Ministry of Economy proposes $6.5 billion cap on public-private partnership liabilities

As of August 20, Uzbekistan had 990 registered PPP projects, collectively valued at $2 billion. In the energy sector alone, there are 48 investment projects amounting to $18.5 billion, for which the government provides various guarantees to creditors. This significant involvement in the energy sector has raised concerns regarding the potential fiscal implications for the state budget.

Officials from the Ministry of Economy and Finance have indicated that international financial institutions, including the World Bank, the International Monetary Fund (IMF), and the Asian Development Bank, incorporate energy projects into their calculations of public obligations related to PPPs. As a result, the total budgetary commitments may exceed those reflected in the official registry.

In October, the IMF recommended the introduction of an annual investment limit on all projects signed under PPP and investment laws starting in 2025. During a press conference on October 29 at the Agency for Innovative Development, Ilhom Umrzakov, director of the PPP project implementation department, revealed that a model has been developed in collaboration with the IMF and the World Bank to assess the impact of PPP obligations on the national budget.

Deputy Minister of Economy and Finance Ahadbek Khaydarov emphasized that the proposed $6.5 billion limit on government obligations takes into account the projects scheduled for 2025. This move aligns with President Shavkat Mirziyoyev’s approval of measures aimed at fostering the development of public-private partnerships through 2030, which includes plans to transfer electricity networks and gas pipelines to PPP management and the construction of several toll roads, including the Tashkent-Samarkand route.