Presidential decree: A new association will be set up in the construction sector, the JSC “Uzkurilishmateriallari” will be terminated

The President of the Republic of Uzbekistan has signed a decree “On measures for radical improvement and comprehensive development of the building materials industry”. UzA provides the content of a document.

The resolution envisages approving proposals of the enterprises of construction materials industry, JSC “Uzkurilishmateriallari”, Ministry of Economy and Industry of the Republic of Uzbekistan, Ministry of Finance and Agency for Management of State Assets on:

organization of the Association of Building Materials Industry Enterprises of Uzbekistan;

consideration of liquidation of the company by transferring the shares of the charter capitals of the economic entities to the State Property Management Agency of the Republic of Uzbekistan that was agreed during the meetings of management bodies of JSC “Uzkurilishmateriallari”.

It has been noted that:

a) enterprises of construction materials industry which have joined voluntarily are members of the Association “Uzkurilishmateriallari”;

b) structure of the executive body of the Association “Uzkurilishmateriallari” is confirmed by a decision of the general meeting of founders of the association;

c) chairman of the Association “Uzkurilishmateriallari” and his deputies are elected by a decision of the general meeting of the association founders on the proposal of the Ministry of Economy and Industry of the Republic of Uzbekistan;

d) maintenance and operation of the Association “Uzkurilishmateriallari” is financed by membership fees and deductions from members of the Association and other sources not prohibited by law;

e) the following are the main tasks and activities of the Association “Uzkurilishmateriallari”:

representing and protecting the interests of members of the Association “Uzkurilishmateriallari” in the public authorities and management, as well as making proposals on development of the construction mat

attracting investments in the production of high-value construction products, modernization, technical and technological re-equipment of enterprises, as well as acquisition of high-tech industries for establishment of joint ventures with leading foreign companies, first of all, cooperation with the Ministry of Economy and Industry of the Republic of Uzbekistan, the Ministry of Investments and Foreign Trade in attracting direct foreign investments;

expanding the range of demanded qualitative products, fostering the domestic market with import-substituting and competitive construction materials and local products, as well as supporting activities of the Association “Uzkurilishmateriallari” members in increasing export potential of the sector;

assisting in the placement of enterprises based on the prospects for further development of regions, availability of raw materials, infrastructure, labor and other resources and markets.

It should be noted that by January 1, 2022, the enterprises' contributions to the Association “Uzkurilishmateriallari” will be deducted from the taxable income tax base of legal entities.

Starting from April 1, 2019, a procedure for the use of geological study of subsoil blocks with non-metallic minerals shall be issued within a period not exceeding ten days from the date of receipt of the application.

The list of investments for industrial development, including non-metallic minerals, attracted by foreign investments, has been approved.

The Ministry of Investments and Foreign Trade of the Republic of Uzbekistan jointly with the State Committee on Geology and Mineral Resources shall take necessary measures to attract potential investors, including foreign investors, for development of non-hazardous mineral deposits in the list.

The JSC “Uzkurilishmateriallari” has developed a list of investment projects in the building materials industry jointly with the Ministry of Economy and Industry of the Republic of Uzbekistan, the Ministry of Investments and Foreign Trade and the Ministry of Construction, which envisages:

implementation of 67 investment projects for technical and technological renewal of existing enterprises and construction of new enterprises for $1,3 billion in 2019-2021, including $692 million foreign direct investment;

by 2021, the volume of cement production capacity will reach 17 million tons, architectural-building glass – 32 million square meters, particleboard (DSP) – 380 thousand cubic meters, gas concrete block – 700 thousand cubic meters, increasing the production of construction materials with the production of large rolled concrete products for construction of multi-storey houses – 180 thousand square meters.

The Cabinet of Ministers of the Republic of Uzbekistan until April 1, 2019, affirms the list of investment projects in the construction materials industry, as well as a comprehensive roadmap, set forth in this paragraph.

Within two months, the Ministry of Economy and Industry of the Republic of Uzbekistan will develop and implement complex measures for development of new types of products based on the study of demand for construction materials in domestic and foreign markets, as well as on the tendencies of development of foreign markets, filling the domestic market with local building materials and expanding export geography.

The proposal of the Ministry of Construction, Ministry of Economy and Industry, JSC “Uzkurilishmateriallari” and construction materials industry enterprises to rename the Specialized Research and Design Institute of LLC “UzkurilishmaterialLITI” as the scientific-research and engineering center of the LLC “UzkurilishmaterialLITI” has been admitted. Main objectives and activities of the Center are as follows:

organization of development and use of new construction materials and technologies taking into account the best foreign experience and raw materials potential of the Republic, jointly with the Agency for Technological Development at the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan, “Uzstandart” agency and research institutes of the construction industry;

activating and developing new standards for building materials, as well as developing a set of rules used in the construction industry;

certification of all types of building materials and products manufactured;

development of curricula and innovative curricula on training specialists in demanding building materials industry in conjunction with the Ministry of Higher and Secondary Special Education of the Republic of Uzbekistan, as well as preparation of modern teaching-methodical literature and manuals;

organization of training, retraining and certification of personnel, training of specialists, including internships at research centers abroad;

conducting technical inspection, energy audit, diagnostics and examination of production facilities, equipment and technical systems, industrial facilities, as well as energy and engineering infrastructure facilities.