Uzbekistan Update: November 15-30, 2023
Biweekly update on key developments in Uzbekistan
“I would like to request you to consider our proposal to establish a SPECA Businesswomen’s Council to continuously and systematically promote active initiatives and concrete plans of businesswomen within SPECA.”
The President of Uzbekistan at the First Summit of the United Nations Special Programme for the Economies of Central Asia
Round table: Uzbekistan-Europe Partnership for Healthcare Development
The Round Table aims to facilitate a working discussion among representatives of European pharmaceutical companies, healthcare sector companies, and government organizations in Uzbekistan's healthcare sector. The goals include strengthening cooperation through bilateral programs, enhancing regulatory policies for the pharmaceutical and medical industries, discussing the development of diagnostic and medical infrastructures in Uzbekistan, and planning initiatives for the education and training of healthcare professionals.
Date: December 6, 2023, 09:30 - 12:00 (GMT+5)
You can register to the event via the link
‘Uzbekistan-2030’ horizons event
The conference aims to foster collaboration among experts, policymakers, researchers, and practitioners, providing a platform to exchange knowledge, insights, and innovative approaches regarding the key development prospects within the framework of the Uzbekistan 2030 strategy
Date: December 12, 2023, 08:30 - 15:30 (GMT+5)
Venue :InterContinental Tashkent, an IHG Hotel
You can register to the event via the link
EUROUZ & MEMBER NEWS
EUROUZ hosted the Open HR & Capacity Building Committee Initiation meeting
The HR & Capacity Building Committee aims to promote a skilled and empowered workforce, not just within EUROUZ but across Uzbekistan's business landscape. If you are interested in knowing more or taking part in the existing committees, please contact the EUROUZ Secretariat.
Human Capital Days in Uzbekistan
An outstanding HR forum that united CEOs, HR directors, and industry experts from Uzbekistan and the countries of the region on November 23 in Tashkent. Congratulations are in order for the organizers, including EUROUZ member- LavoroSolutions, who served as the event's HR partner.
Not a member yet?
1. INTERNATIONAL COOPERATION
European Union is providing farmers in Uzbekistan with new methods for green growth
The initiative aims to address climate challenges and enhance agricultural sustainability. Drip irrigation, saving water, increasing yield, and promoting an environmentally friendly approach were emphasized. The EU-backed project includes seminars and training, benefiting farmers, dehkans, and agricultural specialists. Successful implementations, like the Yaylanpa farm, demonstrate increased yields and resource conservation, encouraging broader adoption of innovative practices.
The European Union (EU) has extended Uzbekistan's Generalized System of Preferences Plus (GSP+) trade preference for four more years until December 31, 2027. EU Ambassador announced the decision. GSP+ has significantly benefited Uzbekistan, quadrupling its exports to the EU from 93 million euros in 2019 to 450 million euros in 2022. The program, exempting Uzbekistan from certain taxes, has positively impacted economic diversification, with a shift towards pharmaceuticals and other chemical products. The EU supports Uzbekistan's progress in human rights and labor rights but emphasizes the need for further efforts, particularly in freedom of association and expression.
German companies plan to implement investment projects in the Namangan region
Wehrhahn GmbH and Namangan Cement, based in Tashkent, Uzbekistan, are set to collaborate on a 40 million euro project for the production of aerated concrete products. In addition to this project, various German companies, including Amandus Kehl, Bio Energy-Land, Vollert Anlagenbau GmbH, and Textima Export Import, are exploring investment opportunities in the region. The projects range from livestock and fisheries complexes to vertical greenhouses, construction ventures, and the establishment of a representative office.
German Bank allocates a grant for the modernization of educational centers in Uzbekistan
Uzbekistan has entered into a financial agreement with the German Development Bank KfW, securing 16 million euros to advance the country's vocational education system reform. The primary objective is modernizing the ministry's training centers, aligning them with labor market requirements, and implementing dual education principles. The signed agreement allocates a grant of 16 million euros, with 14 million euros designated for the modernization of seven training centers in terms of material, technical, and methodological aspects. The remaining 2 million euros will support the overall project.
