Mirziyoyev approves Samarkand power grid modernization project with AKSA

Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan President Shavkat Mirziyoyev has signed a resolution on the implementation of a public-private partnership project to modernize and manage electricity distribution networks in Samarkand region. The resolution, No. PP-295, was signed on 17 August 2026.

Following an international tender conducted with financial and technical support from the International Finance Corporation, Turkey’s AKSA Elektrik Perakende Satış A.Ş. was selected as the project’s private partner. Its subsidiary, AKSA Samarqand Electricity Distribution LLC, was established in Uzbekistan to implement the project.

On 29 January 2026, the Ministry of Economy and Finance, acting on behalf of the Republic of Uzbekistan, and the private partner signed a state support agreement. Under the agreement, the private partner is required to attract US$357 million in direct investment during the first 12 years of the project.

During this period, the company will expand the distribution system, modernize and reconstruct networks, and manage and operate electricity distribution networks in Samarkand region.

On the same day, the private partner and Hududiy Elektr Tarmoqlari JSC signed a public-private partnership agreement.

The resolution establishes target levels for reducing electricity losses in distribution networks. If a technical audit determines that annual losses are between 20% and 25%, losses must be reduced by 1.4 percentage points annually during the operational period. If losses are between 15% and 20%, the annual reduction target is 0.6 percentage points.

The private partner is required to invest at least US$27 million during the first two years. Subsequent investments will be made in accordance with approved five-year investment and development plans.

To secure its obligations, the private partner will provide a US$5 million bank guarantee for the first two years. Subsequently, the guarantee will be either US$5 million or 5% of the investment amount under the five-year plan, whichever is higher.

The resolution also establishes arrangements for the employment of personnel. Employees of the public partner who accept offers from the private partner will be dismissed with payment of all legally required compensation. The private partner will be responsible only for terminating employment contracts at its own initiative.

The Samarkand regional administration, together with relevant ministries, is required to ensure the allocation of land needed to expand the networks and create new assets.

The Ministry of Energy will secure these assets for the private partner under permanent-use rights for the duration of the project. The land-use payment will be set at a level equivalent to the land tax.

The resolution also establishes a limited quota for employing foreign specialists, provided that their involvement does not result in unjustified dismissals of local employees. Foreign specialists will also be required to train local personnel.