On April 10, President Shavkat Mirziyoyev approved the program of modernization of heating systems in social facilities on the basis of public-private partnership (PPP) in Uzbekistan.
In order to ensure uninterrupted provision of heating in the autumn-winter season, the hokimiyats were instructed to gradually transfer social facilities to coal fuel, modernize boilers, repair and ensure operation under the established standards of heating systems of institutions on the basis of PPP with the participation of the private sector in 2023−2026.
At the first stage, the system of modernization and management of heating systems with the involvement of business will be introduced in 5,722 public institutions in Andijan, Namangan and Fergana regions.
As per the current status of heating systems in social facilities, it has been directed to commence modernization efforts on a public-private partnership basis from August 1, 2023, in all districts and cities of Karakalpakstan, Kashkadarya, and Syrdarya regions, as well as in districts and cities of other regions.
It is planned to make their inventory, prepare project-estimate documentation and approve project concepts by this date.
The state partners in PPP agreements will be hokimiyats of districts and cities. Private partners shall be selected through tenders or selection of the best proposals upon decision of the Kengash of the People’s Deputies.
The share of private partners should be not less than 50%, and the period of operation — 10 years. The Kengash is recommended to choose companies with total revenue for the last year not less than 3 billion soums.
The tasks and obligations of private partners will include ensuring the heat temperature at the proper level, reducing the cost of coal and electricity required by the heating standards by at least 20% and power losses by 30%.
Entrepreneurs must also install boilers with a guaranteed service life of at least 15 years in social facilities. If the equipment fails prematurely, the company must replace it at its own expense.
The Ministry of Economy and Finance was instructed to allocate 500 billion soums for modernization of heating systems within PPP projects in 2023. Of which 250 billion soums will be sent to Andijan, Namangan and Ferghana regions and another 50 billion soums to Karakalpakstan and Kashkadarya regions.
In order to support manufacturers of heating boilers, the goods not produced in the republic and imported (imported) from abroad according to the list will be exempted from customs duty until January 1, 2025.
The presidential decree also approved the plan of signing PPP agreements on 13376 social institutions in Karakalpakstan and regions in 2023, including 6479 schools, 4031 kindergartens, 2117 health care institutions, 749 institutions of culture, music and sport.
In early April, the president instructed to introduce the Andijan experiment on the renovation and management of heating systems of social facilities throughout Uzbekistan on the basis of private partnership.
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Shavkat Mirziyoyev in February also approved converting some greenhouses, cement and brick factories, kindergartens, schools and hospitals to coal-fired heating systems to save gas. In 2023, 5,407 social facilities, 1,147 greenhouses and 250 factories are expected to be converted.