BAKU, Azerbaijan, July 21. Uzbekistan will require $8 billion in investment over the next decade to modernize its energy infrastructure, President Shavkat Mirziyoyev said, while criticizing persistent electricity and gas losses that continue to weigh on the country's energy sector.
This was reflected in the statement published by the official channel of the Press Secretary to the President of the Republic of Uzbekistan following a videoconference to analyze economic growth rates in the regions and sectors during the first half of the year and to discuss priority tasks for the remainder of the year.
The remarks came during a government meeting reviewing Uzbekistan's economic performance in the first half of 2026, where the president called for greater operational efficiency at state-owned utilities and strategic enterprises.
"Over the next ten years, the country's energy infrastructure will require $8 billion in investment," Mirziyoyev said.
Despite the need for significant capital spending, the president said energy companies have failed to adequately address system losses, limiting their ability to improve financial performance.
"Not enough work is being done to increase revenues by reducing losses across the networks," he said.
According to Mirziyoyev, electricity losses reached 17.2% in the first six months of the year, equivalent to 4.8 billion kilowatt-hours. Losses in the natural gas distribution network totaled 7.6%, or approximately 797 million cubic meters.
The president also pointed to low labor productivity in regional gas distribution companies, saying their performance remains 1.5 to 2 times lower than that of comparable companies in neighboring countries.
The meeting also reviewed assessments prepared by global asset manager Franklin Templeton as part of Uzbekistan's broader state asset reform program.
According to the analysis, the market value of Hududiy Elektr Tarmoqlari, the country's regional electricity distribution company, could potentially double through operational improvements and stronger corporate performance.
Franklin Templeton also concluded that the market value of Uzbekistan Airways could increase by 40%, while Uzbektelecom has the potential to raise its valuation by 50% if efficiency gains and corporate reforms are successfully implemented.
The findings come as Uzbekistan continues preparations to modernize major state-owned enterprises and attract greater private investment through corporate governance reforms and planned capital market transactions. Improving operational efficiency, reducing technical losses and enhancing enterprise value have become central elements of the government's economic strategy as it seeks to strengthen infrastructure, expand investment opportunities and improve the competitiveness of key sectors.
"The analyses show that there is significant untapped potential to increase the value of our strategic enterprises," Mirziyoyev said, emphasizing that reducing inefficiencies and improving management should become key priorities for state-owned companies.
