Uzbekistan plans to privatize electricity and gas networks by 2027, expanding public-private partnerships

As it was previously reported, on August 30, Shavkat Mirziyoyev approved measures to develop public-private partnerships by 2030.

The resolution calls for a more active involvement of the private sector in the development of infrastructure and social facilities. Specifically, it is planned to transfer the management of utility networks to private operators.

By July 1, 2027, agreements are to be signed for the transfer of electricity networks to private operators, and by the end of the same year, agreements for the transfer of gas distribution networks. This is expected to cut energy losses by at least half.

Priority PPP projects include the modernization and transfer of electricity networks and gas pipelines in the Samarkand region. Agreements with the winners of tenders are expected to be concluded by the end of 2025 and 2026, respectively.

There are also plans to involve private businesses in the management of water supply and sewerage systems. Key projects in this area include:

•  Modernization of sewage facilities in Namangan (initial cost: $96 million);
•  Modernization and transfer of management of heating networks in Bukhara ($122 million);
•  Modernization and transfer of management of water supply systems in Dangara, Buvayda, Kasansai, Zamin, Bahmal, and Kagan districts ($100 million);
•  Improvement of water supply in Surkhandarya ($1.1 billion).

Another task is to finalize agreements on the modernization of irrigation pumping stations by 2028. A tender, in collaboration with the IFC, is planned for the construction of 200 major projects valued at $300 million.

Furthermore, from 2026, there is an order to organize the construction of at least 100 schools and 100 kindergartens annually under PPP agreements.

By June 2025, a tender with the ADB is planned for the construction of 13 schools with a total of 14,000 places in the capital region, costing $97 million. Another tender for the construction of 100 schools at a cost of $570 million is to be held by February 2026.