BAKU, Azerbaijan, July 21. Uzbekistan will
require $8 billion in investment over the next decade to modernize
its energy infrastructure, President Shavkat Mirziyoyev said, while
criticizing persistent electricity and gas losses that continue to
weigh on the country’s energy sector.
This was reflected in the statement published by the official
channel of the Press Secretary to the President of the Republic of
Uzbekistan following a videoconference to analyze economic growth
rates in the regions and sectors during the first half of the year
and to discuss priority tasks for the remainder of the year.
The remarks came during a government meeting reviewing
Uzbekistan’s economic performance in the first half of 2026, where
the president called for greater operational efficiency at
state-owned utilities and strategic enterprises.
“Over the next ten years, the country’s energy infrastructure
will require $8 billion in investment,” Mirziyoyev said.
Despite the need for significant capital spending, the president
said energy companies have failed to adequately address system
losses, limiting their ability to improve financial
performance.
“Not enough work is being done to increase revenues by reducing
losses across the networks,” he said.
According to Mirziyoyev, electricity losses reached 17.2% in the
first six months of the year, equivalent to 4.8 billion
kilowatt-hours. Losses in the natural gas distribution network
totaled 7.6%, or approximately 797 million cubic meters.
The president also pointed to low labor productivity in regional
gas distribution companies, saying their performance remains 1.5 to
2 times lower than that of comparable companies in neighboring
countries.
The meeting also reviewed assessments prepared by global asset
manager Franklin Templeton as part of Uzbekistan’s broader state
asset reform program.
According to the analysis, the market value of Hududiy Elektr
Tarmoqlari, the country’s regional electricity distribution
company, could potentially double through operational improvements
and stronger corporate performance.
Franklin Templeton also concluded that the market value of
Uzbekistan Airways could increase by 40%, while Uzbektelecom has
the potential to raise its valuation by 50% if efficiency gains and
corporate reforms are successfully implemented.
The findings come as Uzbekistan continues preparations to
modernize major state-owned enterprises and attract greater private
investment through corporate governance reforms and planned capital
market transactions. Improving operational efficiency, reducing
technical losses and enhancing enterprise value have become central
elements of the government’s economic strategy as it seeks to
strengthen infrastructure, expand investment opportunities and
improve the competitiveness of key sectors.
“The analyses show that there is significant untapped potential
to increase the value of our strategic enterprises,” Mirziyoyev
said, emphasizing that reducing inefficiencies and improving
management should become key priorities for state-owned
companies.
