Section IV. URBAN DEVELOPMENT AND PLANNING

4.1. UrbanDevelopmentState Legal regulation of urban development is based on the Urban Development Code of the Republic of Uzbekistan. Urban development is directly related to the existing urban development documents - Master plan of housing, master plans of cities and urban settlements, city and settlement limits designs, industry development schemes, detailed plans, housing projects and other construction norms and regulations. As of January 1, 2013, there are 118 cities in the Republic of Uzbekistan, including 2 - republican, 26 - provincial, 90 –of district subordination. Out of the total number of cities, small towns (up to 50 thousand inhabitants) account for 68.1%, or 81 units where almost 2.0 million people or 20.5% of all urban residents live. 21 cities are considered medium-sized (from 50 to 100 thousand people) with total population of 1.4 million people. The category of big cities (from 100 to 250 thousand people) includes 11 cities in the country and the major cities category - 5 cities (from 250,000 to 1,000,000 people) Tashkent is still the only country's largest city with population of 2.3 million people. There are 1,085 urban-type settlements in the country, where 6.0 million people or 39.1% of the total urban population live. Urban-type settlements are the major contributors to urbanization. In general, current level of urbanization in Uzbekistan is in line with the world average trends. The urbanization level has grown since years of independence from 40.3% to 51.2%. In addition, the growth of urban population occurred due to administrative and territorial reforms, and natural population growth. External migration had negative impact on the growth of the urban population although in recent years, its level has decreased significantly. There has been a slowdown in the intensity and scope of the migratory flow from rural areas to urban settlements of the country. During 2007-2012, the proportion of rural migrants in the growth of the urban population decreased from 82.0% to 56.0%. This is due to transformation of large rural settlements into urban- type settlements, priority socio-economic development of rural areas, including significant expansion of rural housing construction. Today, programs for development of master plans of cities and urban-type settlements (166 cities) for 2011-2014 have been approved and are being implemented. During the years of independence, striking improvementsin the architectural design of the housing have occurred inTashkent, in the capital of the Republic of Karakalpakstan and in the centers of provinces, and district centers where the recent urban development standards were taken into account. According to the British "The Economist Magazine" in 2013, Tashkent city was ranked 58 out of 140 as one of the most comfortable largest cities in the world. The State Committee for Architecture and Construction ("Gosarkhitektstroy") is responsible for management densification of city districts and urban growth through

1 the development and approval of designs of administrative and residential buildings, engineering infrastructure and communications in accordance with urban development norms and regulations. Local authorities pay great attention to the improvement and development of the cities, on the basis of generally accepted concepts of "comfortable city", "comfortable urban environment" with preservation of historical and cultural heritage and natural landscapes of cities of Uzbekistan. Integrated urban development includes landscaping, floral decorations, construction of fountains, small architectural forms, etc. Improvement of neighborhood areas as a spatial basis for territorial organization of the population (leisure, physical training and childrearing). City administrations develop and implement targeted programs to improve road safety, develop road network and improve main streets of cities and urban-type settlements. Today, when designing and constructing office buildings, residential premises, street infrastructure, construction norms and regulations take into account social integration of persons with disabilities. For example, special elevators are installed in the tunnels; tracks are laid for the disabled and elderly, etc. Great attention is paid to sanitary-epidemiological welfare of the population of cities and a control is carried out over it. In Uzbekistan, there are quite strict norms to restrain potential unplanned housing developments; there are no slums in Uzbekistan as such.

4.2. Spatial Planning and Housing Construction The main legislative and regulatory framework for spatial planning and housing construction is the Urban Development Code of the Republic of Uzbekistan. According to urban development planning of the area, it provides for development of master plans for housing in the country, consolidated urban development planning schemes, land planning schemes, sectoral schemes of territory development, and master plan of the settlement. For the purpose of efficient use of residential areas, they are divided into the following zones: housing, social- business, manufacturing, engineering and transport infrastructure, recreational, etc.

A special place in the implementation of projects ensuring upgrading and renovation of the country's production capacity, introduction of modern and highly innovative technologies is currently taken by the newly created Free Industrial Economic Zone "Navoi" special industrial zones "Angren" and "Jizzakh", where industrial, utilities and storage facilities, financial centers ensuring their operation, as well as engineering and transport infrastructure facilities are located. For the period of thirty years of these zones' operational life, unprecedented customs, tax benefits and preferences will be applied. Since the establishment of "Navoi" FIEZ, production facilities under 19 investment projects totaling over 100 million USDhave been commissioned within its territory. High-tech technologies were used to organize production of such products as modems and TV-tuners, electronic electric power meters, power cables, heating

2 and hot water boilers, mobile and stationary phones, finished pharmaceutical products, etc. In SIZ "Angren", during a short period, manufacturing of high-tech products under 5 projects totaling about 44 million USD have been established; they include energy-efficient LED lamps, copper pipes of variuos diameter, briquette coal, and completed construction of a new sugar producing plant and other enterprises. In a special industrial zone "Jizak" established in March of last year and having the branch in Syrdarya province, enthusiastic efforts are taken to develop transport, production and engineering and communication infrastructure. In the past year, first 3 projects involving Chinese companies were implemented in the zone, totaling approximately 6 million USD; they entail production of 100,000 mobile phones, as well as livestock products processing and feed production. Uzbekistan achieved significant progress in implementation of its ambitious program of rural housing construction. Integrated approach allowed creating a solid legal, financial and resource frameworks for the successful implementation of this long-term program. Construction of individual housing in rural areas drastically revised system of organization, architectural planning and development of rural settlements in under the master plans, which were developed on the basis of modern urban development norms. Construction in the newly developed rural residential areas of modern and comfortable "turnkey" houses was carried out according to standard designs, which had been selected after testing in all regions with account of climatic and demographic conditions. For example, the project of construction of Turakurgan TPP in Namangan province will significantly improve existing infrastructure and housing construction for workers. It is planned to build a number of multi-family houses. Housing construction will be accompanied by the construction of facilities for cultural and everyday aspects of social life: stores, restaurants and cafeterias, kindergartens, hospitals, etc. New roads will be constructed and existing roads will be rehabilitated. When commissioned, the TPP will improve gas and water supply in nearby settlements while SJSC "Uzbekenergo" plans to drill a new water well for the needs of TPP.

4.3. Communal Infrastructure Development Sustainable development of engineering and utilities infrastructure in Uzbekistan is one of the priorities of current economic program. This happens due to the need to modernize and upgrade fixed assets of infrastructure using new high technologies, and to increase the quality of services rendered. In order to establish and enhance public access to utilities infrastructure facilities, appropriate legislative and legal acts and targeted state programs were developed. Positive results were achieved in providing population, through utility infrastructure, with drinking water, natural gas, hot water and thermal energy, sanitation. However, expansion of access and improvement of the quality of water, gas, heat and power supply remain a pressing issue.

3 The main players of utility servicesprovision in the country are the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of provinces and Tashkent city, territorial utility and operating associations JSC "Uztransgaz", SJSC "Uzbekenergo", etc. Coordination of utility services reform, development of legislative and regulatory documents, forming a unified technical policy is entrusted to "Uzkommunhizmat" Agency. Territorial utilities and operating associations as a regional body of utility servicing are entrusted with providing the entire set of housing and utility services; they are responsible for organizing capital repairs of privatized multi-family residential houses, mainly by means of state budget funds, coordination of municipal, district enterprises and housing and utilities organizations, including private homeowners associations, etc. The main responsibilities of the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of provinces and Tashkent city are defined as follows: - conduct reforms in their regions; - implement targeted state programs; - in coordination with the Ministry of Finance form the tariff policy for housing and utility services; - coordinate implementation of consumption metering and control devices for water, gas, heat, and other energy sources. The following committees operate under the Cabinet of Ministers:  Republican Committee on coordinating preparation of economic sectors of the country to sustainable operation in autumn and winter periods;  Republican Commission on Tariffs and monitoring the implementation of Reform program in housing and utility sector.  Republican Commission for saving fuel and energy resources.

