Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan plans to introduce tax incentives, preferential loans, subsidies and public-private partnership (PPP) mechanisms to encourage investment in passenger transport infrastructure under a draft presidential resolution outlining the country's local passenger transport development strategy through 2030.
The proposed measures include exemptions from property and land taxes, preferential financing for transport operators and expanded opportunities for private businesses to manage transport facilities.
Under the draft resolution, railway stations, bus terminals, bus stations and local airports serving passengers would be exempt from corporate property tax and land tax from 1 January 2027 to 1 January 2030.
The document also proposes a zero-rate recycling fee for new M3 category, Class III buses and electric buses imported into Uzbekistan by 31 December 2027, provided they meet Euro 5 environmental standards or higher.
Another proposal would allow up to 20% of bus station premises to be used for commercial facilities and services.
Permitted activities would include electric vehicle charging stations, catering establishments, hotels, vehicle maintenance centres, car washes and retail outlets.
The use of these areas would be subject to the classification of each bus station and applicable safety requirements.
By 1 July 2027, the Ministry of Transport is expected to approve a location-specific programme identifying services at railway stations, airports and bus terminals that could be outsourced or transferred to private management under PPP arrangements.
The programme would also regulate the use of land adjacent to these facilities.
The draft strategy assigns the Central Bank responsibility for establishing a mechanism through commercial banks to provide preferential long-term loans.
The financing would support the construction, reconstruction and modernisation of bus terminals and bus stations, as well as the purchase of new minibuses for urban, suburban and intercity passenger services.
Within three months, the Ministry of Transport and the Ministry of Economy and Finance are expected to prepare a draft Cabinet of Ministers resolution introducing subsidies for operators serving loss-making suburban and intercity routes within individual regions.
The strategy also aims to increase the number of transport facilities managed under public-private partnerships from one in 2025 to eight by 2030.
According to the proposed schedule, two facilities would be transferred to PPP management in 2027, five in 2028 and seven in 2029.
The facilities identified include the new Tashkent and Bukhara airports, Namangan and Urgench airports, and the Tashkent-Northern, Samarkand and Kokand railway stations.
Total capital investment under the strategy is preliminarily estimated at US$4,574.3 million.
Of this amount, US$2,229.1 million is expected to come from private partners participating in PPP projects, US$1,254.5 million from public-sector partners and US$477.5 million from businesses initiating investment projects.
The construction and reconstruction of 58 bus terminals and bus stations is expected to be financed by private businesses.
The draft document emphasises that the investment estimates are preliminary.
Final financing requirements will be determined after feasibility studies have been prepared for the relevant projects.
