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Uzbekistan’s rapid economic dev't creates environment to attract greater private investment in PPPs – ADB

Uzbekistan Materials 26 April 2022 10:58 (UTC +04:00)
Uzbekistan’s rapid economic dev't creates environment to attract greater private investment in PPPs – ADB
Natavan Rzayeva
Natavan Rzayeva
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BAKU, Azerbaijan, April 26. Uzbekistan’s rapid economic development has created an environment that can attract greater private investment in public private partnerships (PPPs),Trend reports via ADB’s Annual Report 2021.

ADB achieved commercial closure of three PPP transactions in 2021, garnering $298 million in capital commitments from the private sector.

These transactions cover Palau’s first-ever solar independent power project and two projects in Uzbekistan including a district heating project in Tashkent and a solar power project in Surkhandarya Province.

The solar project in Uzbekistan is the largest utility-scale solar project in Central Asia and will provide green, affordable, and sustainable power to about 3 million residents. It will also support industrial activity and has potential export capability to neighboring countries.

The project was developed through ADB policy dialogue on power sector development, and the site was identified based on the findings of a technical study conducted by the bank. ADB also advised on the project preparation and tendering process and provided a guarantee to the bidder to minimize payment risk.

ADB has been working with the Uzbek government, combining a range of ADB financial products and knowledge services to create a sustainable PPP program. It has helped build the capacity of the PPP Development Agency, assisted with training for more than 16 government agencies, and designed contract templates for future use.

To improve the financing of PPP projects, ADB has worked with the government to creatively use products such as local currency liquidity and sovereign guarantees. It also supported Uzbekistan in amending its PPP law based on international market standards, making infrastructure investment more attractive to private capital.

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