4 Section V. Housing Construction in Rural Areas

5.1. Priority of Housing Construction Development in Rural Areas

Priority in housing policy in Uzbekistan is given to rural housing construction. This choice is due to the following circumstances: fundamental change in rural residents' level of living and quality of life; alignment of social welfare of rural and urban populations; creating favorable environment for strengthening the economic potential of village and rural business development; major transformation of housing conditions adapted to the specifics of the rural area; harmonious development of younger generation in rural areas; a change of mentality, lifestyle and culture of rural residents; integrated development of rural areas based on a reformed legislative framework, modern technologies of architectural planning and urban development; creation of new jobs and increase of rural employment. In rural areas, the main form of housing construction is private housing, which people finance from own resources. Total area of housing stock in rural areas has grown, since gaining independence years by 1.4 times, and housing availability for population has increased from 12.1 sq. m to 14.5 sq. m despite high growth rates of rural population. It should be noted that in rural areas 99.5 % of houses (apartments) are owned by their respective owners, and the main type of housing (95.8 %) is a detached single-storey building. In addition, the majority of rural houses (98.4%) have own plots of land. Housing commissioning rate in rural areas during 2009-2012 increased by more than 1.5 and reached 7.74 million sq. m. By volume of housing commissioning in rural areas Uzbekistan far outstrips the CIS countries. Thus, the annual housing commissioning in rural areas per 1000 people exceeds like data from Armenia by 7.0, Kyrgyzstan - 5.0, Ukraine - 3.0, Kazakhstan - 2.0 and Russia - 1.3. Drastic changes in the rural housing construction began in 2009, with the launch of the State targeted program of individual housing construction using standard designs in rural areas. During 2009-2013 more than 900 new rural residential areas were built based on standard designs in 159 rural areas of the country. More than 33.5 thousands individual houses with total area of 4.5 million sq. m were built. At the same time, 730 km of paved roads, more than 800 objects of social, industrial and market infrastructure were constructed in these areas. Current national model of rural housing received support and acknowledgment ofreputable international organizations and specialists who participated in international conference held in Tashkent in 2013. Uzbekistan's experience in integrated goal-oriented development of rural housing construction, arrangements for its stimulation and support is recommended for study by interested foreign countries in order to achieve a well- balanced solution of socio-economic problems in rural areas and to improve the quality of life of the rural population.

5.2. Legal Framework of State Promotion and Support for housing construction under the standard designs in rural areas

5 Housing construction in rural areas using improved modern designs and integrated development of rural settlements is a long-term State Program on high- quality development and life improvement of rural population. State support for individual housing construction is systematic and integrated. Legal and regulatory framework of housing construction was revised and updated for the efficient implementation of the Program. Existing regulatory and legal framework takes into account national and regional specifics, enables citizens to exercise their right to build residential houses for their own needs using soft loans, with their further registration as private property. In 2009, the government adopted a resolution and approved the Provision on the procedure for individual housing construction involving "QishloqQurilish Invest" engineering company. This Provision regulates the procedure and conditions for the selection and allocation of land to individual developers for individual housing construction, organizing construction works, making mutual payments between participants of the investment process, acceptance of the completed construction of residential buildings, organization and financing of the construction of social, engineering and production objects for individual residential development infrastructure. As part of the measures for large-scale construction in rural areas of modern individual housing based on standard designs, the Decree of the President of the Republic of Uzbekistan (2010) entrusted relevant ministries and agencies specific tasks for further housing construction development in the rural areas, construction of external engineering and transport communications and objects of social and market infrastructure in the areas of individual housing construction in rural areas. The government approved the Provision on the procedure of competitive bidding (tendering), identification of contractors for the construction of individual housing in the rural areas based on standard designs under "turnkey" conditions. According to the adopted package of government documents in order to efficiently implement government support measures for individual housing construction based on standard designs in rural areas, a number of tax benefits and preferences are provided to organizations and people participating in the process. The newly created Joint-Stock Commercial Bank "QishloqQurilish Bank" was exempted from paying taxes on income and property, as well as customs duties (except customs clearance fees) for imported banking equipment and machinery. Specialized engineering company "QishloqQurilish Invest" is exempted from all kinds of taxes and mandatory contributions to the Republican Road Fund and extrabudgetary Fund for reconstruction, capital repair and equipping of educational and medical institutions. Individuals who purchase individual housing based on standard designs are provided with the following tax benefits and preferences: loans for individual housing construction in the amount up to 1,000 minimum wages for up to 15 years, including one year grace period, at an annual interest rate of 7 percent; exclusion from taxable income of the amount of wages and other income allocated to repayment of mortgage loans and accrued interest thereon;

6 land allocation, by the decision of district khokim, for a lifetime inheritable possession, free of charge, without auction trading, after execution of a contract between the engineering company "QishloqQurilish Invest" and an individual developer; exemption from property tax for purchased individual housing for the entire repayment period. The following benefits to contractors and subcontractors are provided under individual housing construction based on standard designs: contracting organizations are exempted from all taxes and mandatory contributions to state specialized funds, except for extrabudgetary Pension Fund in terms of volume of work performed by them in the construction of individual housing under contracts with engineering company "QishloqQurilish Invest"; Subcontractors are exempted from the single tax payment in relation to the volume of work performed by them under contracts with contractors that have executed contracts with the engineering company "QishloqQurilish Invest" in the construction of individual housing. In order to avoid increasing the cost of residential houses, specialized enterprises producing construction materials, that are operated by "QishloqQurilish Invest", are exempted from all kinds of taxes, mandatory contributions to state funds (except for the single social payment) and the Fund for Reconstruction , refurbishment and equipping educational and medical institutions . Adoption of the above-mentioned legislative and regulatory documents ensured sufficient legal regulation for the full range of issues associated with the provision of housing based on standard designs in rural areas.

5.3. Integrated Approach to Housing in Rural Areas and Improving Living Standards of the Rural Population

In accordance with the approved regulatory acts, construction of housing estates in rural areas is conducted based on standard designs ,that are developed and endorsed by property developers; this is coupled with construction of engineering services facilities and social and market infrastructure. 1,670 km of water supply networks, 1,233 km of electric power networks and 1,235 km of gas supply networks were built during 2009-2013 as a result of implementation of a Program on housing construction in rural areas based on standard designs. Creating rural housing areas allows to provideresiding population with all necessary social and welfare facilities and servicing infrastructure. Services sector and social infrastructure along with comfortable housing make a direct impact on the shaping rural people needs, achievement of a high service quality that is on level with the service in urban settlements; this reduces the cost of home management and personal subsidiary plots, contributes to creation of new jobs, as well as adds to comprehensive development of individuals and enhancement of cultural values. 10 general educational schools, 26 rural health care facilities, 146 guzars (trade and social and resort places in residential communities), 238 trade complexes, 22

7 markets, 94 bakeries, 122 consumer services centers, 51 mini-banks and 76 children's sports grounds were built in 2009-2013 in rural residential areas with consideration given to the population needs for certain types of services and social infrastructure facilities. A special attention amongst the total infrastructure facilities, including in rural residential area,s is paid to rural medical centers, guzars and children's sports facilities. These service facilities, given their priority status and results achieved, makeUzbekistan different from other countries. Rendering medical services to the rural population via rural health care facilities is implemented through construction of new buildings according to standard designs, equipped with modern medical equipment, medical supplies and hardware, served by physicians with higher education. The guzars act as centers of trade and consumer and cultural services for the inhabitants of Makhallas (residential communities). Makhalla, as a local authority, makes a substantial contribution to ensuring social stability, strengthening family relationships, targeted social protection and development of family enterprising. Of particular note is accommodation in rural residential areas of children's sports facilities, which serve to raising a healthy well- developed young generation. Integrated and comprehensive approach to housing construction made a powerful impetus to the development of the construction sector, building materials industry and other industries that meet increasing demand for household goods. A specialized engineering company «Qishloq Qurilish Invest» and its branch offices in each region of the country conduct all housing construction works based on standard designs on «turnkey». More than 900 of new specialized construction organizations are established in the regions to implement the program. Almost all the necessary building materials for housing construction in rural areas are provided by domestic enterprises that are given a wide system of benefits and preferences. More than 600 of new enterprises were commissioned, those which produce building materials and structures using local raw materials, including brick, inert materials, foamed concrete, metal roofing, doors and windows, reinforced concrete slabs and floors, cable and electrotechnical products. Production of the following certain types of new materials is organized - plasterboards, dry mortars, ceramic facing tiles, heating boilers, building ceramics, floor coverings and other types of marketable products. Bringing construction material producers closer to the sources of raw materials and housing estates (communities) under construction as well as using modern mini- technologies plays an important role in the development of these producers. Housing construction, particularly in rural areas, and relevant utilities, consumer service system, transport and communication networks, production of modern building materials and structures are becoming very important for Uzbekistanto resolve the unemployment problems by creating new jobs. More than 44.6 thousand new workplaces were created only in 2013 within the housing construction based on standard designs. About 150.0 thousand new workplaces were created according to estimates in the sectors that are affiliated to

8 housing, such as building materials industry and tertiary and consumer service sectors. Housing construction development in rural areas also contributes to optimization of employment structure in rural areas by increasing the employed share in nonagricultural sectors, provides employment for college graduates,which enterthe labor market for the first time. In turn, the creation of new jobs and income growth improved the payment capacity of the rural population. The outcome for the targeted housing construction program in rural areas based on standard designs is seen as improvement of the quality of life. With the construction of new modern houses, the rural family gets an opportunity to get access to the most advanced services of information and communication technologies, telecommunications, Internet, to equip apartment with durable goods for comfortable residing. All this generates a new class of owners, drastically transforms the image of the village, rises personal culture. Lifestyle, thinking and mentality of people are changing. This creates a well - developed, educated and healthy new generation.

