New mechanism will be deployed for preparing land plots for auction under the August 28 presidential decree aimed at reducing state involvement in the economy and accelerating privatization.
Under the decree, plots proposed by local architecture and urban planning councils will be assembled as "ready-made bundles" — complete with pre-arranged technical specifications for utility connections and construction permits already in place.
The cost of preparing these packages may be covered by local budgets, with those expenses later factored into the starting price of the land plot when it goes to auction.
The decree also calls for master plans to be developed and approved in advance for areas designated for land sales. Specific plots for sale to investors will then be carved out based on those master plans.
Land under privatized property to remain with the buyer
The decree also changes how land is handled when state-owned real estate is privatized. Under the new rules, a buyer who acquires a state-owned property retains rights to the associated land plot until that land itself is privatized, without needing to re-register a lease on the plot.
A separate mechanism applies to vacant, non-agricultural land plots that remain unsold at auction for more than three months. In such cases, rights to the plot may be contributed as capital to a business entity formed with an investor, provided the investor carries out the proposed project. The state's resulting stake in that company may later be offered to the investor for buyout.
Land in Tashkent's industrial zones to be opened to privatization
Entities in Tashkent's industrial zones who have fully met their investment and social obligations will be allowed to privatize the land plots they occupy, along with any buildings and structures on them, in accordance with established procedures.
State-owned banks have also been instructed to play a bigger role in bringing state assets and land plots up for sale into business projects. To do this, banks will adopt a "project factory" approach, helping to prepare and promote business proposals for these assets to potential investors.
The new mechanisms are part of a broader privatization drive under which authorities plan to auction off roughly 8,000 hectares of land for business and urban development purposes.
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