RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of May 23, 2019 No. PP-4335

About additional measures for the accelerated development of the industry of construction materials

In the republic large-scale work on further deepening of structural transformations to the industries of the construction materials aimed at providing steady growth rates of production and export of competitive products, and also upgrade, technical and technology updating of the companies is carried out.

For the purpose of creating favorable conditions for the accelerated development and diversification of industry, investment attraction in conversion of local mineral raw material resources and increase in export of construction materials:

1. Approve:

a) Forecast parameters on expansion of source of raw materials of the construction industry on the basis of geological exploration, production and conversion of local raw materials in 2019 - 2025 and Target parameters of production of construction materials in 2019 - 2025 taking into account diversification and expansion of the range of products according to appendices No. No. 1 and 2, providing increase:

source of raw materials of the construction industry on the basis of geological exploration, production and conversion of limestones on 13,1 of one million tons, plaster stone - 1,8 of one million tons, clay components, brick raw materials and quartz sands - 1 million tons, izverzhenny rocks (basalt) - 0,1 of one million tons, sand-gravel materials - 5,6 of million cubic meters;

production volumes of wall-paper more than by 47 times, parquet panels and plates - 19 times, plates of wood and similar chipboards from wood and other lignified materials - 15 times, gas-concrete blocks - 7 times, paints and varnishes and glass architectural and construction on power - and heatsaving float-technology - 4 times, composite armature from basalt - 3 time and cement - 2 times;

b) Summary parameters of the perspective projects realized in 2019 - 2021 in the field of the industry of construction materials and the List of the perspective projects realized in 2019 - 2021 in the field of the industry of construction materials (further - the List), according to appendices No. No. 3 and 3.1., the credits of the international financial institutions and foreign banks financed with attraction;

c) Package of measures for the accelerated development of the industry of construction materials in 2019 - 2020 (further - the Package of measures) according to appendix No. 4.

2. Assign to heads of the responsible ministries and departments the personal responsibility for timely, complete and high-quality implementation of actions provided by the Package of measures.

Determine that:

heads of the ministries and departments monthly enter in the Cabinet of Ministers information on course of execution of the actions provided by the Package of measures which is considered at meetings of Presidium of the Cabinet of Ministers of the Republic of Uzbekistan;

The Cabinet of Ministers quarterly enters in Administration of the President of the Republic of Uzbekistan the detailed information about results and efficiency of the actions provided by the Package of measures.

To the head of Administration of the President of the Republic of Uzbekistan to enter quarterly hearing of reports of heads of the relevant ministries and departments on the course of realization of the Package of measures into practice.

3. To the state committee of the Republic of Uzbekistan on geology and mineral resources:

a) together with the Ministry of Finance and the Ministry of Economy and Industry of the Republic of Uzbekistan when forming the State program of development and reproduction of mineral resources of the Republic of Uzbekistan for 2020 - 2021 to provide increase by 15 percent of share of geological study of the area of nonmetallic minerals for identification of new fields;

b) in a month to make offers on further enhancement of procedure for issue of licenses for right to use by the subsoil plots containing nonmetallic minerals in the Cabinet of Ministers of the Republic of Uzbekistan, having provided implementation of the mandatory licensed requirement on availability at applicants of necessary qualified specialists;

c) together with the State committee of industrial safety of the Republic of Uzbekistan and Uzpromstroymaterialy Association (further - Association) to approve the plan of joint efforts in a month on:

to ensuring rational use and protection of subsoil in case of geological studying, production and conversion of mineral raw materials, surveying and geological ensuring mining operations on the fields transferred to commercial and trial production;

to strengthening of control of timely and high-quality accomplishment of the licensed requirements connected with use of natural resources, having paid special attention on non-admission of the selection selection of minerals, unreasonable and unauthorized building of the areas of bedding of minerals;

to determination of the allowed above-standard losses of minerals in case of production and conversion of mineral raw materials;

to prevention and the prevention of offenses, including by informing the general public on the revealed offenses and their effects.

4. Establish since July 1, 2019 procedure according to which:

a) expenses of domestic manufacturers of construction materials on certification of the exported products are covered by the Agency of promotion of export under the Ministry of investments and foreign trade of the Republic of Uzbekistan;

b) the taxable basis of subjects of entrepreneurship decreases within five years equal shares by expense amount on construction of the engineering and communication and transport infrastructure necessary for the development of fields of nonmetallic minerals, but no more amount calculated according to the norms determined by the Department of Energy and the Ministry of transport of the Republic of Uzbekistan;

c) the construction materials which passed necessary tests and received the certificate of conformity in accordance with the established procedure can be applied in construction works;

d) the data characterizing type or type of technogenic mineral educations, their quantitative qualitative indexes and mining storage conditions are provided to subjects of entrepreneurship on their request on free basis;

e) ceased to be valid according to the Presidential decree of the Republic of Uzbekistan of 10.11.2023 No. UP-193

5. Exempt for up to January 1, 2021 from customs duty payment the imported raw materials according to the list according to appendix No. 5.

