Ministry of Economy and Finance of the Republic of Uzbekistan

Strategy for Further Enhancement and Development of the Public Procurement System for 2025-2027 Approved The Cabinet of Ministers of the Republic of Uzbekistan has adopted Resolution No. 865 dated December 20, 2024, "On approval of the Strategy for further enhancement and development of the public procurement system for 2025-2027". The purpose of this Strategy is to establish a public procurement policy aimed at increasing the share of "green" public procurement during 2025-2027, as well as improving and developing a sustainable, broadly competitive public procurement system that is crucial for economic growth. The Strategy defines the main directions for developing public procurement as improving a rational, efficient, and sustainable public procurement system that creates broad opportunities for business entities, as well as implementing measures to protect the environment and prevent ecological damage in procurement processes. It is also envisaged to support local small manufacturing businesses that employ women and persons with disabilities, implement information and communication technologies throughout all stages of the public procurement process and increase the share of electronic procurement, and create a unified, integrated, and effective public procurement management system that ensures comprehensive monitoring and efficient control at all stages of public procurement. Along with this, the resolution approved an action plan for 2025-2027 aimed at implementing the strategy for further improvement and development of the public procurement system. https://lnkd.in/d5m_PtZd

The National Accounting Standard No. 22 "Accounting for Assets and Liabilities Denominated in Foreign Currency," harmonized in accordance with International Financial Reporting Standards (IFRS), has been approved According to the Decree of the President of the Republic of Uzbekistan No. PP-4611 "On Additional Measures for Transitioning to International Financial Reporting Standards" dated February 24, 2020, it has been established to harmonize the National Accounting Standards with International Financial Reporting Standards (IFRS). In this regard, a new version of the National Accounting Standard (NAS) No. 22 "Accounting for Assets and Liabilities Denominated in Foreign Currency," harmonized with the International Accounting Standard (IAS) No. 21 "The Effects of Changes in Foreign Exchange Rates," has been developed and approved. It has been officially registered in the state language (registration number 3587, dated December 19, 2024). This National Accounting Standard establishes the procedure for recording foreign currency operations of legal entities, as well as data from foreign subsidiaries and affiliated companies in accounting records and their disclosure in financial statements. When preparing financial statements, the value of assets and liabilities in foreign currency should be converted into sums. When incorporating the financial statements of foreign subsidiaries and dependent business entities into consolidated financial statements, legal entities must recalculate their assets and liabilities denominated in foreign currencies using the Central Bank exchange rate as of the last date of the reporting period. At the same time, the main change in this new edition of the standard in accordance with IFRS is the classification of balance sheet items into monetary and non-monetary items for the purpose of revaluing foreign currency transactions and calculating the resulting exchange rate differences. The key aspect of a monetary clause is the right to receive (or the obligation to transfer) a strictly fixed or determinable amount of foreign currency funds. Non-monetary items include advance payments received in foreign currency for goods, works, and services without the obligation to return them, as well as deposits given without the right of return, and others. Based on this, relevant amendments will be made to National Accounting Standards No. 4, 5, and 7. https://lnkd.in/dn9yY_4f

The second day of the practical workshop on developing master plans was held On the second day of the practical seminar, Project Offices for the Development and Implementation of Master Plans visited "UzshaharsozlikLITI" and the "Republican Center for Urbanization and Urban Planning Documentation Development" under the Ministry of Construction and Housing and Communal Services. Presentations were held on the tourist master plan for the territory of the Maidanak high-mountain observatory, the project of the "Arda Khiva" tourism complex in Khiva, as well as on the "geographic information systems" and "My Territory" electronic platform in urban planning. Specialists provided detailed explanations on incorporating construction and architectural elements, as well as construction, design, and urban planning standards, when developing master plans. Additionally, staff members of the Project Office were familiarized with modern projects implemented in Tashkent based on master plans, including the "Tashkent City" modern district project, the "Seoul Mun" waterfront shopping and service complex, and the "Magic City" shopping and entertainment complex. Certificates were presented to participants upon completion of the two-day seminar. https://lnkd.in/dKAeaAUb

