Uzbekistan and Azerbaijan Discuss Social Protection System Reforms

The Deputy Prime Minister and Minister of Economy and Finance of Uzbekistan, Jamshid Kuchkarov, met with a delegation from the Asian Development Bank (ADB), led by Takeo Koike, Head of ADB's Office for Market Development and Public-Private Partnerships. This meeting took place on September 25. According to a statement from the Information Service and Communications Department of the Ministry of Economy and Finance, the main goal of the gathering was to accelerate public-private partnership projects in Uzbekistan and expand cooperation in new areas.

Participants discussed the current status of PPP projects being implemented in Uzbekistan, as well as measures aimed at increasing their pace of execution and prospects for further expanding interaction in various fields.

During the meeting, PPP projects in the education sector were reviewed, including plans to increase the network of preschool educational institutions in the regions. Additionally, initiatives in healthcare, construction of water supply and wastewater treatment facilities, and modernization of district heating systems were discussed.

Special attention was paid to the possibilities of implementing agreements concluded between Uzbekistan and the ADB regarding public-private partnerships in various sectors. The parties also considered the possibility of receiving expert and advisory assistance from the Asian Development Bank to accelerate projects for modernizing district heating systems using modern methods.

Furthermore, participants discussed the development of new PPP projects and the further strengthening of institutional capacity in this area. At the end of the meeting, both sides expressed readiness to bring cooperation to a new level, increase the effectiveness and efficiency of PPP projects, accelerate their implementation, and continue bilateral interaction in priority areas.

A decision has been made in Uzbekistan allowing social institutions to provide paid services and rent out their property. According to the new document, such institutions can now charge for services related to rehabilitation, medical diagnostics, treatment, and care, as well as for the services of defectologists and psychologists.

It is emphasized, however, that state-guaranteed free services cannot be converted into a paid format. It is also established that the personnel of the institutions cannot be forced to provide paid services.

In addition, social facilities gain the right to sell products produced by themselves and to rent out their property. State customers have the opportunity to purchase this product directly from the institutions, provided that the annual volume of purchases from one organization does not exceed 1.5 thousand basic calculation units (BRV), which currently amounts to 660 million soms.

Income generated from this commercial activity will be directed towards the further development of the social institutions themselves. Employees who participate in providing paid services or other income-generating activities will be able to receive additional payments reaching 300% of their official salary. Furthermore, top employees are entitled to a quarterly bonus of up to five salaries.

The National Agency for Social Protection will monitor the fulfillment of the institutions' revenue plans, which are formulated annually based on data on paid services and other activities.