May 2019 – Kinstellar’s regular look at the Uzbek market
Further improvement of mechanisms for attraction of foreign investments
In order to increase the efficiency of activities to attract foreign direct investment in the economy of Uzbekistan, the Presidential Resolution No. PP-4300 was adopted. The Resolution provides that FDI can be attracted through the sale of shares in 29 companies:
The Resolution also provides that the Tashkent International Investment Forum (the “Forum”) will be held. The organizing committee for the preparation of the Forum is headed by Prime Minister, Abdulla Aripov. In addition, the committee is granted with the right to attract leading foreign companies for financial, legal and information support of the Forum.
Presidential Resolution “On Measures for Further Improvement of Mechanisms of Attraction of Foreign Direct Investments in Economy of the Republic” No. PP-4300 of 29 April 2019.
Changes on import of pharmaceutical products
On 10 April 2019, the Presidential Decree “On Measures to Further Develop the Pharmaceutical Network of the Republic of Uzbekistan in 2019–2021” was adopted. In accordance with the Decree, the Agency for Pharmaceutical Network Development has been transferred to the Ministry of Health. A list of the medical products to be produced in Uzbekistan, is compiled by the Agency and approved by the Cabinet of Ministers.
The Cabinet of Ministers approves the list of raw materials, pharmaceuticals and medical equipment for pharmaceutical production. In addition, raw materials and materials not produced in Uzbekistan, used for the maintenance of preclinical studies and production of medicines (exempt from the VAT on imports until 1 January 2022), were approved.
Moreover, in 2019–2020, production of 10 types of pharmaceutical products, which includes antibiotics and oncological medication, will be produced locally.
Presidential Decree “On Measures to Further Develop the Pharmaceutical Network of the Republic in 2019–2021” No. UP-5707 of 10 April 2019.
Private health care will be developed through PPP projects
On 16 April 2019, the President signed the Resolution “On Measures to Develop Public–Private Partnership in the Healthcare Sector.” The Regulation is aimed to develop the private healthcare system and attract foreign investment.
PPP projects in healthcare are implemented in the following forms:
According to the Regulation, the private partner is selected on the basis of a tender or direct negotiations. The term of the agreement is determined by the partners, but may not be less than three nor more than forty-nine years. At the end of the agreement, allocated land plots, the purchased medical and other equipment, as well as the facilities built by the private partner, are to be transferred to the public partner.
The Fund for Reconstruction and Development of Uzbekistan provides preferential loans only for the purchase of imported equipment and inventory. The term of such loans is up to eight years with a three-year grace period. However, the purchased equipment and inventory obtained with such financing should not exceed 20% of the total investment.
Presidential Resolution “On Measures to Develop Public–Private Partnership in the Healthcare Sector” No. PP-4290 of 16 April 2019.