Some of the most notable legal developments in Uzbekistan in September 2023 were the adoption of Uzbekistan’s long-term development strategy “Uzbekistan 2030”, the issuance of Presidential decisions on the development of the power energy sector and the national capital market, an increase in tariffs for power energy and natural gas for legal entities, as well as the establishment of a fund for financing the development of public-private partnership (PPP) projects.
The President has signed a Decree and a Resolution introducing the development strategy “Uzbekistan 2030” and providing for some measures for its implementation. The following is, among other things, aimed to be achieved by 2030:
The following measures are, among other things, envisaged by the Decree and the Resolution to facilitate the implementation of the Strategy:
The President has signed a Decree on further reforms in power energy. The Decree, among other things, provides for the following:
(A) the creation of a new energy market regulator, the Agency for the Development and Regulation of the Power Energy Market, accountable to the Cabinet of Ministers. Its functions will gradually include developing competition in the power energy market, setting tariffs for the transmission of power energy, licensing participants of the retail and wholesale markets of power energy, developing investment programmes for the sector, approving technical standards for permissible energy losses in grids, etc.;
(B) the creation of JSC “Uzenergosotish”. Starting from 1 July 2024, the functions of JSC “National Electric Grid of Uzbekistan” (NEGU) related to its role as a single purchaser of power energy in Uzbekistan will be transferred to JSC “Uzenergosotish”. NEGU will remain responsible for the operation and maintenance of the main electric grids of the unified electric system and the transmission of energy through these grids and will continue to act as the single cross-border importer and exporter of power energy. Starting from 1 January 2025, obligations of NEGU under power purchase agreements with private generators and cross-border power purchase agreements will be performed by JSC “Uzenergosotish”;
(C) the Concept of Phased Transition to the Wholesale and Retail Power Energy Markets in 2023 – 2030 (Annex No. 1 to the Decree) and the Roadmap for the Implementation of the Concept (Annex No. 2), which, among other things, envisage the following:
The Cabinet of Ministers has issued a Resolution “On the Implementation of Market Mechanisms in the Fuel and Energy Sector”, which, among other things, provides for the following:
The President has signed a Resolution on measures for the development of the capital market. The Resolution, among other things, provides for the following:
(a) the functions for regulating the capital market have been transferred from the Ministry of Economy and Finance to the National Agency for Prospective Projects;
(b) the Rules for the Activities of Foreign Participants in the Capital Market (Annex 2) and the Measures for Ensuring Confidentiality of Information about Owners of Securities and Protecting Their Property Rights (Annex 3) have been approved;
(c) the Central Securities Depositary is reorganised into a joint-stock company and transferred to the Central Bank. Starting from 1 January 2025, it will maintain a unified record of state and corporate securities;
(d) the extension of the application of the following incentives till 31 December 2028:
The President has signed a Resolution providing for the formation of the PPP Projects Development Fund jointly with the European Bank for Reconstruction and Development (EBRD). The Fund is financed by a grant of EBRD of USD 10 mln and a loan of EBRD to Uzbekistan of USD 10 mln and will be managed by EBRD. The relevant funds will be directed to paying for the services of consultants participating in developing project concepts and project documentation for PPP projects implemented on a tender basis, organizing relevant tenders, educating PPP professionals, and general development the sphere of PPP. Services of consultants are only financed for PPP projects whose value exceeds USD 10 mln. A list of projects to which the financing is provided is approved annually by the Cabinet of Ministers, based on recommendations of the Ministry of Economy and Finance.
Presidential Resolution No. PP-307 of 14 September 2023
Have a good day!
Kosta Legal Law Firm