New Approach To Construction In Uzbekistan

The Decree of the President of the Republic of Uzbekistan No. UP-5577 dated November 14, 2018 set out the main problems in the construction industry (absence of market mechanisms in technical regulation, immense number of governmental administrative and controlling functions, prescribing method of legislation in designing and constructing, absence of professional systems of education in construction norms and rules) along with directions for accelerated reforms and the development of a competitive environment in the construction sphere.

The Decree of the President approved the following measures:

Starting from December 1, 2018: Examination of the cost calculation part of construction projects for all construction objects (apparently including those projects that previously were not subject to the requirements of a complex examination, for example, Product Sharing Agreements, projects funded by private enterprises and IFIs) is compulsory, except for the cases when a project is "funded with direct investments, including foreign direct investments." We kindly remind that investment is defined as tangible and intangible values and rights for them invested in a business and other activities not prohibited by law. This definition of investments embraces investment of monetary and other financial assets, including loans, shares and other securities. At the same time, there is no precise definition of direct investment under the law. Acceptance of the finished objects for the operation will be performed with the participation of inspection for control in the sphere of construction, cadaster institutions, representatives of the building owner, contractor (general contractor), except when the project is financed by the subjects of public procurement. The meaning of this section is hard to define, because it is not clear whether the section is changing the composition of acceptance commissions or the stages of acceptance. Starting from January 1, 2019: Certificates and other permits issued by the members of the Organization for Economic Cooperation and Development (OECD) for designing and construction activities will be applicable in Uzbekistan. Currently, the OECD is comprised of 36 highly developed countries. Development and improvement of the national construction laws and regulations and adaptation of the international normative-technical documents will be performed only through tenders. The Ministry of Construction will be the initiator of the...