With the purpose of increasing the role of private ownership in the economy of the country, eliminating the barriers and limitations in the development of private ownership and private entrepreneurship, about dozen presidential decrees. Nowadays, a new mechanism has been introduced to providing entrepreneurs with land plots for non-agricultural purposes. This mechanism is directed on eliminating of bureaucratic barriers, guaranteeing the openness and transparency in land allocation process.
Particularly, on the 26th of August 2019 the Decree of the President of the Uzbekistan №ПП-4427 “On measures to further improve the procedures for the provision of free non-agricultural land plots and the implementation of architectural and construction work” was adopted. This Decree provides the procedure according to which free land lots for non-agricultural purposes for entrepreneurial and construction activities are allocated exclusively by online auction “E-IJRO AUKSION” trading platform.
The allocation of land plots to entrepreneurs became automated with the help of “E-IJRO AUKSION” single trading platform, which in turn allowed to limit the human factor. Alongside, allocation of land plots in 32 days now is guaranteed by law. General Prosecutor and Ministry of Justice were assigned to execute systematic control of strict compliance with the law in conducting sale of land plots by governmental authorities through online-auction, and application of effective measures of penalty for lawbreakers as well.
Previously, to obtain a land plot in order to start entrepreneurial activity, it took 54 days just for considering the documentation by competent bodies. There was a necessity to go to each institution and wait there for a long time for signature of authorities. The time of allocation of land was a complicated topic, because documents on land acquisition could be redirected from one institution to another within several years.
For example, in august 2016 “BEK MEGA TEKSTIL” LLC appealed to hokimiyat (administration) of Tashkent city and other organizations with request to allocate 8 hectares of land for construction of textile factory along Tashkent ring road in the Sergeli district of Tashkent city. Despite the fact that the company provided the necessary documents, the responsible authorities did not make any measures to allocate a land plot for more than a year. After the intervention of Business Ombudsman, a land plot was allocated to the company.
Nowadays, this textile enterprise successfully carries its activity and has created more than 100 jobs in this region. Despite some of the existing decrees and acts, that are aimed at elimination of the abovementioned barriers, there are still obstacles in the issues of land allocation, in the implementation of construction works, ensuring the access of business entities to production infrastructure. During 11 months of 2019, the Office of Business Ombudsman received about 240 appeals, 41% of which were satisfied in favor of entrepreneurs.
To this day, hokimiyats and other bodies, in violation of rights of business entities, allow themselves seizure of lands without a court decision. In particular, “Dobroe Teplo” LLC, operating in the Surkhandarya region, appealed to the Business Ombudsman with a complaint about the illegal seizure by the district hokimiyat of a plot of 7 000 sq.m, which belongs to the company. As a result of the measures taken by the Business Ombudsman, the legal rights of “Dobroe Teplo” LLC were restored and 7 000 sq.m. of land were returned to the company. The Business Ombudsman conducts systematic monitoring to prevent such cases.
According to World Bank report “Doing Business-2020”, Uzbekistan took the 132th place in obtaining building permits. In 11 months of 2019, 6 962 land plots were placed on the electronic trading platform with the total size of 670.9 hectares, from which 4 865 land plots with the total size of 492 8 hectares were allocated to entrepreneurs.
In conclusion, it must be said that the protection of private ownership and further strengthening of property right guarantees, giving an additional impetus to the development of entrepreneurship, support of entrepreneurial activities and projects, and also enhanced access of entrepreneurs to financial resources make a significant contribution to the development of society.