9 Section VI. LAND RESOURCES MANAGEMENT AND LAND USE

6.1. The Basics of Land Policy, a National Land Administration System

The land policy in Uzbekistan is carried out in accordance with the "Land Code". The land legislation is based on the following key principles:  conservation of land resources, improvement of the quality and fertility of soil as the vital natural resource and a basis for vital activity of people;  ensuring sustainable, efficient and targeted land use;  providing availability of agricultural land, primarily, irrigated land;  rendering state support among others in the implementation of measures to improve fertility of agricultural land, improve ameliorative condition and protect the land;  preventing damage to the land as well as to the whole environment, and ensuring environmental safety;  ensuring variety of land possession and use forms, ensuring equality of participants in land relationships, protecting their lawful rights and interests;  chargeable land use;  ensuring complete and accessible information on the land conditions. Republic of Uzbekistan ,as of January 1, 2013 occupies 44.9 million hectares, of which 32.2 million hectares are in use by legal and physical persons and 12.2 million hectares are reserved land. Settlements (cities, towns and rural settlements) take 214.1 hectares or 0.48% of the total land fund, including 190.3 hectares of land in cities and towns and 23.8 thousand hectares of land in rural settlements. Land management is carried out by State authorities of various levels within the powers established by law. The Cabinet of Ministers of the Republic of Uzbekistan carries out single state policy on rational use and protection of land; adopts regulatory acts on governing the land relationships according to this Code and other legislative acts; approves the State programs on improvement of soil fertility, rational use and protection of land; coordinates the activities of the ministries and agencies in the field of use and protection of land and deals with other issues within its competence. State Governmental bodies of the Republic of Uzbekistan, of provinces and Tashkent city develop and implement regional programs on improvement of soil fertility, rational use and protection of land; execute state control over the targeted, rational and efficient use of land resources, land protection, and organize land management, land monitoring and maintenance of the State land cadastre; assign legal persons land for possession, use and lease for agricultural and other state and public needs and deal with other issues related to the competence of these authorities in the field of governing land relationships. Governmental bodies on the district level develop and implement measures to improve soil fertility, rational and efficient use and protection of land; carry out state control over rational use and protection of land; assign land for possession, use and

10 lease to citizens, legal persons; put up to citizens on an auction basis the right to lifetime inheritable land possession; organize land monitoring and maintenance of the State land cadastre; organize the State registration of rights to land and business transactions with them; deal with other issues related to the competence of the local government authorities of districts in the field of governing land relationships. Governmental bodies on the city level develop and implement measures to rational and efficient use and protection of land; carry out state control over rational use and protection of land; assign land for possession, use and lease to citizens, legal persons; put up to citizens on an auction basis the right to lifetime inheritable land possession; organize land planning, land monitoring and maintenance of the State land cadastre; organize the State registration of rights to land and business transactions with them; deal with other issues related to the competence of the local government authorities of city level in the field of governing land relationships. Alienation is used to provide land for possession, use, lease and ownership. Alienation of land is made by the Cabinet of Ministers of the Republic of Uzbekistan, Khokims of the provinces, of Tashkent city, districts and cities in accordance with the legislation. Provision of land that is in the possession, use, lease and property, is made only after withdrawal (redemption) of the plot in the established order. State-owned enterprises of districts (cities) on land management and real estate cadastre of State Committee on Land Resources, Geodesy, Cartography and State Cadastre and Departments (divisions) on architecture and construction of districts (cities) prepare documents on the Alienation of land plots. Commissions on consideration of land plots provision-related issues are created within the State government bodies with a view to address, collectively, withdrawal and granting of land. Losses incurred by the landowners, land users, landholders and land possessors due to land withdrawal, are reimbursed in full (including lost profits). In the case of demolition of houses (apartments) owned by citizens due to land plot withdrawal for state or public needs, the land plot for individual housing construction is provided to these citizens, their family members, as well as citizens permanently residing in these houses (apartments) at their request and within the established norms. Residential, industrial and other buildings and structures to be demolished, that belong to citizens and legal persons by right of ownership, can be relocated and restored in a new locationat their request. For citizens and legal persons, whose houses (apartments) are subject to demolition, residential houses and structures are built at their request at the new location and are conveyed to them to ownership. In this case, no refund for the cost of demolished houses (apartments), buildings and structures is performed.

11 The main objectives of control over land use and protection are to ensure compliance of legal and physical persons, state government bodies, local state authorities with the legislation. State control over land use and protection is carried out by local government authorities, as well as by special authorized state bodies. Special authorized state bodies on control over the use and protection of land are the State Committee for Land Resources, Geodesy, Cartography and State Cadastre and the State Committee for Nature Protection. Self-government bodies of townships, villages and the auls (small villages) exercise control over the rational use and protection of land within their competence. Nature protection societies, scientific societies and other public associations as well as citizens assist state agencies and self-government bodies of townships, villages and auls in the control over land use and protection. According to the Law of the Republic of Uzbekistan "On Notary", the notary offices certify the following actions and documents associated with the regulation of land relationships: - certify real estate transactions: Sale and purchase agreement of residential house, apartment, building and structure, enterprise as a set of assets; - certify the donation contracts, contracts for exchange of buildings, structures and residential premises, as well as the rental contracts that envisage the alienation of residential premises under payment of rent; - issue a certificate of right to inheritance and of ownership on the appropriate share of building, structure that is the common property of the spouses; - impose and remove bans on the alienation of real estate; - issue a certificate of right to inheritance of real estate; Notaries open inheritance to real estate, including land plots, granted on the rights of lifetime inheritable possession and issue a certificate of inheritance right.

6.2. Introduction of Information and Communication Technologies in the Cadastral Registry

With a view to implement the Law of the Republic of Uzbekistan "On informatization", certain work is being conducted in the State Committee for Land Resources, Geodesy, Cartography and State Cadastre (hereinafter - Goskomzemgeodezkadastr) that is aimed at ensuring the wide use of modern information and communication technologies (hereinafter - ICT), the creation of information systems of activities automation, extending the range and improving the quality of on-line public services, providing greater access to relevant information resources, the protection of information systems and resources, training and retraining of managers and staff of the Committee to ensure the availability of basic ICT skills. A State Unitary Enterprise called "Center of introduction and development of computerization and GIS technologies" is created within the system of

12 Goskomzemgeodezkadastr, that is responsible for introduction and development of modern ICT, creation of departmental information resources and databases, organization of interdepartmental information exchange, providing interactive services, website formation and development, etc. Currently, the system called "Uzbek Land Register" is operatinginGoskomzemgeodezkadastr; the system automates performance of regional registration subdivisions and the central information office and is designed to support the registration process of rights to land plots and real estate, maintain databases and archives, automate workflow and develop reports. Certain work is conducted to ensure access of legal entities and individuals to information resources of Goskomzemgeodezkadastr. In particular, official website of the Committee has been launched,www.ygk.uz.. Website is registered in «.UZ» domain zone, and placed on the server that is located within the territory of Uzbekistan. Reference information is available on the Portal GOV.UZ. Goskomzemgeodezkadastr provides informational servicesboth for fee and free of charge base. Complimentary service of the Committee include the access to information resources and services provided on the official website of Goskomzemgeodezkadastrwww.ygk.uz. 5 types of on-line public services are assigned to Goskomzemgeodezkadastr in accordance with the legislation requirements in the field of informatization. In particular, providing information on land resources, providing information on state registration of rights to real estate, providing information on the order and composition of the documents submitted for the state registration rights to land plots, providing information on the order and content of documents submitted for the state registration of rights to buildings and structures, providing information on natural and geographical conditions and historical and cultural heritage of the Republic of Uzbekistan. With a view to provide cadastral and registration services using "One Stop Shop" principle, a pilot version of "One Stop Shop" on-line services of registration system has been developed and launched on the following site http://odnookno.uz/. Any legal or physical person may obtain an information on it in the created "One Stop Shop" offices from department’s information resources. Resolution of the President of Uzbekistan dated 27.06.2013 № PP-1989 "On measures for further development of the National Information and Communication System of the Republic of Uzbekistan" provides for the establishment of the information system of cadastre and registration of real estate is foreseen given the standardization of data collection and data processing as well as creation of National Geographic Information System of the Republic of Uzbekistan with the project implementation periods in 2013-2017.

13 Section VII. FINANCIAL ASPECTS OF HOUSING SECTOR

7.1. State and private financing of housing and land sectors

Uzbekistan shows a steady growth in investments in housing construction. During 2000-2012, the amount of investments in housing construction increased by 46.6 times. There is an overall trend to reduce the use centralized governmental sources (budgetary and extra-budgetary funds), and increase, incrementally attraction of funds of population, bank loans, proprietary funds of enterprises (entrepreneurs). In 2012, construction of new housing was funded from non-centralized sources such as funds of the population (81.6%), bank loans (11.5%) and private sector funds (5.8%). Construction and rehabilitation of housing sector (water supply and sewerage) is mainlyperformed by means of the state budget funds (national and local). Construction of facilities of external electricity networks, gas supply and transport communications under the Program of individual housing construction in rural areas based on standard designs, are funded by the specialized operating organizations. Foreign loans, in particular, borrowings from the Asian Development Bank and other international financial institutions are attracted to build new houses construction in rural areas in recent years. The financing of housing construction by the private sector (enterprises and banks) remains yet insignificant in comparison with the developed countries, but their role is improving. Commercial banks, including specially created "Ipoteka Bank" started offering mortgage loans to support housing construction. Private developers engaged in construction of apartment buildings became active in some cities of the country and primarily in Tashkent city. Construction of one-, two-storey individual houses in the provinces' capitals with due account of modern architectural and planning solutions has certain practical interest. In general, financing new housing construction aims to increase the role of private sector and of state support to stimulate construction of individual housing based on standard designs in rural areas. According to the "Housing Code of the Republic of Uzbekistan", financing of operating costs and repair of state housing stock are done from the departmental housing fund and by own means of relevant enterprises and organizations, and premises which are in private ownership - at the owner's expense.

