allocating land plots through open initiatives based on the Swiss Challenge principle will be introduced. Once an investor’s initiative is publicly announced, other participants will have an opportunity to offer more favorable terms. If no better offers are received, the land plot will be allocated to the original initiator.

Infrastructure charges will also be revised to encourage the development of service facilities and social infrastructure. The base rate will be reduced threefold for commercial facilities, service enterprises and business centers, fivefold for hotels and tourism facilities, and tenfold for cultural and entertainment facilities. For private kindergartens, schools and hospitals, the rate will be set at 1 percent. The new arrangements will also apply to projects already under construction.

Measures were also outlined to reduce the costs associated with meeting green building standards in New Tashkent. For non-residential projects worth more than $50 million, the state will fully cover the cost of obtaining green building certification. Investors will no longer be required to allocate 30 percent of each individual plot to green space. 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 have a designated representative who will support the investor through to the commissioning of the facility. Separate investment agreements will also be concluded for such projects, setting out the obligations of the parties and project-specific terms.

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

The first 50 land plots have been identified for foreign investors. Investment packages containing information on their location, economic calculations and available opportunities will be distributed through Uzbekistan’s diplomatic missions abroad. Ministers were also tasked with systematically presenting New Tashkent projects during meetings with major foreign companies.

The development of the Shirin residential area in Samarkand was also reviewed. The President criticized the slow pace of construction, and a decision was made to extend the incentives and opportunities available in New Tashkent to the Shirin development.

Speaking about the distinction between domestic and foreign investors, the President emphasized: “Capital, innovative ideas and honest work have no nationality!” He noted that every entrepreneur participating in the development of New Tashkent and the Shirin residential area contributes to the country’s development.

The Head of State then spoke with investors and heard their proposals and initiatives.