Public-private partnership

The development of electricity distribution networks requires substantial investment to modernise infrastructure, enhance the reliability of energy supply, and facilitate the integration of renewable energy sources. In the context of constrained public resources, many countries have adopted public-private partnership (PPP) mechanisms to attract private capital and improve the managerial efficiency of distribution system operators

Public-private partnership (PPP) is increasingly used as an instrument for financing urban infrastructure worldwide. However, financial attractiveness for the private investor is only one dimension of project success. The key question for the public authority remains another: does the project create real value for society? To answer this question, Cost-Benefit Analysis (CBA) is applied — a methodological tool that enables a comprehensive assessment of all social, economic and environmental effects of a project

In the context of active infrastructure modernization, public-private partnership (PPP) is viewed in Uzbekistan as one of the key instruments for attracting private capital and reducing the burden on the state budget. However, the development of PPPs is accompanied by a range of institutional and legal challenges, caused by a mismatch between the rapid expansion of the project portfolio and the current state of the organizational, regulatory, and managerial framework.

In an era of accelerating climate change and global sustainable development challenges, Public–Private Partnerships (PPPs) are becoming one of the key mechanisms for financing and implementing infrastructure projects that integrate environmental priorities. Green Public Procurement (GPP) is a strategy whereby public tenders and contracts prioritize goods, services, and works that have minimal environmental impact throughout their entire life cycle. In Central Asia—a region vulnerable to water scarcity, desertification, and high greenhouse gas emissions (the region generates about 1.4% of global emissions, dominated by Kazakhstan and Uzbekistan)—GPP in PPPs contributes to the transition to a low-carbon economy, the achievement of the UN Sustainable Development Goals (SDGs), and the attraction of international investment

Introduction

Uzbekistan is witnessing rapid infrastructure development and increased investment through public-private partnership (PPP) mechanisms. The number of PPP projects is growing fast — for example, in 2021 alone, the PPP Development Agency implemented 183 projects worth approximately $2.6 billion[1]. At the same time, there is growing attention to the environmental sustainability of such projects, as industrial modernization leads to increased pressure on the environment. Environmental expertise and environmental impact assessment (EIA) have become key tools for ensuring a balance between economic development and environmental preservation. Their effectiveness directly depends on the quality, transparency, and compliance with environmental standards during the planning and implementation of projects.

In 2025, a new Law “On Environmental Expertise, Environmental Impact Assessment, and Strategic Environmental Assessment”[2] was adopted, aimed at improving the transparency and effectiveness of environmental reviews. Its development was based on international experience (USA, EU, Japan, Russia, etc.) and recommendations from the World Bank (WB), the UN, EBRD, OSCE, and other organizations. All of this highlights Uzbekistan’s commitment to integrating international environmental standards into national practice.