7.2. Housing Mortgage

An appropriate legislative and regulatory framework is created with a view to develop housing mortgage. The main acts therein are the Law of the Republic of Uzbekistan "On Mortgage" and the Regulation "On mortgage of housing construction, rehabilitation and housing acquisition" approved by the Government.

14 Loans are issued by banks to construction contractors; the loans are to be repaid with certain interest. Security, urgency and target use of loan funds to build apartment buildings ready for operation ("turnkey"), or rehabilitation in compliance with established standards and rules of construction are considered. Here, contractors, simultaneously, act as both customers and contractors. The size of a Loan, that is provided by thebank for the construction of apartment buildings or rehabilitation is calculated considering the cost of apartment building under "turnkey" or rehabilitation scheme excluding the constructor’s working capital and his profit margin. Bank, that issued the loan to the contractor to build or rehabilitate an apartment building, shall open the saving account for each individual (borrower) according to his/her application to purchase an apartment in a multi-family building and upon a positive decision to issue the loan. Preliminary contribution not less than 25.0% of the purchase priceis made. Deposit due is entered in records and interest thereon is accrued at the rate of not less than 75.0 % of the current refinancing rate of the Central Bank. After the buyer has paid all fees, the bank prepares a document certifying right of ownership (a title). A document certifying right of ownership or a document for the property rights acquisition is subject to registration in territorial cadastral bureau of technical inventory and entering into a single system of State cadastre. Bank must provide the buyer with a house within the mutually agreed deadlines. The relevant Khokimiats act as Guarantors of bank institutions in the part of execution of obligations to provide housing. In case of not providing housing in due time, the bank shall pay the buyer a penalty of 0,5% of control package amount of bonds (sufficient contribution) on the purchased housing for each day of delay. In case of failure of commissioning the house within the time set by the contract, the bank has the right to penalize the contractor of 0.1% of the contractual cost of this housing for each day of delay. Specialized joint stock mortgage bank ,"Ipoteka Bank", was established in 2005 with a view of further development of housing construction and housing market. The main objective of this bank is to introduce a system of preferential early mortgage for housing provision. Other commercial banks of the country are engaged in housing mortgage as well (Open Joint Stock Commercial Bank "Qishloq Qurilish Bank"; the National Bank for Foreign Economic Activity). Mortgages became widespread in Uzbekistan after creating a specialized bank, as well as due to implementation of the Program on development of individual housing in rural areas based on standard designs.

15 In 2005-2013, "Ipoteka Bank" provide 276.4 billion sums in lending from its own funds. Integral parts of mortgages are the grace loans issued to young families that are becoming more popular in recent years. Other than loans to young families, targeted mortgages are issued for new construction of individual residential houses and for purchase of housing at the secondary market. Existing favorable conditions for mortgage, along with the steady rise in incomes of population and increase of confidence in banks serve as important factors for sustainable development of this form of housing finance.

16

Information and Analytical

Products

17 Table 1

LIST of existing legislative and regulatory documents (Main Laws, Decrees, Resolutions of the President and Resolutions of the Cabinet of Ministers) on housing and utility services sector and land use of the Republic of Uzbekistan. No. Name No. and date of issue Brief description Note of legal regulatory document

Codes and Laws of the Republic of Uzbekistan

Housing Code of the Republic of No.713-1 dated Present housing legislation regulates relationships of citizens, As amended on Uzbekistan 24.12.1998 legal persons, State government bodies and local government 08.01.2007. No.ZRU-77 authorities on following issues: occurrence, execution, modification and termination of the rights of ownership, possession and use of residential premises; account of housing stock; 1. conservation, maintenance and repair of housing stock; monitoring of compliance with the housing rights of citizens and the targeted use of housing stock; Relationships connected with the construction of residential buildings, premises reconstruction and redevelopment, use of engineering equipment, provision of utility services are regulated by present Code and by other legislative acts. No.598-I dated The main objectives of land legislation are to regulate land Present Code is last 30.04.1998 relationships in order to ensure the benefits of present and future amended in accordance Housing Code of the Republic of generations, provide science-based, rational land use and with the Law of the Uzbekistan protection, reproduction and improvement of soil fertility, Republic of Uzbekistan

2. conservation and improvement of environment, creation of dated 04.01.2011 No.278-

conditions for equal development of all forms of managing, ZRU

protection of rights of legal and physical persons on land plots,

as well as strengthening the rule of law in this area.

18 No. Name No. and date of issue Brief description Note of legal regulatory document Administrative Responsibility Code of the dated 22.09.1994, Concerning housing. As amended in Republic of Uzbekistan No.2015-XII Chapter 12. Administrative responsibility for offenses in the accordance with the Law field of housing rights of citizens, utility services and of the Republic of redevelopment. Uzbekistan dated Article 157. Violation of the order of registration and housing 20.01.2014 No.ZRU-365 3. timing of residential houses and residential premises Article 158. Breach of regulations of privatization of State- owned housing stock Article 159. Violation of the rules of use of residential premises, and rules and regulations of the technical operation of housing stock. Civil Code of the Republic of Uzbekistan No.257-I dated The Civil Code of the Republic of Uzbekistan contains general 29.08.1996 rules on collateral. The Code includes sections and parts, which 4. specify the rights to property, inheritance, premises rental and real estate sales. Urban Development Code of the Republic No.353-II dated Urban Development Code of the Republic of Uzbekistan defines With amendments in of Uzbekistan 04.04.2002 facilities and entities of urban development activities, powers of accordance with the Law government authorities in the field of urban development of the Republic of activity, urban development documentation and state urban Uzbekistan dated 5. development cadastre, urban development planning of the 04.01.2011 No.ZRU-278 Republic of Uzbekistan, the use of urban areas and suburban zones.

Law "On privatization of State-owned No.846-XII dated Present law defines the legal, economic and social framework housing stock" 07.05.1993 and procedure for privatization of state housing stock in the territory of the Republic of Uzbekistan. 6. Obtaining the right of ownership for housing enables citizens to efficiently invest their funds in real estate, to freely possess, use and dispose their housing Law of the Republic of Uzbekistan dated 01.05.1998 Collateral rules, as contained in the Law, apply to mortgage (new edition) 7. "On Collateral" No.614-i relationships unless this Law established any other rules. (as of September 22, 2009) Law of the Republic of Uzbekistan No.666-I dated The purpose of present law is to establish the legal framework 8. "On State land cadastre" August 28, 1998 of managing state land cadastre, use of cadastral data for economic development, guarantee rights to land plots, and

19 No. Name No. and date of issue Brief description Note of legal regulatory document rational use, restoration and protection of land.

No. 171-IIdated Purpose of given Law is to regulate relationships in managing 9. 1 Law "On State Cadastre" December 15, 2000, state land cadastre, collecting and use of cadastral data.

Law of the Republic of Uzbekistan "On No. ZRU-32 Purpose of this Law is to regulate relationships in establishing and fellowships of private housing owners" dated 12.04.2006 operating of private homeowner cooperatives in multi-family 10. apartment houses as voluntary associations for shared management and maintenance, conservation and repair of housing stock.

