Senate considers information from the Ministry of Investment and Foreign Trade
Tashkent, Uzbekistan (UzDaily.com) -- On 23 February 2021, at an expanded meeting of the Senate Committee on International Relations, Foreign Economic Relations, Foreign Investment and Tourism, information was heard from the Ministry of Investment and Foreign Trade (MIFT) on the execution in the trade, economic and investment part "Road maps", signed following the summit visits to the Republic of Turkey and Japan.
The meeting was attended by the heads of interested ministries and departments, state companies, public associations, heads of diplomatic missions of Uzbekistan in Turkey and Japan, representatives of local government bodies.
It was noted that together with Turkey it was planned to implement 49 projects for a total amount of US$608.3 million. To date, about half of the investments of Turkish companies have been successfully mastered, which made it possible to significantly increase the potential of the domestic textile, leather and footwear, food industries and the construction materials industry.
On the basis of Japan’s road map, 40 projects worth about US$4.4 billion were scheduled for implementation. Attraction of these investments will make it possible to start a large-scale modernization of the country’s energy sector, including both the construction of new generating capacities and the modernization of existing ones with the introduction of modern technologies in the fuel and energy industry.
During the hearings, the progress in the implementation of the "road maps" was critically analyzed, and the activities of the departments responsible for the implementation of investment projects and export contracts were assessed.
Based on the results of the study of projects by senators and deputies of Kengashes on the ground, meetings with investors, organizations and departments responsible for the implementation of investment projects and export agreements, the facts of non-fulfillment and serious delays in the execution of investment projects by the Ministry of Health, the Ministry of Agriculture, the State Committee for Geology, the Association Uztekstilprom, as well as the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of Tashkent city and Surkhandarya region were revealed..
According to Japan’s road map, projects of the Ministry of Energy, the Agency for the Development of the Pharmaceutical Industry, the Uzeltekhsanoat Association, and the National Bank of Uzbekistan are significantly delayed or are not being implemented at all.
Along with the individual problems of each project, systemic problems remain that prevent the timely and complete implementation of the roadmaps. In particular, there is currently no well-functioning system of control over the implementation of investment projects and export agreements. Until now, the work of the government Inspectorate for control over the implementation of investment projects and foreign trade, the creation of which was provided for by the Decree of the President of the Republic of Uzbekistan No. UP-6042 from 18 August 2020.
In addition, the study showed an insufficient level of control on the part of local senators, as well as the lack of practice of hearing the reports of the respective deputy khokims on investment issues by the Kengashes of people’s deputies.
The low quality of marketing research of foreign sales markets was also noted, which often leads to non-fulfillment in full of the concluded export contracts. And the persisting high level of bureaucracy, which is expressed, among other things, in the inadequate provision of the stage-by-stage and timely development of project documentation, leads to a delay in the opening of financing, the disbursement of funds and, as a result, the commissioning of the investment project capacities.
As a result of the meeting, a corresponding decision was made by the Senate Committee, containing specific measures to eliminate existing problems and shortcomings.