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Uzbekistan 12/08/2024 Measures discussed for economic development of districts and increasing population income

Measures discussed for economic development of districts and increasing population income

Tashkent, Uzbekistan (UzDaily.com) — On 12 August, a video conference chaired by President Shavkat Mirziyoyev was held to discuss measures for the economic development of districts, the introduction of alternative energy sources, and the creation of attractive conditions for industrial enterprises.

It is known that Uzbekistan has established successful practices in Saykhunabad, Uych, Zarbdor, and Gijduvan for ensuring employment and developing entrepreneurship. At the beginning of the meeting, the effectiveness of these practices was reviewed.

For example, in the framework of the Saykhunabad experience, the goal is to implement 10 micro-projects in each mahalla. This has led to the launch of 132,000 micro-projects across the republic, providing employment for 242,000 people. However, progress is slow in 46 mahallas in 26 districts.

Based on the Uych experience, which involves closer cooperation between banks and their clients, 500,000 new jobs have been created across the republic. However, the results in 15 districts and cities have not met expectations. The Gijduvan experience focuses on creating multi-story industrial buildings in 1,000 mahallas, while Zarbdor’s approach aims at local driver projects.

It was emphasized that the experiences from these four districts represent state policy, and strict measures will be taken against leaders who delay their implementation. Specific KPIs will be set for each experience, with strict monitoring of their achievement.

The main issues discussed at the meeting included creating more favorable conditions for entrepreneurs, specializing each district, and the rational use of energy, using the Bukhara region as an example. The meeting also involved government members, economic sector leaders, and khokims from other regions.

The Head of State visited the Bukhara region from May 31 to June 1. Following the visit, 1.4 trillion sums were allocated to the region. A decree has been signed to allocate an additional 60 million dollars for entrepreneurship development and 40 million dollars for infrastructure development.

At the meeting, Bukhara’s potential was analyzed in five areas.

Service Sector Development. The region has 584 guest houses, 122 catering enterprises, 18,500 retail outlets, and 30 health and fitness centers. Bukhara’s cuisine is widely renowned, but the number of dining establishments per thousand residents is ten times lower than in Samarkand. Additionally, 103 project organizations and 2,372 construction organizations are not fully utilized. Master plans for regions and the establishment of trade and service points could be developed.

Therefore, it was decided to develop the service sector in 62 neighborhoods and 54 streets in Bukhara. These areas will specialize in public catering, wellness, hospitality, crafts, trade, and services.

A total of 4,000 enterprises will be created, providing employment for 6,000 people.

The President supported the proposal to simplify land allocation in industrial zones, including for the service sector. A new type of loan, "service mortgage," will be introduced for acquiring service sector facilities.

Rational Use of Energy. It was noted that Bukhara has the potential to save 900 million kilowatt-hours of electricity and 400 million cubic meters of gas, which is 20 percent of the total regional consumption. For instance, updating equipment at 42 major enterprises could save up to 25 percent of electricity and gas.

The largest consumer is the Amu-Bukhara Canal. Updating pumps here could save 200 million kilowatt-hours or 204 billion sums per year. However, this is not sufficient.

It was mentioned that installing solar-powered pump stations with a capacity of 100 megawatts and energy storage systems with a capacity of 100 megawatts at enterprises could reduce electricity consumption from the main grid by 25 percent and the average daily tariff by 12.5 percent.

Additionally, there is an opportunity to install solar panels with a capacity of at least 3 kilowatts on 200,000 properties, creating a capacity of 600 megawatts. This would allow for an additional 20 percent reduction in electricity consumption in the region.

Consequently, the Ministry of Energy and responsible regional and district officials are tasked with installing solar panels on 4,000 properties by the end of the year. The need to expand the availability of panels was highlighted.

Measures were determined for the timely delivery of liquefied gas to the population with extensive involvement of the private sector.

Bukhara region is building three large gas-chemical complexes and ten solar and wind power stations. Spare parts worth 1 billion dollars will be required for these. However, many enterprises produce similar products and do not focus on innovations.

The region produces 1.5 million tons of fruits and vegetables, twice the demand of Bukhara. However, only 11 percent are processed, and 30 percent spoil during transportation. The capacity of four small agrologistic centers in the region allows for the processing of only 66,000 tons of products.

Therefore, the President emphasized the need for each district to specialize in industrial sectors.

For example, in Jandarcak district, about 3,000 women have sufficient experience in the home textiles sector. In Vabkent district, grape, flower, and seedling cultivation is established using the "voish" method. In Bukhara district, a new enterprise with a processing capacity of 27,000 tons of fruits and vegetables has been launched.

The task is to develop a program covering issues related to raw materials, infrastructure, staffing, and market based on these examples and the specialization of each district.

Professional Training Needs. To achieve these plans and objectives, professional personnel are required. However, in most cases, professional training is carried out by existing teaching staff without considering labor market demand and youth interests. Only 2 percent of young people receive dual education, and cooperation is established with only 350 out of 30,000 enterprises in the region. As a result, enrollment in colleges and technical schools with a capacity of 28,000 students does not reach 50 percent.

Therefore, educational buildings and facilities that are not fully utilized will be rented out directly to entrepreneurs. The proceeds will be used for building repairs and equipment acquisition. The only condition is that the youth must be trained in professions and provided with employment.

The greatest obstacle to regional work is incompetence in district organizations. No KPIs are established for employees, digitalization is not properly implemented, and there is a lack of training in new technologies. As a result, ministries are instructed to improve methodology, regulations, and digitalization in their systems.

The meeting also heard reports from khokims of Bukhara region and districts, sector leaders, and industry heads.

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