Law of the Republic of Uzbekistan "On No. ZRU-58 dated This law regulates relationships arising from the application of real 11. 6 mortgage" October 04, 2006 estate collateral. Resolutions of the President of the Republic of Uzbekistan Resolution of the President of the dated 14.01.2012 The “Program on construction of individual housing based on Republic of Uzbekistan NO. PP-1687, standard designs, external engineering and transport "On the Program for construction of communications, social and market infrastructure in rural areas in individual housing based on standard 2012” was developed by the Ministry of Economy, Ministry of design in rural areas for 2012" Finance, State Committee on Architecture and Construction of the Republic of Uzbekistan, OJSCB "Qishloq Qurilish Bank", EC "Qishloq Qurilish Invest" in collaboration with the Council of Ministers of the Republic of Karakalpakstan and provincial Khokimiats in order to further improve the architectural and 12. planning image of rural settlements and enhance the life quality of the rural population through the expansion of individual housing construction on advanced design standards, accelerated rural development of external engineering and transport communications, social and market infrastructure facilities. It provides for main construction parameters for individual housing in rural areas based on standard designs on a "turnkey" in 2012 with the involvement of preferential mortgages of OJSCB "Qishloq Qurilish Bank" and the Asian Development Bank. Resolution of the President of the dated 04.01.2013 Ministry of Economy, Ministry of Finance, State Committee on Republic of Uzbekistan "On the Program NO. PP-1902, Architecture and Construction of the Republic of Uzbekistan, for construction of individual housing OJSCB "Qishloq Qurilish Bank", and "Qishloq Qurilish Invest" based on standard design in rural areas for Engineering Company in collaboration with the Council of 13. 2013" Ministers of the Republic of Karakalpakstan, Khokimiats of provinces elaborated the Program for construction of individual housing based on standard designs in rural areas for 2013, which provides for the main construction parameters for:

20 No. Name No. and date of issue Brief description Note of legal regulatory document individual housing in rural areas based on standard designs on a "turnkey" in 2013 with the involvement of preferential mortgage loans of commercial banks of the country, the Asian Development Bank and a target credit line of the Ministry of Finance of the Republic of Uzbekistan; transport communications and external engineering networks in rural areas of individual housing in 2013; social and market infrastructure facilities in rural areas of individual housing in 2013; Resolution of the President of the dated 11.01.2012 With a view of further comprehensive development of rural Republic of Uzbekistan "On urgent NO. PP-1683 settlements in accordance with the masterplans, expansion of measures to implement multi-tranche construction of modern individual housing based on approved financing program of the project standard design, utilities and social infrastructure facilities in "Development of housing construction in rural areas and drastic improvement of the quality of life of the 14. rural areas" with the participation of the rural population: in accordance with the terms of Framework Asian Development Bank" Agreement on financing of project "Development of housing construction in rural areas" under the Program, that is concluded between the Republic of Uzbekistan and ADB on July 29, 2011, the financing is offered in four tranches in the form of loans. Resolutions of the Cabinet of Ministers of the Republic of Uzbekistan Resolution of the Cabinet of Ministers dated 30.04.2009 The following has been established with a view to simplify the "On measures to introduce simplified No.127 procedures for obtaining permits for individual housing procedures for obtaining permits for construction (rehabilitation) and design approvals by the individual housing construction authorized bodies (rehabilitation) and approval of designs by prepare initial permitting (design) documents for the start of authorized bodies based on "One Stop construction and rehabilitation of housing; 15. Shop" principle"; accept residential building for operation; state registration of rights to buildings and structures by the territorial bodies of State Committee of Uzbekistan on Land Resources, Geodesy, Cartography and State Cadastre; other procedures performed in individual housing construction (rehabilitation). Resolution of the Cabinet of Ministers dated February 25, Regulation on the provision of land plots in the settlements to "On measures to simplify, fundamentally, 2013 No.54 implement urban development activities, designing and registration the system of granting of land plots for of construction, commissioning of facilities (Appendix 1), as well 16. urban development activities and other as on the procedures for granting land plots outside settlements for non-agricultural needs, as wall as issuance non-agricultural needs and construction of facilities to be located of permits for construction of facilities" on the territory of two or more districts or provinces (Appendix 2)

21 No. Name No. and date of issue Brief description Note of legal regulatory document is approved in order to further simplify the system of granting land plots to implement urban development activities, reduce fundamentally the amount, timing and cost of permitting procedures for construction. Resolution of the Cabinet of Ministers of dated June 4, 2013 Provision on procedures of functioning of the information system the Republic of Uzbekistan "On measures No. 154 on approval materials of land selection procedures from designated to introduce information and organizations, as well as permits issuance in the construction sector communication technologies into the (Appendix 1) and Standard Charter of self-supporting group within procedures of considering materials on the division (department) of architecture and construction of district selection of land plots with the authorized (city) (Appendix 2)was approved with a view to simplify 17. institutions, and granting permits in the permitting procedures in the construction sector in providing land field of construction" plots and issuance of permits for construction and installation works through the introduction of modern information and communication technologies, including the provision of on-line public services via the Internet, as well as to further enhance the efficiency of State government authorities in implementation of permitting procedures

22 Table 2 Administrative-territorial formations of the Republic of Uzbekistan (in2012)

of them: including: Number of Number of rural Number of Number of rural Land area, ha Number of districts Number of cities of republican and Urban-Type citizens gathering Makhalla of district settlements rural districts provincial Settlements areas communities subordination subordination Republic of Uzbekistan 44,896,879 168 157 118 27 91 1,085 1,471 11,017 8,278

Republic of Karakalpakstan 16,659,095 14 14 12 2 10 26 139 1,128 234 Provinces: Andijan 430,248 14 14 11 2 9 78 95 456 867

Bukhara 4,032,286 11 11 11 2 9 69 121 1,469 428

Djizakh 2,121,064 12 12 6 1 5 42 100 519 194

Kashkadarya 2,856,799 13 13 12 1 11 123 148 1,046 462

Navoi 11,098,854 8 8 6 2 4 47 54 577 282

Namangan 743,944 11 11 8 1 7 120 99 403 784

Samarkand 1,677,302 14 14 11 2 9 88 125 1,829 1,076

Surkhandarya 2,009,911 13 13 8 1 7 114 114 865 708

Syrdarya 427,618 8 8 5 3 2 25 71 260 274

Tashkent 1,525,294 14 14 15 4 11 97 146 885 1,108

Fergana 675,900 15 15 9 4 5 197 161 1,021 857

Khorezm 605,186 10 10 3 1 2 58 98 559 528

Tashkent city 33,378 11 0 1 1 0 1 0 0 476 *) According to data from regions

23 Table 3 Main indicators of socio-economic development of the Republic of Uzbekistan

2012 Indicators Measuring Unit 1990 2000 2012 in % to 1990 Gross domestic product (growth rates) % 100.0 130.0 380.0 by 3.8 times GDP structure: - industry % 17.6 14.2 24.1 x - agriculture % 33.4 30.1 17.6 x - construction % 5.8 6.0 6.1 x Industry (growth rates) % 100.0 123.6 320.0 x Agriculture (growth rates) % 100.0 100.6 195.1 x Share of services in GDP % 33.8 37.0 50.5 x Share of small business in GDP % - 31.0 54.0 x Share of investments in GDP % 18.0 22.9 23.1 x Goods and services export In million USD 442.7 3,265.0 15,021.1 by 33.9 times Real income per capita (growth rates) % 100.0 x Length of life of population years 67.2 70.8 73.1 x Expected duration of education years 13.7 14.8 15.7 x per 100,000 live Maternal mortality 65.3* 33.1 20.2 births per 1,000 live Infant mortality 34.6 18.9 10.2 births Drinking water provision rate % 64.0 80.4 82.7 Natural gas provision rate % 44.6 76.1 83.5 Average housing area per person sq.m 12.1 13.8 15.0 *) Data for 1991

24 Table 4 Major trends of demographic growth and population employment

Measuring Indicators 1990 2000 2010 2012 Unit Permanent population, at the year end thousand people 20,607.7 24,813.1 29,123.4* 29,993.5 - men thousand people 10,188.0 12,363.9 14,568.4 15,018.7 - women thousand people 10,419.7 12,449.2 14,555.0 14,974.8 Total annual growth % 1.9 1.3 4.0 1.5 - urban area % 0.8 0.7 3.3 1.5 - rural area % 2.7 1.7 4.8 1.5 Share of urban population % 40.3 37.2 51.2 51.2 Share of rural population % 59.7 3.8 48.8 48.8 Age distribution of population: % - under employable age % 43.1 39.7 31.3 30.2 - employable age % 49.1 53.0 61.1 61.7 - above employable age % 7.8 7.3 7.6 8.1 Employed population volume thousand people 7,940.8 8,983.0 11,628.4 12,223.8 Population employment patterns - industry % 15.1 12.7 13.2 13.0 - agriculture and forestry % 39.3 34.4 26.9 26.7 - construction % 8.9 7.5 9.2 9.3 - services sector % 36.7 45.4 50.7 51.0 Jobs created thousand units - 443.9 953.7 973.5 *) Data are presented with account of survey results, that is conducted in accordance with the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No.71 "On measures to prepare and conduct selected statistical survey of population" dated March 14, 2011.

