Uzbekistan to bring 938,000 hectares of land into use

Tashkent, Uzbekistan (UzDaily.com) — President of the Republic of Uzbekistan Shavkat Mirziyoyev signed a decree on 8 May 2026 to bring 938,000 hectares of rainfed and pasture land into agricultural circulation in mountainous, foothill, hilly, and desert areas of the country.

The document provides for the involvement of the private sector through an auction-based mechanism, combined with a package of state financial support.

A total of 300 million US dollars has been allocated for the program. Of this amount, 100 million US dollars will be provided by the Reconstruction and Development Fund and channeled to Agrobank in national currency for a period of 10 years, including a four-year grace period, at an annual interest rate of 10%.

An additional 200 million US dollars is expected to be raised by Agrobank from foreign financial institutions in 2026–2027. Final beneficiaries—auction winners—will receive preferential loans of up to 20 million soums per hectare for a period of 10 years at a rate of 14% per annum.

Interest rate compensation above established thresholds will be covered by the Entrepreneurship Development Company from a special fund. Guarantee coverage will be provided by the National Business Guarantee Company, provided that borrowers contribute collateral of at least 20%.

The land distribution mechanism will be fully digitized. Plots will be offered via electronic auctions on the “E-auksion” platform together with prepared land development plans and feasibility studies.

Each land plot must be brought into use within two years of allocation. Failure to meet this requirement will result in strict sanctions, including cancellation of land rights and re-auctioning, conversion of preferential loans into commercial terms with full repayment, and reimbursement of subsidies and benefits received.

At the same time, the decree protects project initiators from liability in cases where objective circumstances beyond their control prevent land development. In such cases, incurred costs will be compensated by responsible organizations involved in preparing feasibility studies.

To support implementation, the Ministry of Economy and Finance has been instructed to allocate 50 billion soums within one month from the republican budget in equal shares to regions for the purchase of bulldozers and excavators for drainage clearance.

Additionally, each region must allocate 4 billion soums from surplus local budget revenues from the first and second quarters of 2026 to purchase similar equipment.

The machinery will be transferred to regional water management departments to support project implementation. The Ministry of Water Resources is also tasked with developing irrigation and reclamation infrastructure and ensuring water supply for newly cultivated areas.

An environmental requirement of the decree mandates compensatory tree and shrub planting in a one-to-one ratio for each felled plant, followed by at least two years of maintenance.