Muzaffar Rahimjanov, Deputy Head of the Department of the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan, analyzed key questions and prepared answers based on international experience.
- Why Sea Breeze?
- Charvak is a gem of tourism. That is why it was important to find a strong investor capable of implementing the project not hastily, but at a high level - with schools, hospitals, sewers, parks and workplaces.
Agalarov Development has proposed $5 billion in investments, the construction of social infrastructure, environmental solutions and phased implementation under state control.
- Why did they give everything to one investor?
- One developer is a single architecture, sewerage system, transport, landscaping and responsibility.
If the site had been distributed to several developers, there would have been disagreements, chaos and difficulty in control.
Example: in Saudi Arabia, a single operator was also chosen for The Red Sea Project in order to preserve the environment and integrity.
- Where does the money come from? What about the debts?
- The project is completely private. The budget is not involved. The risks are assumed by the investor. Loans are attracted on a commercial basis, there is absolutely no question of any increase in the national debt.
But at the same time, the state maintains strict control at all stages of implementation - from compliance with environmental standards to transparency of financing and social impact.
Example: This is how the Sani Resort in Greece was built - without a penny from the budget, but with great effect on the economy.
- Does the investor have any experience?
- yes. Sea Breeze in Azerbaijan is a world-class resort with hotels, concerts, restaurants and landscaping. There are also projects in Moscow and the Moscow region.
Example: so Kerzner built Atlantis in Dubai, and then in China. The successful experience has been scaled.
- Why is the rent only 17 billion soums?
- The rate has been reduced to symbolic values as an investment incentive.
In return, the investor pays a $240 million infrastructure fee, more than the market price of the land.
The infrastructure fee is being charged for the first time in the Tashkent region.
This money goes to sewers, roads, bridges and sewage treatment plants.
Over $100 million will remain for further development and modernization.
Example: in Mexico and Vietnam, leases for large investment projects are often zero in the early years in order to raise funds and launch development.
- Is it possible to resell land plots? Is this speculation?
- No, the land remains in state ownership.
Subletting is possible only for construction within the framework of the general concept, for example, for international hotels.
In case of violation of the terms, the contract is cancelled, the land is returned to the state.
Example: in the UAE (Saadiyat Island), the same conditions apply - state control, a clear master plan, and the right to transfer only for the implementation of project objectives.
- Why was it allowed to build until the completion of the project documentation?
- This is legally possible in exceptional cases.
The decision was made by the government with strict control: The Prosecutor General's Office is monitoring, and an interdepartmental group headed by the Deputy Prime Minister is being created.
Example: Marina Bay Sands in Singapore was built on the same principle: in stages, with plans finalized in the process - so as not to waste time, but everything is under control.
- What about the environment?
- The discharge of sewage into Charvak is prohibited.
The investor builds a sewage system at his own expense.
The circular sewage system will be connected to the sewage treatment plant in Chirchik.
The sewage system will significantly improve the infrastructure potential of the surrounding areas.
Trees will also be planted, energy-efficient technologies will be introduced, and environmental control is carried out at all stages.
Example: in Albania, a similar project has not only not harmed, but also improved the environmental situation in the region.
- Why is the state building roads and communications?
- Public infrastructure (bridges, roads) is always built at the expense of the state, because it is used not only by tourists, but also by local residents.
Important: the investor compensates for the costs through an infrastructure fee ($240 million).
Example: This is how the facilities for the Dubai Expo and the NEOM project in Saudi Arabia were built - infrastructure at the expense of the state, facilities at the expense of private capital.
- What will the society get?
Thousands of new jobs will be created.
Educational and medical institutions and roads will be built.
The flow of tourists and currency will increase significantly.
Budget and tax revenues are the same.
A water supply and sewerage system necessary for ecology, landscaping and the long-awaited Charvak will be built.
Conclusion:
Sea Breeze Uzbekistan Project:
does not require money from the budget;
creates a new growth point for the region;
It is implemented with an international approach and under state control;
adheres to environmental and urban planning standards.
This is a chance for Charvak to turn into a year-round center for tourism, work and a comfortable life, following the example of the world's best resorts.