25 Table 6 Number of Resident Population in Urban-Type Settlements as of January 1, 2013 (thousand people)

Including with population number of: Indicators Total up to 3 3-4.9 5-9.9 10-19.9 20-49.9 50-99.9 100-249.9 250-499.9 500-999.9 1 million and thousand thousand thousand thousand thousand thousand thousand thousand thousand more people people people people people people people people people Republic of 15,370.1 750.1 1,479.8 1,882.2 1,762.1 2,029.3 1,366.7 1,874.7 1,891.2 - 2,334.0 Uzbekistan Republic of 850.5 24.5 20.3 30.7 110.9 144.9 232.6 - 286.6 - - Karakalpakstan Provinces:

Andijan 1,453.9 10.2 40.8 294.9 238.9 337.2 133.7 - 398.2 - -

Bukhara 667.1 125.3 54.8 43.9 72.1 65.8 57.8 247.4 - - -

Djizakh 574.1 15.4 57.5 86.3 147.4 106.1 161.4 - - -

Kashkadarya 1,225.3 85.4 199.3 183.0 166.9 179.2 167.4 244.1 - - -

Navoi 445.2 60.3 46.9 23.7 40.0 80.8 62.4 131.1 - - -

Namangan 1,570.1 17.2 183.1 342.3 194.9 191.1 173.5 - 468.0 - -

Samarkand 1,312.7 48.4 134.9 162.1 140.5 215.0 134.8 - 477.0 - -

Surkhandarya 819.2 100.4 192.4 108.9 98.8 104.7 78.3 135.7 - - -

Syrdarya 325.1 12.4 41.8 28.7 85.4 93.6 63.2 - - - -

Tashkent 1,328.6 88.7 126.6 139.5 135.0 225.4 204.1 409.3 - - -

Fergana 1,908.7 128.3 279.3 372.1 237.3 221.3 - 409.0 261.4 - -

Khorezm 548.7 33.6 102.1 59.2 94.0 64.2 58.9 136.7 - - -

Tashkent city 2,340.9 - - 6.9 ------2,334.0 Source: State Statistics Committee

26 Table 7 Number of Resident Population in Cities as of January 1, 2013 (thousand people)

Including with population number of: 100- 250- 20-49.9 50-99.9 500- up to 3 3-4.9 5-9.9 10-19.9 249.9 499.9 Regions Total thousa thousa 999.9 1 million thousand thousand thousand thousand thousa thousa nd nd thousan and more people people people people nd nd people people d people people people Republic of 9,386.7 - - 35.9 408.1 1,476.1 1,366.7 1,874.7 1,891.2 - 2,334.0 Uzbekistan Republic of 693.0 - - - 55.9 117.9 232.6 - 286.6 - - Karakalpakstan Provinces: Andijan 741.3 - - - 13.6 195.8 133.7 - 398.2 - - Bukhara 460.5 - - 17.4 72.1 65.8 57.8 247.4 - - - Djizakh 280.2 - - - 33.5 85.3 - 161.4 - - - Kashkadarya 633.9 - - - 43.2 179.2 167.4 244.1 - - - Navoi 282.0 - - - 29.3 59.2 62.4 131.1 - - - Namangan 765.9 - - - - 124.4 173.5 - 468.0 - - Samarkand 778.9 - - 9.6 44.2 113.3 134.8 - 477.0 - - Surkhandarya 345.1 - - - 26.4 104.7 78.3 135.7 - - - Syrdarya 159.5 - - - 30.0 66.3 63.2 - - - - Tashkent 841.3 - - 8.9 28.2 190.8 204.1 409.3 - - - Fergana 858.6 - - - 14.8 173.4 - 409.0 261.4 - - Khorezm 212.5 - - - 16.9 - 58.9 136.7 - - - Tashkent city 2,334.0 ------2,334.0 Source: State Statistics Committee

27

Table 8 Number of Resident Population in Urban-Type Settlements as of January 1, 2013 (thousand people)

Including with population number of: 50-99.9 to 3 3-4.9 5-9.9 10-19.9 20-49.9 100-249.9 250-499.9 500-999.9 Total thousa 1 million thousand thousand thousan thousand thousand thousand thousand thousand nd and more people people d people people people people people people people Republic of 5,983.4 750.1 1,479.8 1,846.3 1,354.0 553.2 - - - - - Uzbekistan Republic of 157.5 24.5 20.3 30.7 55.0 27.0 - - - - - Karakalpakstan Provinces: Andijan 712.6 10.2 40.8 294.9 225.3 141.4 - - - - - Bukhara 206.6 125.3 54.8 26.5 ------Djizakh 293.9 15.4 57.5 86.3 113.9 20.8 - - - - - Kashkadarya 591.4 85.4 199.3 183.0 123.7 ------Navoi 163.2 60.3 46.9 23.7 10.7 21.6 - - - - - Namangan 804.2 17.2 183.1 342.3 194.9 66.7 - - - - - Samarkand 533.8 48.4 134.9 152.5 96.3 101.7 - - - - - Surkhandarya 474.1 100.4 192.4 108.9 72.4 ------Syrdarya 165.6 12.4 41.8 28.7 55.4 27.3 - - - - - Tashkent 487.3 88.7 126.6 130.6 106.8 34.6 - - - - - Fergana 1,050.1 128.3 279.3 372.1 222.5 47.9 - - - - - Khorezm 336.2 33.6 102.1 59.2 77.1 64.2 - - - - - Tashkent city 6.9 - - 6.9 ------Source: State Statistics Committee

28 Table 9 Prioritized major investment projects on development of water supply and sewerage facilities of settlements

Total Project Name of the initiator and name of the project Capacity Budget, in million USD Improve drinking water supply system in the Republic of Karakalpakstan and 713,000 m3/day, 568 km 38 Khorezm Province Improve fundamentally water supply of Fergana and Marghilan cities and 104,000 m3/day, 120 km 45 settlements adjacent to water line Water supply and sanitation of rural settlements of Kashkadarya and Navoi 12,900 m3/day, 1073 km 36 Provinces Water supply and sanitation in Surkhandarya Province 108,800 m3/day, 391.3 km 40 Rehabilitate sewage treatment plants and sewage systems in the cities of Bukhara 242,900 m3/day, 67.05 km 66.2 and Samarkand 215,000 m3/day water supply system, Upgrade interregional Damkhoja water line along with connection of district 25,000 m3/day sewage centers of Navoi and Bukhara Provinces to it. Rehabilitate sewage system in system, 75 Termez city 299 km - water supply system, 24 km - sewage system 466,000 m3/day water supply system, Rehabilitate water supply and sewage systems of Kokand and Andijan cities as 172,000 m3/day sewage well as water supply systems of Fergana, Marghilan cities and Rishton district system, 175 center 311.3 km - water supply system, 72.5 km - sewage system Water supply for Djizakh Province form Zarafshan River 184 km 142 Improve drinking water supply in townships Zarkent, Khojikent, Iskovot, Buloqboshi, Buston and Yoshlik of Namangan Province, and Baysun city and rural 516.4 km 58 settlements from Khajimaykhona wellspring of Surkhandarya Province, as well as, Kushrabat District of Samarkand Province Build "Tupalang-Khudjaipok" interregional water line equipped with water 75 km 116 treatment facilities in Surkhandarya Province Improve water supply in townships and rural settlements of Bayavut, Khavast, 508 km 88 Mirzaabad, Sardoba and Akaltyn districts of Syrdarya Province Build "Tuyabugiz-Bekabad" interregional water pipeline 105 km 62 Rehabilitate and develop sewage systems of Nukus and Takhiatash cities 31.4 km 38 Rehabilitate water intake structures "Kuytash", and water distribution units and networks in the district centers and rural settlements and of Zafarabad and Arnasay 30,000 m3/day 38 districts of Djizakh Province Rehabilitate sewage system in Karshi city 30,000 m3/day 54 Rehabilitate water supply systems of Kasan and Mubarek district centers and of rural settlements adjacent to the water line from Kitab-Shahrisabz groundwater 133 km 38 deposit Rehabilitate water intake structures to supply water for rural population of Chinaz, 87,000 m3/day 34.3 Zangiata and part of Yangiyul districts of Tashkent Province Upgrade sewage treatment facilities of Chirchik city considering the development 100,000 m3/day 77.3 of water supply of Chimgan-Charvak recreation area Rehabilitate sewage systems of Fergana and Marghilan cities 260,000 m3/day 60 Rehabilitate and expand sewage systems of Urgench, Khiva and Pitnak cities 81,000 m3/day 60 453 million m3/year - water supply system, 338 Improve sewage system of Tashkent city 46.9 million m3/year - sewage system

29

Table 10

Trends of Housing Construction Development in Rural Areas

Measuring 1991 2000 2005 2009 2010 2011 2012 Unit

Total housing thousand stock area sq. m. 150,697.8 205,833.8 236,339.5 195,686.8 201,652.9 207,598.1 210,629.9

Type of housing: - separate % - 91.3 93.8 - - - 95.8 house - separate % apartment - 6.9 5.3 - - - 3.6

- Own house or % apartment - 95.4 98.3 - - - 99.5

Commissioning thousand of residential sq. m. 6,209.0 6,974.1 5,351.3 5,104.4 6,695.8 6,944.3 7,744.1 houses Commissioning km of gas supply 4,607.0 4,039.0 3,054.4 752.1 691.6 593.8 479.2 networks Commissioning km of water supply networks 3,059.0 2,025.0 2,281.5 2,246.7 2,075.5 2,333.7 2,308.1

Average % availability of housing for 12.1 13.3 14.2 14.6 14.5 14.5 14.5 population Source: State Statistics Committee

30

Table 11

Dynamics and structure of housing construction in rural areas

Unit of Name 2000 2005 2009 2010 2011 2012 2013 Meas. Commissioning of thousand 8,006.1 6,071.6 7,674.1 8,859.2 9,203.3 10,367.2 10,611.1 housing across the sq. m Republic of % 100 100 100 100 100 100 100 Uzbekistan in total of them: thousand 6,974.1 5,351.3 5,104.4 6,695.8 6,944.3 7,744.1 8,038 in rural areas sq. m % 87.1 88.1 66.5 75.6 75.5 74.7 75.75 including: individual housing thousand - - 101 803.4 1,082 1,216.9 1,335.2 based on standard sq. m designs % - - 1.32 9.07 11.69 11.74 12.58 Source: State Statistics Committee

Table 12 Main indicators of commissioning of individual housing based on standard designs, social and engineering and transport infrastructure in rural settlements Measure Name ment 2009 2010 2011 2012 2013 units Residential houses 1. - number of apartments unit 847 6,800 7,400 8,510 10,000

thousand - living floor space 101 803.4 1,082 1,216.9 1,335.2 sq. m.

