VTB is examining the potential to participate in infrastructure projects in Uzbekistan, including the construction of a high-speed railway line between Tashkent and Samarkand, as well as public-private partnership (PPP) projects in healthcare. These issues were discussed during a panel session on the development of PPPs in Uzbekistan and Russia, moderated by Alexander Kirevnin, Managing Director of VEB.RF.
Kirevnin noted that the PPP market in Uzbekistan developed later than in Russia, but now both countries have reached a comparable level in terms of the number and value of projects. The energy sector accounts for the largest share of Uzbekistan's PPP portfolio. In Russia, roads lead in investment volume, while the highest number of projects relates to communal infrastructure and services.
According to Kirevnin, both markets are entering a new phase where the quality of projects is becoming more significant than the total number of signed agreements. He also stated that approximately $6.5 billion USD has been allocated to PPP projects in Uzbekistan for 2026. Kirevnin emphasized that with limited resources, the public partner has a stronger incentive to use them efficiently, and Russia is following a similar path.
Vladimir Sokolov, Director and Head of Legal Practice at PwC Uzbekistan, pointed out that the turning point for Uzbekistan was 2016, when the country began to open up to the world and attract foreign capital more actively. He stated that foreign investors actively compete for opportunities and often do not even request them themselves.
Sokolov noted that Uzbekistan lacks domestic sources of long-term financing and has limited budgetary funds. As a result, PPP development has followed two main directions: firstly, projects that are recouped through consumer payments; and secondly, social projects that reduce state expenditures. The main sources of financing cited are international development banks, including the Asian Development Bank, the World Bank, the European Bank for Reconstruction and Development, and the Islamic Development Bank.
Energy remains a priority because Uzbekistan's economy has grown by an average of 6–8% annually over the last decade, accompanied by increased electricity consumption. An example of a social PPP project cited was hemodialysis services in Karakalpakstan, where foreign investors are willing to provide the service at one-third or half the state price.
Another area of cooperation is airports. After the completion of projects in Samarkand and Urgench, a tender for Bukhara Airport was also held, won by a Turkic-Qatari consortium among six participants. Sokolov named Tashkent Airport as the largest project that achieved commercial closure, with an estimated investment of $4.5–5 billion USD. He added that eight or nine of Uzbekistan's 13 international airports are suitable for PPP implementation.
Among other major initiatives, Sokolov mentioned the proposed toll road connecting Tashkent with the Fergana Valley. According to him, this route serves about 40% of the country's total traffic. He also noted that over 90% of cargo transportation and approximately 98% of passenger transport in Uzbekistan is carried out by road transport.
Another developing area is electricity distribution: the Samarkand region became the first to transfer its distribution networks to a PPP format, and thermal networks, including those in Bukhara, are expected to follow. The IT concession sector is also rapidly developing, for example, the iHamkor platform, which became the first project in Uzbekistan to use assessment systems based on tax and other state data. This platform allows banks and companies to assess both corporate and individual counterparties and operates on a profit-sharing model, allowing the government to earn revenue alongside the private partner.
Sokolov also described the procedures for approving PPP projects in Uzbekistan. Projects worth up to $1 million can be approved by a public partner, such as a ministry or regional administration. Projects from $1 to $10 million require approval from the Ministry of Economy and Finance, while those exceeding $10 million are approved by the Cabinet of Ministers. State companies often act as public partners; in this case, the Ministry of Economy and Finance concludes a separate agreement with the company covering state support.
VTB: From Airports to High-Speed Rail
Anton Novikov, representing VTB Infrastructure Holding, reported that the bank has been active in the PPP market for over 20 years and participated in the first concession agreements under St. Petersburg legislation. During this period, VTB helped attract over $18 billion into infrastructure. Transport projects constitute the largest part of the bank's portfolio, including airports, toll roads, and regional concessions in Moscow, Nizhny Novgorod, and other regions of Russia. The portfolio also includes social infrastructure, such as the campus in Chelyabinsk, although this constitutes a relatively small share.
VTB is also a lender for the Moscow – Saint Petersburg high-speed railway project. Novikov stated that they have always considered railways to be effectively structured as PPP projects, with the key issue being the distribution of risks, including transport risks. In Uzbekistan, the bank is interested not only in toll roads but also in railway projects, particularly the proposed high-speed line between Tashkent and Samarkand.
Novikov noted that the Russian high-speed railway project is currently testing new technical solutions and rolling stock, and this experience could be useful for Uzbekistan. He also added that in Russia, the new generation of the energy sector was built primarily under power purchase agreements, rather than concession agreements, but concessions provide additional protection for investors and reduce capital requirements for banks, making project financing more attractive.
Novikov emphasized that Uzbekistan has advanced further in this aspect: several energy projects have already been implemented and are operational. He also observed that in recent years, globally, the energy sector has surpassed transport in terms of PPP market size. The growing demand for digital infrastructure, especially data centers, was also noted.
The demand for healthcare projects, according to Novikov, is significantly higher in Uzbekistan than in Russia. He mentioned that interest in building polyclinics and regional centers, modernizing hospital equipment, and renovating children's hospitals in the regions was evident at every meeting during the visit.
When discussing large road projects, Novikov distinguished between covering operating expenses of a road and fully compensating for the investment in its construction. He explained that a toll road can generate sufficient revenue to cover operating costs without needing to reimburse the full construction cost. As an example, he cited the proposed bridge in Sakhalin, which is strategically important for the country but will not be commercially self-sufficient.
He concluded that the main incentive in both Russia and Uzbekistan is a fair balance in risk distribution. No one wants to participate in projects that clearly lead to default and legal disputes. The second important factor is profitability. Novikov also commented on the Tashkent–Samarkand road project, which is being built by a Chinese company under a deferred payment scheme without that company subsequently operating the road. This model reduces the immediate burden on the state budget, but the government will still have to make payments later. If the road subsequently becomes tolled, the public partner will likely have to subsidize it to ensure financial viability.
Novikov characterized Uzbekistan as one of the fastest-growing countries in the CIS and noted that the country needs infrastructure in the fields of transport, energy, and healthcare, and VTB is ready to share its experience in organizing large infrastructure projects.
Sokolov agreed with Novikov's assessment of the importance of risk distribution. He stated that investors are unwilling to invest billions of dollars in a project based solely on traffic forecasts in a country where there have not yet been any toll roads. According to the World Bank, traffic forecasts are often overly optimistic. Sokolov added that Uzbekistan does not have sufficient resources to provide large-scale grants to investors, so it is being discussed whether the government will limit its support with minimum income guarantees or offer investors more substantial guarantees.
Contingent state obligations are a particularly important issue in Uzbekistan. International development banks also recommend considering the obligations of state companies acting as public partners. Sokolov noted that the conditions for investors in the energy sector are already attractive: electricity is purchased by one state company under contracts lasting more than 20 years, prices in these contracts can be set in foreign currency by presidential decree, and the agreements are backed by sovereign guarantees. As a comparison, Sokolov cited Kyrgyzstan, where 38 contracts have been signed, but none of the corresponding capacities have yet been put into operation because the projects have not reached bankability.
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