RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of June 30, 2003 No. 295

About structure of Special state commission on development of conditions of use of subsoil plots and consideration of draft agreements on the Section of products

According to article 10 of the Law of the Republic of Uzbekistan "About production sharing agreements" the Cabinet of Ministers decides:

1. Form Special state commission on development of conditions of use of subsoil plots and consideration of draft agreements on the Section of products in structure according to the appendix N 1.

2. Approve Regulations on Special state commission on development of conditions of use of subsoil plots and consideration of draft agreements on the Section of products according to the appendix N 2.

3. Determine the main objectives of the Special commission:

organization of conducting examination of the feasibility statement on investment projects and draft agreements on Section of products;

assessment of conformity of draft agreements on the Section of products to provisions of the legislation of the Republic of Uzbekistan and the established conditions of use of specific subsoil plots;

determination, on the basis of the feasibility statement on the investment project, conditions of use of subsoil plots provided on terms of agreement about the Section of products;

submission to the Cabinet of Ministers of the conclusion about feasibility of the conclusion of the specific production sharing agreement;

introduction on approval of the Cabinet of Ministers of the developed conditions of use of subsoil plots provided to the investor on terms of agreement about the Section of products.

4. Determine that working body of the Special commission is the secretariat of the commission in structure according to the appendix N 3.

Assign implementation of complex of necessary measures for preparation of materials for commission sessions and the organization of control of ensuring timely accomplishment of its decisions to the secretariat of the Special commission.

5. To impose control over the implementation of this resolution on the Prime Minister of the Republic of Uzbekistan Sultanov U. T.

Appendix No. 2

to the resolution of the Cabinet of Ministers of the Republic of Uzbekistan of June 30, 2003 No. 295

Regulations on Special state commission on development of conditions of use of subsoil plots and consideration of draft agreements on the Section of products

I. General provisions

1. This Provision determines operating procedure of Special state commission by development of conditions of use of subsoil plots and consideration of draft agreements on the Section of products (further the Commission).

2. The organization of carrying out commission session, preparation of required materials for consideration, coordination of work of working groups on preparation of offers on the questions entering competence of the Commission is performed by the secretariat of the Commission.

3. The structure of the Commission and secretariat of the Commission affirms the Cabinet of Ministers of the Republic of Uzbekistan.

II. Main objectives and functions of the Commission

4. The main objectives of the Commission are:

coordination of entry conditions of the public biddings on provision of the subsoil plots developed on the basis of preliminary technical and economic calculations;

determination on the basis of the feasibility statement on the investment project of the conditions of use of the site or subsoil plots provided on terms of agreement about the Section of products;

assessment of conformity of draft agreements on the Section of products to the legislation of the Republic of Uzbekistan and the established conditions of use of specific subsoil plots.

5. According to the main objectives the Commission:

a) develops:

the sizes and procedure one-time (bonus) and regular (tax for use of natural resources) payments for use of subsoil plots;

projects of rates of the income tax, land tax and tax for use of water resources, payment for emissions and dumpings of pollutants into the environment;

the amount of compensation of costs for the results of search, prospecting works and other researches on the subsoil plot (geological and other information) provided in use transferred to the investor;

procedure for determination of share of products directed to compensation of the means spent by the investor during implementation of the production sharing agreement;

procedure and mechanism of the Section of products;

procedure for issue to the investor of the license for right to use by the subsoil plot;

b) in case of coordination of entry conditions of the public biddings determines:

terms of use of subsoil plots;

requirements in the field of geological studying (search and investigation), protection of the subsoil, the environment and safe operation connected with use of natural resources;

procedure for work on environmental impact assessment of the planned activities of the investor;

terms of employment and the quantitative list of workers - citizens of the Republic of Uzbekistan for performance of works under the production sharing agreement;

procedure for provision of right to use by the subsoil plot for mining in case of identification by the investor of the commercial field;

procedure for cost recovery on geological studying of the subsoil plot, in case of identification of the commercial mineral deposit;

procedure for return of the subsoil plot (part of the site), in case of establishment of its hopelessness on identification of the mineral deposit;

procedure for recultivation and step-by-step return of the parcels of land;

other conditions of use of subsoil plots and other natural resources;

c) submits developed conditions of use of the site or subsoil plots for approval of the Cabinet of Ministers of the Republic of Uzbekistan, provided to the investor on terms of agreement about the Section of products;

d) will organize conducting examination of the feasibility statement on the investment project including developed by the investor and the draft agreement on the Section of products in bodies of examination, the relevant ministries, the state committees, departments, banks, and also business entities in the directions them activities;

e) carries out generalization and the analysis of results of examination, if necessary considers them with participation of the authorized worker of body (the authorized company) and the investor;

e) will organize, if necessary, completion of the feasibility statement on the investment project and draft agreement on the Section of products with participation of the investor, authorized state body or authorized company and the interested ministries, the state committees and departments;

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