Improving the project appraisal system discussed

On March 11, President Shavkat Mirziyoyev reviewed a presentation of proposals to improve the project appraisal system.

This year, more than $50 billion in investment is planned to be attracted to the country’s regions and economic sectors, while 24 trillion soums will be allocated from the state budget for the construction of social and infrastructure facilities. In addition, goods, works, and services worth over 300 trillion soums will be procured through public procurement. Ensuring the prompt and effective functioning of the appraisal system is therefore crucial for implementing such large-scale projects.

However, the current procedure does not fully meet modern requirements and draws justified criticism from entrepreneurs and investors. In particular, last year a significant portion of the 7,750 documents submitted for appraisal was reviewed with delays. In some cases, projects were returned for revision several times due to minor shortcomings.

Therefore, by a Presidential decree, the Center for Comprehensive Expertise of Projects and Import Contracts was transferred to the newly established Agency for Industrial Cooperation and Public Procurement, and tasks were set to transform its operations.

The presentation reviewed the issues in this area and the proposals developed to address them.

Due to insufficient digitalization and the lack of risk analysis methods, the operational workload of employees exceeds acceptable levels. Although the center employs 130 specialists, the lack of project differentiation by risk level and strategic importance means that each employee, on average, has to review one project every two days.

The majority of documents submitted for appraisal relate to projects of relatively low value. Furthermore, despite their similarity to previously reviewed projects, many documents still undergo a full appraisal cycle, leading to additional time and resource costs.

During the presentation, it was proposed to introduce best practices into the center’s work.

Specifically, a differentiated procedure for reviewing projects based on their risk level and value was proposed. Accordingly, during the appraisal of pre-project documentation, terms of reference will no longer be reviewed. Moreover, only corporate and state-funded projects with a value exceeding $15 million will be subject to appraisal.

Initiatives were put forward for the parallel appraisal of large and mega-projects, expedited review of similar projects, a simplified procedure for physically and technologically obsolete equipment, and the use of benchmarking. This will optimize the appraisal process and allow the center to focus on large investment projects of strategic importance.

During the presentation, the introduction of incentive mechanisms for participants in the appraisal process was also discussed. In particular, measures were proposed to encourage clients, including expedited appraisal procedures and discounts for obtaining a positive conclusion at the first stage or for addressing project comments ahead of schedule.

Particular attention was paid to the digitalization of the center’s activities. For this purpose, a unified information platform will be created, integrated with the databases of tax and customs authorities, national statistics, environmental and climate data, as well as with the electronic systems of the national classifier of construction resources and public procurement. The platform is expected to enable the online generation of project documentation and the analysis of prices and technical parameters of goods and services using artificial intelligence technologies.

Emphasizing that project appraisal is a key component of the investment climate, the Head of State instructed responsible officials to reduce excessive bureaucratic barriers, digitize processes, and improve quality and efficiency in this area.