The CEO of AKFA Holding, former Tashkent mayor Jahongir Ortikhudjaev has proposed involving private companies in constructing government ministry and agency buildings in New Tashkent, using private capital and loans, with the government then leasing the buildings back on a long-term basis. He made the proposal on August 18 during President Shavkat Mirziyoyev's meeting with business leaders.
Ortikhudjaev said the idea stemmed from a trip to Washington, where he observed how the U.S. government houses many of its agencies in privately owned buildings.
"When I was in Washington, we saw that 55% of government agency buildings are owned by private companies. Government agencies lease these buildings from businesses on a long-term basis. Even divisions of the Department of Justice and the FBI operate out of leased buildings," he said.
According to Ortikhudjaev, this model allows the government to avoid the costs of allocating land, constructing buildings and maintaining administrative facilities over time.
He proposed applying the same approach in New Tashkent, where new buildings for ministries and government agencies are planned.
"We're proposing that private construction companies build government buildings in New Tashkent using their own funds, then lease them to the state long-term under offtake agreements," he said.
Ortikhudjaev said having a long-term government contract in hand would allow private companies to attract foreign financing, including loans and bond issuances.
"If a private company has an offtake contract, it can issue bonds abroad and secure loans and financing for construction. When a private company acts as the developer itself, construction costs less and quality improves," he said.
He added that the mechanism could save the government significant budget funds otherwise earmarked for administrative construction projects.
"With your permission, we'll submit formal proposals on this. Implementing a project like this could create more than 100,000 new jobs," the businessman said.
Artykhodjaev also spoke about his companies' expansion into the U.S. market. He said a plant launched this year in Akhangaran is now exporting its products to the United States.
"So far, we've exported $100 million worth of products to the U.S., and by the end of the year, our exports there will reach $200 million," Ortikhudjaev said.
He added that since last year's meeting between the president and business leaders, his companies have opened three new factories and one hotel, with six more hotels planned to open by the end of this year.
Artykhodjaev previously said that AKFA Holding is willing to hire 10,000 Uzbeks currently working abroad, including in Russia. President Mirziyoyev has instructed officials to develop a platform to facilitate their employment and to involve Uzbek embassies in the effort.
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