Tashkent entrepreneur claims construction permits cost up to $200,000 in hidden payments, ministry responds

On 29 August, the Chamber of Commerce and Industry held an open dialogue with representatives of the construction sector. Speaking at the meeting, Abdusamatov complained about widespread corruption in the process of obtaining permits and registering cadastral documents.

He noted that land prices are not reflected in the system, creating a shadow economy: “In Mirzo Ulugbek district, 100 square meters of land costs $100,000, in Sergeli – $40,000, in Chorsu – $50,000. These real prices should be introduced into the system, otherwise it affects apartment costs later.”

According to him, problems start as soon as land is purchased: “We submit applications for a permit – they get rejected. Again and again, until we pay a visit with an ‘envelope’ (money – ed.). This directly affects construction costs. For a house worth $500,000, you end up paying $50,000 here, $100,000 there, $20,000 somewhere else.”

Abdusamatov urged officials to hold accountable those who issue arbitrary denials: “Why was my application rejected five times and approved on the sixth with no changes? The same company, the same documents. Such actions must face consequences.”

He added that cadastral procedures create further hurdles: “In my companies alone, applications have been returned ten times. Those responsible should face penalties.”

The entrepreneur claimed that in Tashkent, additional expenses for permits and cadastral registration may reach $200,000 per house, while in Tashkent region the figure may reach $100,000. He stressed that if such “expenses” were eliminated, he would be willing to pay the same amount in taxes.

Ministry responds

On 3 September, the Ministry of Construction and Housing and Communal Services issued a statement addressing the entrepreneur’s concerns.

It stressed that all government services and payments in the construction sector are carried out electronically in line with regulations, and no additional payments may be demanded. Applications can only be submitted via the my.gov.uz portal or Public Services Centers, which rules out direct contact between applicants and officials.

The ministry said recent reforms aim to reduce bureaucracy, minimize human involvement, and prevent corruption. All stages – from obtaining construction permits to commissioning – are monitored through the national information system “Transparent Construction”. These processes are regulated by administrative procedures approved by the Cabinet of Ministers’ resolution No. 200 of 20 April 2022.

Digitalization is being phased in to ensure transparency, reduce unnecessary procedures, and improve convenience for businesses and citizens.

In addition, under presidential decree No. PQ-236 of 26 July 2023 and Cabinet resolution No. 149 of 2 March 2024, developers in Tashkent (excluding budget-funded projects, private housing, and non-state schools) are required to pay a fee equal to one base calculation unit per cubic meter of construction volume to cover part of the costs of engineering and transport infrastructure. The fee is transferred in full to the Tashkent City Development Fund.

The ministry called on entrepreneurs and citizens who encounter corruption in construction services to contact its compliance departments through the following channels:

• Hotline: +99871-210-11-04 (1066)
• Short number: 1298
• Email: [email protected]
• Anti-corruption email: [email protected]
• Telegram bot: @QurilishKomplayensbot

The statement underlined that ensuring transparency, legality, and openness in the sector is a top priority, and the ministry remains open to addressing all concerns.