Over the past five years, public-private partnerships (PPPs) have become one of the key reform tools in Uzbekistan. While previously interactions between business and the state were limited to public procurement and privatization, today PPPs are emerging as an independent mechanism.
Its distinctive feature is the long-term distribution of risks and responsibilities between the state and the private sector. For investors, this offers not only an opportunity to participate in procurement or construction but also a chance to gain a foothold in the market through large-scale infrastructure and social projects.
However, the attractiveness of PPPs is accompanied by serious legal and financial challenges that require careful due diligence.
Legal Regulation
The legal framework for the system is established by the Law of the Republic of Uzbekistan “On Public-Private Partnership” No. ZRU-537 of May 10, 2019. It enshrines the principles of equality of parties before the law, transparency of rules and procedures, competitiveness and objectivity in the selection of private partners, and the inadmissibility of discrimination and corruption.
By Resolution No. 720 of the Cabinet of Ministers “On Measures for Further Improvement and Comprehensive Systematization of Public-Private Partnerships” dated October 30, 2024, the “Regulation on the Procedure for Implementing Public-Private Partnership Projects” was adopted. The functions previously performed by the PPP Development Agency have been transferred to the Ministry of Economy and Finance of the Republic of Uzbekistan. Thus, all key approvals now go through the Ministry of Economy and Finance.
The “Regulation on the Procedure for Managing the State’s Budgetary Obligations Arising from the Implementation of Public-Private Partnership Projects,” approved by Resolution No. 558 of the Cabinet of Ministers dated October 23, 2023, is used to monitor state obligations. Long-term targets are set out in public-private partnership projects by 2030 (Appendix No. 2 to Presidential Resolution No. PP-308 of August 30, 2024), which envisage attracting private investment in the amount of $30.3 billion.
Scale and Statistics
As of late 2024 – early 2025, the volume of PPP projects in Uzbekistan is estimated to range from $28 to $31.1 billion.
According to the Ministry of Economy and Finance, signed agreements amount to approximately $28 billion.
According to the International Monetary Fund (IMF), the total PPP portfolio has reached $31.1 billion, including announced and approved projects.
The difference is explained by the accounting methodology: some sources only list concluded contracts (signed agreements), while others list the entire registered portfolio (pipeline – a list of projects at various stages of development).
The portfolio structure demonstrates a high concentration in the following sectors:
- energy – up to 90–93% (primarily renewable energy projects);
- utilities – approximately 5%;
- education, healthcare, and transportation – no more than 2%.
In 2023, Uzbekistan became one of the region’s leaders: according to the World Bank, six agreements worth $1.6 billion were signed, accounting for almost 40% of new projects in Europe and Central Asia.
In the next publication, we will discuss how a PPP project is formed in practice – from concept to contract – and what nuances are important for investors to consider.
This material was prepared by Andrei Gusev, Senior Partner at Nordic Star, and Aleksey Niyazmetov, Partner at TOP ADVISOR.