BAKU, Azerbaijan, Mar. 12
By Klavdiya Romakayeva - Trend:
Uzbekistan's rapid economic development has provided ADB (Asia Development Bank) with an opportunity to strengthen its support for Public-Private Partnership (PPP), Trend reports referring to ADB.
A public-private partnership program, created in Uzbekistan in order to accelerate infrastructure development through private sector participation, included the adoption of the first PPP Law, the creation of a dedicated PPP development agency, and a requirement for industry agencies to promote PPPs for key projects.
According to ADB, more than 40 large and medium-sized projects using PPP are expected to begin in Uzbekistan in 2021, which will be an unequivocal signal to government agencies and the international market that PPP will remain in Uzbekistan for a long time.
In January 2021, the long-awaited amendment to the PPP Law was approved and signed. The first deals initiated by the program are nearing completion, paving the way for sectors such as renewable energy, healthcare and transportation.
Since the inception of the program, six areas have been identified that require attention in 2021, namely, PPP integration at the national infrastructure planning level, expansion of the use of the provision of possible payments, establishment of a project development fund, drawing up a project Implementation Plan after closure, increasing liquidity in local currency and the ability for local banks to participate in PPPs, as well as international media coverage.
“We helped build capacity in 16 government agencies and advised the government on amendments to the PPP law and other measures. Our consulting support for transactions in five sectors is aimed not only at closing projects, but also developing contract templates for future use,” ADB said.
It is noted that in order to improve project financing early in a deal, ADB is working with public sector clients to creatively use financial products such as local currency liquidity or government guarantees.
ADB also noted that Uzbekistan has given a promising start to integrating PPPs as a valuable tool in its infrastructure development agenda.
“Through strong policy and project implementation, Uzbekistan can create a world-class PPP program that provides the infrastructure needed for continued sustainable economic growth,” ADB stressed.
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