President of Uzbekistan Shavkat Mirziyoyev signed a decree on the implementation of a public-private partnership project aimed at modernizing and managing electricity distribution networks in the Samarkand region. This decree, No. PP-295, was issued on August 17, 2026.
Following an international tender with financial and technical support from the International Finance Corporation, the Turkish company AKSA Elektrik Perakende Satış A.Ş. was selected as the private partner for the project. Its subsidiary, AKSA Samarqand Electricity Distribution LLC, was established in Uzbekistan to carry out the project.
On January 29, 2026, the Ministry of Economy and Finance, on behalf of the Republic of Uzbekistan, and the private partner concluded an agreement on state support. According to this agreement, the private partner is obliged to attract direct investments of $357 million USD within the first twelve years of the project's implementation.
During this period, the company will be responsible for expanding the distribution system, reconstructing and modernizing the networks, as well as managing and operating the electricity distribution networks in the Samarkand region.
On the same day, the private partner and Hududiy Elektr Tarmoqlari JSC signed a public-private partnership agreement.
The decree establishes target indicators for reducing electricity losses in distribution networks. If a technical audit shows that annual losses are in the range of 20% to 25%, they must be reduced by 1.4 percentage points annually during the operational period. For loss levels between 15% and 20%, the target reduction is 0.6 percentage points per year.
The private partner undertakes to invest no less than $27 million USD within the first two years. Subsequent investments will be made according to approved five-year investment and development plans.
To ensure the fulfillment of its obligations, the private partner will provide a bank guarantee of $5 million USD for the first two years. Subsequently, the guarantee will amount to either $5 million USD or 5% of the amount of investments under the five-year plan, whichever is higher.
The decree also defines personnel employment conditions. Employees of the state partner who accept offers from the private partner will be dismissed with payment of all legally due compensation. The private partner is only responsible for terminating employment contracts at its own initiative.
The administration of the Samarkand region, together with relevant ministries, must ensure the allocation of land plots necessary for network expansion and the creation of new assets. The Ministry of Energy will provide these assets to the private partner under perpetual usufruct rights for the entire duration of the project. The land use fee will be set at a level equivalent to the land tax.
Furthermore, the decree provides for a limited quota for attracting foreign specialists, provided that their participation does not lead to unjustified layoffs of local employees. Foreign specialists must also train local personnel.