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PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of June 17, 2019 No. UP-5742

About measures for effective use of land and water resources in agricultural industry

Today in agricultural industry more than 20 million hectares of lands, including 3,2 of one million hectares of the irrigated sowing land on which food products for needs of the population, necessary raw materials for economy industries are grown up are used.

For the purpose of increase in fertility of the irrigated areas, improvements of meliorative condition and water supply within state programs are performed large-scale irrigational and meliorative actions.

As a result, for 2008 - 2017 improvement of water supply of more 1,7 of one million hectares of the irrigated areas and meliorative condition of 2,5 of one million hectares of lands is reached.

However periodic lacks of water observable in recent years as a result of global climate change, the main part of internal irrigational networks which came to unsuitable state brought to deterioration in meliorative condition of the irrigated sowing lands and their removal from turnover.

For the purpose of step-by-step repeated introduction in use of the lands which were disposed in the republic for many years from turnover as a result of deterioration in their meliorative and irrigational condition, reduction of loss of water by effective use of underground water resources, implementation of water saving technologies and reconstruction of internal irrigational networks, and also involvement of potential investors:

1. Approve:

The concept on effective use of land and water resources in agricultural industry (further - the Concept) according to appendix No. 1;

"Road map" of implementation of the Concept on effective use of land and water resources in agricultural industry according to appendix No. 2;

forecast indicators of the held events for increase in efficiency of use of farmlands in 2020 - 2030 according to appendix No. 3;

forecast indicators of implementation of water saving technologies in agricultural holdings during 2019 - 2022 according to appendix No. 4.

2. Approve the Working group on cooperation with the international financial institutions and implementation of public-private partnership within implementation of the Concept on effective use of land and water resources in agricultural industry (further - the Working group) in structure according to appendix No. 5.

Charge to the Working group (Kuchkarov D. A., Vakhabov A. Zh., Hodzhayev Zh. A.):

organize implementation of the Concept in Papal and Mingbulaksky districts of the Namangan region with involvement of the international financial institutions according to the procedure of experiment in 2019;

implement till November 1, 2019 experience of implementation of the Concept in other regions on the basis of results of experiment, including develop and introduce to the Cabinet of Ministers of the Republic of Uzbekistan the draft of the government decision providing specific conditions of public-private partnership in areas to the earth - and water use, additional benefits, separate preferential credit lines, and also procedure for use of the lands entered into use and waters.

Grant to the Working group the right, if necessary, to make changes to the terms and regions established in appendices No. No. 2 - 4 to this Decree, and also amendment in them.

3. Determine that within implementation of the Concept for introduction in use by recovery and reconstruction of irrigational and meliorative networks, implementations of water saving technologies, and also crops of drought-resistant cultures on the basis of the investment agreement or public-private partnership for up to 50 years are provided:

the irrigated lands, and also bogharic lands which left agricultural turnover and the earth of forest fund - to citizens of the Republic of Uzbekistan and agricultural enterprises;

pastures, deposits, long-term plantings and other lands - to citizens of the Republic of Uzbekistan, agricultural enterprises, and also the investors who are residents of the Republic of Uzbekistan.

4. In case of introduction in use of land within implementation of the Concept:

land users are granted the right of independent placement of crops, crops of cultures without processing of the earth and transfer of lands to the sublease;

this land is not subject to optimization, withdrawal of the parcel of land or its part for the state and social needs is allowed with the consent of the land user after full recovery of market value of the spent means and losses caused to owners in connection with such withdrawal;

placement on this land of the constructed infrastructure facilities is allowed (field camps, storages of products, irrigation networks and others);

the raw materials which are not made in the republic, materials, the equipment, the equipment and spare parts imported for needs of land users according to the procedure, established by the Cabinet of Ministers are exempted from customs payment (except for the value added tax);

after the expiration of grace period, stipulated by the legislation in relation to the parcel of land which is again entered into use, within 10 years the tax rates established before introduction in use of this parcel of land are applied;

in the cases provided by the investment contract or agreement on public-private partnership 50 percent of the expenses connected with introduction in use of each hectare of lands of agricultural purpose at the expense of means of the Government budget of the Republic of Uzbekistan in the part which is not exceeding the 50-fold size of basic settlement size are refunded;

in the cases provided by the investment contract or agreement on public-private partnership interest expenses in the amount of 5 percent points of the credit rate established by commercial banks on the loans attracted for construction and reconstruction of water supply systems of lands regarding the cost which is not exceeding 40 million sum for one hectare at the expense of means of the State fund of support of development of business activity under the Cabinet of Ministers of the Republic of Uzbekistan are refunded;

land is allocated on the basis of the decision of state body (official) authorized by the legislation after signing of the investment contract or agreement on public-private partnership.

