Uzbekistan is planning to implement a comprehensive set of measures designed to stimulate domestic demand for local electrical products and fundamentally reform public procurement practices. These initiatives were detailed on November 9 during a dialogue between President Shavkat Mirziyoyev, representatives of the electrical industry, domestic entrepreneurs, and foreign investors.
Key Takeaways: Public-private partnership energy projects now require a local product share of at least 25% (70% for cables), and these requirements will extend to investment projects exceeding $10 million that benefit from state subsidies. Furthermore, annual public procurement of electrical goods totals 10 trillion soms, with mandatory three-year procurement plans to be published starting January 1, 2027.
The local electrical engineering sector has seen substantial expansion, with production scaling from 4.7 trillion soms in 2018 to 43.1 trillion soms, and exports surpassing $1 billion across 65 countries. Despite this growth, authorities are enacting stricter integration mandates to ensure domestic manufacturers secure a firm footing within major national economic projects.
During the meeting, it was announced that the procurement approach will shift away from simply selecting the lowest bid. Officials noted that cheaper imported goods often incur exponentially higher exploitation and maintenance costs. Consequently, a "life-cycle cost" evaluation system will be introduced to account for electricity consumption, repairs, and long-term service expenses.
To streamline commercial processes, a unified digital platform consolidating all state orders has been launched. Additionally, the ongoing development of renewable energy, featuring planned solar and wind power plants totaling 15 GW, is expected to generate an annual market demand for electrical equipment worth approximately $500 million.
Source: www.gazeta.uz