6. Agree with offers of the Ministry of investments and foreign trade, the Ministry of Finance, Central bank of the Republic of Uzbekistan, JSB Uzpromstroybank and Association about:

a) attraction and use in 2019 - 2021 of long-term preferential credit lines of the international financial institutions and foreign banks in the amount of at least 500 million US dollars (further - credit lines) for joint financing of projects in the field of the industry of construction materials;

b) introduction of the following funding mechanism for projects in the field of the industry of construction materials at the expense of means of credit lines:

means of credit lines are used for financing of the projects, first of all, included in the List;

financing of projects is performed in the amount of the cost of the imported equipment, raw materials, materials and component parts, but not exceeding 70 percent of total capital costs on the project;

the growth in volumes of financing of funds of credit lines for the projects included in the List over the provided limits, and also financing of the projects which are not included in the List is performed by commercial bank in coordination with the Ministry of Economy and Industry of the Republic of Uzbekistan.

To the Ministry of Economy and Industry of the Republic of Uzbekistan together with JSB Uzpromstroybank and Association in two-month time to approve network schedules of attraction and application of funds of credit lines by each project, having provided specific mechanisms and terms of realization, and also initiators and executives in charge.

7. Agree with the offer of the Cabinet of Ministers of the Republic of Uzbekistan on step-by-step transfer till January 1, 2021 of producers of the construction materials which are not corresponding to criteria of energy efficiency on use of coal and other fuel types alternative to natural gas.

8. To the Cabinet of Ministers of the Republic of Uzbekistan together with Association:

in two weeks to approve package of measures for step-by-step increase in energy efficiency of producers of cement, brick-works, workshops for production of extinguished lime, including by transfer into use of coal and other fuel types alternative to natural gas, having provided measures of the state support;

till September 1, 2019 to provide development and approval of the coefficients, regulations and criteria classifying the equipment and technologies, corresponding to criteria of energy efficiency;

annually till November 1 to provide carrying out inventory count and approval of the list of the companies which specific consumption rates of natural gas correspond to criteria of energy efficiency;

provide observance of ecological requirements for minimization of harmful effects on the environment in case of transfer of producers of construction materials into use of coal and other fuel types alternative to natural gas;

provide open entry of subjects of entrepreneurship to information on forecast amounts and qualitative indexes of the coal extracted in the country by years and by regions.

9. Approve:

The list of international standards in the field of construction materials which acceptance till December 31, 2021 is performed with the state support, according to appendix No. 6;

The list of the construction regulations and rules of the Republic of Uzbekistan which are subject to revision in 2019 according to appendix No. 7.

To provide to the Uzstandart agency and the Ministry of construction of the Republic of Uzbekistan timely review and adoption of the regulating documents provided in appendices No. No. 6 and 7.

To provide to the Ministry of Finance of the Republic of Uzbekistan timely financing of review and adoption of the regulating documents provided in appendices No. No. 6 and 7, at the expense of means of the Government budget of the Republic of Uzbekistan.

10. Approve the Program of measures for development and increase in efficiency of scientific research developed by the Ministry of innovative development of the Republic of Uzbekistan in the field of production of construction materials (further - the Program of measures) according to appendix No. 8.

To provide to the Ministry of Finance according to reasonable requests of the Ministry of innovative development of the Republic of Uzbekistan allocation of necessary means from the Government budget of the Republic of Uzbekistan for timely and effective program implementation of measures.

11. Agree with the offer of the Ministry of innovative development, the Ministry of construction, the Ministry of the higher and secondary vocational education of the Republic of Uzbekistan, the Uzstandart Agency and Association about:

a) introduction of position of the first deputy chairman of Uzpromstroymaterialy Association on science and innovations, responsible for:

innovative development of the industry of construction materials, expansion of the range of demanded high-quality products, and also development of evidence-based offers on increase in the export potential of industry;

the organization of work on portfolio construction of orders for innovations and coordination of works on carrying out trial testing of developed technologies, to release of pilot batch of new products of construction materials and realization of preparatory activities on start of their serial production;

ensuring implementation of results of scientific research and innovative developments in production of construction materials with high value added and cooperation with research and highest educational institutions;

b) creation of Scientific and technical council of the industry of construction materials under Uzpromstroymaterialy Association (further - Scientific and technical council), responsible for:

development of suggestions for improvement of construction regulations and rules taking into account modern innovative developments, ensuring operational implementation and practical application of new types of energy efficient and ecologically safe construction materials;

consideration, conducting examination and development of evidence-based conclusions on selection scientific and technical, developmental, innovative and startup projects, the new types of construction materials directed to production with high value added;

comprehensive study of the best foreign practices and engineering procedures on implementation of innovations in the industry of construction materials;

the choice and full support perspective startup projects, having high business potential and ready to realization;

forming of the target programs directed to creation of highly effective new types of construction materials by wide use of scientific and innovative capacity of domestic research and highest educational institutions.

