ADB helps Uzbekistan to improve district heating in Tashkent city through public-private partnership

Tashkent, Uzbekistan (UzDaily.com) -- Mayor of Tashkent city municipality Mr. Jahongir Artikkhodjaev and Country Director of Asian Development Bank’s (ADB) Uzbekistan Resident Mission Ms. Cindy Malvicini signed the memorandum of agreement to advise on a public-private partnerships (PPPs) to improve district heating services in Tashkent city.

The Government of Uzbekistan has set an ambitious target to significantly increase energy efficiency in all sectors via modernization, technological re-equipment of existing facilities, introduction of energy-efficient technologies, and wider utilization of renewable energy sources. District heating modernization is one of the key pillars of this program.  

“ADB is very pleased to support this PPP project in Uzbekistan,” – said Ms. Cindy Malvicini. “ADB will act as the transaction advisor to the Tashkent city municipality to prepare district heating project in Tashkent city and facilitate signing of a 30-year lease agreement with a private operator.” 

Tashkent district heating is the largest district heating system in the country, with a share of about 78% of the country’s overall district heating services. The quality of district heating services has steadily declined due to poor design and under-investment in maintenance, rehabilitation and modernization over the past two decades. The project will help improve the efficiency and quality of the district heating network.   

ADB advisory services will help demonstrate how the private sector participation can be involved in improving the quality and efficiency of district heating services in Tashkent city with strict performance targets for the private operator. It will also help bring additional investments and international expertise to support the sector.

Since joining ADB in 1995, Uzbekistan has committed 72 loans totaling US$7.7 billion, including two private sector loans totaling US$225 million. ADB also provided US$6 million in equity investment, US$218 million in guarantees, and US$93.1 million in technical assistance grants. In 2018, ADB committed five loans totaling US$1.1 billion to improve power generation efficiency, primary health care services, access to finance for horticulture farmers and businesses, access to drinking water in the western part of Uzbekistan, and economic management in the country.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to US$21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.