Uzbekistan enhances local government authority for economic growth

District and city governments in Uzbekistan will be granted additional administrative powers, as outlined in the Presidential Decree “On measures to establish a new system for ensuring high economic growth and employment in the regions and increasing the role and responsibility of local mayors in this regard.”  

According to the decree, district and city governments will be authorized to:  
- Establish Public Councils of Entrepreneurs to foster “permanent communication” between state administration bodies and local businesses.  
- Appoint and dismiss heads of district (city) departments of ministries and agencies, starting January 1, 2025, in coordination with relevant territorial departments. This includes the authority to reward or discipline officials.  
- Launch a legal experiment from January 1, 2025, to January 1, 2026, in selected districts and cities, implementing the “Serving the interests of the population and entrepreneurs” governance model.  

Additionally, from March 1, 2025, district and city governments will have the following powers:  
- Lease unsold real estate (10,000 sq. meters or less, valued at no more than 5,000 BCA) directly to entrepreneurs for up to 10 years, provided new projects are initiated, and jobs are created within two years. Entrepreneurs who fulfill lease terms for four years may privatize or purchase the property directly.  
- Offer rent-free leases for training centers that provide internationally recognized foreign language and qualification certifications. These leases will last for five years, with the first year exempt from rent, and the option to extend further.  

This decree is part of broader reforms to empower local governments, aligning with recent initiatives to expand the authority of local councils starting in 2025.