The second phase of a practical workshop on developing master plans has been conducted The second phase of a practical seminar was held in Tashkent for staff members of the Project Offices responsible for developing and implementing master plans under regional administrations. The Ministry of Economy and Finance, in collaboration with the Ministry of Construction and Housing and Communal Services, the Institute of Macroeconomic and Regional Studies, and the German Society for International Cooperation, is conducting a two-day practical workshop. Employees of the Project Offices for the development and implementation of Master Plans under the Council of Ministers of the Republic of Karakalpakstan and the administrations of Bukhara, Jizzakh, Navoi, Namangan, Tashkent, and Khorezm regions are participating in the practical seminar. On the first day of the seminar, Project Office staff were provided with information about the role of master plans in regional development, the process of developing, coordinating, and approving master plans, and the responsibilities of the Project Offices. The seminar also featured presentations and discussions on master plans developed and in progress for various regions of the republic, with participation from foreign and local companies with advanced expertise in architecture, design, and regional development. Notably, Turkish project companies "Studio Vertebra," "Sigma Tashkent," and "Bloom Arch" presented master plans focused on realizing the economic potential and driving forces of the regions, developed using creative approaches. At the same time, representatives of the Institute of Macroeconomic and Regional Research provided explanations on developing comprehensive development master plans. Responsible employees of the "UzshaharsozlikLITI" main project institute explained the calculation of costs for developing master plans, while responsible employees of the State Assets Management Agency clarified the tasks of Project Offices in developing roadside master plans. https://lnkd.in/dcaKbc7g

Views were exchanged with the European Bank for Reconstruction and Development on developing entrepreneurship and supporting the private sector A meeting took place between Ilhom Norkulov, the First Deputy Minister of Economy and Finance of the Republic of Uzbekistan, and Ana Kresich, the leading regional economist for Central Asia and Mongolia at the European Bank for Reconstruction and Development (EBRD). During the dialogue, the parties discussed the systemic reforms being implemented in our country and their results, the development of small and medium enterprises, particularly the extensive opportunities being created for businesses, further improvement of support mechanisms to expand financing for SMEs, as well as issues related to assisting the private sector. During the discussion, the parties also exchanged views on strengthening digitalization in entrepreneurial processes, developing the agricultural sector, further supporting the service industry, as well as green growth and green projects. At the conclusion of the negotiations, the parties reached an agreement to develop mutually beneficial cooperative relations and to formulate effective projects by utilizing the global experience of the EBRD. https://lnkd.in/dUAGT3dN

An online seminar was conducted on the content and significance of the Regulation concerning the procedure for evaluating the effectiveness of internal audit service employees in state bodies and organizations An online seminar was organized with the participation of specialists from the Ministry of Economy and Finance and employees of internal audit services from various ministries and agencies. The purpose of the seminar was to inform internal audit service employees about the content and significance of the regulation (registration number 3583, December 12, 2024) on the procedure for assessing the effectiveness of internal audit service employees in state bodies and organizations, as well as to discuss issues related to its practical implementation. At the event, Azamat Jabborov, the head of the Department for Development and Coordination of Internal Audit Structures of State Bodies at the Ministry of Economy and Finance, opened the online seminar with an introductory speech. In his opening remarks, he discussed the ongoing efforts to enhance the activities of internal audit services, as well as emphasized the necessity and significance of evaluating the effectiveness of internal audit service personnel. Following this, Mamirjon Jaloliddinov, the head of the department for methodological support and certification of internal audit structures, delivered a presentation on the content and essence of the regulations regarding the procedure for evaluating the effectiveness of internal audit service employees in state bodies and organizations. During the seminar, employees of the Ministry of Economy and Finance provided comprehensive answers and information to questions raised by the heads and staff of the internal audit services of various ministries and departments. The seminar proceeded in the form of lively discussions, debates, and exchanges. It was agreed to organize similar seminars on the activities of internal audit services in the future. https://lnkd.in/dapzuiFc

The Ministry of Economy and Finance, in collaboration with the Small Grants Program (SGP) of the Global Environment Facility (GEF), is carrying out work on the implementation of heat pumps On December 18 of this year, representatives of Small Grants Program (SGP) of the Global Environment Facility (GEF) and the Deputy Minister of Economy and Finance - director of the Institute of Macroeconomic and Regional Studies Umid Abidkhadjayev, visited secondary school No. 19 in the Boyovut district of the Syrdarya region. The purpose of their visit was to study a pilot project that is currently being tested, which involves the use of a heat pump in the school's heating system.  This project is being implemented by the Ministry of Economy and Finance in collaboration with the Small Grants Program (SGP) of the Global Environment Facility (GEF). As part of the project, more than 20 classrooms in the school are being equipped with a permanent heating system for the autumn-winter season through the introduction of environmentally friendly and clean technologies.  As a result of the project, the school heating process now takes 16.5 times less time, with 2 installed heat pumps consuming 1437 kWh of electricity per day. The project prevented the burning of 38 tons of coal and the release of harmful substances into the air, while also ensuring that the rooms meet sanitary norms for heating.  Based on the results of this pilot project, and considering the aim of preserving natural resources, preventing environmental damage, protecting public health, and promoting a healthy lifestyle, there are plans to expand the use of heat pumps in other social sector facilities in the future. This expansion will be achieved by providing these facilities with clean energy resources. https://lnkd.in/d87_pveF

