A 6-month penalty for gas arrears in greenhouses will no longer be considered - the President's decision

Yesterday, 2 November, the president of the Republic of Uzbekistan Shavkat Mirziyoyev signed the decision "On additional measures to increase the efficiency of greenhouse farms."  You can read the full text of the decision below.

The decision of the President of the Republic of Uzbekistan

Ensuring food security by supplying quality and guaranteed agricultural products to the population of the country, creating more favorable conditions for the economically efficient operation of greenhouse farms and cold storage facilities, as well as increasing the income of the population employed in this field to further encourage the increase:

1. A new mechanism for producing products in greenhouses and directing finished products to the domestic and foreign markets should be introduced, according to which the Horticulture and Greenhouse Development Agency:

• delivers seeds, seedlings, mineral fertilizers, and other material resources to greenhouse farms and takes measures to purchase the grown products from them;

• recommends experienced and qualified agronomists, entomologists, and laboratory specialists working in the republic to greenhouse farms based on a contract;

• support the establishment of special nurseries for the production of certified and guaranteed seeds and seedlings;

• establish cooperative activities based on cooperation with greenhouse farms, assist in sorting, processing, storage, packaging, and export of grown products;

• Attaches territorial inspectors based on an agreement with the Plant Quarantine and Protection Agency and ensures the provision of plant protection services.

2. The following proposals of the Ministry of Investments and Foreign Trade, the Central Bank, the Ministry of Agriculture, the Council of Ministers of the Republic of Karakalpakstan, and the governorates of the regions should be approved:

a) setting the repayment terms of loans in national and foreign currency allocated for greenhouses and cold storage at the expense of international financial institutions, trust funds, and the Recovery and Development Fund to 14 years in total, and the grace period from 3 to 5 years extension (extension of overdue principal and interest arrears in proportion to the loan period.)  In this case, the guarantees and loan interest compensations previously provided by the State Fund for the Support of Entrepreneurial Activities will be preserved.

These benefits are presented based on the list formed according to the results of the study of the republican working group on the recovery and development of the financial situation of greenhouse farms;

b) preferential six-month loan from commercial banks for one year to provide greenhouse farms with working capital (for the purchase of seeds, seedlings, fertilizers, chemicals, greenhouse materials, and heating costs) credit allocation within a period. In this:

• these loans are financed from the budget loan allocated to the Horticulture and Greenhouse Development Agency in the manner and under the conditions stipulated in the decision of the President of the Republic of Uzbekistan No. PQ-387 of October 6, 2022;

• bank loans in foreign currency for the working capital required for the production of exportable products in greenhouses are allocated from the funds of the Export Promotion Agency at an annual rate of 4 percent (therefore, the bank margin is 2 percent).  In this case, the insurance policy of the "Uzbekinvest" insurance company is accepted as a loan guarantee, and 75 percent of the insurance premium costs are covered by the funds of the Export Promotion Agency;

• the repayment terms of allocated loans are adjusted to the terms of harvest and sale in greenhouses, and loan repayment schedules are approved on this basis;

v) the amount of penalty for non-timely payment of natural gas to greenhouse farms will not be calculated from October 1, 2022, to April 1, 2023, as an exception.

3. The Ministry of Investments and Foreign Trade, together with the Central Bank and commercial banks, shall ensure the re-registration of the national and foreign currency loans provided for in paragraph 2 of this decision in the prescribed manner within 15 days.

4. Establish such a procedure according to which:

a) loans to commercial banks for greenhouse farms and the period of repayment of their interest is strictly adjusted to the period of ripening of the product;

b) whole areas for the establishment of industrial-type modern greenhouses and logistics centers will be put up for open auction with a single (regional) "lot". In this case, the size of allocated areas is determined by the Chairman of the Council of Ministers of the Republic of Karakalpakstan and regional governors based on the conditions of the region.

5. In 2022-2023, the list of addresses for providing greenhouse farms with engineering and communication networks (drinking and wastewater, electricity, and irrigation networks) should be approved following Appendix 1.

The Ministry of Finance, the Ministry of Energy, the Ministry of Agriculture, and the Ministry of Water Management, together with the Council of Ministers of the Republic of Karakalpakstan and regional governments, will provide electricity for greenhouses operating and newly established in the republic in 2022-2023 for one month. to approve the program of construction of transmission lines, drawing of irrigation and reclamation networks, and the parameters of allocated budget funds. In this case, the allocated funds are considered within the framework of budget funds provided for small industrial zones.

6. The Ministry of Investments and Foreign Trade together with the Ministry of Agriculture and embassies of Uzbekistan in foreign countries:

• submit proposals to the Cabinet of Ministers regarding the establishment of trade complexes with complex logistics capabilities, such as storage, sorting, and packaging of fruits and vegetables, with the participation of the private sector within one month;

• take measures to prevent financial losses caused by "unforeseen" and unhealthy competition in foreign markets, primarily through long-term trade agreements concluded with foreign partners for products to be exported;

• By the end of 2022, ensure the signing of intergovernmental agreements on the opening of new export markets in Japan, the Republic of Korea, and European countries.

7. The Anti-Monopoly Committee and the Ministry of Energy shall take measures to prevent the emergence of "artificial" intermediaries and unjustified price increases in the supply of energy to greenhouses operating with heat energy from thermal power plants and centers in the regions for one month. resin.

8. The Ministry of Agriculture, together with the Ministry of Investments and Foreign Trade, should take measures to finance the purchase of trucks (refrigerators) in the implementation of agro-logistics projects at the expense of international financial institutions to expand the delivery of products grown in greenhouses to the markets.

9. The composition of the republican working group on the improvement and development of the financial situation of greenhouse farms (hereinafter referred to as the republican working group) should be approved following Appendix 2.

Republican working group (A. Voitov):

• Together with the Council of Ministers of the Republic of Karakalpakstan, regional administrations, and commercial banks, identify inefficient greenhouse farms in the regions and, in agreement with the owners, transfer them to new entrepreneurs (sale, purchase of obligations to the bank on credit or other on the agreed terms) to organize;

• within two months, passing through the greenhouse farms that have problems in formalizing the ownership rights to the plot of land, and solving the issues of changing the categories of the land fund of the land intended for agriculture and the forest fund according to their solution submit a proposal to the Government Commission for review;

• constantly make suggestions on improving and developing the financial situation of greenhouse farms.

10. The National Broadcasting Company of Uzbekistan and the National Information Agency of Uzbekistan should cover the positive experiences of the intensive production of products in greenhouses and their distribution to domestic and foreign markets in the mass media.

11. The Ministry of Agriculture, together with the interested ministries and agencies, should make proposals to the Cabinet of Ministers about amendments and additions to the legislative documents arising from this decision within two months.

12. Responsible for the effective implementation of this decision and Minister of Agriculture A.B. Voitov and Minister of Finance T.A. Let Ishmetov be marked.
Deputy Prime Minister Sh.M.Ganiyev and J.A.Khodzhayev should be entrusted with discussing the implementation of the decision and coordinating and controlling the activities of the agencies responsible for its implementation.