ACTIVITIES INVESTMENT COMMITMENTS
Attraction of investments in state assets and monitoring of investments are regulated on the basis of the following laws and regulations:
- The Law of the Republic of Uzbekistan "On Investments and Investment Activities";
- The Law of the Republic of Uzbekistan "On denationalization and privatization";
- The Civil Code of the Republic of Uzbekistan;
- The Tax Code of the Republic of Uzbekistan;
- The Decree of the President of the Republic of Uzbekistan No 2200 dated 03.07.2014;
- Decree of the President of the Republic of Uzbekistan No. 3067 dated 16.07.2017;
- Decree of the President of the Republic of Uzbekistan No. 5552 dated 11.10.2018;
- Decree of the President of the Republic of Uzbekistan No. 4112 dated 14.01.2019;
- Decree of the President of the Republic of Uzbekistan No. 5666 dated 19.02.2019;
- Decree of the Cabinet of Ministers of the Republic of Uzbekistan No. 279 dated 06.10.2014;
Decree of the President of the Republic of Uzbekistan No. 6096 dated 27.10.2020.
Based on the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 279 dated 06.10.2014, the buyer is obliged:
-Provide the seller with monthly information and a quarterly report on the implementation of investment and social obligations not later than the 1st day of the month following the reporting month, with the relevant supporting documents attached;
-To open in the prescribed manner a special account for the accumulation of funds used only for the fulfillment of investment obligations stipulated by the contract of sale and purchase of the object of state property;
-Within sixty days after the entry into force of the sale and purchase agreement on the object of state property to create a legal entity, which accounts for the fulfillment of investment obligations, if the buyer is a natural person;
-Perform investment and social obligations in the terms, amounts and types established by the contract of sale of the object of state property;
-Participate together with the balance-holder in the confirmation of availability and examination of the condition of the purchased object of state property and in the signing of the act of acceptance and transfer;
-Maintain the activity profile of the object of state property for a period specified in the contract, if it is provided for by the decision of the territorial tender commission;
-After entering the mark "with the right of disposal" into the state ownership order, ensure state registration of the rights to the acquired object of state property in the manner prescribed by law.
-Fulfillment of investment and social obligations is recorded on the date of receipt of investments on the object of investment, accounting on the balance of the investor.
-Ensure the safety of the sold object of state property, including the property included in it, until the moment of obtaining the right of ownership to it.
-The right of ownership of the object passes to the purchaser after the recognition of investment obligations executed, as well as after the mark "with the right of disposal" is entered into the state order on the right of ownership.
-The following supporting documents shall be attached to the report on the fulfilment of investment obligations:
-Copies of payment orders, cargo customs declarations, acts of reconciliation, acts of completed works, acts of acceptance-transfer, acts of installation, acts of commissioning of the equipment indicating its technical condition;
-Information on the buyer's progress in implementing the investment program, including the financial and economic parameters stipulated by it as of the date of submission of the report;
-Information on the financial and economic condition of the facility prior to its implementation and at the time of submission of information on the progress of investment and social obligations;
-Documents confirming the production of the volume of products (works, services) determined by the contract.
-If the object of state property has material resources of the state strategic reserve, objects and property of civil protection and mobilization purpose, the buyer shall ensure the safety of objects and property of civil protection and mobilization purpose, material resources of the state strategic reserve, accepted for responsible storage on a contractual basis, as well as unimpeded access to them in the prescribed manner.
The buyer is obliged not to take actions aimed at or allowing the liquidation or insolvency of the created enterprise until the complete fulfillment of investment and social obligations assumed under the contract of sale of state property.
In this case, the acceptance of the implementation of investment and social obligations is carried out on the basis of written information of the buyer on the completion of the specified investment and social obligations and the report of an independent audit and (or) evaluation organizations, in accordance with the terms of the contract.
Fulfillment of investment obligations in accordance with the sale and purchase agreement
On the basis of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated 06.10.2014 № 279 Investment and social obligations are accepted by the buyer in accordance with the contract of sale and purchase of state property and are carried out by:
-Investment of cash and reinvestment of profits received from the buyer's activities, including dividends accrued on its share;
-Supply of raw materials, equipment, spare parts and components for modernization, technical and technological re-equipment of production;
-Carrying out repair and construction works;
-Performance of production reconstruction;
-Repayment in full or in part of debts of object of investment to the State budget of the Republic of Uzbekistan, loans and other obligations;
-Mastering the production of a certain type of products, works and services;
-Introduction of "know-how", other types of intellectual property;
-Expenses on personnel training and retraining;
-Preservation of a profile of activity;
-Other forms not inconsistent with the law.