France Pitches Rafale to Uzbekistan
France is actively promoting the sale of Dassault Rafale fighter jets to Uzbekistan and Kazakhstan. The President of France pitched the Rafale combat aircraft during his recent visit to the region, particularly targeting Uzbekistan, which is modernizing its military. The Uzbek Air Force is considering the Rafale as a potential replacement for its aging Russian-made fighter jets. Uzbekistan seems uninterested in the Eurofighter Typhoon and finds American-made jets too expensive. France has sold military equipment, including helicopters, to Central Asian countries in recent years, with reported purchases of EUR401.6 million by Tashkent and around EUR330 million by Astana from 2013 to 2022.
1.2 CENTRAL ASIA & CAUCASUS
Source: Presidents Press Service
Uzbekistan's President visited Azerbaijan from November 23 to 24 at the invitation of President Ilham Aliyev. During the visit, Mirziyoyev participated in the first summit of the UN Special Program for the Economies of Central Asia (SPECA) in Baku. The summit focused on expanding multilateral cooperation, establishing a Trust Fund for regional projects, adopting a digitalization roadmap for transport corridors, and promoting business initiatives. SPECA, initiated in 1998, aimed to enhance economic cooperation and integrate Central Asian countries into the global economy.
Afghan delegation visits Uzbekistan
A delegation from the Ministry of Agriculture, Irrigation, and Livestock of Afghanistan visited Uzbekistan to enhance cooperation in agriculture. Uzbekistan's Minister of Agriculture, met with the Afghan delegation to discuss topics such as drip irrigation, horticulture development, and investment cooperation. The delegation also engaged with the Vice-Rector for International Relations of Tashkent State Agrarian University to explore collaboration in agricultural education and training. Additionally, discussions with the Agency for Quarantine and Plant Protection director under Uzbekistan's Ministry of Agriculture focused on cooperation in quarantine, plant protection, and ensuring phytosanitary safety. The Afghan delegation also visited the central phytosanitary laboratory to learn about Uzbekistan's experience in these areas.
1.3 RUSSIA & CHINA
An agreement was reached on cooperation in the field of ecology with the Chinese National Society
During CRIC-21, the Minister of Ecology met with the Chairman of the Chinese National Society for the Control of Sand and Desert Industry. They discussed collaborative efforts on land degradation research and sustainable land management in regions of Uzbekistan prone to dust and sand storms (DSS). China's strategies against desertification were shared. An agreement was reached to establish cooperation, with plans for a Memorandum on combating desertification and land degradation.
Source: Bakhitoyor Saidovs Telegram channel
Uzbekistan and China held their inaugural strategic dialogue between foreign ministries. The foreign ministers emphasized the strengthened and dynamic strategic partnership, highlighting the elevated level of cooperation. Discussions covered political, economic, and diplomatic cooperation, emphasizing the full implementation of previous agreements and a commitment to enhancing economic diplomacy with tangible outcomes. Both nations expressed readiness to intensify cooperation across all areas.
Chinese company invests US$15 million in a project in Ferghana region
The Chinese company Mycars (Shandong) International Trading intends to invest $15 million in a diversified project in Uzbekistan's Ferghana region. The project, discussed during a meeting with Ferghana's major, involves producing autoclaved gas blocks and basalt thermal insulation slabs for building facades in Kuvasay. Additionally, the project envisions the assembly of cranes and veterinary drugs in later stages.
Uzbekistan continues to export gas to China amid production cuts and import increases
In October, Uzbekistan exported $42.25 million worth of natural gas to China, contributing to a total of $454.4 million since the beginning of the year. Despite the continued gas exports, the yearly figure is significantly lower than the previous year's $916.17 million, attributed to the suspension of gas exports in January-March amid an energy crisis and decreased domestic production. Uzbekistan's gas production dropped by 10.4%, reaching 38.96 billion cubic meters, leading the country to become a gas importer despite abundant resources.
