The construction sector as a driver of economic development in Uzbekistan
The construction sector as a driver of economic development in Uzbekistan
Statistics indicate that the volume of construction work in Uzbekistan in the first half of the current year has increased by more than 10% compared to 2023, reaching almost 80 trillion UZS (as of 08/26/2024 $1 = 12,593.42 UZS). The sector's contribution to the gross domestic product exceeds 6%, showing that the scope of construction activities in our country is expanding year by year, and the architecture and construction sector is becoming one of the rapidly developing branches of the economy.
Last year alone, within the framework of the investment program, construction and reconstruction works were carried out on 2,535 social and infrastructure projects. Additionally, within the "Initiative Budget" system, construction and beautification works worth 55 trillion UZS were completed on 4,700 projects in our communities.
It is especially worth noting the unprecedented achievements in recent years in providing modern housing for our people. Since 2017, a total of 7,888 residential buildings comprising 394,898 apartments or 26.05 million square meters have been built, demonstrating significant progress.
Continuing these efforts, this year, 53 "New Uzbekistan" districts are being established on 25 thousand hectares. In the past six months, 104 residential buildings with 42 thousand apartments have been put into use in these districts. In the next five years, more than 250 thousand families will be provided with housing in similar districts.
The application of "green" standards, energy-saving technologies, and concepts like "smart city" and "smart home" are actively being implemented in the sector. A special mention should be made of the mega project—the construction of New Tashkent City. A "Central Park" is being built on 420 hectares, with 200 thousand trees to be planted. The goal is to create a comfortable and healthy ecological environment for the capital's residents and visitors, expanding green areas and forests.
In implementing the project, conditions will be created for pedestrians and cyclists to move freely, based on the principle of a "green and safe city." For this purpose, underground parking for 100 thousand cars will be built, along with 14 modern tunnels and 7 bridges over the Chirchik and Korasuv rivers. Notably, for the first time in Central Asia, a "tri-generation" station will be constructed. This station will produce electricity, provide heating in autumn and winter, and cooling in summer. All electrical communication lines, gas and water pipes will be laid underground. The use of water-saving technologies will halve water consumption. Wastewater will be treated using modern technologies and directed for irrigation and technical purposes.
The most advanced technological solutions and developments in digitalization are being applied in building the smart city. These include a technological hub, R&D, an AI-based city management system, CCTV coverage, data analysis in the form of geo-information, and modern situational centers that detect risks and threats—forming a digital and cognitive city. It is noteworthy that New Tashkent is planned to obtain "BREEAM" and "LEED" compliance certificates, becoming an environmentally friendly city. New buildings will not emit harmful carbon into the atmosphere, and more than 30% of energy consumption will come from alternative sources, such as solar, hydro, and waste processing.
The rapid growth in construction requires deep reforms in the sector in line with modern demands. In this context, it is significant that 55 presidential documents, 58 government decrees, and 11 legal acts have been adopted in recent years for reforming the construction and housing and communal services sector.
The digitalization of all 16 public services in the construction and housing and communal services sector through the "Transparent Construction" national information system has enabled the population and business owners to access services without leaving their homes. This has also eliminated paperwork and unnecessary bureaucracy.
The introduction of information and communication technologies in public services has reduced the time required to obtain construction permits from 39 days in 2021 to 25 days. Additionally, remote compliance monitoring has been established over regional management and departments responsible for providing public services, reducing corruption risks in the sector.
The platform also reports that the number of construction-contracting organizations increased from 20,140 in 2022 to 23,576. In January-May 2024, the volume of contract work amounted to 591 trillion UZS, a 72% increase compared to the previous year. Five types of activities in the sector were licensed, with 380 licenses and 16 accreditation certificates issued to business entities.
To improve ranking indicators, the share of the shadow economy in the construction sector is decreasing as organizations operate legally. In addition, the electronic ranking platform showed that the number of specialized machinery owned by enterprises doubled, and the number of employed workers increased by 58% compared to 2021.
