July 22, 2021
Procedure for attracting and assimilating foreign investments
When investing and implementing investment programs, investors may be interested in the procedure for attracting and assimilating foreign investments and loans, as well as the powers and mechanism of interaction during this process.
The process of attracting and assimilating foreign investment consists of several stages, namely:
- Initiation of investment proposals;
- Selection of potential agreements;
- Registration of agreements reached with foreign investors and creditors;
- Monitoring the implementation of investment projects with the attraction of foreign investments and loans.
We will analyze each stage in more detail below.
- Initiation of investment proposals
First, ministries and departments, state and economic management bodies, as well as local authorities elaborate programs for the development, modernization, technical and technological re-equipment of industries in the relevant industries and regions of the republic. In other words, the aforementioned bodies and organizations preliminarily determine which spheres need modernization or new capacities.
After the elaboration of development programs, the Ministry of Economy submits them for approval to the Cabinet of Ministers. Development programs are a medium-term targeted programs for the development, modernization, technical and technological re-equipment of enterprises in the sectors of the economy and the integrated development of the republic’s territories, including projects for the construction and reconstruction of industrial and social infrastructure and communications, projects for the introduction of modern energy-efficient and energy-saving technologies, technologies in the field development of renewable energy sources in accordance with energy service contracts.
In addition to approving development programs elaborated by the Ministry of Economy, the Cabinet of Ministers is also developing an Investment Program. Investment Program is a document approved by a decision of the Cabinet of Ministers, including targeted programs of investment projects implemented with the attraction of foreign loans guaranteed by the Government and foreign direct investment and loans, as well as the Consolidated List of Priority Investment Proposals, which are searched for and selection of foreign investors and creditors.
After the approval of the development programs, the Ministry of Economy draws up a list of investment proposals for further study by the Ministry of Investments and foreign trade on the issue of attracting foreign investors and creditors.
- Selection of a potential investor
Ministry of Investments and foreign trade informs potential foreign investors and creditors of information about investment projects proposed for implementation by:
- posting proposals on the Internet; mailing investment proposals to foreign companies and financial institutions;
- presentation of investment proposals during organized investment and business forums, exhibitions, round tables, seminars and conferences on the territory of the Republic of Uzbekistan and abroad;
- publication of relevant information on investment projects proposed for implementation in presentation materials and other information publications distributed among potential foreign investors during events and negotiations.
If potential foreign investors and creditors show interest in the implementation of a specific investment project, the Ministry of Investments and foreign trade provides the necessary assistance.
- Registration of agreements reached with foreign investors and creditors
The agreements reached with foreign investors and creditors are formalized by concluding:
- protocols of intentions and memorandums between the initiator and the foreign investor;
- an investment agreement in accordance with the procedure established by law, including when providing a foreign investor with additional benefits and preferences;
- agreements with foreign banks and financial institutions to attract external borrowings;
- documents on the creation of enterprises with foreign investments and the acquisition by foreign investors of a share in the authorized capital (capital) of enterprises;
- memorandums and other documents, taking into account the practice of cooperation of the Republic of Uzbekistan with international financial and economic institutions and foreign government financial organizations.
- Monitoring the implementation of investment projects with the attraction of foreign investment and loans
On a monthly basis, project initiators submit to the Ministry of Investments and Foreign Trade and the Ministry of Economy information on the progress of investment projects in accordance with the approved network schedules, indicating detailed information on the current state, existing issues and problems that impede the timely implementation of the investment project.
The Ministry of Investments and Foreign Trade on a monthly basis provides the Information and Analytical Department for the coordination of the formation and monitoring of the implementation of investment programs, attracting foreign investments of the Cabinet of Ministers, information on the progress of the implementation of investment proposals included in the database.