1.4 NORTH & SOUTH AMERICAS
Central Asian countries, USA launching B5+1 business platform
Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and the United States have jointly initiated a business platform for public-private dialogue known as Business 5+1 (B5+1). This platform aims to enhance economic security through regional economic integration, reform, public-private dialogue, innovation, and foreign investment. The inaugural B5+1 meeting is scheduled for 2024 in Almaty.
1.5 MIDDLE EAST, EAST ASIA, & SOUTH-EAST ASIA
Source: Presidents Press Service
The President held a meeting in Abu Dhabi with the Crown Prince of the Emirate of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces Sheikh Mohammad bin Zayed Al Nahyan, negotiations were held in Dubai with the Vice President, Prime Minister of the UAE, Emir of Dubai Sheikh Mohammad bin Rashid Al Maktoum and other officials. During the negotiations, issues of developing practical cooperation in trade, economic, investment, energy, agriculture, tourism and other areas were discussed, mutually beneficial bilateral documents and investment agreements worth more than $10 billion were signed.
Japanese companies to take part in tenders in new promising areas in Uzbekistan
A round table in Tashkent facilitated discussions between Uzbekistan and Japanese businesses under the "state and business" format. The event, led by Deputy Prime Minister and ROTOBO Presiden, addressed joint projects, challenges faced by Japanese entrepreneurs, and potential areas of cooperation. Uzbekistan's support for entrepreneurs, including abolishing licenses and reducing taxes, was emphasized. The Deputy Prime Minister invited Japanese companies to participate in tenders for solar and wind power plant construction in Uzbekistan.
Source: Presidents Press Service
They discussed enhancing bilateral relations and implementing previous agreements. During the visit, agreements were signed for projects totaling $12 billion in chemistry, energy, agriculture, pharmaceuticals, IT, and infrastructure. Additionally, $11 billion worth of projects in transport, utilities, geology, and other fields were discussed. The partnership with ACWA Power in green energy projects, valued at $7.5 billion, was acknowledged. President awarded the Minister with the Order of Dustlik in recognition of his contributions to bilateral relations.
1.6 INTERNATIONAL ORGANIZATIONS
UNDP supported the opening of a training center for insurance sector specialist
The center, located at the Tashkent Institute of Finance, aims to train specialists and professionals using the "Trainer for Trainers" principle. The initiative, supported by the UNDP global project "Insurance and Risk Finance Facility" and funded by the Government of Germany, seeks to address the shortage of qualified employees in the insurance industry and contribute to the overall development of the insurance market in Uzbekistan. The training center's opening ceremony took place on November 14, 2023.
An agreement was reached on cooperation with the UN Coalition to Combat Sand and Dust Storms
Discussions focused on collaborating with the Food and Agriculture Organization (FAO) to address land degradation and sustainable land management in regions prone to sand and dust storms. An agreement was made for the participation of FAO's Director-General in the 14th meeting of the Conference of the Parties to the Convention on the Conservation of Migratory Species of Wild Animals (COP-14) and the Samarkand Climate Forum.
UNICEF and Gavi donated IT and waste management equipment to the Ministry of Health worth US$3.2 million to strengthen Uzbekistan’s immunization program
The assistance includes IT equipment, such as 3,000 tablets and 221 remote temperature monitoring systems, aimed at modernizing the country's immunization program. Additionally, waste management equipment and annual supplies have been provided to 28 healthcare facilities across several regions, further supporting Uzbekistan's healthcare system. This collaboration aims to foster sustainable and equitable immunization systems while strengthening the health workforce and building public trust in vaccination efforts. Over the past five years, Gavi has supported UNICEF with over $28 million.
Uzbekistan's Foreign Minister holds meetings with OSCE representatives
During the 30th meeting of the OSCE Council of Foreign Ministers in Skopje, North Macedonia, Uzbekistan's Minister of Foreign Affairs, held meetings with representatives of the Organization for Security and Cooperation in Europe (OSCE). He met with, the Director of the OSCE Office for Democratic Institutions and Human Rights (ODIHR), to discuss the outcomes of Mecacci's recent visit to Uzbekistan and outline cooperation plans for the future. Additionally, a meeting was held with, the OSCE High Commissioner on National Minorities, to discuss collaboration on promoting the principles of interethnic harmony and tolerance within the OSCE space.
