June 22, 2022

Improving the efficiency of special economic, small industrial, youth industrial and business zones

On June 13, 2022 Presidential Decree No. UP-153 “On Additional Measures to Improve the Effectiveness of Special Economic, Small Industrial, Youth Industrial and Entrepreneurial Zones” (hereinafter – the “Decree”) was adopted. The Decree was adopted in order to improve conditions for attracting investments and to ensure accelerated implementation of investment projects.

The Decree provides for:

  1. Transformation of single directorates for management of small industrial zones in the form of a state institution in Karakalpakstan, regions and Tashkent city into single directorates for management of small and youth industrial zones (hereinafter – the “single directorate”).

They are entrusted with the task of putting up for electronic online auction of land areas, buildings and facilities located on their territory.

  1. Abolition of administrative boards of special economic zones (hereinafter – the “SEZ”) and small industrial zones in Karakalpakstan, regions and Tashkent.

Their tasks are now entrusted, respectively, to the directorates of special economic zones and unified directorates.

  1. Cancellation of the requirement to obtain the conclusion of the State Unitary Enterprise “Center for Comprehensive Expertise of Projects and Import Contracts” on business plans or feasibility studies of investment projects in the SEZ.

Now the directorates of SEZ independently make a conclusion on the compliance of projects proposed for implementation in the territory of SEZ with the requirements of the Law “On Special Economic Zones”.

In addition, according to the Decree, from June 1 of the current year:

  • the directorates of SEZ and unified directorates make decisions on the placement of investment projects on the territory of industrial zones within 10 working days;
  • auctions are considered valid even if only one participant participates in the auction for the lease of land areas put up for auction in the territory of SEZ;
  • the participants of SEZ, when receiving loans, can pledge the right to lease land plots in the SEZ territory;
  • payments for the lease of land, buildings and structures in industrial zones through an electronic online auction can be made in installments within 12 months at the starting price;

Moreover, enterprises of foreign trade, logistics and manufacturing enterprises can now carry out investment projects in the service sector on the territory of the SEZ and obtain the status of a participant in accordance with the requirements of the law.

It is also worth noting that it is planned to introduce a system for the provision of services on the principle of “single window” in the process of cooperation between investors and SEZ directorates, unified directorates and government agencies.