To propel economic expansion and alleviate poverty, Uzbekistan has embarked on a strategic journey towards leveraging public-private partnerships (PPPs). Spearheading this transformative agenda, esteemed leaders and industry experts convened at the Hilton Hotel for a roundtable on PPP project financing.
Among them were Marco Mantovanelli, Country Manager for the World Bank based in Tashkent, Michael Opagi, Regional Manager for Transaction Advisory Services, and Nadir Nuritdinov, co-founder of Infrasia Capital.
Marco Mantovanelli, representing the World Bank Group, emphasized the critical role of PPPs in Uzbekistan's ambitious development agenda.
"These partnerships are necessary for the huge investment needs, particularly in infrastructure, that the country has to achieve that level of development," Marco Mantovanelli shared.
Highlighting the World Bank's commitment, Mantovani underscored their active role in supporting both the policy framework and the implementation of PPP initiatives.
Michael Obagi, regional manager for transaction advisory services, shed light on the remarkable progress achieved in PPP projects over the past five years.
"Our portfolio of PPP projects is projected to raise about $700 mn of private sector financing," Obagi revealed.
He emphasized the pivotal role of PPPs in diversifying infrastructure development and fostering economic growth.
Nodir Nuriddinov, co-founder of Infrasia Capital, echoed similar sentiments, emphasizing the monumental strides Uzbekistan has made in structuring and implementing PPP projects.
"Since 2018, we have observed significant progress in public-private partnerships in our country," Nuriddinov remarked.
He highlighted the enactment of the Law on Public-Private Partnership and the signing of major projects in the energy sector totaling around $15bn.
The forum served as a platform to showcase Uzbekistan's commitment to PPPs and its potential as an attractive investment destination. It underscored the collaborative efforts between the government, international financial institutions, and private sector entities in driving infrastructure development.
With a clear vision set forth by President Mirziyoyev to increase the volume of investments attracted via the PPP mechanism to $30 bn, Uzbekistan is poised for unprecedented growth and development. As Nuriddinov emphasized, the event aimed to inform international investors about the progress achieved and the opportunities available in various sectors, including energy, water, sewage, and education.
The government of Uzbekistan is steadfast in its commitment to public-private partnerships (PPPs), recognizing them as vital to its strategy for improving public services and drawing in crucial investment and expertise. Uzbekistan has experienced an increase in PPP projects, with more than 400 infrastructure projects, valued at around $16bn, either completed or in progress. This marks a shift from the absence of private sector involvement in Uzbekistan's projects prior to 2018.
The International Finance Corporation (IFC) has played a crucial role in supporting these efforts, offering guidance to the government since 2018. Collaborating with the World Bank, the IFC has helped open Uzbekistan's power sector to private investment, facilitating PPP projects that effectively attract foreign capital. The Nur Navoi solar plant, Uzbekistan's first solar tender, structured with IFC's assistance, has resulted in highly competitive tariffs.
Currently, PPP projects cover various sectors such as energy, healthcare, and education, with an expected mobilization of approximately $700mn. Furthermore, several projects in energy, healthcare, and the chemicals sector, with a combined expected mobilization exceeding $1.8bn, have been successfully completed.
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