Two regional EU-funded Programmes celebrate their 20th anniversary
The events included a handicraft contest and an exhibition reflecting local traditions in border regions. Over 100 program partners and beneficiaries from all five Central Asian countries attended the ceremony. The CADAP program has played a crucial role in drug policy development in Central Asia, investing in areas such as data collection, prevention of drug use, and treatment of people with drug disorders. The BOMCA program, launched in 2003, focuses on supporting the EU-Central Asia dialogue in border security and facilitating collaboration among the Central Asian countries for more effective border management. The 10th phase of BOMCA has broadened its scope to include trade facilitation, migration management, and collaborative efforts in border areas.
Source: Bakhitoyor Saidovs Telegram channel
2. PUBLIC POLICY
Uzbekistan Adopts Legislation for Women Entrepreneurs
The law aims to enhance employment, reduce poverty, develop family entrepreneurship, engage the population in sports, and improve urban planning. Notable provisions include allowing family business entities to hire up to five permanent employees when concluding an employment contract. Participants in one family business can now simultaneously participate in another family business. Changes to the Customs Code offer exemptions from customs duties on sports-related imports for state and non-state sports and educational organizations. The amendments aim to streamline bureaucratic procedures in architecture and construction, promote family entrepreneurship, and enhance sports and educational organizations.
Legislative Chamber approved the mitigation of punishment for the illegal import of drones
The new bill proposes amendments to the Codes of Criminal and Administrative Liability to establish administrative liability instead of criminal for first-time offenders of illegal drone-related activities. Additionally, the bill suggests measures to reduce the punishment for repeated violations.
3.1. GOVERNMENT APPOINTMENTS
The procedure for consular legalization of documents has been approved
The regulations specify the process for legalization in Uzbekistan and consular offices, as well as the recording of legalization. Consular legalization affirms the legality of documents and acts in international contexts but does not verify the facts within the document or act. The Consular and Legal Department of the Ministry of Foreign Affairs will handle consular legalization in Uzbekistan, while consular offices of Uzbekistan will perform the function abroad.
Green Payment platform to be introduced in Uzbekistan
The decree allocates at least 50% of the annual funds from the State Budget to finance "My Garden" projects, focusing on creating green gardens and public parks based on public input through the "Open Budget" information portal. The "Greenest Mahalla" competition will be held annually, encouraging the winners with transfers to their funds for tree planting, creating green public parks, and providing one electric vehicle to citizens' self-government bodies. Additionally, the decree introduces the "Green Payment" platform to facilitate voluntary charitable contributions for tree planting. The plan also includes the establishment of a "Green Belt" around the city of Tashkent spanning 441 hectares.
Senate approved the Law on Ratification of the Treaty on Allied Relations with the Republic of Kazakhstan
The treaty focuses on cooperation in foreign policy, defense, security, migration, industrial cooperation, and the rational use of transboundary water resources. Additionally, the treaty aims to strengthen ties in culture, science, education, and sports. The agreement includes regulations on the Supreme Interstate Council of Uzbekistan and Kazakhstan, headed by the heads of state.
The ban on transferring property to third parties will be lifted
According to the new resolution, a notary may lift the ban associated with documents located in the notarial archive. The cancellation of the ban is entered into the electronic database upon full performance of obligations under a notarized pledge (mortgage) agreement. Depending on when the ban was established, the cancellation process involves either any notary or the head of the notarial archive (for bans before January 1, 2019) or the corresponding bank or credit organization (for bans on or after January 1, 2019). The resolution also allows for the electronic submission of notifications for the cancellation of the ban. There is no fee for establishing or canceling the ban, except in cases where notaries are involved in canceling the ban.