Social infrastructure facilities (schools, rural medical stations, 2. unit - 132 306 228 147 children's sports grounds, consumer services centers etc.)

Engineering and transport

3. infrastructure facilities: water supply km 64.61 342.30 426.29 426.45 410.64

access and intra-settlement roads km 34.81 145.43 127.00 216.90 224.0

gas supply km 30.98 248.74 284.63 318.88 350.1 electricity supply km 37.51 196.3 231.3 246.0 268.08 Source: Ministry of Economy

31

Table 13

Dynamics of individual housing construction based on standard designs in rural settlements in the regions of Uzbekistan

Actual commissioning of housing, in units No. Name of region Total for 2009 2010 2011 2012 2013 2009-2013 Total 33,557 847 6,800 7,400 8,510 10,000 Republic of 1 1,705 100 310 345 400 550 Karakalpakstan 2 Andijan Province 3,015 60 620 665 770 900 3 Bukhara Province 2,515 40 540 575 630 730 4 Djizakh Province 1,665 60 325 360 370 550 5 Kashkadarya Province 3,560 100 735 805 870 1,050 6 Navoi Province 2,060 60 410 490 500 600 7 Namangan Province 2,402 87 500 555 560 700 8 Samarkand Province 3,355 60 650 695 900 1,050 9 Surkhandarya Province 2,885 60 660 675 680 810 10 SyrdaryaProvince 1,395 60 275 310 320 430 11 Tashkent Province 3,585 60 635 680 1,160 1,050 12 Fergana Province 2,875 40 610 675 700 850 13 Khorezm Province 2,540 60 530 570 650 730

Source: Ministry of Economy

Table 14 Targeted estimated indicators of commissioning of individual housing facilities based on standard designs, social and engineering and transport infrastructure in rural settlements

Name Meas. units 2014 2015 2016 2017 2018

1. Residential houses unit 11,000 11,500 12,000 12500 13,000 Social infrastructure 2. unit 187 170 179 185 186 facilities Engineering and transport infrastructure facilities: water supply km 343.7 359.3 374.9 390.5 406.1 access roads and intra- km 263.02 274.98 286.93 298.89 310.8 3. settlement roads electricity supply km 307.3 352.9 368.1 383.4 398.7 gas supply km 433.0 497.2 518.8 540.3 561.8 Source: Ministry of Economy

32

Table 15 Funding sources for individual housing construction based on standard designs in rural areas

No. Name 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (estimates) (estimates) (estimates) (estimates) (estimates) I. Quantity of houses under 847 6,800 7,400 8,510 10,000 11,000 11,500 12,000 12,500 13,000 construction in rural area based on standard designs, units II. Total financing of the 50.7 428.9 576.5 906.0 1,385.4 1,760.0 2,070.0 2,520.0 3,000.0 3,510.0 construction

including: 2.1. Proprietary funds of 19.3 174.4 211.5 374.1 580.3 702.8 743.8 859.3 924.1 919.3 borrowers, total 2.2. Centralized resources, total 31.4 254.0 321.0 473.0 652.0 957.3 1,177.3 1,452.2 1,799.5 2,243.6

including:

Budget funds, total 31.4 254.0 321.0 130.6 458.8 710.3 945.0 1,219.9 1,567.2 2,011.3

2.3. Funds of OJSCB "Qishloq - 0.5 44.0 58.9 59.8 99.9 130.7 166.1 202.2 245.0 Qurilish Bank"

2.4. Proprietary funds of the - - - - 8.3 12.1 28.2 49.4 68.1 National Bank of Foreign Economic Activities 2.5. Proprietary funds of - - - - 20.2 6.1 14.2 24.8 34.0 JSCMB "Ipoteka Bank"

Source: Ministry of Economy

33

Table 16 Main indicators of commissioning of individual housing based on standard designs, social and engineering and transport infrastructure in rural settlements (ITERANCE)

Measureme Name 2009 2010 2011 2012 2013 nt units

Residential houses 1. - number of apartments unit 847 6,800 7,400 8,510 10,000 thousand sq. - living floor space 101 803.4 1,082 1,216.9 1,335.2 m. Social infrastructure facilities (schools, rural medical stations, 2. unit - 132 306 228 147 children's sports grounds, consumer services centers etc.) Engineering and transport infrastructure facilities: 3. water supply km 64.61 342.30 426.29 426.45 410.64

access and intra-settlement roads km 34.81 145.43 127.00 216.90 224.0 gas supply km 30.98 248.74 284.63 318.88 350.1

electricity supply km 37.51 196.3 231.3 246.0 268.08 Source: Ministry of Economy

Table 17 Land resources of the Republic of Uzbekistan as of January 1, 2013

No. Total area, Including irrigated In Categories of land resources thousand ha land sequ ence Total Ratio, % Total Ratio, %

1 Agricultural land 20,481.1 46.12 4,211.4 9.48

2 Settlement land 214.1 0.48 49.9 0.11 Lands used for industry, transport, 3 communication, defense and other 914.5 2.06 12.0 0.03 purposes Lands used for nature protection, 4 health improvement and recreational 75.9 0.17 0.9 0.002 purposes Lands used for historical and cultural 5 6.2 0.01 0.0 0.0 purposes 6 Forestry fund lands 9,636.9 21.70 31.4 0.07 7 Water fund lands 831.4 1.87 4.6 0.01 8 Land reserve 12,250.2 27.59 2.0 0.004 Grand total lands: 44,410.3 100.0 4,312.2 9.71 Source: State Statistics Committee

34

Table 18 Dynamics and structure of investment in fixed assets for housing construction in Uzbekistan

Unit of Indicators 2000 2005 2010 2011 2012 Meas. Total investments for housing bln UZS construction 96.8 347.2 2,316.8 3,342.5 4,514.0

including: State budget funds, extra-budgetary funds and other centralized sources bln UZS x x 44.4 33.8 39.2

Non-centralized investments bln UZS x x 2,272.4 3,308.7 4,474.8 Of them Enterprise assets bln UZS x x 112.9 163.7 263.7 Funds from the public bln UZS x x 1,847.8 2,705.4 3,685.4 Bank loans and other borrowings bln UZS x x 305.3 405.0 519.0

Foreign investments and loans bln UZS x x 6.4 34.6 6.7 Source: State Statistics Committee

Table 19 Housing mortgage by JSCMB "Ipoteka Bank" for 2005-2013

Indicators Quantity, units Amount, million UZS

Total loans issued 7,741 276,372.6 including - for new construction of individual 862 50,149.4 houses - for new construction of multi- 2,273 101,207.3 family houses - for purchase of housing at the secondary market of individual 1,167 32,347.3 residential houses - for purchase of housing at the secondary market of multi-family 3,342 90,308.4 houses - for extension, rehabilitation of 97 2,360.3 individual residential house - loans issued to young families 4,195 151,144.4 - loans issued to contractor organizations for the construction of - 116,830.2 multi-family houses Source: JSCMB "Ipoteka Bank"

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Table 20 Annual average number of employees of organizations of housing and utilities sector of the Republic of Uzbekistan (thousand people)

Indicators 2007 2008 2009 2010 Total for housing and utilities 125.7 127.4 132.9 136.4 sector Including: - Housing sector 26.5 26.7 25.4 25.6 - Utilities sector 99.2 100.7 107.6 110.8 Source: State Statistics Committee

Table 21

Depreciation of housing stock (as percentage of total area) Indicators 2008 2009 2010

up to 20% 58.1 59.2 61.2 from 21% to 40% 28.9 28.1 27.1 from 41% to 60% 7.6 8.2 7.5 more than 60% 5.3 4.5 4.1 Source: State Statistics Committee

Table 22 Ratio of housing and utilities services within the total amount of paid services to the population (as percentage of total)

Indicators 2007 2008 2009 2010

Total paid services 100 100 100 100 of them the housing and utilities services 16.6 14.6 16.8 16.7 Including housing services 2.2 1.9 2.1 1.9 utilities services 14.4 12.7 14.7 14.8

Source: State Statistics Committee

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Table 23 Foreign investments and loans in fixed assets (capital) across the sector "Utilities sector" Indicators 2007 2008 2009 2010

Total, bln UZS 39.4 43.7 90.3 49.4 Including by property category as percentage of total State-owned 97.1 75.6 98.6 91.3

