Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Infrastructure as a Foundation for Job Creation
(Table 2.16).
12
The cost of hydropower to Uzbekenergo had risen significantly 
with the takeover of Uzbekhydroenergo. Uzbekenergo used to pay SUM5/
kWh for its own hydropower plants and SUM167/kWh from Uzsuvenergo. 
Uzbekenergo signed a power purchasing agreement with Uzbekhydroenergo for
SUM192/kWh. 
Table 2.16: Tariff Rates, Uzbekistan, 2001–2018 
(sum per kWh)
Year
Industry
Residential
Year
Industry
Residential
2001
4.8
4.7
2014
131.8
65.9
2002
8.7
8.7
2015
153.6
76.8
2003
13.1
13.1
2016
178.4
89.2
2012
104.4
52.2
2017
191.0
2013
116.1
58.1
2018
228.6
kWh= kilowatt-hour.
Sources: Enerdata. https://www.enerdata.net/ (accessed 21 January 2018); Uzbekenergo . http://www.uzbekenergo.
uz/en/ (accessed 17 April 2018). 
Uzbekistan’s power sector has struggled to fund new investments because 
of its poor financial performance. Uzbekenergo recorded losses of 
SUM741 billion in 2014 and SUM408 billion in 2015, and a profit of SUM314 
billion in 2016. The improvement in 2016 was driven by adjustments of 
electricity tariffs to high annual inflation rates and a subsidized fuel price, 
despite low-moderate electricity sales growth averaging 2.5% during 2014–
2016. However, the significant adjustment of the exchange rate in 2017 
was considered the single largest risk to Uzbekenergo’s financial standing, 
given that the majority of its borrowing is denominated in foreign currency. 
Based on ADB’s financial statement projections, without substantial tariff 
adjustments, the sector’s performance will deteriorate during 2017–2026 and 
accumulated losses will reach SUM12,662 billion in 2026 (Table 2.17). The 
sector’s sustainability remains highly sensitive to the timely implementation 
of the financial recovery action plan supported by the government, and the 
prioritization of key internal financial management reforms.