Uzbekistan is implementing a new procedure for preparing land plots for sale at auctions. Now, plots will be provided in advance with technical specifications for connection to engineering networks and construction permits, allowing investors to receive assets as a 'ready package.'
This new mechanism is enshrined in a presidential decree dated August 28 and aims to reduce the state's participation in the economy and accelerate privatization processes.
Land plots offered by local councils on architecture and urban planning will be prepared before being put up for auction. Related costs may be covered from local budgets, and the incurred expenses will subsequently be included in the starting price of the plot when sold through an auction.
Furthermore, general plans will be developed and approved for territories where land plots are planned for sale. Specific plots intended for transfer to investors will be formed based on these plans.
The decree also establishes a new procedure for registering land as state property subject to privatization. If an investor acquires state property, the right to the associated land plot remains with the buyer until the actual privatization of the land. Furthermore, the right to lease such a plot will not require re-registration.
Separate rules apply to undeveloped non-agricultural lands that cannot be sold at auction for more than three months. The right to such a plot may be entered into the charter capital of a business entity established with the participation of an investor, provided the stated investment project is implemented. Subsequently, the state's share in the company may be offered to the investor for purchase.
New opportunities for privatization will become available to participants in Tashkent industrial zones. Companies that have fully fulfilled their investment and social obligations will be able, according to established procedures, to privatize the land plots they occupy, as well as the buildings and structures on them.
State banks have been instructed to actively involve state assets and land plots put up for sale in business projects. For this purpose, a 'project factory' mechanism will be used, which will help banks prepare and promote business proposals using such assets among potential investors.
These measures are part of an expanded privatization program, within which the authorities intend to auction about 8,000 hectares of land plots designated for business and urban development purposes.