Harnessing Uzbekistan’s Potential of Urbanization

Market Sector Development Program. Manila.

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Government Policies and Programs 
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the State Water Inspectorate (technical compliance mandate), and the Clean Water Drinking Fund, among 
others. In parallel, the government has initiated the Program for the Comprehensive Development and 
Modernization of Water Supply and Sewerage Systems, 2017–2021.
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Presidential Decree No. 5883 and Presidential Resolution No. 4536 of 26 November 2019 called for the 
establishment of a Joint-Stock Company, JSC Uzsuvtaminot, to manage the transition of the national Suvokovas 
into independent limited liability companies (LLC). The transition from State Unitary Enterprise status to LLC 
was completed in May 2020. In accordance with Presidential Resolution No. 4536, the Agency for Management 
of State Assets will be the shareholder of state-owned shares in the JSC Uzsuvtaminot, while 100% of shares of 
regional LLCs will be owned by JSC Uzsuvtaminot. The roles and responsibilities of sector agencies are further 
defined in Presidential Resolution No. 6074 (September 2020) “on measures aimed at further development of 
drinking water supply and sewerage system, as well as relevant investment projects efficiency enhancement,” 
which clarifies JSC as the operator and the MHCS as responsible for policy and strategy.
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The resolution 
supports decentralization and gives greater authority to regions in tariff setting following the principle of full 
cost recovery. While these reforms aim to strengthen accountability, efficiency, and sustainability in the water 
sector, transforming the newly formed LLCs into successful operating independent business entities will require 
more time. 
The government is considering private sector participation, broadly introduced by the World Bank and the Swiss 
Economic and Cooperation Agency program in Khorezm region and Fergana valley, which aims to replicate best 
practices on efficient operation and maintenance and management of local water supply systems. Meanwhile, 
JSC Uzsuvtaminot aims to digitalize the WSS system, reduce NRW levels, improve operation and maintenance 
practices, and consider any type of PPP-based approach to improve and expand the delivery and quality of WSS 
services. ADB is providing support through technical assistance advisory services, assisting MHCS in structuring 
PPP schemes for cities in Kashkadarya, Navoi, and Namangan regions.
The State Investment Program identified 36 high-priority infrastructure projects to be initiated within a
5-year period. A total of $1.35 billion was assigned to this program, 55% of which was earmarked for funding by 
IFIs and the remaining funds would come from the government budget. Around 45% of the total investments 
over this period is planned for improving living conditions and supporting economic development (footnote 75). 
Similarly, Presidential Resolution No. 4040, issued on 30 November 2018, established the development and 
implementation of new tariff procedures to allow sustainable cost recovery in the sector, to be supported by 
a national water metering program. Presidential Decree No. 6074 included a new tariff policy based on the 
principle of full cost recovery. 
The National Water Supply and Wastewater System Development and Modernization Plan (2009–2020)
was set to address wastewater treatment. The government also has a State Program for the Development
of Aral Sea Region for 2017–2021, which includes expanding water supply for all the cities in Karakalpakstan.
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The rehabilitation of the Tuyamuyun water treatment plant and the construction of a new plant in Mangit 
(Amudarya district) are also part of ADB’s projects.
Solid waste management. The government is reforming the sector by (i) enacting an SWM strategy and related 
government resolutions; (ii) creating SWM service zones in urban areas, to be implemented through PPPs; 
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World Bank. 2020. Project Appraisal Document: Water Services and Institutional Support Project.
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Government of Uzbekistan. 2020. Presidential Decree 6074 on measures aimed at further development of drinking water supply and sewerage system,