Uzbekistan to ratify 3 international agreements
One law focuses on mutual legal assistance in criminal matters, defining grounds and conditions for providing legal assistance, specifying the form and content of requests, outlining reasons for refusing or delaying assistance, and addressing the transfer of criminal cases for further prosecution. Another law pertains to transferring prisoners between the two countries, providing a legal basis for citizens of Uzbekistan and Italy to serve sentences in their respective countries. Additionally, an extradition agreement establishes grounds and conditions for extraditing individuals between Uzbekistan and Italy to face criminal responsibility or execute sentences.
3.2. NOTABLE APPOINTMENTS
New Consul General of Uzbekistan has been appointed in Osh
Appointed - Zafarbek Akhmedo
Previously served as - head of the Consular and Legal Department
The Consul General of Uzbekistan took up his duties in New York
Appointed - Jamil Sharapov
Previously served as - Deputy Director of the Consular and Legal Department of the Ministry of Foreign Affairs
The Ambassador of Uzbekistan to Malaysia
Appointed - Karomidin Gadoev
Previously served as - Deputy Head of the Department for Cooperation with the UN
Chairman of the Chamber of Lawyers of Uzbekistan
Appointed - Shuhrat Sadikov
Previously served as - Deputy Chairman of the Chamber of Lawyers of Uzbekistan
4.1 KEY ECONOMIC INDICATORS, LOANS, & PUBLIC FINANCE
Uzbekistan’s inflation forecasts
In October, inflation expectations in Uzbekistan rose, with the average forecast reaching 13.7%, up by 0.2 percentage points. The main factors cited were exchange rate dynamics, fuel price increases, and rising utility tariffs. Among entrepreneurs, the average expected inflation was 14.4%, indicating a slight increase. The top factors influencing business forecasts included exchange rate fluctuations, fuel price hikes, and utility tariffs. Rising transport costs were also noted. The figures, while showing an increase, remain lower than those observed earlier in the year.
The market value of real estate in Uzbekistan could reach US$350 billion
The current cadastral value is $70 billion, but the market value is estimated to be 4-5 times higher at $280-350 billion. To address this, the President called for the use of modern aircraft and laboratories to conduct aerial photography, focusing on Tashkent, the capital region, and the Fergana Valley in 2023, with the remaining regions in 2024. Additionally, the need to resolve issues related to the legal status of agricultural land, particularly for areas lacking valid cadastral registration, totaling over 900,000 hectares emphasized.
Uzbekistan advances in WTO journey
Key commitments include legislative amendments addressing market regulations, exclusive rights, and conflicts of interest related to State-Owned Enterprises (SOEs). Uzbekistan has presented 19 draft commitments and action plans, signaling a dedicated approach to implementing substantial changes. Director General Ngozi Okonjo-Iweala commended Uzbekistan's progress, and ongoing talks and support from major players, including Turkey, underscore the collaborative efforts and international support for Uzbekistan's WTO accession.
4.2 TRADE AND BUSINESS
Uzbekistan to support initiatives of small and medium-sized businesses
These include the introduction of financial and advisory support systems, backing SME projects through a unified financial system, and providing entrepreneurship training and continuous support. Key entities involved in supporting SMEs include JSCB Business Development Bank, JSC Entrepreneurship Development Company, Small Business Assistance Center LLC, and electronic platforms. The resolution sets target indicators for the activities of Business Development Bank and Entrepreneurship Development Company for 2024–2026, aiming to increase the share in the loan portfolio and issue international bonds.
Uzbekneftegaz, SOCAR localize imported products in cooperation
The project focuses on establishing local production of chemicals, drilling fluids, and oil and gas equipment to reduce dependence on imports. The plan includes developing equipment for well workover and providing services for warehousing and distribution of components.
Uzbekinvest is the first among insurance companies to conduct an IPO
Export-Import Insurance Company Uzbekinvest has made history by becoming the first among 38 insurance firms in Uzbekistan to conduct an Initial Public Offering (IPO). The company placed shares amounting to 5% of its authorized capital (14.1 billion soums) on the Uzbekistan Stock Exchange.
