Some of the most important legal developments in Uzbekistan in October 2023 included the adoption of a Presidential Decree on measures to accelerate the country’s industrial development and Presidential Resolutions initiating reforms of the currently state-controlled railway and drinking water supply sectors. Other significant legal changes were the issuance of a Resolution of the Cabinet of Ministers on accounting and managing the state's financial liabilities in PPP projects and the adoption of a Law introducing amendments and additions to the legislation on land leases and easements.
The President has signed a Decree on accelerating the development of the country’s industry, which among other things, envisages the following:
The President has signed a Resolution on reforming the railway transportation sector to attract investment, improve the quality of rail services, and enhance competition. It, among other things, provides for the following:
(A) till 1 January 2024, state-owned JSC “Uzbekistan Railways”, a monopolist in the sector, and its enterprises will be reorganized with the following separate entities being established as subsidiaries of JSC “Uzbekistan Railways”:
(B) till 1 January 2026, (i) JSC "Uzbekistan Railways" and its subsidiaries are allowed to sell, lease, purchase, and supply goods and provide services to each other based on direct contracts (i.e. without conducting competitive public procurement procedures); (ii) JSC "Uzbekistan Railways" is allowed to purchase goods and services, equipment, components and spare parts necessary for the production and repair of rolling stock and the repair and construction of railways based on direct contracts with manufacturers and/or its official dealers (i.e. also without conducting competitive public procurement procedures);
(C) starting from 1 January 2024, the cancellation of all provided discounts on tariffs for local, import, and export freight transportation with the provision of discounts being only allowed based on decisions of the Cabinet of Ministers. Till 1 December 2023, the Cabinet of Ministers shall develop a list of available discounts;
(D) starting from 1 January 2024, the abolishment of state regulation of tariffs for the provision of freight cars and containers and high-speed and high-speed passenger transportation services and the transition to market-determined tariffs;
(E) within 2 months from the date of the Resolution, the Ministry of Transport, JSC “Uzbekistan Railways”, and a number of other entities shall consider and develop proposals on (i) the electrification of the Navoi-Uchkuduk railway section; (ii) the construction of a second electrified railway line on the Angren-Tashkent railway section as well as the creation of a terminal and a logistics center in the Akhangaran district of the Tashkent region; (iii) the development of railway stations in the cities of Tashkent, Samarkand, and Kokand based on public-private partnership;
(F) the approval of, among other things, (i) the Roadmap for the Reform of the Railway Transportation Sector in 2023-2026 (Annex 1 to the Resolution); (ii) a list of JSC "Uzbekistan Railways” enterprises whose shares are intended to be sold at public auction (Annex 5); and (iii) a list of real estate objects of JSC "Uzbekistan Railways" and its enterprises intended to be sold at public auction (Annex 6).
Presidential Resolution No. PP-329 of 10 October 2023
The President has signed a Resolution on measures to improve the drinking water supply and sewage systems across the country. It, among other things, envisages the following:
(A) till 1 April 2024, state-owned water supply organisation JSC "Uzsuvtaminot" and its enterprises will be reorganised and the following separate companies - subsidiaries of JSC ”Uzsuvtaminot” will be established:
(B) starting from 1 January 2024:
(C) a wider use of mechanisms of public-private partnership (PPP) in the sector. Starting from 1 July 2024, on an experimental basis, the drinking water supply and wastewater disposal systems in the cities of Kagan, Shirin, Yangier, Bekabad, and Yangiyul will be transferred to private investors based on PPP;
(D) for a period till 1 January 2027, special machinery, equipment, and vehicles purchased (imported) for projects in drinking water supply and wastewater disposal at the expense of international financial institutions and foreign government financial organizations are exempt from the disposal charge;
(E) the approval of, among other things, (i) the Roadmap for Improving the Drinking Water Supply and Sewerage Systems (Annex 1 to the Resolution); (ii) the list of projects implemented by JSC “Uzsuvtaminot” and international financial intuitions in 2024-2026 within the framework of the Program for Providing the Population with Drinking Water Supply and Sewerage Services (Annex 7).
Presidential Resolution No. PP-343 of 24 October 2023
The Cabinet of Ministers has adopted a Resolution on the management of fiscal liabilities of the state in public-private partnership (PPP) projects. The following is, among other things, established by the Resolution:
For a more detailed overview of the Resolution, please refer to our dedicated Legal Alert.
Resolution of the Cabinet of Ministers No. 558 of 23 October 2023
On 23 October 2023, a Law introducing amendments to the land legislation regarding lease and easements was adopted. It entered into force on 25 October and, among other things, provided for the following changes:
(A) with respect to land lease:
(B) with respect to an easement:
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Kosta Legal Law Firm