Turkish energy firm Aksa Enerji has secured a substantial foothold in Uzbekistan’s infrastructure sector. The company, part of Kazancı Holding, won an international competitive tender to manage Samarkand region’s electricity distribution network for three decades while investing $1 billion in its comprehensive modernization.
The agreement was formalized on November 18 following the third roundtable on public – private partnership mechanisms. Aksa Enerji emerged victorious from a competitive process that attracted major international players, edging out Turkish rival Cengiz Enerji and a Franco – Japanese consortium in the final bidding phase.
Decaying infrastructure meets significant investment opportunity
Samarkand’s power network reflects the broader Central Asian challenge of aging infrastructure straining under rising demand. The region operates 30,820 kilometers of distribution lines, with more than half – roughly 16,700 km – already worn and overdue for replacement. The network maintains 144 substations and over 13,000 transformer stations, yet 45 percent of these facilities have become technically obsolete. Energy losses persist as a chronic inefficiency, mirroring Uzbekistan’s national electricity loss rate of 9.3 percent.
Under the 30 – year concession, Aksa Enerji will redesign, construct, operate, and maintain the entire low – voltage infrastructure. The company commits to reducing energy losses, eliminating power supply disruptions, and cutting carbon emissions. Initial project estimates were pegged at $250 million; current investment plans now target $357 million by 2030 as modernization accelerates and scope expands.
Operational model and consumer implications
The arrangement operates through a revenue – per – kilowatt – hour model within the public – private partnership framework. For each electricity unit flowing through its managed network, Aksa Enerji receives a fixed fee extracted from cumulative customer payments. Critically, end consumers maintain their current tariff structure – the mechanism simply redirects a portion of existing payments to the private operator managing infrastructure improvements and operations.
Strategic regional position and investor track record
Samarkand region – home to 4.3 million residents with annual energy consumption reaching 5.5 billion kilowatt – hours – represents one of Central Asia’s most strategically significant industrial and tourism centers. Aksa Enerji brings substantial operational depth to the undertaking. The company already operates two thermal power plants in Uzbekistan: a 270 – megawatt facility in Bukhara region (operational since 2022) and a 240 – megawatt station in Tashkent region (2024). Additionally, the firm has committed to constructing a 400 – megawatt gas – piston generation facility in Kashkadarya region. Kazancı Holding – founded in 1960 – manages energy projects spanning Turkey, Ghana, Madagascar, Mali, and Congo, demonstrating genuine international execution capacity.
Presidential decrees targeting public – private partnership expansion through 2030 establish the policy framework guiding this initiative. Uzbekistan’s government plans to transfer electricity distribution networks across all regions to private operators by July 2027. The Samarkand concession represents the first regional implementation of this nationwide energy sector transformation strategy, with additional regional tenders expected to follow.
Significance for international business
This development demonstrates Uzbekistan’s commitment to attracting sophisticated foreign capital for infrastructure modernization while maintaining consumer price stability – a reassuring signal for long – term investments. For international firms in construction, manufacturing, and industrial services, modernized electricity infrastructure directly enhances operational efficiency and cost predictability in regional operations. The PPP model validates Uzbekistan’s readiness to implement transparent competitive procurement processes and honor long – term investment commitments through established legal mechanisms. Success in Samarkand will likely accelerate similar regional concessions across the country, unlocking substantial opportunities for energy specialists, construction firms, infrastructure technology providers, and related service companies seeking Central Asian market entry or expansion. The precedent also suggests openness to private – sector partnerships in complementary infrastructure sectors – logistics, transportation, and utilities – elevating overall business environment attractiveness for international investors.
