Uzbekistan will extend requirements to use domestically made products to investment projects worth more than $10 million that receive state incentives, President Shavkat Mirziyoyev said today, Nov. 9.
Mirziyoyev spoke at a meeting with representatives of the electrical engineering industry, entrepreneurs and investors. The rules will apply to projects that receive separate tax and other incentives or cheap financing from the state.
Public-private partnership (PPP) projects in the energy sector are already required to use domestic products for at least 25% of their needs, and 70% for cable products. The new conditions will cover other large investment projects that receive state preferences.
The president also announced a review of public procurement of electrical products, which totals 10 trillion soums a year. A life-cycle cost approach will be deployed, counting electricity, repair, maintenance and operating costs alongside the purchase price.
A test purchase of two 40-kilowatt transformers showed why. The imported unit was 400,000 soums cheaper than the local one, but it consumed 10% more electricity and its repair costs were four times higher.
All state orders are now shown on a single platform, replacing the four or five that suppliers previously had to track. From Jan. 1, 2027, three-year procurement plans will be published in advance.
In September, Mirziyoyev reviewed measures to speed up development of the industry, whose output grew from 4.7 trillion soums in 2018 to 43.1 trillion soums, with exports exceeding $1 billion. Its products are supplied to 65 countries. Proposals included extending tax and customs incentives to 2030 and planning 15 GW of solar and wind capacity, which would create an annual market worth about $500 million for electrical products.
