Uzbekistan: Major Reforms In The Energy Sector In Uzbekistan

Last Updated: 14 November 2018
Article by Eldor Mannopov and Bobur Shamsiev

To improve the organizational and legal framework of public administration in the electric power industry based on the experience of the leading countries, modern innovative ideas, developments and technologies, the President of the Republic of Uzbekistan signed a new resolution "On the Accelerated Development and Provision of Financial Stability into Electricity Sector" (the Resolution).

The Resolution approved the "Roadmap", which provides for the realization of seven investment projects on the modernization of the existing and the creation of a new generating capacity of 1,984 MW until 2020. It also provides for the reconstruction of the existing and the creation of new electricity networks with the total length of 7,100 km, the installation and the modernization of the total 2,500 transformation units and connection of all consumers to the System of Automated Control and Recording of Electricity (the Automated System) and the attraction of foreign credits from the foreign financial institutions in the amount of US$1.8 billion. The Cabinet of Ministers must approve the schedule of realization of every project within two weeks.

Ministry of Finance and the State Committee for Investments are given a task to direct at least US$100 million to the realization of the Project "Obod qishloq", project on construction and modernization of the low-voltage distribution networks.

The Resolution provides for the further implementation of the Automated System in Andijan, Namangan, Fergana, Kashkadarya and Surkhandarya regions with the credits provided by the Asian Development Bank in the amount of US$300 million. The Automated System was earlier implemented in Bukhara, Djizzak and Samarkand regions.

The rest of the attracted credits for the realization of the Automated System will be used to attract companies-contractors, identified through the international tender, for the creation of the single republican centre for the processing of the information of the Automated System.

The Resolution also provides for the execution of the additional agreement with the consortium of the advising companies "CESI S.P.A / AF MercadosEnergyMarketsInternational S.A / Sharifa.com" to develop the tender documentation for the purchase of the modern recording equipment and ancillary parts that come with it, for the implementation of the Automated System throughout the territory of the Republic.

In accordance with the Resolution, the Commission on Reforming of the Electricity Sector (the "Commission") was created, and the following tasks were assigned to it:

  1. until December 1, 2018 – approving the "Roadmap" on the creation of the legal basis, procedures and regulation of the public-private partnership in the electric power industry;
  2. until December 15, 2018 – drafting the Decree of the President of the Republic of Uzbekistan on the creation of the Ministry of Energy of the Republic of Uzbekistan;
  3. until March 1, 2019 – creating the modern scheme of the organization of the production, transportation, distribution and sale of the electricity, with the aim of attracting private, including foreign direct investments to the entities that produce and distribute the electricity, including based on the public-private partnership, with the reservation of the full control of the transportation of the electricity, and gradual creation of the modern market of the electricity based on the competitive purchase of the production directly from the producers;
  4. until April 1, 2019 – preparing and approving the methodologies of calculation of tariffs on the electricity, based on the coverage of the current and capital expenses, stimulating the attraction of the private sector to the electricity sector, with the aim of creating interdepartmental tariffs commission within the Cabinet of Ministers;
  5. until May 1, 2019 – developing long-term investment programs on the expansion, modernization and diversification of the generating capacity for the period until 2030, with the production of the electricity up to 20,000 MW;
  6. in 2019 – providing implementation of the modern forms and technologies of corporate governance, international financial reporting standards into the electric power industry, and the issuance of the corporate bonds of the entities in the electric power industry in the international capital markets; and developing new investment projects in the electric power industry with the potential investors, on the basis of public-private partnership, deriving from the existing resources and utilization of the alternative sources.

The State Committee for Investments together with "Uzbekenergo" JSC and Agency on Development of Public-Private Partnership under the Ministry of Finance of the Republic of Uzbekistan were given a task to provide starting from 2019:

  1. Together with the International Financial Corporation, the realization of the pilot project on the construction of the solar photovoltaic power plant with the capacity of 100 MW in the Navoi region on the basis of tender;
  2. Together with the international financial institutions, the realization of the pilot project on the construction of a combined-cycle plant in one of the thermal power plants of the country, and modernization of the electricity networks in Andijan, Namangan, Fergana cities on the basis of the public-private partnership;
  3. Together with the international financial institutions, the development of main characteristics of the feasibility study on the project "Long-term Lease of Distribution Networks in the Tashkent City."

Within one month, the Cabinet of Ministers must prepare the draft of the law on the development of the procedures of connecting alternative producers of the electricity to the single energy system, and realization of the projects based on the public-private partnership. "Uzbekenergo" JSC together with the Ministry of Justice of the Republic of Uzbekistan must prepare the draft of the regulations on the connection to the single energy system of business entities, which produce electricity, including those producing electricity from the alternative sources, for the approval of the Cabinet of Ministers until April 1, 2019.

This Resolution addressed certain questions and issues highlighted by the President during the meeting earlier this month dedicated to the present condition of the energy sector of the Republic. During the meeting, the President said:

"We have a capacity to generate in total 14 thousand MW of the electricity in our country, 86% of which will be generated by the thermal power plants. However, 84% of the capacity of the thermal power plants started operation half a century ago, and the present capacity is working only for 83%."

In addition, it was noted that we use twice the resources to produce one unit of electricity then the developed countries do, 62% of the electricity lines were installed 30 years ago, and 57 percent of the distribution lines and 39.6 thousand transformation units are in the need of repair. With the purpose of improving conditions in the country, states bodies were given a task to develop the projects on the creation of additional power facilities for the production of 12.5 thousand MW by 2030. In particular, attention was paid to attracting the private sector and creating legal, institutional and technological bases of the public-private partnership mechanisms.

About Dentons

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Events from this Firm
30 Jan 2019, Other, Chicago, United States

Please join us on January 30, 2019, for the Fifth Annual Courageous Counsel Leadership Institute. This year's theme is "Risk and reward: Creating a culture that promotes innovation, change and growth.

 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions