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Spotlight on Uzbekistan: Kinstellar’s regular look at the Uzbek market - December 2020

December 2020 – Spotlight on Uzbekistan: Kinstellar’s regular look at the Uzbek market

New amendments to the Law of Uzbekistan “On Public-Private Partnership”

On 19 December 2020, the tenth plenary session of the Senate of the Oliy Majlis of the Republic of Uzbekistan took place in Tashkent.

Over the course of the plenary session, the senators discussed proposed new amendments to the Law of Uzbekistan "On Public-Private Partnership". The amendments concern the introduction of new concepts such as "concession", "project of public-private partnership", and "applicant" and their respective definitions.

The amendments also provide for the strengthening of the rights of private partners. In particular, it is established that if subsequent legislation of the Republic of Uzbekistan worsens the conditions for investing in a public-private partnership project, the private partner has the right to demand compensatory payments.

In addition, local executive authorities, within the framework of public-private partnership agreements,
are empowered to identify factors and problems that impede the timely and effective implementation of public-private partnership projects, including projects with the participation of foreign investors, and to take measures to eliminate them.


New mechanism for the appropriation of land plots

A new mechanism in Uzbekistan for the appropriation of land plots has been introduced.

Pursuant to the amendments coming into force, appropriation of a land plot or a part thereof for state and public needs must be carried out with the consent of the landowner or in agreement with the land user and the tenant, based on decisions of the local Kengash(s)’ (Parliamentary Council) of the regions, the city of Tashkent, or based on decisions of the Cabinet of Ministers of the Republic of Uzbekistan.

Furthermore, the amendments adopted provide the following purposes for which appropriation can be carried out:

  • for purposes of defence and state security, for the needs of protected natural zones, for the establishment and operation of free economic zones;
  • for fulfilling obligations arising out of international treaties to which the Republic of Uzbekistan is party;
  • for the purposes of exploration and exploitation of minerals;
  • for the construction (reconstruction) of roads and railways, airports, airfields, air navigation facilities and aviation technical centres, railway transport facilities, bridges, subways, tunnels, energy system facilities and power transmission lines, communication lines, space facilities, trunk pipelines, engineering and communication networks;
  • for the execution of master plans of settlements in terms of the construction of facilities at the expense of the state budget, as well as in other cases directly provided by national laws and other regulations;

Law of Uzbekistan “On Amendments and Additions to some Legislative Acts of the Republic of Uzbekistan in connection with the Further Strengthening of Guarantees of the Rights and Legitimate Interests of Proprietors” ZRU-656 dated December 23, 2020.


Amendments to the Law of Uzbekistan “On the State Budget”

In accordance with recently adopted amendments, the maximum volume for the aggregate of newly signed agreements on attracting external borrowing on behalf of the government or under a state guarantee has been increased from USD 4 billion to USD 5.5 billion, including USD 2.5 billion to support the state budget and finance activities not related to the implementation of projects.

Furthermore, based on the new state budget forecast, the budget income was reduced by UZS 1,247,492.1 while the budget expenses were increased by UZS 1,090,889.3.

Law of Uzbekistan “On State Budget of the Republic of Uzbekistan” ZRU-655 dated December 23, 2020.

For further information, please contact Joel Benjamin, Managing Partner of Kinstellar’s Central Asia practice, at , or Muborak Kambarova, Counsel, Tashkent, at .

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