The population and construction companies to be provided with new opportunities
Tashkent, Uzbekistan (UzDaily.com) - On 2 December, a video conference on the development of the construction materials industry and housing for the population chaired by President Shavkat Mirziyoyev was held.
Large-scale creative work is being carried out to improve the living conditions of our people. Over the past five years, more than 140 thousand new apartments and individual houses have been built.
In accordance with the Decree of the President of the Republic of Uzbekistan "On additional measures to improve the mechanisms of mortgage lending" from 28 November 2019, the procedure for obtaining mortgage loans was simplified. In particular, borrowers have expanded their choice of housing options. As a result, the quality and competition increased in the area, and projects with modern architectural solutions began to be implemented in the regions. Currently, 35,000 apartments are being built annually under mortgage programs.
Despite this, the supply in the mortgage market is lower than the current demand. In particular, there are not enough mid-range apartments that are most in demand among the population.
In addition, 950 apartments worth 255 billion soums remain unsold due to unattractive location or price. In some regions, the start of housing construction has been delayed due to delays in the auctioning of land plots. As a result, funds allocated by the state for targeted loans remain unused. Many khokims of regions and their deputies for construction are limited to 2-3 organizations when choosing contractors, which is detrimental to quality.
The Samarkand region is cited as a positive example. The regional khokimiyat, having organized the well-coordinated work of designers, developers and banks, was able to ensure the construction of affordable housing. Therefore, in the region there are high indicators both for the use of subsidies and the development of credit resources.
Next year, it is planned to build about 50 thousand apartments in the country under mortgage programs. It is planned to allocate about 13 trillion soums of targeted loans and 1 trillion 300 billion soums of subsidies for this.
The meeting discussed the forthcoming work in this direction, identified new opportunities for the population and developers.
Today, in mortgage lending or when receiving subsidies, there are restrictions on the area and cost of housing. Now such restrictions will be removed.
From now on, a subsidy in the amount of 32 million soums will be allocated to the low-income population to pay part of the initial contribution, regardless of the area and cost of the purchased apartment. The same for all regions the size of the rate compensated to the low-income population by the state is set - 10 percentage points. Subsidies will also be issued for loans received for the construction and repair of individual housing.
Another innovation is that persons who are not a relative of the borrower can also act as a guarantor in obtaining a mortgage loan.
Starting next year, socially vulnerable women, orphans and persons with disabilities will also have access to mortgages in the secondary market.
The head of state ordered to organize centers in which information on new houses, consultations and services for registration, subsidies and lending will be provided in a comprehensive manner.
It is planned to introduce a “targeted mortgage deposit” mechanism, in which a tripartite agreement is concluded between the buyer, the bank and the developer, the buyer finances the developer through the bank, and the bank guarantees the timely delivery of the house to the buyer.
Contractors are also allowed to provide unfinished but roofed apartment buildings as collateral for the loan. The procedure under which the Entrepreneurship Support Fund provides construction organizations with guarantees and compensations will be extended.
Contractors with high positions in the rating will be allowed, when buying land at auction, to first deposit 30 percent of the amount, and pay the rest in installments within 12 months.
Responsible persons have been instructed to introduce these conveniences and widely explain them to the population and entrepreneurs.
The Prosecutor General's Office has been instructed to establish strict supervision over the unjustified overstatement of construction costs, cases of violation of competition, arbitrary changes in approved projects, nepotism.
Issues of ensuring the availability of building materials were also discussed at the meeting. It is indicated that it is preferable to create clusters in this area.
For example, in Tashkent and Navoi regions, clusters have been created that produce 80 percent of building structures and carry out contract work themselves. As a result, the cost of 1 square meter of housing is 3.5 million soums. This is 20 percent cheaper than other construction companies.
In this regard, the expediency of creating construction clusters in each region was noted.
- To reduce infrastructure costs, these clusters need to be created around sources of raw materials or large enterprises. For example, the cluster in Gazgan has shown its effectiveness. In the same way, 11 enterprises for cement, plasterboard, reinforced concrete, metal products, dry mixes are being launched in the Uzbekistan region. If logistics, research and innovation centers, a modern laboratory, an analytical department are created next to them, a cluster will appear that is competitive in the export and domestic markets, said Shavkat Mirziyoyev.
According to foreign experts, Farish, Saryasi, Bulakbashi, Karaulbazar, Pakhtachi, Chust, Akhangaran and other districts also have similar capabilities. In this regard, the responsible persons were instructed to specialize 24 districts in the production of building materials and to implement relevant projects.
Next year, 100 billion soums will be allocated for geological work in these areas, and 200 billion soums for the infrastructure of newly formed clusters.
In addition, construction clusters will be provided with revolving loans for 10 billion soums to replenish working capital, long-term loans in the amount of US$2 million for the purchase of modern technology and equipment, as well as customs privileges for a period of 2 years.
As you know, the quality and duration of construction largely depends on the materials used. But today the use of modern building materials in our country is less than 25 percent. At the same time, the use of modern materials can reduce construction time by 30 percent, and the cost by 20 percent.
The Ministry of Construction indicated the need to include innovative energy-saving materials in urban planning norms and rules, and to expand their use in housing construction.
The issues of transformation of higher educational institutions in the field of architecture and construction, training of qualified personnel were also touched upon.
Responsible persons provided information on the discussed issues.