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RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of May 27, 2019 No. 433

About measures for creating favorable conditions for further development of activities of hotel farms

According to the resolution of the President of the Republic of Uzbekistan of January 5, 2019 "About measures for the accelerated development of tourist industry" the Cabinet of Ministers decides No. PP-4095:

1. Approve Regulations on procedure for allocation of subsidies from the Government budget for compensation of part of costs of investors for construction and equipment of new hotels, and also financing of the organizations on the basis of agreements on franchizing according to appendix.

2. To the state committee of the Republic of Uzbekistan on tourism development together with the ministries and departments to bring the regulatory legal acts adopted by them into accord with this resolution in a month.

3. To impose control of execution of this resolution on the deputy for social problems of the Prime Minister of the Republic of Uzbekistan A. A. Abdukhakimov and vr.i.o. chairman of the State committee of the Republic of Uzbekistan on tourism development A. U. Akkulov.

Prime Minister of the Republic of Uzbekistan

Abdullah Aripov

Appendix

to the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of May 27, 2019 No. 433

Regulations on procedure for allocation of subsidies from the Government budget for compensation of part of costs of investors for construction and equipment of new hotels, and also financing of the organizations on the basis of agreements on franchizing

Chapter 1. General provisions

1. This Provision determines procedure for compensation of part of costs of the subject of entrepreneurship (further - the investor) on construction of new hotel and similar means of placement (further - hotel), with its input in operation during the period from January 5, 2019 to January 1, 2022, and also financings, since January 5, 2019, subjects of entrepreneurship - residents of the Republic of Uzbekistan (further - the organizations) on the basis of agreements on franchizing by use of the known and prestigious world hotel brands at the expense of means of the Government budget of the Republic of Uzbekistan (further - the Government budget).

2. In this provision the following concepts are used:

the agreement on franchizing - the agreement signed on use by brand organizations top - 50 known and prestigious world hotels;

subsidy - the funds for compensation of part of costs of investors for construction and equipment of hotels allocated from the Government budget.

3. The subsidy is allocated to investors in case of construction of new hotel with the number of rooms at least 50 numbers for category 3 stars and 100 numbers for category 4 stars.

At the same time the new hotel shall be put into operation till January 1, 2022.

Allocation of subsidies to investors is provided since January 5, 2019 before achievement of the number of rooms, in addition created new hotels 50 - ti thousands of numbers.

The state committee of the Republic of Uzbekistan on tourism development (further - Committee) records in addition created new hotel rooms in the republic and following the results of every quarter provides information in the Ministry of Finance.

4. Partial financing of the organizations for the agreement on franchizing is performed annually within three years from coming into force of the agreement at the expense of means of the Government budget of the Republic of Uzbekistan (further - partial financing).

At the same time the agreement on franchizing shall be become effective later January 5, 2019.

The total amount of partial financing of the organizations constitutes no more than 10 million US dollars in equivalent.

5. Investors and the organizations for date of filing of application for allocation of subsidy and partial financing shall conform to the following requirements:

not have the tax debt and to other obligatory payments which are subject to payment according to the Tax code of the Republic of Uzbekistan;

not be in process of liquidation and bankruptcy;

funds from the Government budget on compensation for expenses and financial provision based on decisions of the President of the Republic of Uzbekistan and the Cabinet of Ministers of the Republic of Uzbekistan are not raised (apart from the funds of the Government budget allocated according to this Provision).

6. Subsidizing of investors and partial financing of the organizations are performed according to the scheme according to appendix No. 1 to this Appendix.

Chapter 2. Procedure for allocation of subsidies to investors

7. The subsidy is allocated to investors 1 time, its size with annual indexation in approval process of parameters of the Government budget the next year, constitutes:

40 million sum for each room in hotels with category 3 stars;

65 million sum for each room in hotels with category 4 stars.

8. For receipt of subsidy the investor files in Committee petition on allocation of subsidy (further - the statement) in form according to appendix No. 2 to this Provision.

9. The following documents are enclosed to the application:

the name of the applicant - the investor who is the legal entity with indication of the location (mail address), INN, account number and details in commercial bank;

the statement from the state register of the right to real estate objects;

the copy of the certificate of conformity on hotel services with assignment of hotel category 3 or 4 of star, issued by the State unitary enterprise "Center of Certification of Tourist Services" under Committee.

10. In case of receipt of the certificate of conformity by the investor according to the procedure, stipulated in Item the 9th this provision, involvement of the companies of "Big Four" (further - the foreign companies) in service industry in this process is the compulsory provision of certification.

The additional expenses connected with involvement of the foreign company or its representation in the Republic of Uzbekistan join in the agreement on certification.

Involvement of the foreign company or its representation in the Republic of Uzbekistan is provided with Committee on discretion of the organization.

11. The committee within ten working days from the date of receipt of the statement studies compliance of documents to requirements of this provision.

12. In case of origin during studying of the statement of need for carrying out additional studying the Committee informs on it the applicant in written or electronic type and has the right to extend consideration of the application in addition for 10 days.

13. The committee after studying of the statement within one working day makes the decision on allocation of subsidy or on refusal in allocation of subsidy and sends to the applicant the copy of the decision in day of its acceptance.

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