Social protection of the population, construction and infrastructure activities under focus
As a result of timely measures taken against the coronavirus epidemic, many regions of Uzbekistan were able to protect themselves from this threat. Despite this, enterprises in most regions and districts have stopped working or are not functioning at full capacity. This situation has a negative impact on the economy and social sphere, on the life of the population of the regions.
At the meeting, the Head of the state focused on supporting socially vulnerable segments of the population.
The need for further expanding the scope of targeted provision of food and medicine for people in need and temporarily unemployed families was noted.
The number of unemployed people and in need of assistance increases due the pandemic. Countries of the world, along with countering the disease, are using all opportunities to save jobs and prevent crisis in the economy.
This complex process has affected Uzbekistan as in the whole world. Uzbekistan has enough reserves and opportunities to provide people and support the economy.
In this regard, and taking into account historical and moral values of our people, their generosity and care, the President forwarded a proposal to form “Kindness and Support” Nationwide Movement.
“Holy month for all of us, Ramadan, is coming soon. Helping low-income and needy families during this period is a good deed. Therefore, it will be very helpful if entrepreneurs take on the selfless duty to actively support socially vulnerable population in the territory where they work”, says the Head of the state.
As a result, charity and sponsorship provided in the month of Ramadan will be targeted, funds and products spent on iftar will be sent to those in need.
An entrepreneur, based on his capabilities, can help 10 families a month, another entrepreneur – 20, could hire members of a family in need. The state, in turn, will provide such entrepreneurs with various benefits and preferences on taxes, leasing, loans, and access to necessary resources. Thus, the state will provide support to the population through business entities.
It was noted that the voluntary participation of large enterprises and their local divisions, farmers and clusters is important in this process.
It was noted that this initiative will be implemented in cooperation with the territorial branches of the Chamber of Commerce and Industry, banks, social protection agencies.
“I am sure that “Kindness and Support” Nationwide Movement will become a vivid manifestation of power of our state and people”, says the President.
The Head of the state instructed Special Republican Commission to gradually ease quarantine restrictions in regions, districts and cities where no cases of coronavirus have been detected or epidemiological situation has improved. The work will be organized with strict observance of sanitary and hygienic rules at the sites that have restored activity.
Construction sector is one of the drivers of employment and economic stability. It provides employment of 1 million 325 thousand people and supports employment in other industries. In this regard, additional 3.6 trillion UZS was allocated for the industry in order to prevent a decrease in construction volumes during the quarantine period.
In the first quarter of this year, the volume of construction work increased by 6.5 percent, but this is 4 percentage points lower compared to the same period last year.
It was noted that continuation of all types of construction activities will be allowed with full compliance of quarantine rules. The Ministry of Internal Affairs has been instructed to create conditions for the movement of transport for industrial enterprises and manufacturers of building materials.
This year, it is planned to build multi-storey housing for 30 thousand apartments. But 25 cities still have not allocated land for their construction. Consideration of mortgage applications has been slowed down.
The need for eliminating these shortcomings as soon as possible and allocating land for construction of multi-apartment housing in areas with high housing needs was emphasized at the meeting.
Introduction of a mechanism has been defined, according to which the State Fund for Business Development Support will provide private contractors with partial compensation for loan interest expenses and a guarantee in the amount of up to 50 percent of the loan amount.
The need for extending mortgage issued under new procedure from 15 to 20 years and increasing the upper limit of the mortgage amount based on market requirements was noted.
Instructions were given to improve the quality of construction, accelerate the introduction of rating of industrial enterprises’ activities and electronic tender system.
Issues related to construction materials market were thoroughly discussed at the meeting.
The volume of production at construction materials enterprises decreased by 30-40 percent during the quarantine period. Sales of raw materials fell.
Taking this into account, Uzqurilishmateriallari JSC was tasked to bring production to 10 trillion UZS in the first half of the year and to 22 trillion UZS by the end of the year. Export is the best way of ensuring these indicators. It was instructed to expand the production of import-substituting building materials.
There are 275 promising deposits of necessary raw materials in Uzbekistan. For example, 14 projects worth 52 million USD are being implemented in Nurota district’s Gazgan village. The President noted the need for increasing the number of such effective projects through development of deposits.
Instructions were given to launch 7 projects this year for production of energy-efficient building materials and to design future facilities taking into account the use of such materials.
Anti-Crisis Fund has allocated 1.5 trillion UZS for construction of engineering and communication infrastructure, including 500 billion UZS for 55 water supply projects and 1 trillion UZS for 1547 road construction projects.
Implementation of these projects was considered at the meeting. The importance of speeding up the process of identifying contractors and starting construction work as soon as possible was noted.
Projects involving funds from international financial institutions have slowed down due to the pandemic. In particular, this situation is observed for projects to improve drinking water supply and road construction.
Based on the current situation, it was recommended to involve local contractors in such projects on the basis of a tender.
The state has created all conditions for increasing local budget revenues, in particular, formation of funds for road construction. It was noted that from now on, regions should not wait for funds to be received from the center,but repair internal roads themselves.
“In general, construction sector, whether it is construction of housing or infrastructure, is a great reserve for creating new jobs, forming demand and supply in the market, and ultimately ensuring economic growth. If the industry leaders, deeply aware of responsibility assigned at today’s meeting, organize their work correctly, we will get out of the economic crisis with minimal losses”, noted the President.
The Head of the state, no matter what sphere he considers, no matter what decision he takes, is primarily guided by considerations of welfare of common people. Instructions and tasks given at today’s meeting are also significant because they are aimed at ensuring employment, increasing people’s incomes and continuing creative work for the country’s further prosperity.