5. Establish procedure according to which:

the irrigated farmlands undertake under special protection, allocation of these lands for the nonagricultural purposes, including for construction of industrial and civil facilities (buildings and constructions), except for the lands allocated by the decision of the President of the Republic of Uzbekistan is not allowed;

compensation payments for the irrigated lands withdrawn for use in the nonagricultural purposes are calculated in 10-fold size of the means required for development of similar new lands, without application of the coefficients considering the location of the withdrawn land and also in 20-fold size of the expenses connected with radical improvement of condition of the bogharic and not irrigated lands occupied with long-term plantings, haymakings and pastures.

At the same time 90 percent of compensation payments for irrigated lands and 95 percent of compensation payments for the bogharic, and also not irrigated lands occupied with long-term plantings, haymakings and pastures are transferred into the republican budget, and respectively 10 and 5 percent - on special settlement accounts of managements on land resources and the state inventory of the Republic of Karakalpakstan, areas and the city of Tashkent.

This regulation is applied also in case of calculation of damage caused as a result of the unauthorized actions which entailed removal of lands from agricultural turnover, at the same time 95 percent of the collected funds are allocated in the republican budget, 5 percent - in Fund of development of Inspectorate for control of agro-industrial complex under the Cabinet of Ministers of the Republic of Uzbekistan and its territorial inspections;

allocation of the earth at the expense of irrigated lands for the organization of gardening, wine growing and other long-term plantings, and also creation of greenhouse facilities is performed according to the procedure, established by the Cabinet of Ministers of the Republic of Uzbekistan;

new farms and associations of water consumers are created with condition of obligatory equipment by controls and accounting of water in places of water use;

introduction in use of land is performed with use of water saving technologies (systems of drop, dozhdevalny irrigation, subsoil drop irrigation and others).

6. To the Ministry of Finance of the Republic of Uzbekistan:

a) in addition to allocate funds in the amount of 5 percent allocated from the Government budget for construction and reconstruction of objects of melioration within the Investing program for 2019 - 2029 required for construction and reconstruction of irrigational and meliorative objects in case of introduction in use of the lands which are not used in agricultural industry, specified in appendix No. 3 to this Decree;

b) allocate funds from the Government budget for financing of works on identification of the underground water inventories suitable for irrigation of the crops provided by the Development program and reproduction of mineral resources on the basis of calculations of the State committee on geology and mineral resources of the Republic of Uzbekistan;

c) together with the Ministry of water economy and the Ministry of Agriculture in two-month time:

bring procedure for cost recovery in the Cabinet of Ministers of the Republic of Uzbekistan, connected with construction and reconstruction of irrigational and meliorative objects in case of introduction in use of the lands which are not used in agricultural industry;

make in the Cabinet of Ministers of the Republic of Uzbekistan offers on implementation of the differentiated tax benefits providing mechanisms of stimulation of land owners during the preserving and increase in soil fertility;

in a month to develop standard forms of agreements on public-private partnership in the field of land use, in view of the best international practices.

7. To the Ministry of Agriculture of the Republic of Uzbekistan:

a) together with the State committee of the Republic of Uzbekistan on land resources, geodesy, cartography and the state inventory till October 1, 2019 to introduce to the Cabinet of Ministers the bill on modification of legal acts providing transfer to the sublease of land of agricultural purpose;

b) provide carrying out scientific research on increase in fertility of soils of the irrigated and bogharic lands, the mountain and foothill, and also desert and pasturable territories, effective use of water and other natural resources;

the organization and implementation of scientific research for creation of new high-yielding crops, their primary seed farming for achievement of stability in providing the country with food on the basis of modern methods;

c) form as a part of the ministry responsible management with allocation of 4 additional established posts for the purpose of ensuring complete and timely execution of the tasks provided in the Decree.

8. To Council of Ministers of the Republic of Karakalpakstan and khokimiyats of areas since January 1, 2020:

together with the Ministry of Agriculture, the Ministry of water economy, the State committee on land resources, geodesy, cartography and the state inventory, the State committee on geology and mineral resources annually till November 1 to create and submit for approval in the Cabinet of Ministers of the Republic of Uzbekistan the address list of land which is again recovered and entered into use next year from among the areas approved by appendix No. 3 to this Decree;

make offers on transfer of all acreage in areas in which the low-profitable areas of cotton and grain constitute more than 50 percent of total area, to the investors who are residents of the Republic of Uzbekistan, organizing complete conversion of cotton and grain with condition of construction and reconstruction of irrigational and meliorative networks;

apply the privileges provided in item 4 of this Decree, to investors formed in these areas in the direction of cotton growing and grain-growing.

9. To the Cabinet of Ministers of the Republic of Uzbekistan to form the relevant structure in subordination of the Government providing the state control of target and effective use of agricultural holdings and their protection in a month.

10. Recommend to chambers of Oliy Majlis of the Republic of Uzbekistan:

establish parliamentary and public control over timely and effective fulfillment of the Concept and "Road map" on its realization;

to quarterly hear at meetings of the Senate, Legislative house and, respectively, the Jokargi Kenes of the Republic of Karakalpakstan and regional Kengasha People's Deputies information on the done work of the ministries and departments, Council of Ministers of the Republic of Karakalpakstan, hokim of areas.

