Agency for Industrial Cooperation and Public Procurement established

In Uzbekistan, the Agency for Industrial Cooperation and Public Procurement and its governing board will be established. This is stipulated in the presidential decree titled “On Priority Measures to Develop Local Production and Industrial Cooperation Based on a New System,” adopted today, February 6.

Under the decree, the functions, responsibilities, and powers of the Ministry of Economy and Finance in the field of public procurement will be transferred to the agency. In addition, a State Targeted Fund for the Development of Industrial Cooperation will be created under the agency, without the status of a legal entity.

Starting from July 1, 2026, within the framework of programs financed by the fund, loans of up to $10 million per project will be provided through commercial banks to finance projects of business entities. These loans will be issued for a term of up to 10 years, including a two-year grace period, at an annual interest rate of 6 percent in foreign currency (including a 2 percent bank margin) and 12 percent in national currency (including a 2 percent bank margin).

Subsidies will also be allocated to cover up to 30 percent of expenses incurred by business entities in acquiring rights from foreign rights holders to transfer production technologies and to use brands, trademarks, and service marks, but not exceeding $1 million.

In addition, subsidies will be provided on a competitive basis each year to up to 10 of the best projects in the field of industrial startups. These subsidies will cover up to 50 percent of expenses related to the development and implementation of new types of high-tech products, with a maximum amount of 10 billion soums.

Furthermore, starting from July 1, 2026, within projects included in the programs, raw materials and components used in the production process that are not manufactured domestically and are imported according to an approved list will be exempt from customs duties for a period of three years.