Strong Pipeline of Public-Private Partnership Projects Attract Investors to Uzbekistan

, Markets Development Advisory Specialist, Office of Markets Development and PPP, Asian Development Bank

When people ask me what investors look for in a country as a good destination for public-private partnership (PPP) investments, I always reply without hesitance: a strong pipeline of projects. Investors usually do not like to deal with “debutant” countries showcasing a single PPP project, no matter how large-scale and well-prepared it is.

The Rise of Uzbekistan’s PPP Market

Uzbekistan has understood this matter quite early. Although considered a late starter among its regional peers with its 2021 small hemodialysis project by 2024, Uzbekistan has managed to offer to the investment community a strong pipeline of PPP projects worth several billions of dollars across several sectors, including renewable energy, urban utilities, and healthcare and education. As of now, the country is arguably the leader among its Central Asian neighbours, in terms of volume and number of projects that attracted foreign investment through PPP.

Benefits of digital PPP management

SOURCE, an international platform for managing PPP projects, has been instrumental in structuring and organizing Uzbekistan’s pipeline of projects. The Sustainable Infrastructure Foundation (SIF) began engaging with Uzbekistan in 2019 to integrate SOURCE into the country’s PPP ecosystem. This collaboration, supported by the Asian Development Bank (ADB) and the Swiss State Secretariat for Economic Affairs (SECO), has led to the recent adoption of SOURCE to Uzbekistan’s regulatory environment.

3.With many benefits of an online platform, SOURCE is already helping Uzbekistan present its pipeline of PPP projects to international investors. If implemented and integrated further, SOURCE can help improve the overall efficiency of project implementation, thus playing an important role in preparing bankable and commercially attractive projects while catering to the citizens of Uzbekistan.

Such integration will ensure that all relevant project documents, including concept notes, tender documents, and contractual terms, are continuously updated and accessible on the platform, fostering collaboration and reducing delays. This continuous availability of updated project information allows investors, lenders, and developers to make more informed decisions, thereby reducing risks and enhancing project efficiency.

Uzbekistan as Part of a Global Trend

Uzbekistan’s successful integration of SOURCE for pipeline development is part of a broader trend of countries adopting the platform to streamline their PPP processes. For instance, Ecuador launched SOURCE as the national PPP registry, publishing several projects that were prepared on the platform. This move has significantly improved the transparency and efficiency of Ecuador’sEcuador’s PPP projects, attracting international
investment and fostering sustainable development.

“PPP-illar” of Uzbekistan’s Strategy 2030

The Uzbekistan-2030 Strategy, a comprehensive development plan aimed at transforming Uzbekistan into a prosperous and strong nation, includes 100 goals and focuses on five priority areas: (i) creating decent conditions for realizing the potential of every person; (ii) ensuring the well-being of the population through sustainable economic growth; (iii) conserving water resources, (iv) protecting the environment, and (v) crafting a public administration system that focuses on citizens’ needs. It is designed to build a free and prosperous New Uzbekistan, create opportunities for every citizen to develop their potential, and ensure justice, the rule of law, security, and stability. More specifically though, the Strategy 2030 elevates the role of PPPs as the main procurement mode to deliver these breakthroughs.

The institutionalisation of SOURCE for PPPs in Uzbekistan can play a transformative role in achieving the Strategy 2030’s development goals. By leveraging the platform’s capabilities, Uzbekistan can attract global investment, enhance transparency, and ensure the successful implementation of large-scale infrastructure projects. Therefore, the next time I am asked why Uzbekistan has become the clear hot spot destination for infrastructure investors to consider, I will confidently refer them to check out Uzbekistan’s pipeline of PPP projects on the SOURCE platform.

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