11. Confer responsibility on:

adviser to the Prime Minister of the Republic of Uzbekistan concerning development of agrarian and food spheres Vakhabov A. D. - for carrying out monitoring and acceptance of necessary measures for timely and effective fulfillment of the forecast indicators specified in appendices No. No. 3 and 4 to this Decree, the Concept and "Road map";

Minister of Agriculture of the Republic of Uzbekistan Hodzhayev Zh. A., the chairman of the board of Ministers of the Republic of Karakalpakstan and hokim of areas - for ensuring timely and effective fulfillment of the Concept and "Road map", and also entering into the Cabinet of Ministers of the Republic of Uzbekistan of offers on elimination of the arising problems;

the minister of water economy of the Republic of Uzbekistan Hamrayev Sh. R., the chairman of the board of Ministers of the Republic of Karakalpakstan and hokim of areas - for ensuring execution of the forecast indicators specified in appendix No. 4 to this Decree, use of water saving technologies on the squares entered into use, reduction of loss of water in irrigational networks, improvement of meliorative condition of lands, additional construction of water storage basins;

minister of investments and foreign trade of the Republic of Uzbekistan Umurzakov S. U. - for attraction of financial resources of the international financial institutions and foreign investors for the purpose of execution of the tasks specified in appendices No. No. 3 and 4 to this Decree.

12. Recommend to National broadcasting company of Uzbekistan, to the Agency of information and mass communications under Administration of the President of the Republic of Uzbekistan, to National news agency of Uzbekistan and other mass media to light essence and contents of this Decree, and also realization of the actions provided in it.

13. To the Ministry of Agriculture of the Republic of Uzbekistan together with the Ministry of Justice, other interested ministries and 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 Decree.

14. To impose control of execution of this Decree on the Prime Minister of the Republic of Uzbekistan A. N. Aripov and the head of Administration of the President of the Republic of Uzbekistan Z. Sh. Nizomiddinov.

President of the Republic of Uzbekistan

Shavkat Mirziyoev

Appendix No. 1

to the Presidential decree of the Republic of Uzbekistan of June 17, 2019 No. UP-5742

The concept on effective use of land and water resources in agricultural industry

Total area of lands across the Republic of Uzbekistan constitutes 44 892,4 thousand hectares which are divided into 8 categories depending on the purposes and procedure for use of the earth, including: earth of agricultural purpose; earth of settlements; the earth of the industry, transport, communication, defense and intended for other purposes; earth of nature protection, improving and recreational assignment; earth of historical and cultural value; earth of forest fund; earth of water fund; earth of inventory.

The earth of agricultural purpose treat fertile lands, are considered as fixed asset of national wealth, production of agricultural products and ensuring food security of the country.

Total area of lands of agricultural purpose constitutes the 20th 236, one thousand hectares, from them arable lands constitute 3rd 988, one thousand hectares, long-term plantings - 383,1 of one thousand hectares, deposits - 76 thousand hectares, haymakings and pastures - 11 028,3 thousand hectares, other lands - 4 760,4 thousand hectares.

In recent years in the country system measures for enhancement of the land and water relations, optimization of lands of agricultural purpose and application of the simplified procedure for their allocation, implementation of modern market mechanisms, the innovation and resource-saving technologies of use of land and water resources, production of high-profit, export-oriented types of products due to reducing the low-profitable cotton and grain areas are performed.

At the same time as a result of high growth rate of population of the republic, transfer of lands of agricultural purpose in other category and aggravations of impact of global climate change for the last 15 years the size of the area of irrigated lands per capita was reduced by 24 percent (from hectare 0,23 to hectare 0,16), and the annual average level of providing with water was reduced from 3 048 cubic meters to cubic meter 158,9.

As a result of irrational use for long years of lands of agricultural purpose natural fertility of the soil and productivity of cultures decreases, quality of the made products worsens, environmental pollution increases.

Including, in 93 percent of the soil of the irrigated sowing lands below average content of the operating phosphorus, fell in percent 68,3 - exchangeable potassium, in percent 79,3 - humus.

In the countries with the level of national income comparable to Uzbekistan about 4-5 percent of the government budget or more than 1 percent in relation to GDP in developing countries, in the countries with the high level of the income - less than 1 percent go to needs of agricultural industry.

There is high annual average discharge of water in agricultural industry which makes 45 696 million cubic meters or 90 percent from the total amount of the consumed water resources in economy industries.

In the conditions of more and more increasing deficit of land and water resources owing to rejection in attention of cost efficiency and market conditions in case of placement of crops, and also not implementations of intensive agricultural industry the production volume of agricultural products remains low.

For example, if in developed countries from 1 cubic meter of water products for 4-6 US dollars are made, in our republic this indicator constitutes 0, the 15th US dollar.

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