Private 2.9 24.4 1.4 8.7 including Joint ventures, foreign companies and enterprises 1.2 24.4 1.4 8.7 business associations 1.7 - - -

Source: State Statistics Committee

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Table 24

Cost of construction of residential apartment houses performed through all funding sources region-wise (per 1 square meter of the total area, in thousand UZS) Total Regions 2007 2008 2009 2010

Republic of Uzbekistan 91.2 103.3 142.3 213.6

Republic of Karakalpakstan 60.0 67.0 103.2 159.7

Provinces:

Andijan 89.6 116.8 159.2 209.2

Bukhara 95.6 101.7 152.7 236.1

Djizakh 75.4 91.9 121.9 172.0

Kashkadarya 115.4 113.9 157.8 252.7

Navoi 106.9 101.5 140.5 234.4

Namangan 75.1 101.5 121.9 178.8

Samarkand 92.9 112.5 139.6 196.6

Surkhandarya 69.2 79.1 108.2 158.8

Syrdarya 66.9 78.5 104.0 153.8

Tashkent 98.1 110.0 165.1 267.6

Fergana 72.0 97.7 130.8 195.3

Khorezm 88.7 97.1 166.3 238.6

Tashkent city 202.3 188.0 267.4 474.6 Source: State Statistics Committee 38

Table 25

Investments in fixed assets of "Housing and utilities sector" by property category (% of total)

Indicators 2007 2008 2009 2010 Total 100 100 100 100 including by entities by property category:

State-owned 2.1 2.2 2.0 2.8 Private 97.9 97.8 98.0 97.2 of it: citizens private ownership 87.0 84.4 90.5 72.1

Source: State Statistics Committee

Table 26

Main indicators of housing stock improvement (at the year-end, %) Indicators 2007 2008 2009 2010 Urban housing stock area, serviced with: water pipeline 82.7 83.5 79.5 81.2 sewerage 56.0 56.7 49.2 50.1 heating 62.7 61.4 57.8 58.6 hot water supply 48.0 48.3 40.9 42.3 bathtubs 51.4 50.0 41.7 42.6 natural gas 91.5 90.3 86.4 87.0 Rural housing stock area, serviced with: water pipeline 41.5 45.3 44.8 47.8 sewerage 8.3 9.0 7.0 9.4 heating 21.5 21.4 23.8 25.5 hot water supply 1.9 3.3 2.5 2.8 bathtubs 2.0 2.7 3.0 4.1 natural gas 69.3 72.0 70.9 71.7

Source: State Statistics Committee

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Table 27

Number of built apartments by property category (thousand)

Indicators 2007 2008 2009 2010 Total apartments built 59.9 62.7 64.4 75.3 including by entities by form of property: state-owned 0.3 0.1 0.7 0.4 private 59.6 62.6 63.7 74.9 of it: citizens private ownership 58.8 61.9 63.1 66.9 including by individual developers 58.8 61.9 63.1 66.9 cooperatives 0.1 0.2 0.1 0.1 business associations 0.6 0.5 0.5 7.8

Source: State Statistics Committee

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FIGURES AND PICTURES

Figure 1.The Map of the Republic of Uzbekistan

41

OliyMajlis President Legislative Authority Central Bank Senate

Commercial Banks Cabinet of Ministers

State Committee on Land State Committee on Uzbek Agency of Resources, Geodesy, Ministry of Economy Ministry of Finance Architecture and Construction Communal Service Cartography and State Cadastre "Uzbekenergo" Company State Committee on Statistics The Council of Ministers of of Uzbekistan Ministry on "Makhalla" the Republic of Emergency Situations Foundation Karakalpakstan, Khokimiats of provinces and of "Uztransgaz" Joint Stock Tashkent city Company "Uzstroymateriali" JSC State Committee of Uzbekistan on Homeowner Cooperatives privatization, demonopolization and OJSC "IssiqlikManbai" promotion of competition Construction organizations (Heat supply enterprise)

Figure 2. The structure of housing sector regulation42 and management, urban and rural development and land

management of the Republic of Uzbekistan REPUBLIC OF UZBEKISTAN

Republic of Provinces Karakalpakstan Tashkent city

City of Republican Districts of Province Districts of City Districts of Province City of Province Subordination Subordination Subordination Subordination Subordination

Rural gathering areas of Cities of District Rural gathering areas of Cities of District Urban-Type Settlements Urban-Type Settlements citizens Subordination citizens Subordination

Figure 3. The chart of Administrative and Territorial Structure of the Republic of Uzbekistan

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Village городCity село

207598 215304 201653

236340 205834

162398 150698

226077 231950 234407

134113 142932 107747 116311

1991 г. 1995 г. 2000 г. 2005 г. 2010 г. 2011 г. 2012г.

Figure 4. Growth dynamics in the total area of the housing stock in the Republic of Uzbekistan(thousand sq.m.), prepared based on data by State Statistics Committee of Uzbekistan.

городCity

село Village 2358 2385

2943 2773 2560 2317

3153 3185 2250 1969 2087 2170

1991 г. 1995 г. 2000 г. 2005 г. 2010 г. 2011 г.

Figure 5. Growth Dynamics in the number of apartments / houses in the Republic of Uzbekistan (thousand units), prepared based on data by State Statistics Committee.

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83.5 83.5 80.6 83.2 76.1

60.2 36.9 37.8 38.0 28.3 31.0

44.9 44.9 37.4 26.5 35.4 45.0

28.0 80.4 82.6 82.5 82.7 82.2 69.2

1991 г. 1995 г. 2000 г. 2005 г. 2010 г. 2011 г. водопроводомWater pipeline отоплениемHeating канализациейSewerage природнымNatural gas газом

Figure 6. Dynamics of provision of the housing stock of Uzbekistan by centralized utilities (in per cent to the total number of apartments), prepared based on data by the State Statistics Committee

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KHOKIM OF DISTRICT (CITY) LEGAL AND PHYSICAL PERSONS

< Submitting application to Receive Khokim's Decision on Making decision on the Division (Department) Submitting application landplot acquisition, Architecture allocation of landplot - 2 on architecture and on landplot assignment and Planning Assignment and days 1 construction - 2 days land acquisition certificate. ^ ^

1 1 1 2 3 4 8

DIVISION (DEPARTMENT) ON ARCHITECTURE AND CONSTRUCTION OF THE DISTRICT (CITY) 3. Land line siting, obtaining the land 1. Elaborating and considering 2. Elaborating and considering acquisition certificate and technical materials on selection of landplot - 19 materials on acquisition of landplot - 10 specifications, and elaborating the Architecture days days and Planning Assignment (Parts I and II) - 14 days 3 ^ ^ 9 ^ ^ ^ ^ 1 1 1 V 4 V 0 5 6 1.1. Stakeholder 2.1. Stakeholder 3.1. Self-supporting Organizations Organizations Service for Land Planning Consideration of Issuance of and Cadastral Register landplot allocation plan - 3 conclusions on selected Registration of right > days plot of land - 5 days of legal and physical persons on land plots and submission 1.2. Main of certificate to the division (department) on architecture Department on 5 and construction - 2 days Architecture and 2.2. Commission on

Construction consideration of landplots 1 Considering provision (selling) issues materials on selection of 1 under the Khokim of 3.2. Territorial landplot - 4 days 8 district (city) operating organizations 6 ^ Considering Issuance of technical materials on selection of 1 V 7 specifications on connecting landplot - 3 days 2 > to engineering and communication networks - 3 1.3. Central design days and survey organizations 1

Considering 7 materials on selection of landplot - 7 days The total period of elaboration, considering and approval of materials on issuance of land

plots in the case of absence of urban development documentation - 47 days.

Figure 7. Permitting procedures in construction sector

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Authorized State Architectural-and- subdivisions of State Constructional Surveillance DESIGN INSTITUTION < Committee> for Architecture Inspectorate and Construction Registration of Develop topographic map, prepare Conducting of as-built construction site and issuance geological conclusion, elaborate and consider survey of buildings and of permit to perform construction design structures, and underground installation and construction engineering communication works - 1 day ^ ^ facilities - 7 days ^ V V Architectural V and Urban Development Council LEGAL ENTITIES Khokim of district under the Main < State AND INDIVIDUAL (city) Department on > expertise bodies PERSONS Making decision Architecture and > < Examination on approval of Taking- Construction of the construction ^ Over Certificate - 2 days Consider design for fire safety V ^ construction design in and seismic resistance Local services of State V the part of its of the facility - 7 days Committee of Uzbekistan on compliance with Land Resources, Geodesy, Acceptance architecture and Cartography and State Committee planning assignment - Cadastre Acceptance for 7 days Facility registration and operation of completed

issuance of certificate of constructed site - 5 days ownership - 7 days

Figure 8. Design engineering, building permitting and site commissioning

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Figure 9. Residential building along Navoi Street, Tashkent city

Figure 10. Residential complex "Molodyojniy", Tashkent city, "Humayun" residential area with social and cultural life facilities

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Figure 11. Residential settlements in rural areas of Republic of Uzbekistan

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