VMTP increases cargo exports from Vladivostok to Uzbekistan
The Vladivostok Sea Trade Port has witnessed a 43.5% increase in shipments to Uzbekistan in the current year. FESCO plays a crucial role in container shipments from Russian Far East ports to Uzbekistan, accounting for 35% of the total. The FESCO Tashkent Shuttle service has delivered 13.6 thousand TEUs to Uzbekistan in the first 10 months of the year.
Uzbekistan injects renewed momentum into WTO accession process
The country's Deputy Prime Minister led a delegation of nearly 50 officials to Geneva. The Deputy Director-General of the WTO commended Uzbekistan's efforts and highlighted the country's institutional changes, including the establishment of a special department for ensuring compliance with WTO rules and the creation of WTO divisions in 20 ministries and agencies. The negotiations are intensifying with more frequent interactions between Uzbekistan and WTO members. The country has also signed bilateral agreements with several WTO members.
4.3 BANKING & FINANCE
As of October 1, 2023, the total assets of commercial banks in Uzbekistan reached 615.8 trillion soums, indicating an almost 8.7% increase compared to May 1, 2023.
The HHI index for assets was 907 units as of October 1, 2023, suggesting an increase in competition in the republic's asset market.
The business activity index continues to grow in October
In October 2023, Uzbekistan's Business Activity Index (BAI) increased by 6.6% to 1066 points compared to the previous month, driven by growth in various components.
World Bank to support Uzbekistan in developing the digital economy and creating new jobs in the information technology sector
The World Bank has approved a US$50 million concessional loan for the Uzbekistan Digital Inclusion Project, aimed at promoting the digital economy and providing digital skills and employment opportunities in rural areas. The goal is to employ around 25,000 people in the ITES sector by 2029.
Business Development Bank to allocate more than $1 billion to support small companies
In a presidential decree, the government support structures in Uzbekistan plan to issue Eurobonds worth $600 million. The decree outlines targets for the Business Development Bank (BDB) and the Entrepreneurship Development Company (EDC) until the end of 2026. The plan involves issuing $300 million in Eurobonds for both BDB and EDC on international markets. The BDB aims to attract $800 million in credit resources from international institutional investors to support small businesses, increasing the balance of loans to small enterprises by 1.7 times. The EDC will provide equity financing to 150 medium-sized enterprises and sell 300 projects under the "service mortgage" program, aiming to increase the number of medium-level enterprises by 2.5 times. The total volume of financial services for small and medium-sized businesses is expected to increase by 75%.
4.4 AGRICULTURE, MINING, & MANUFACTURING
Uzbekistan built a large gas chemical complex
The President of Uzbekistan inspected the construction progress of the gas chemical complex "25 Years of Independence" in the Baysun district, Surkhandarya region. The complex, with a capacity to produce and process 5 billion cubic meters of gas per year, is being developed by the foreign enterprise Surhan Gas Chemical Operating Company for $2.9 billion.
4.5 CONSTRUCTION & REAL ESTATE
ACWA POWER wins the first stage of the tender for the construction of a wind power plant in Karakalpakstan
ACWA POWER-Saudi from Saudi Arabia has won the first stage of a tender for the construction of a 200 MW wind power plant and a 100 MW electricity storage system in the Karaozak and Beruni regions of the Republic of Karakalpakstan. The project is supported by the European Bank for Reconstruction and Development (EBRD) as part of the "Program for the development and Provision of advisory services for the construction of a wind power plant with a total capacity of 200 MW" (EBRD Phase 2). ACWA POWER-Saudi offered 4.09 US cents per kWh of electricity generated from the wind farm and energy storage system.
4.6 ENERGY & PETROCHEMICALS
Gas supplies to Uzbekistan required reconfiguring flows in Russia and the UGS regime
The start of Russian gas supplies to Uzbekistan through Kazakhstan led to a reconfiguration of gas flows in the Russian gas transportation system. This involved a change in the load on the underground gas storage system in the country. Russian gas began flowing to Uzbekistan in October through the Central Asia-Center gas transportation system, which was switched into reverse mode. The agreement between UzGaztrade JSC and Gazprom Export LLC covers an export volume of 9 million cubic meters per day, almost 2.8 billion cubic meters per year.
