President critical of financing investment programs in Uzbekistan, urges changes
Baku, Azerbaijan, Jan. 18
By Nigar Guliyeva – Trend:
Uzbek President Shavkat Mirziyoyev criticized the system of financing and the formation of investment programs in the country.
Mirziyoyev, speaking at a meeting with government officials on Jan.17, said that officials in pursuit of high figures were engaged in embellishing the indicators of attracting and absorbing investments. As a result, the heads of regions and industries, in order to fulfill this "burden", were forced to include in the investment programs ineffective projects that do not correspond to the development of regions and industries without specific sources of financing.
He said that as a result of repeated approvals of the feasibility study, business plan and tender documentation for the projects, their expertise was delayed up to 6 months instead of 15 days. This led to a rise in price and a decrease in the profitability of investment projects.
Due to miscalculations in the formation of projects, failure to attract investors' funds for their implementation, many enterprises went bankrupt. Commercial banks, which were entrusted with the rehabilitation of enterprises, also suffered heavy losses.
Moreover, some unfinished or unrealized projects for years roamed from the program to program.
The president cited the project on equipping laboratory of the State Center for Sanitary and Epidemiological Surveillance, which was included in the investment program first in 2015, then in 2016 and 2017, as an example.
Mirziyoyev warned that only economically feasible projects with ready-made design estimates should be included in investment programs.
Henceforth, only projects that have a preliminary feasibility study and design and estimate documentation will be included in the state development programs, Mirziyoyev said.