Ministry of Investments Explains Why Sea Breeze Uzbekistan Matters for Regional Development
Muzaffar Rakhimjanov, Deputy Head of the Department at the Ministry of Investments, Industry, and Trade of Uzbekistan, explained why the Sea Breeze Uzbekistan project on Lake Charvak is important for regional development.
The project had previously generated broad public concern. People expressed fears that it could harm the environment, restrict public access to the lake, or become a financial burden on the state budget.
According to Rakhimjanov, Charvak is one of Uzbekistan’s major tourist destinations. For this reason, the government sought a large and reliable investor capable of implementing a comprehensive project — including parks, schools, hospitals, sewage systems, and jobs.
Agalarov Development proposed to invest $5 bn and pledged to meet international standards, including environmental regulations. Construction will proceed in stages and remain under government oversight.
The decision to entrust a single developer with the project stems from the goal of preserving a unified architectural concept and avoiding conflicts between different companies. This also simplifies construction oversight. Similar practices are applied in other countries, such as Saudi Arabia’s Red Sea tourism project.
He also emphasised that the project is entirely financed by the investor. The state budget is not involved, and all financial risks are assumed by the private company. Loans will be raised on a commercial basis, and public debt will not increase. At the same time, all implementation stages will be monitored by government bodies.
Another argument in favor of the project is the developer’s international experience. A Sea Breeze resort already operates in Azerbaijan, featuring hotels, concert venues, restaurants, and well-developed infrastructure. Other completed projects exist in Moscow and the Moscow region.
The annual lease payment amounts to 17 bn Uzbek soums. At first glance, this may seem low, but the company also pays a $240 mln infrastructure fee. These funds will be used to build sewage treatment facilities, sewerage, roads, and a bridge. This type of partnership is common globally — in countries like Vietnam and Mexico, symbolic rent is often offered to major investors in the early years to attract capital.
He noted that land speculation is ruled out. Land plots are not for sale — the land remains state property. Subleasing is allowed only within the framework of the master plan, for example, to build hotels. If conditions are violated, the contract will be terminated, and the land returned.
The start of construction before completing the full project documentation raised some questions, but officials say this was an exceptional situation. The law allows such developments under supervision. The Prosecutor General’s Office is monitoring compliance, and an interagency working group led by the Deputy Prime Minister has been formed. Internationally, such approaches are not uncommon — for example, Singapore’s Marina Bay Sands was built under a similar scheme.
According to the ministry representative, environmental risks are also excluded. Discharge of wastewater into Charvak is strictly prohibited. The investor is constructing a circular sewage system that will connect to treatment facilities in Chirchik. This will not only prevent harm to the lake but will improve infrastructure in surrounding areas. Greening the area, introducing energy-efficient technologies, and ongoing environmental monitoring are also planned.
General infrastructure, roads, bridges, utilities, is traditionally funded by the state, as it will be used not only by tourists but also by local residents. However, part of these costs is offset by the $240 mln infrastructure fee.
Thus, the project will not become a financial burden on the budget but will instead stimulate regional development. It will create jobs, improve living conditions, attract tourists, and boost budget revenues.
Kursiv Uzbekistan reports that the International Finance Corporation (IFC), in collaboration with the Association of Young Architects of Uzbekistan, has announced the launch of the National Green Building Design Competition.
