Tashkent, Uzbekistan (UzDaily.com) – On 20 November, Tashkent hosted an interim session of the Council of Foreign Investors under the President of the Republic of Uzbekistan, organized by the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan together with the European Bank for Reconstruction and Development (EBRD). This was reported by the press service of the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan.

The session was attended by Minister of Investment and Foreign Trade of the Republic of Uzbekistan Sardor Umurzakov, Managing Director of the EBRD for Central Asia B. Balvanera, Head of the EBRD Representative Office in Uzbekistan A. Drakinos, representatives of the World Bank, International Finance Corporation, Asian Development Bank, Islamic Development Bank, Heads of the State Assets Management Agency, the Ministry of Economy and Industry and the Central Bank of the Republic of Uzbekistan.

Also present were the leaders of foreign companies engaged in or planning to carry out investment activities in Uzbekistan, such as British American Tobacco (Great Britain), JP Morgan Chase (USA), CNPC (China), KNOC (South Korea), Lukoil (Russia), Knauf ( Germany), Carlsberg (Denmark) Posco Daewoo (South Korea) and others. In addition, experts from international consulting agencies - Ernst & Young, KPMG, Deloitte, Pricewaterhouse Coopers, Dentons and representatives of the media were invited.

The main task of the Council of Foreign Investors is to directly participate in creating a favorable investment climate and effective mechanisms to stimulate domestic and foreign entrepreneurs to invest in priority sectors of the economy, as well as regions of the country, with the aim of organizing technological production for the production of competitive export-oriented products.

The session was held in the form of an open discussion, during which the issues of improving the interaction between investors and government bodies, creating favorable legal, regulatory and institutional frameworks for the privatization process, improving the valuation methodology and corporate legislation were discussed.

Opening the event, the head of the session S. Umurzakov noted the importance of creating a healthy and transparent business environment built on an atmosphere of trust, conducive to the implementation of innovative ideas and the implementation of promising business initiatives, which in turn will provide an important advantage in the face of stubborn international competition to strengthen Uzbekistan’s position in global investment flows.

On behalf of the Government, he voiced firm intentions to continue consistent work to improve the legislative framework, remove excessive administrative barriers and develop infrastructure. He also urged the participants to focus on reforming the banking and financial sector, accelerating the privatization of state property and introducing objective methods of valuing assets, which at this stage of economic transformation will significantly increase the investment attractiveness of Uzbekistan, ensure the attraction of additional investment, and generally improve the economic performance. country growth.

Representatives and consultants of the EBRD also spoke at the session, highly appreciating the confidence and dynamism of the changes being carried out in the country and, for their part, noting a positive trend in the growth of investment activity in the countries of the Central Asian region amid a decline in global foreign direct investment over the past three years.

In his speech, EBRD Advisor G. Kvirikashvili shared his vision of the prospects for further activities of the Council - the structure will be transformed into an open platform for discussion and study of pressing issues of foreign investors. Further, based on the specifics of incoming requests, with the direct coordination of the Council Secretariat, working groups will be created to study specific cases and develop solutions. This format will significantly increase the practical significance of the Council.

Also during the session, members of the Council, foreign entrepreneurs, shared their views on the role of this structure both on a national scale and in the context of their personal participation in the implementation of projects in Uzbekistan.

As part of the event, a number of constructive proposals related to agenda issues were put forward and considered. So, in particular, it was voiced that it was proposed to introduce the definition of “holding company” into the Uzbek legislation, the concept of “through taxation”, various classes of shares and other common corporate law concepts in the world, and provide investors with greater flexibility in determining corporate policy.

A unified vision was developed on the prospects of accelerated privatization of commercial banks by implementing their controlling stakes in interested investors, as well as optimizing the current activities of banks in Uzbekistan by digitalizing the banking system and introducing advanced products and practices.

They also discussed the need to develop a legal framework for the creation and operation of branches of foreign commercial organizations and a single electronic registry that reflects complete information about business entities and allows a retrospective analysis of the activities of each company from the moment of its creation. Leading international consulting companies have shown interest in actively working on the proposed initiatives.

As a result of the event, loan agreements were also signed between the Republic of Uzbekistan and the European Bank for Reconstruction and Development on the following projects (total amount of $ 150 million):

- the construction of a 220 kV line with a dimension of 500 kV 177 km long from the Navoi TPP to the 220 kV switching point Besopan (loan amount of $ 96.1 million, the executive agency of the National Electric Networks of Uzbekistan JSC);

- reconstruction and construction of sewage systems in the city of Karshi, Kashkadarya region (loan amount 60.0, the executive agency is the Ministry of Housing and Public Utilities);

- reconstruction and construction of sewage systems in the cities of Urgench, Khiva and Pitnak of the Khorezm region (loan amount 90.0, the executive agency is the Ministry of Housing and Public Utilities).

For reference: the Council of Foreign Investors was created in accordance with the Decree of the President of the Republic of Uzbekistan No. PP-4519 dated November 13, 2019 “On measures to create and organize the activities of the Council of Foreign Investors under the President of the Republic of Uzbekistan”.

This Council is composed of leaders and representatives of foreign companies, banks, international financial institutions and foreign government financial organizations, including the EBRD.

Council events are held in the format of plenary sessions led by the President of the Republic of Uzbekistan and interim sessions led by the Minister of Investments and Foreign Trade of the Republic of Uzbekistan.