5Legal Framework
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Scope of the State’s right for land acquisition, and respective compensation.
According to the Land Code, all land in Uzbekistan is state property and permits for use of land are granted and monitored by the State through the rayon and oblast administrations.
National legislation envisages the following types of land transfers: (a) for use, lease, or ownership by legal entities dealing with various trades and services for lifelong inheritable use (with housing), and (b) use or lease by individuals. Because all land ultimately belongs to the State, it cannot be sold without the buildings on that land. In the case of individual land uses, land can be purchased only together with the residence located in that land. A similar provision applies to land used by legal entities. For example, if a grocery store or a barber shop is to be demolished, and land is to be occupied by a production shop, the land plot shall cease to be owned by the grocer or barber; instead, it will be transferred into another land category in the cadastre documents.
All land occupied for permanent structures required in the Project, namely electric power lines, wells, cross regulators and outlets, water measuring structures, collectors and related protection perimeters (‘sanitary zones’) is contributed by the State through the local administrations and will remain the property of the State upon completion of the Project.
Legislation envisages compensation for damages to land users in full, including lost income, in the following instances: (i) seizure, purchase, or temporary occupation of land; (ii) limitation of the rights of users; and (iii) deterioration of land quality due to the effects of construction works, and servicing and other activities that lead to decreases in the quantity or quality of agricultural products.
In the case of the acquisition of agricultural lands, in addition to compensation for damages, the legislation envisages compensation to land users for the loss of agricultural production. The Land Code identifies several categories of arable land users, who are eligible for compensation for losses and damages in connection with land acquisition:
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Land tenants – citizens who were allocated land plots for individual housing construction and/or dehkan farming on the basis of life-long heritable tenure.
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