Scientific research and development of solar energy in the modern world and the Republic of Uzbekistan. Monograph

1.2. Resolution of the President of the Republic of Uzbekistan «On measures for accelerated development and ensuring financial stability of the electric power industry» No. PP-3981 dated 23.10.2018

In recent years, large-scale reforms have been carried out in the country, primarily aimed at accelerating the development of all sectors of the economy, increasing investment attractiveness and business activity, expanding production and services.

At the same time, insufficient use of the available opportunities and potential of the electric power industry hinders the effective implementation of the planned reforms and accelerated development of the country.

The absence of a healthy competitive environment, the presence of a significant quasi-public sector, the inconsistency of tariff policy measures with the principles of a market economy lead to excessive state regulation, a conflict of state and commercial interests.

The low level of implementation of resource- and energy-saving technologies, the slow pace of updating the corresponding infrastructure lead to an increase in technological losses and systematic interruptions in the supply of electric energy, especially in the field.

The bureaucratic management system of the industry enterprises and the irrational use of labor resources reduce the efficiency and effectiveness of their work and lead to an increase in non-production costs.

In order to radically improve the organizational and legal foundations of public administration in the electric power industry on the basis of advanced foreign experience, modern innovative ideas, developments and technologies, as well as in accordance with the objectives defined by the Action Strategy for the five priority areas of Development of the Republic of Uzbekistan in 2017-2021:

1. To approve the "Roadmap" for increasing generating capacities, modernizing electrical networks, improving accounting and control of electricity consumption in 2018 – 2020 according to Appendix No. 1, which provides for:

the implementation of 7 investment projects for the modernization of existing and commissioning of new generating capacities with a total capacity of 1984 MW and a project cost of 2.6 billion US dollars;

See the previous edition.

annual reconstruction of existing and construction of new electric networks with a total length of 7.1 thousand km, installation and modernization of 2500 transformer stations at the expense of attracted loans and own funds of JSC "Regional Electric Networks";

(the third paragraph of paragraph 1 as amended by the Decree of the President of the Republic of Uzbekistan dated June 18, 2020 No. UP-6010 – National Database of Legislation, 06/18/2020, No.06/20/6010/0776)

connecting 7 million consumers to the Automated System for Monitoring and Metering of Electricity (hereinafter referred to as ASKUE), bringing the share of coverage of ASKUE to 100 percent of the total number of subscribers by the end of 2021;

the development of long-term loans totaling $ 1.8 billion, the attraction of which is coordinated with the World Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, and other international financial institutions.

The Cabinet of Ministers of the Republic of Uzbekistan within two weeks to approve the network schedules for the implementation of each project provided for by the Roadmap.

See the previous edition.

Assign personal responsibility to:

Prime Minister of the Republic of Uzbekistan A. N. Aripov – for the implementation of strict control over ensuring timely and full implementation of the measures provided for by the Roadmap;

Deputy Prime Minister of the Republic of Uzbekistan for Investment and Foreign Economic Relations S. U. Umurzakov – for ensuring the timely disbursement of attracted funds from international financial institutions and organizations, as well as the search for potential investors and attracting foreign direct investment in the electric power industry with the identification of objects to be transferred to investors, including in trust management;

Deputy Prime Minister of the Republic of Uzbekistan for Financial and Economic Issues and Poverty Reduction – Minister of Economic Development and Poverty Reduction of the Republic of Uzbekistan D. A. Kuchkarov – for ensuring the qualitative development of mechanisms for the implementation of projects in the electric power industry on the terms of public-private partnership;

chairmen of the Management Board of joint―stock companies "Thermal Power Plants", "National Electric Networks of Uzbekistan" and "Regional Electric Networks" – for ensuring timely development, coordination and approval of project documentation, construction and commissioning of facilities provided for by this resolution.

(paragraphs seven to eleven of paragraph 1 as amended by Decree of the President of the Republic of Uzbekistan dated June 18, 2020 No. UP—6010 – National Database of Legislation, 06/18/2020, No. 06/20/6010/0776)

2. The Ministry of Finance, together with the State Committee of the Republic of Uzbekistan for Investments, should ensure that part of the borrowed funds of international financial institutions involved in the implementation of the Obod Kishlok State Program are allocated for the construction and modernization of low-voltage networks in the amount of at least 100 million US dollars in 2019-2020.

3. To take note that in accordance with the resolutions of the President of the Republic of Uzbekistan dated February 14, 2012 No. PP-1705 and August 2, 2012 No. PP-1795, the project "Introduction of an automated system for accounting and control of electric energy consumption. The system of accounting for electricity consumption of 0.4 kV consumers of Bukhara, Jizzakh and Samarkand regions of the Republic of Uzbekistan" with the participation of the Asian Development Bank (hereinafter referred to as ASUE Phase 1).

