Uzbekistan has introduced a comprehensive set of measures aimed at improving the management of water resources at the local level and increasing the attractiveness of the sector for private investment. These reforms mark a significant step toward modernizing the country’s water infrastructure, ensuring sustainability, and enhancing operational efficiency.
Key objectives of the reform include:
Strengthening the financial independence of 160 state institutions operating under the “Suv etkazib berish xizmati” (Water Supply Service);
Transferring 50% of pumping stations in Jizzakh, Kashkadarya, Navoi, Namangan, Samarkand, and Syrdarya regions to management under public-private partnership (PPP) arrangements by 2026;
Expanding the PPP model to cover 100% of pumping stations in the Namangan region by the end of 2027, building on its successful pilot experience;
Establishing training and field centers on at least 3,500 hectares of land in 141 districts as part of the “School of Water Specialists” project.
Pilot project in Dustlik district
Provide transparent observation of water consumption and supply for 437 farming enterprises, ensuring the delivery of water within established limits;
Install 1,804 smart water meters to enable digital monitoring and efficiency tracking;
Achieve annual savings of up to 107 million cubic meters - equivalent to 33% of total water use;
Concrete 159 kilometers of irrigation networks and restore 541 kilometers to fully operational condition.
Institutional and operational improvements
The reform also focuses on enhancing the performance of the Water Supply Services through:
Introduction of a flexible staffing system that reflects operational needs and available financial resources;
Establishment of key performance indicators (KPIs) for staff, linking incentives to efficient water resource use and service delivery outcomes;
Reinforcement of financial autonomy and improvement of the material and technical base of water supply institutions.
Under the new framework, the Water Supply Services will have the right to independently determine the number of staff positions and allocate up to 40% of revenues from the water use tax (credited to the state budget) toward infrastructure development.
Role of private partners
Private entities engaged under PPP arrangements will be required to:
Ensure continuous water delivery to users and households within approved water intake limits;
Manage all relevant water facilities in coordination with the public partner;
Maintain comprehensive records and reporting of water use, including through automated systems;
Implement phased modernization of water facilities in their service area.
Budget and regional oversight
The Council of Ministers of the Republic of Karakalpakstan and regional hokimiyats will annually review and adjust the budget allocations to Water Supply Services based on regional performance indicators. Within one month, a recalculation of local budget allocations for 2025 will be conducted to reflect the updated indexed amounts, and any outstanding funds will be disbursed accordingly.
These measures reflect Uzbekistan’s broader strategy to decentralize water resource management, encourage private sector participation, and ensure the sustainable use of one of the country’s most vital natural resources.