The electronic tender platform, which provides a special electronic system for public procurement in the construction sector, has ensured fair competition among construction-contracting organizations by eliminating human factors and establishing clear and transparent requirements. Notably, 62,355 tenders were held on the platform, with 13,541 organizations participating.
The design and examination of project and estimate documents for construction have been revised and transferred to a transparent electronic system. These processes are managed by the "Republican Center for Expert Review of Urban Planning Documents" under the Ministry. The practice of submitting paper document packages to expert organizations has been completely abandoned. The "Project and Estimate Documents Expertise" electronic platform in the "Transparent Construction" national information system has been fundamentally updated and fully digitized. Moreover, to eliminate conflicts of interest and prevent possible corruption, the function of directing certain categories of projects for review to specific regions has been abolished. Now, the automated software independently selects the region for project review based on the workload.
The expertiza.mc.uz platform, launched in the "Transparent Construction" national information system, has been integrated with other interested agencies' and organizations' electronic platforms. The expertise system has been strengthened to ensure the safety and seismic resistance of structures and their compliance with seismic safety indicators in project documents.
In the first half of 2024, cumulative expert opinions were provided on more than 63 thousand projects received through the electronic platform. As a result of improving project solutions and aligning them with regulatory requirements, unnecessary expenses were eliminated, saving 4,371.7 billion UZS.
The "Construction Control" system monitored over 28 thousand projects and conducted more than 112 thousand monitoring activities.
It is also worth noting that urban planning documents developed and approved within the framework of state programs are regularly entered into the State Urban Planning Geo-information System. To date, this system has included 407 master plans, 16 detailed planning projects, and 595 architectural planning projects (ARTLs) of regions, with data being continuously and timely updated.
Within the framework of developing Tashkent city's digital master plan, regions have been divided into functional use zones and development restriction zones. The Technical Norms and Standardization Research Institute under the Ministry is working to improve normative documents and standards in the construction sector. This direction involves studying international experience and aligning normative documents and standards with European standards.
A significant step in this direction is the implementation of the "Modernization of Urban Planning Norms and Regulations in Uzbekistan" cooperation project. A memorandum of cooperation was signed on October 19, 2018, between the Ministry of Construction and Housing and Communal Services and the Ministry of Land, Infrastructure, and Transport of the Republic of Korea (MOLIT). According to the agreement, 256 urban planning norms and regulations are to be modernized based on Korean experience from 2022 to 2025.
To ensure transparency in the pricing system of the construction sector and create the basis for the implementation of volume-based cost estimation, the "National Classifier of Construction Resources" electronic system was introduced. This system is integrated with the electronic information systems of the Commodity Exchange and the State Tax Committee to ensure that prices are updated in real-time.
Currently, the classifier includes 177,590 resources, and this process continues systematically. Moreover, a mobile application, "Urban Planning Norms," was developed to provide the general public with convenient access to technical regulations in the construction sector, allowing free access to 120 urban planning norms. Additionally, a registry of 65,144 standards was formed on the Institute's official website.
The Competence Development Institute was established under the Ministry to enhance the qualifications of specialists in the construction and housing and communal services sector and periodically assess their knowledge. The Institute developed a special training program to train over 42 thousand specialists in 10 areas of the sector with the participation of specialists from developed countries.
The training programs were developed based on international standards recognized by the Accreditation Board for Engineering and Technology (ABET, USA) in cooperation with foreign partners, including Turkish experts, and accredited by Istanbul Technical University.
The electronic system is integrated with the electronic system of the Agency for Assessment of Knowledge and Skills, fully digitizing the processes related to testing and certification of specialists without human intervention.
Specialists who pass the test with sufficient points receive an electronic certificate with a QR code through the "Transparent Construction" national information system, granting them the right to work in the relevant field for three years.
To date, the Institute has retrained 2,381 specialists, and 524 of those who completed the advanced training course have received certificates.
Toir Alimatov,
Deputy Minister of Construction and Housing and Communal Economy
