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The Development of Public-Private Partnerships (PPPs) in Uzbekistan

Uzbekistan committed to public-private partnerships (PPPs), viewing them as essential for improving public services and attracting much-needed investment and expertise. The country has experienced significant growth in PPP projects, with over 400 infrastructure initiatives, valued at approximately $16 bln, either completed or in progress. This marks a major change, especially given the lack of private sector involvement in such projects before 2018.

Currently, PPPs cover various sectors, including energy, healthcare, and education, with an expected mobilization of around $700 million. Additionally, several projects in energy, healthcare, and the chemical sectors have already been completed, with a total anticipated mobilization exceeding $1.8 billion.

Uzbekistan plans to expand its PPP efforts into sectors such as irrigation, transport, power distribution, and municipal services - all of which face underinvestment and operational issues. To speed up the implementation of PPPs, the country needs to streamline project development, accelerate approvals, and simplify land acquisition processes.

Looking ahead, Uzbekistan’s ambitious Strategy 2030 targets $30 billion in private sector mobilization by the year 2030.

Public-Private Partnership Projects initiation

A private or public partner first develops a concept paper on the Public-Private Partnership (PPP) project as well as a feasibility document packet, then approaches the responsible state authority for approval. Depending on its value, the PPP project may go through several stages of approval, starting from simple adoption by the public partner up to final approval by the Cabinet of Ministers. Depending on the project value, the following approval gradation is applicable:

<1 million USD: approval by the public partner
1–10 million USD: approval by both the public partner and Department of the Implementation of PPP Projects
>10 million USD: acknowledgment by the public partner and the Department for the Implementation of PPP Projects, followed by final approval by the Cabinet of Ministers.

Selection of the Public-Private Partnership Projects

The public partner selects the private partner through a tender process, which can be conducted in either one or two stages.

Criteria for a single stage tender

The project value amounts to 1 mln USD or below, and/or
The private partner acts as an initiator (unsolicited project). If the public partner approves the concept paper the private partner submitted, the project proposal is put out for tender. A Request for expression of interest should be posted on the website of the public partner and Department of the Implementation of PPP Projects for 45 days. If no one declares interest during the specified period, the public partner may enter into a direct agreement with the private partner.

Criteria for a two-stage tender

The project value exceeds USD 1 mln, and/or
The public partner acts as the initiator (solicited project). The tender commission, comprised of representatives from state authorities (e.g., public partner, Ministry of Finance, Antimonopoly Committee, Department of the Implementation of PPP Projects) determines the winning bid.

For investor

Public-Private Partnerships (PPPs)

Standard Tender Process

Private Initiative Project Implementation Process (Swiss Challenge Method)