Modern service and shopping complexes for residents and tourists will be built in Surkhandarya region on the basis of master plans With the support of the Ministry of Economy and Finance, JSCB “Mikrokreditbank” and the United Nations Development Program, together with the Khokimiyat of Surkhandarya region, master plans have been developed for the organization of modern service complexes and tourist infrastructure facilities in Jarkurgan, Boysun and Sariasiya districts of Surkhandarya region. For example, in accordance with the master plan of the Obi Hayat ecotourism complex on the coastal territory of the Aktepa reservoir in the Jarkurgan district, on an area of 110 hectares on 21 sites, it is planned to develop recreation and service complexes for the population, foreign and local tourists on the water, water sports, extreme sports and ecotourism. According to the developed master plan of the Boysun district for the territory of “Amonkhona”, a land plot of 220 hectares will be divided into 21 lots, of which 25 land plots with an area of 25.6 hectares will be sold through auctions, the construction of modern tourism facilities by the private sector is planned on the territory. At the same time, according to the developed master plan of the Sariasiya district on the territory of Sangardak, a land plot with an area of 615 hectares will be divided into 20 lots, of which 20 land plots (lots) with an area of 22.5 hectares will be auctioned, and modern service and shopping complexes and other tourism infrastructure facilities will be gradually built on the territory by the private sector. In order to implement these master plans, Decree No. PD-439 of the President of the Republic of Uzbekistan dated December 16, 2024 “On measures to improve the tourist infrastructure and build modern facilities for service and tourism in the mountainous and recreational areas of Surkhandarya region" was adopted. https://lnkd.in/diQzznyX

An exchange of views took place on the role of innovation in the development of SMEs with representatives of the World Bank Issues of providing assistance to SMEs in the implementation of innovative projects within the framework of the project for the modernization of the national innovation system of Uzbekistan – MUNIS were discussed with representatives of the World Bank. During the meeting, representatives of the World Bank informed about the qualification of business ideas of SMEs that applied for participation in the program, as well as about the mechanisms for supporting and co-financing the project in the process from the research and development (R&D) stage to the commercialization stage. Within the framework of this MUNIS project, an exchange of views took place on the possibilities of providing assistance to SMEs in the implementation of innovative projects in the regions. Also during the discussions, work was announced on the formation of the second phase of the MUNIS project and the study of the possibilities of its implementation with the participation of the Ministry of Economy and Finance, as well as on the preparation of relevant proposals. At the same time, issues of conducting an analysis of the ecosystem of innovations and start-up projects and the development of digital entrepreneurship in Uzbekistan, assessing the current situation, preparing relevant practical proposals with the study of international experience were discussed, and an agreement was reached to attract an international expert with the support of the World Bank. https://lnkd.in/d-zx8w32

Negotiations were held with representatives of the World Bank On December 16 of this year, Deputy Minister of Economy and Finance of the Republic of Uzbekistan Khurshed Mustafayev and representatives of the World Bank held talks on issues of supporting small and micro-hydropower projects of the country. During the talks, the goals of Uzbekistan in the field of renewable energy, the significance of the projects and the necessary technical and financial solutions for them were discussed. In addition, the World Bank's support in the preparation of a potential financing and investment project for the small hydroelectric sector was discussed. Representatives of the World Bank noted that several major technical studies were carried out in the field of small and micro hydroelectric power, in particular, preliminary studies were carried out in 2021 to assess the potential of small and medium hydroelectric power plants. During the negotiations, it was reported that new technical assistance and financial mechanisms are being developed to implement the projects selected on the basis of these studies. The Uzbek side expressed its readiness to continue close cooperation with the World Bank and noted the need for joint work on the plan to build several small hydrostations in the country. During the negotiations, it was also agreed to create an operational working group to address issues related to financing, technical expertise and environmental aspects. At the end of the meeting, the parties identified future practical steps to find answers to existing questions and accelerate project preparation during weekly meetings. The World Bank representatives expressed their high level of attention to this project and called for the active participation of both parties in the project. https://lnkd.in/dwp8RCui