-Investment obligations and social obligations of the purchaser in respect of the object of state property must have deadlines for their fulfillment. Investment obligations shall also have cost estimate determined in accordance with legislation.
Reflection of investment obligations in the balance sheet of the company
-In accordance with the requirements of legislation and the sale and purchase agreement, investment obligations performed by the purchaser are reflected in the company's balance sheet.
-Performance of investment and social obligations is accounted for by the date of receipt of investments to the object of investment and the date of accounting on the balance sheet of the Buyer.
-Reflection of own property (construction materials, fixed assets, spare parts and other valuables) contributed by the investor as investment obligations in the balance sheet of the company is performed by increasing the authorized capital of the company.
-Changes (increase) of the Authorized fund of the enterprise are subject to re-registration in the relevant state body. Translated with
The procedure of acceptance of investment and social obligations performed
Acceptance of investment and social obligations performed by the buyer is carried out in accordance with the frequency specified in the contract.
The first step. Acceptance of fulfilled investment and social obligations is performed by the seller on the basis of written information of the buyer on fulfillment of investment and social obligations. At the same time the acceptance of the implementation of investment and social obligations in full is carried out within a period not exceeding one month from the date of receipt of the buyer's written information on the completion of and social obligations and the report of an independent audit and (or) appraisal company, in accordance with the terms of the contract.
The second step. In order to organize the acceptance of completed investment and social obligations, the seller creates a commission for the acceptance of the implementation of investment and social obligations.
For information. The commission includes representatives of the seller, the participant and the interested party of the contract (if any), the corresponding body of the state power on the field, object of investment, territorial divisions of the Ministry of economic development and reduction, the Ministry of Finance, the territorial division of the State committee on ecology and environmental protection - in case of presence in the contract of obligations on carrying out environmental protection measures, the territorial inspectorate of
Reminder. By agreement with the Commission the Seller may engage on a contractual basis an independent expert (appraisal, audit, financial, consulting organization, etc.) to conduct an examination of documents on implementation of investment and social obligations presented by the buyer.
The third step. According to the results of its work, the Committee makes a reasoned decision on recognizing the investment and social obligations fulfilled or not fulfilled.
Responsibility of purchaser (investor) for violation (non-fulfillment) of contract terms
If the buyer fails to comply with the terms of the agreement, the seller:
-sends a written request (notice) to the buyer about the existing violation of the terms of making redemption payments and (or) fulfillment of investment and social obligations within the deadlines provided for the provision of relevant information under the contract;
-calculates a penalty for each day of delay in making redemption payments in accordance with the terms of the contract;
withhold a fine from the buyer in accordance with the terms and conditions of the agreement;
-initiate termination of the agreement in accordance with the established procedure, if the buyer fails to pay the next installment of the redemption payments and/or investment and social obligations within three months after the expiration of the term stipulated in the agreement to the extent stipulated in the agreement.
-the amount and procedure for applying the forfeit and the conditions for termination of the contract shall be specified in the contract
Announcement of the tender for the sale of state property sold at "zero" redemption value (hereinafter - the object) shall be published in the media at least 2 months prior to the tender.
Sale of objects is carried out on the basis of decision of territorial commission on competitive bidding (except for objects sold by the State commission on conducting tenders for the sale of state property to foreign investors) in accordance with the Regulations approved by the Cabinet of Ministers of 26.08.2003.
All individuals and legal entities, including non-residents of the Republic of Uzbekistan, who expressed their desire are allowed to participate in the tender.
To participate in the contest investor, not later than three days before the date of the contest announced in the media, submits to the territorial competition commission a competitive bid in a sealed envelope.
A competitive bid must contain a business plan, an investment program (project) with an indication of the deadline for its implementation, delivery of equipment (if provided), its technological parameters, the planned range of output products and their competitiveness, raw materials, measures to improve production efficiency, the use of available equipment and production space, the expected economic effect, other obligations and plans of the investor for financial and economic recovery of the object of sale or restoration of economic use of its territory.
At the request of foreign investors to create enterprises with foreign investment low-liquidity facilities that are on the balance sheet of local state authorities are sold at "zero" redemption value, without competition through direct contracts with the investor under investment obligations