12. Determine that:

the first deputy chairman of Uzpromstroymaterialy Association on science and innovations is elected by the decision of founders of Association;

the minister of innovative development in position is the chairman of Scientific and technical council;

the structure of Scientific and technical council is created by the joint decision of the minister of innovative development, the Minister of Construction of the Republic of Uzbekistan, the CEO of the Uzstandart Agency and the chairman of Uzpromstroymaterialy Association;

offers of Scientific and technical council on enhancement of construction regulations and rules, implementation of innovative developments, new types of energy efficient and ecologically safe construction materials are the basis for modification and amendments in regulating documents on technical regulation of construction industry.

13. To the ministry of the higher and secondary vocational education and Ministry of Economy and Industry of the Republic of Uzbekistan in a month:

take measures for the organization, since 2019/2020 academic years, at the Bukhara engineering institute of technology, the Jizzakh polytechnical institute and the Fergana polytechnical institute of training in the directions of education "Technology of productions of construction materials, products and designs", "Production of combined steel concrete and concrete designs and products", "Materials science and technology of new construction materials (by types)", "Technology of wall and facing construction materials" for internal and correspondence forms of education;

make in the Cabinet of Ministers of the Republic of Uzbekistan offers on acceptance quotas in the Bukhara engineering institute of technology, the Jizzakh polytechnical institute and the Fergana polytechnical institute in the directions of education for 2019/2020 academic year.

Determine that:

technical highest educational institutions have the right to organize, since 2019/2020 academic years, in coordination with the Ministry of the higher and secondary vocational education of the Republic of Uzbekistan training of students in the directions of education in the field of the industry of construction materials on extramural studies proceeding from requirements of the ministries, departments and business entities (employers) on paid and contractual basis;

enrollment of students in the directions of education in the field of the industry of construction materials in the correspondence form is performed from among the construction materials working at the companies of the sphere of the industry by results of interview and the employers recommendation;

The association, the Ministry of Economy and Industry and the Ministry of the higher and secondary vocational education of the Republic of Uzbekistan bear responsibility for involvement of the companies of the industry of construction materials to carrying out practical training, to passing educational and fact-finding and predegree the practician students.

14. To the Ministry of Economy and Industry of the Republic of Uzbekistan together with:

Association to make in the Cabinet of Ministers of the Republic of Uzbekistan offers on creation with involvement of the leading foreign companies of training centers and skills on application of the advanced technologies used in production of construction materials in a month;

The Ministry of Finance and the Antimonopoly Committee of the Republic of Uzbekistan in three-months time to make offers on expense optimization of the companies of producers of construction materials, having organized the working group on studying of cost of construction materials.

15. To committee on development of the competition and consumer protection of the Republic of Uzbekistan together with the interested departments to take measures for non-admission of unreasonable increase in prices for construction materials, including by ensuring transparency of exposure and sales of products at the exchange biddings and establishments of daily price monitoring.

16. Agree with the offer of Association, Ministry of Economy and Industry, Ministry of Finance and Agency on management of the state assets of the Republic of Uzbekistan about:

the organizations of the permanent exhibition including evident samples of construction materials and regularly updated database about the resources of nonmetallic raw materials, advanced technologies, the equipment and achievements of domestic and foreign industry science which are available in the republic;

capitalizations of part of net profit of JSC Kvarts following the results of 2018 and retained earnings of last years, with the target direction of funds for financing of the investment project realized according to the order of the President of the Republic of Uzbekistan of September 18, 2018 No. R-5374 "About measures for acceleration of implementation of the investment project for construction of the new float-line of production of sheet glass on JSC Kvarts.

17. In a month to provide to agency on management of the state assets of the Republic of Uzbekistan transfer of Association on the right of free use as state-owned property of the office building, at the address: city of Tashkent, Yakkasaraysky district, Ulitsa Tafakkur, house 68-A.

18. Make changes to some acts of the President of the Republic of Uzbekistan according to appendix No. 9.

19. To the Ministry of Economy and Industry together with the interested departments in two-month time to make in the Cabinet of Ministers of the Republic of Uzbekistan offers on the changes and amendments in the legislation following from this resolution.

20. To impose control of execution of this resolution on the First Deputy Prime Minister of the Republic of Uzbekistan A. Zh. Ramatov, the deputy adviser to the President of the Republic of Uzbekistan to G. K. Saidov and the Minister of Economy and Industry of the Republic of Uzbekistan B. A. Hodzhayev.

Appendix № 1

to the Resolution of the President of the Republic of Uzbekistan of May 23, 2019 No. PP-4335

Forecast parameters on expansion of source of raw materials of the construction industry on the basis of geological exploration, production and conversion of local raw materials in 2019 - 2025

№	Name of raw material resources	Unit of measure	Production amount:								Dynamics in 2025. by 2018 (%)
			2018. (fact)	forecast
				2019.	2020.	2021.	2022.	2023.	2024.	2025.
1.	Limestone	one thousand tn	11 219,7	16 268,6	19 073,5	20 195,5	21 317,4	21 878,4	22 439,4	24 312,0	216,7

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