Part of the gas supply infrastructure in Tashkent and the provinces will be handed over for trust management to private entities for operation of gas distribution network and gas retailing. This is provided for by the April 20 Presidential Decree.
In the framework of a pilot project, in Tashkent city the infrastructure of BektemirTumanGaz (Bektemir District Gas, a state-owned district’s gas operator) will be handed over to a private operator. In Karakalpakstan, the infrastructure of Kegeylitumangaz, in Andijan province - ShahrihonTumanGaz, in Bukhara - KaganTumanGaz, in Jizzakh - ZominTumanGas, in Kashkadarya - KarshiTumanGaz, in Navoi - KiziltepaTumanGaz, in Namangan - NamangantumanGaz, in Samarkand - NarpayTumanGaz, in Surkhandarya - ZharkurgonTumanGaz, in Syrdarya - YangierShaharGaz, in Tashkent - YangiyulTumanGaz, in Ferghana - OltiarikTumanGaz and Khorezm - YangiarikTumanGaz.
As noted in the decree, the decision is aimed “the creation of an effective management system and introducing market mechanisms in the gas supply system, attracting investment for its modernization, improving the quality of services and ensuring timely settlements for retailed natural gas”.
Hand-over is planned starting from June 1. Private operators will be selected following a competition, with no license required for gas retailing. Fee (return rate) to private operators is set at maximum of 21% of retail price. Private operators, regardless of the number of employees, will pay the single tax.