Uzbekistan launched the construction of a small hydroelectric power plant “Zarchob-3”
Zarchob-3, with a capacity of 16 megawatts, had its foundation stone laid recently. These hydroelectric plants contribute to environmentally friendly and renewable energy production, helping balance the energy grid. Additionally, the government has created favorable legal and economic conditions for the private sector to establish micro-hydroelectric power plants, offering 20-year land leases and a guaranteed state purchase system for the electricity they generate.
Uzbekistan to launch 10 wind power plants by 2028
Uzbekistan is set to launch 10 wind power plants with a combined capacity of 4,400 MW by the end of 2027, according to the Ministry of Energy. The ambitious plan includes the launch of a 500 MW wind power plant in the Tomdy district in 2025, with the first phase expected to be operational by the end of 2023. Additionally, in 2025, two wind power plants with a total capacity of 1,000 MW will be launched. In 2027, three wind power plants with 500 MW capacity each will be opened, along with a 500 MW wind power plant. The tender competition for the construction of a 200 MW wind power plant in the Beruni district of the Republic of Karakalpakstan is ongoing.
Kaztransoil to increase transit of Russian oil to Uzbekistan threefold
The National Oil Transportation Company of Kazakhstan, Kaztransoil, is planning a substantial increase in the transit of Russian oil to Uzbekistan in 2024. The company anticipates that the transit volume will reach 500,000 tons next year. Uzbek company Sanoat Energetika Guruhi has already submitted a transit application, with the possibility of further increasing it to 1 million tons annually. The expected transit volume for the current year is 154,000 tons, marking a significant increase compared to previous periods.
Uzbekistan announces transition to emergency water conservation mode
The country faces water scarcity due to climate change, and the President emphasized the need for efficient water management. The meeting focused on concreting canals, introducing water-saving technologies, and reducing water delivery costs. The government declared a "strike year for concreting canals," aiming to concrete 1,500 kilometers in 2024 and 2,000 kilometers in 2025.
New 550 MW TPP to be constructed in Jizzakh region
The power plant, with an initially proposed capacity of 400 MW (later increased to 500 MW and now confirmed at 550 MW), will be built by Turkish company Cengiz Enerji San. ve Tic. A.Ş. and its subsidiary Cenergo. The project aims to enhance the country's power generation capacity, and Cenergo has secured a 25-year agreement with "National Electric Grids" for the guaranteed purchase of electricity. The project company, Cenergo, will have the right to open foreign currency accounts and engage in foreign currency transactions for project-related needs.
Uzbekistan to allocate $100 million to support the electrical engineering industry
Uzbekistan is focusing on developing its electrical engineering industry, with 224 projects worth $640 million launched in the past six years. The country aims to increase exports to $1 billion by the end of this year. Recognizing the importance of cooperation with prestigious brands, the government plans to implement 141 projects worth $2 billion in the coming year. Additionally, Uzbekistan intends to enhance its manufacturing capabilities to support the growing demand for electrical goods, particularly in the renewable energy sector, where 2 gigawatts of solar and wind power plants are expected to be operational in 2023 and an additional 4 gigawatts in 2024. The government plans to allocate $100 million to support the adoption of advanced technology, innovation, and international standards in the sector.
AKSA Enerji invests in the construction of a new power plant in the Kashkadarya region
AKSA Enerji will invest $250 million in the construction of a 400 MW gas-piston power plant in the Nishan district of the Kashkadarya region through a public-private partnership. The Turkish company will handle the design, financing, construction, and operation of the power plant over the project's 25-year duration. Construction is set to commence in December 2023, with the power plant expected to become operational by the end of 2024. The agreement also includes a commitment by Uzbekistan's JSC "National Electric Networks" to purchase electricity from AKSA Enerji for 25 years.
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