To agree with the proposals of the State Committee of the Republic of Uzbekistan on Investments and JSC "Uzbekenergo" on:

a) the implementation of projects for the further implementation of the ASKUE in other regions of the republic at the expense of borrowed funds of the Asian Development Bank in the amount of 300 million US dollars provided for the implementation of the project "Introduction of an automated system for monitoring and accounting of electricity consumption in Andijan, Namangan, Ferghana, Kashkadarya and Surkhandarya regions (ASKUE Phase 4)";

See. previous edition.

b) conclusion of additional agreements with:

the contractor company, determined by the results of an international tender within the framework of the ASKUE Phase 1 project, for the creation of a single republican data processing center of the ASKUE at the expense of the Asian Development Bank funds saved as part of the implementation of this project;

consortium of consulting companies "CESI S.P.A/AF Mercados Energy Markets International S.A/Sharifa.com" (Italy/Spain/Uzbekistan) on the development of tender documentation for the conduct of international tenders for the purchase of modern metering devices and related equipment necessary for the implementation of the ASKUE throughout the territory of the republic.

Assign responsibility for ensuring coordination to the Ministry of Investments and Foreign Trade of the Republic of Uzbekistan (Sh. A. Vafayev):

development of tender documentation for the purchase of modern metering devices and related equipment for the implementation of the ASKUE, taking into account the participation of domestic manufacturers in procurement procedures, the creation of service centers for the maintenance of ASKUE and metering devices in the country, as well as other interests of the Republic of Uzbekistan;

accelerated holding of international tenders for the purchase of modern metering devices and related equipment at the expense of borrowed funds of the Asian Development Bank, which ensures the completion of the implementation of the ASKUE throughout the republic no later than December 1, 2021.

JSC "Regional Electric Networks", when purchasing metering devices and related equipment from domestic manufacturers, ensure that their technical parameters comply with the requirements of tender documentation developed for international tenders.

(paragraphs four to ten of paragraph 3 as amended by Decree of the President of the Republic of Uzbekistan dated June 18, 2020 No. UP-6010 – National Database of Legislation, 06/18/2020, No. 06/20/6010/0776)

See the previous edition.

4. The Bureau of Compulsory Enforcement to ensure in 2019 the allocation of JSC "Regional Electric Networks" on a gratuitous basis of funds from the Development Fund of the Bureau of Compulsory Enforcement in the amount of 500 billion soums, not subject to taxation, for parallel financing of the purchase of electric energy metering devices and related equipment based on the selection of the best offers of domestic manufacturers.

(the first paragraph of paragraph 4 as amended by the Decree of the President of the Republic of Uzbekistan dated June 18, 2020 No. UP-6010 – National Database of Legislation, 06/18/2020, No. 06/20/6010/0776)

See the previous edition.

Exempt domestic manufacturers of electric energy metering devices for a period up to January 1, 2022 from paying customs duties (with the exception of customs clearance fees) for the import of components, raw materials and materials used for the production of electric energy metering devices and related equipment supplied under contracts concluded with JSC "Regional Electric Networks" within the framework of this resolution, as well as value-added tax on the sale of these electric energy metering devices and related equipment.

(the second paragraph of paragraph 4 as amended by the Decree of the President of the Republic of Uzbekistan dated June 18, 2020 No. UP-6010 – National Database of Legislation, 06/18/2020, No.06/20/6010/0776)

5. To approve the Plan of Practical measures for reforming the electric power industry in accordance with Appendix No. 2.

6. To form a Commission for the Reform of the Electric Power Industry (hereinafter referred to as the Commission) in accordance with Annex No. 3, assigning it jointly with the Asian Development Bank, the European Bank for Reconstruction and Development and the World Bank Group:

a) development by May 1, 2019 of a long-term investment program for the expansion, modernization and diversification of generating capacities for the period up to 2030, bringing generating capacities to 20 thousand. MW;

b) development by March 1, 2019 of a modern scheme for the organization of production, transportation, distribution and sale of electric energy, while providing for the broad attraction of private, including foreign, direct investments in enterprises for the production and distribution (sale) of electric energy, including on the terms of public-private partnership, while maintaining full state control for the transportation of electricity, as well as the gradual formation of a modern wholesale electricity market based on competitive purchases of products directly from generating enterprises;

c) preparation and approval by April 1, 2019 of a methodology for calculating electricity tariffs based on covering current and capital expenditures, stimulating the involvement of the private sector in the electric power industry, while providing for the creation of an interdepartmental tariff commission under the Cabinet of Ministers of the Republic of Uzbekistan;

d) ensuring the introduction in 2019 of modern forms and methods of corporate governance, international financial reporting standards in electric power industry enterprises, as well as the issuance and placement of corporate bonds of industry enterprises on international markets;

e) approval by December 1, 2018 of the roadmap for the development of the regulatory framework, procedures and regulations of public-private partnership in the electric power industry;

f) elaboration with potential investors of new investment projects in the field of electric power industry on the terms of public-private partnership, based on the available resource base, modern technological trends and the use of alternative sources of electricity.

