The scale of providing the population with housing enhances

Over the past six years, Uzbekistan’s population has increased by 5.5 million people and exceeded 36 million. Large-scale housing construction has been launched to create decent living conditions for people.

In particular, 326,000 new housing units have been commissioned since 2017. Housing per capita increased by 18 percent.

For this, over the past three years, banks have allocated 33 trillion UZS of mortgage loans to 210,000 families. 73 thousand low-income families received subsidies for 1.3 trillion UZS for the payment of the first installment and interest on the loan.

As a result of the introduction of market principles into the industry, hundreds of private development companies have been established. 11 large clusters have been created for the construction of multi-storey buildings using prefabricated reinforced concrete structures. By creating conditions for entrepreneurs, production has increased and the cost of such materials as cement, aerocrete, tiles, porcelain stoneware has decreased.

This work was consistently continued last year, when multi-storey buildings for 60,000 apartments were built. The program for the construction of 31 neighborhoods “Yangi O’zbekiston” (New Uzbekistan) has started.

At the meeting, the implementation of the program was critically reviewed. It was noted that as a result of the correct selection of land plots and the creation of infrastructure, exemplary work is being carried out in Andijan and Khorezm, but in other regions, the construction of neighborhoods is stalling. In this regard, a disciplinary sanction was announced against the deputy hokims for the construction of Bukhara, Kashkadarya, Navoi, Namangan, Samarkand, Surkhandarya, Syrdarya, Fergana and Tashkent regions. Responsible persons were instructed to resolve issues related to infrastructure, construction and sale of apartments.

This year it is planned to increase the volume of housing construction by 1.5 times, having built 90,000 housing units. The Head of state noted that this would give a great impetus to the growth of economic indicators in each region. Therefore, new opportunities have been identified for the population and developers in four areas.

First, to expand the coverage of mortgages, it will be possible to obtain a loan for persons with insufficient official income. When determining their solvency, the turnover on their bank cards, the funds paid by them for rent, utilities and other expenses will also be taken into account.

Citizens who have paid a higher down payment will be able to get a cheaper loan from a bank. To accelerate the use of funds allocated for subsidies, the duration of the subsidy will be reduced from 12 months to 4 months. At the same time, citizens who have not used their certificates during these months will be given the right to re-apply for a subsidy.

The Ministry of Economy and Finance was instructed to finance mortgage loans and subsidies.

Another project aimed at providing the population with affordable housing is the “My First Home” program. For this, a special housing company will be created under the Ministry of Construction. 36 hectares of land will be allocated in Zangiata district of Tashkent region, on which it is planned to build 58 apartment buildings, social facilities, and entertainment centers. Due to the sale of retail and commercial space to entrepreneurs, it is possible to reduce the cost of apartments.

Responsible persons were instructed to complete the development of a master plan for the neighborhood, to conduct its expert and public discussion.

Second, to reduce the cost of construction for up to 2025, the customs duty on the import of wood, plywood, wooden formwork and glass will be canceled. Customs duty relief for high-grade cement will be extended for another year. Due to this, the cost of housing construction is expected to decrease by 5 percent.

Contracting organizations will be given the right to use each floor of a house under construction as collateral, as well as to take a loan for each floor. Construction companies will be able to receive compensation and guarantee not for the whole neighborhood, but for one separate apartment building.

The practice of refinancing bank loans by the state will continue.

Third, the availability of communications is the main issue in the timely commissioning and sale of housing. In this regard, the Ministry of Economy and Finance was instructed to allocate the necessary funds for infrastructure, and the hokims of the regions were instructed to ensure the construction of internal roads in new neighborhoods.

The demand for a renovation program is growing in cities with a large number of dilapidated housing. The Head of state noted that there should be a legal basis for this and proposed to develop a draft law “On renovation”.

Another problem is the discrepancy between the scale of construction in some regions and the capabilities of their infrastructure. For example, the population of Tashkent annually increases by 100 thousand people, and 20 thousand new apartments are required per year. Wastewater treatment plants in the city operate with an excess of normal load.

In this regard, it was noted that from now on, investors-developers can also be involved in the expansion of water supply and sewerage networks, electricity networks and gas pipelines, and the improvement of road infrastructure.

Fourth, the current year’s goal of building 90,000 housing units creates a large market for building materials companies. At the same time, it was noted that half of the 3,000 enterprises for the production of reinforced concrete do not have laboratories.

The President noted that these products are the main factor affecting the quality of houses, and demanded the creation of modern laboratories at all such enterprises.

In recent months, seismic activity has been observed both in the world and in our region. In this regard, it was decided to introduce a procedure starting May 1, according to which, before launching the construction, the building site is subject to mandatory engineering and geological expertise, and buildings that are subject to increased seismic safety requirements will be built exclusively by enterprises with a high rating.

The Head of state also touched upon the problems arising in the drainage system of cities. Responsible persons were instructed to eliminate the shortcomings.

“Mortgage is an important social issue and a great stimulus for the growth of our economy. Therefore, it is necessary to speed up construction work, complete them promptly and with high quality”, Shavkat Mirziyoyev said.

The Prime Minister and his deputies, ministers and hokims presented information on the issues discussed at the meeting.