Country context (P3 lens)

Uzbekistan is an emerging and rapidly expanding P3 market in Central Asia. Since 2019, the government has actively used P3s to mobilize private capital, modernize infrastructure, and improve service delivery, supported by comprehensive legal reforms and strong engagement from international development institutions. The country is now regarded as one of the most dynamic new P3 markets in the region.

Verified sources: World Bank PPP Knowledge Lab, Government of Uzbekistan – PPP Development Agency (Ministry of Economy and Finance), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), IMF.

Economic and infrastructure conditions

• Economy: Lower-middle-income with sustained growth, driven by structural reforms, urbanization, and public investment constraints.

• Infrastructure priorities:

  • Power generation, transmission, and distribution

  • Renewable energy (solar and wind)

  • Water supply, wastewater, and solid waste management

  • Roads, urban transport, and logistics

  • Healthcare, education, and municipal infrastructure

• Private sector: Increasing participation by international developers, utilities, and regional investors, alongside growing domestic capacity.

Public Private Partnerships framework

Legal and institutional setup

• P3s are governed by a dedicated P3 Law, supported by implementing regulations.

• Central oversight is provided by the PPP Development Agency under the Ministry of Economy and Finance.

• Mandatory requirements include feasibility studies, value-for-money analysis, fiscal risk assessment, and government approvals.

Market characteristics

• Uzbekistan’s P3 program is centrally driven and donor-supported, with a strong project pipeline.

• Financing relies on blended finance, combining private capital with loans, guarantees, and political risk mitigation from development finance institutions.

• Common P3 structures include:

  • Independent power-style P3s with long-term offtake agreements

  • DBFO/DBFOM models for utilities and transport

  • Availability-payment P3s for social infrastructure

Sector experience and opportunities

Energy

• Flagship sector for P3s, with multiple large-scale solar and wind projects developed under competitive tenders.

• Grid upgrades and battery storage are emerging P3 opportunities.

Water and sanitation

• Urban water supply and wastewater treatment projects are being structured as long-term P3s to improve efficiency and service quality.

Transport

• Roads, urban transport systems, and logistics infrastructure are under consideration, typically requiring availability payments or public support mechanisms.

Social infrastructure

• Hospitals, diagnostic centers, and education facilities are increasingly explored under availability-based P3 models.

Key P3 considerations

• Project preparation: Strong reliance on international transaction advisors and development partners.

• Risk allocation: Construction and operational risks transferred; currency, demand, and payment risks often mitigated by public or donor-backed mechanisms.

• Institutional capacity: Rapidly improving, with centralized expertise supporting line ministries and local authorities.

• Fiscal management: Active monitoring of long-term commitments and contingent liabilities.

Outlook

Uzbekistan is a high-growth P3 market in Central Asia:

• Priority sectors: energy, water, transport, and social infrastructure

• Projects are medium- to large-scale, competitively procured, and development-partner supported

• Continued expansion depends on institutional strengthening, fiscal discipline, and sustained investor confidence

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