7. The Commission (A. N. Aripov) should submit a draft Decree of the President of the Republic of Uzbekistan on the formation of the Ministry of Energy of the Republic of Uzbekistan by December 15, 2018, entrusting it with the whole range of issues of organization and regulation of the activities of the fuel and energy complex of the republic.

See the previous edition.

8. The Ministry of Investment and Foreign Trade, together with the Ministry of Energy and the Agency for the Development of Public-Private Partnership under the Ministry of Finance of the Republic of Uzbekistan, should ensure the beginning of 2019:

(paragraph one of paragraph 8 as amended by Decree of the President of the Republic of Uzbekistan dated June 18, 2020 No. UP-6010 – National Database of Legislation, 06/18/2020, no.06/20/6010/0776)

jointly with the International Finance Corporation to implement a pilot project for the construction of a solar photovoltaic plant with a capacity of 100 MW in Navoi region on the basis of a competitive selection;

together with international financial institutions, the implementation of pilot projects for the construction of a combined-cycle gas plant at one of the country's thermal power plants, as well as the modernization of electricity distribution networks in the cities of Andijan, Namangan, Ferghana on the terms of public-private partnership;

together with international financial institutions to develop the main parameters of the feasibility study for the project "Long-term lease of distribution networks in Tashkent".

See the previous edition.

9. To establish that payment for electric energy produced by hydroelectric power plants as part of Uzbekhydroenergo JSC is made taking into account value added tax by a body that, by the nature of its activity, is authorized by the state to carry out the function (powers) for guaranteed purchase of electric energy, from:

hydroelectric power plants operating on watercourses – at tariffs formed in the amount of 70 percent of the tariff established for consumers of the II tariff group;

regulating hydroelectric power plants connected with the regime of the electric power system regulated by the dispatcher – at tariffs formed in the amount of 100 percent of the tariff established for consumers of the II tariff group;

pumped storage power plants – at tariffs formed in the amount of 150 percent of the tariff established for consumers of the II tariff group.

(paragraph 9 as amended by the Decree of the President of the Republic of Uzbekistan dated September 9, 2022 No. UP-220 – National Database of Legislation, 10.09.2022, No. 06/22/220/0812)

10. Agree with the proposals of the Ministry of Finance, the Fund for Reconstruction and Development, the National Bank for Foreign Economic Activity of the Republic of Uzbekistan, JSCB "Uzpromstroybank", JSC "Uzbekenergo" and JSC "Uzbekhydroenergo" about:

prolongation for a period of 3 years of loans from the Fund for Reconstruction and Development of the Republic of Uzbekistan issued for co-financing projects of Uzbekenergo JSC, with a corresponding extension of the terms of final payments and restructuring of obligations of refinancing banks according to Appendix No. 4;

The reissue of a previously issued loan from Uzbekenergo JSC to Uzbekhydroenergo JSC to finance the investment project "Modernization of Charvak hydroelectric power plant hydro generators with replacement of impellers".

The Ministry of Finance of the Republic of Uzbekistan should make changes to the previously issued state guarantees for the obligations of Uzbekenergo JSC arising from this resolution.

11. The Ministry of Higher and Secondary Special Education, together with the Ministry of Foreign Affairs of the Republic of Uzbekistan, JSC "Uzbekenergo" and JSC "Uzbekhydroenergo", within two months, submit proposals to the Cabinet of Ministers on the establishment of a branch of the Federal State Budgetary Educational Institution of Higher Education "National Research University "MEI" (Russian Federation) in the republic.

12. To the Cabinet of Ministers of the Republic of Uzbekistan:

take measures to attract organizations that are professionally engaged in recruitment to hire highly qualified managers in the energy industry;

Together with the Prosecutor General's Office, within a month, to submit to the Legislative Chamber of the Oliy Majlis of the Republic of Uzbekistan a draft law providing, inter alia, for improving the procedures for connecting alternative electricity producers to the unified energy system and implementing projects on the terms of public-private partnership.

13. JSC "Uzbekenergo" together with the Ministry of Justice of the Republic of Uzbekistan and other interested departments:

by April 1, 2019, to develop and submit for approval to the Cabinet of Ministers of the Republic of Uzbekistan regulations for connection to the unified energy system of business entities producing electric energy, including from alternative energy sources;

Within two months, submit proposals to the Cabinet of Ministers of the Republic of Uzbekistan on amendments and additions to the legislation arising from this resolution.

14. Control over the implementation of this resolution shall be entrusted to the Prime Minister of the Republic of Uzbekistan A. N. Aripov, Head of the Presidential Administration of the Republic of Uzbekistan Z. Sh. Nizomiddinov and Deputy Prime Minister of the Republic of Uzbekistan A. S. Sultanov.

1.3. Decree of the President of the Republic of Uzbekistan «On approval of the strategy of modernization, accelerated and innovative development of the construction industry of the Republic of Uzbekistan for 2021—2025» under the number UP-6119 dated 11/27/2020