President Mirziyoyev Discusses Strategic Initiatives for Uzbekistan’s Building Materials Industries

President Mirziyoyev Discusses Strategic Initiatives for Uzbekistan's Building Materials Industries

Tashkent, The Gulf Observer: On September 23, 2024, President Shavkat Mirziyoyev chaired a critical meeting to address the future of Uzbekistan’s construction and building materials industries. The construction sector, pivotal to economic development, continues to drive growth across various sectors. Each new project enhances the demand for building materials, equipment, and skilled labor, while also spurring job creation, infrastructure development, and service expansion.

Over the past seven years, Uzbekistan has invested $9 billion into the building materials sector, launching approximately 5,000 new enterprises and creating 94,000 permanent jobs. The production capacity in this sector has doubled, with over 150 companies now generating an annual turnover exceeding 100 billion UZS. During this period, the volume of construction has doubled, and the introduction of new products worth $650 million has contributed to reducing the share of imports in the sector from 31% to 25%.

Uzbekistan’s export market for building materials has expanded to 58 countries, supported by the opening of over 20 warehouses and 50 stores abroad. Exports are projected to reach $1 billion this year. However, despite these accomplishments, untapped potential remains, and the President outlined new initiatives aimed at harnessing it.

One of the notable areas of focus is the use of innovative materials to reduce energy consumption in construction. Currently, seven basalt enterprises in the country produce 140,000 tons annually, significantly contributing to a 20% reduction in energy use for new residential and social buildings. Furthermore, by incorporating materials such as sun-reflecting glass and vermiculite mixtures, energy consumption in buildings can be halved. The President emphasized the need to expand the production of these key materials.

To further develop the sector, investment projects totaling $20 million will be implemented at the Quartz enterprise in Kuvasay and a glass factory in Jizzakh, with an additional $3.5 billion planned for 350 new projects. These projects are expected to create 50,000 jobs for low-income families. Reducing energy consumption in the production process is also a priority. Through energy-saving technologies, such as those implemented at Kyzylkumcement, significant reductions in electricity usage have already been achieved. An energy audit of 34 high-consumption enterprises identified potential savings of 300 million kilowatt-hours annually.

Despite progress, the construction industry faces challenges related to market oversaturation. While Uzbekistan meets domestic demand for 97 of the 170 building materials produced, a lack of market research has led to an imbalance in supply and demand. To address this, a public list of oversaturated materials will be published, and proposals for new products will be developed based on market needs.

The President also highlighted the importance of updating urban planning standards to align with global innovations and technology in construction. Localized masterplans for tourism and trade development are underway, particularly in Bukhara and Navoi regions, but progress in other areas remains slow. Regional leaders were instructed to accelerate the implementation of masterplans, which include urbanization, tourism zone creation, and roadside trade and service expansion.

Improving construction quality was a key topic of discussion. President Mirziyoyev ordered the establishment of daily monitoring for all state-funded construction projects, with video surveillance and digital oversight through the Inspectorate for Control in the Sphere of Construction and Housing and Public Utilities. Additionally, a QR-code-based system will ensure transparency, and all construction lacking this verification will be considered illegal.

Urban planning councils, which have faced delays in project approvals, will undergo full digitalization, streamlining the process through the “Shaffof Qurilish” platform. This will ensure project reviews are completed within 15 days. To prevent fraud in housing construction, an escrow account system will be introduced to safeguard buyers, with banks acting as intermediaries to guarantee timely project completion.

The President also announced plans to establish a system for assessing construction workers’ qualifications, ensuring skilled professionals meet rigorous standards. Training programs and certification systems will be introduced for both workers and design organizations to enhance the sector’s professionalism.

The meeting concluded with the Head of state addressing feedback from industry leaders and entrepreneurs. He instructed relevant authorities to take swift action on numerous proposals, including optimizing the use of local raw materials, boosting competitive practices through mandatory certification, and streamlining labor recruitment in the construction sector.

These comprehensive measures aim to strengthen Uzbekistan’s construction industry, enhance production efficiency, and secure the country’s position as a regional leader in building materials production.