This chapter examines Uzbekistan’s enabling environment for investment in water security through the OECD Scorecard. It finds uneven progress across the multiple dimensions for the enabling environment and highlights priority reforms in regulation, data, project preparation and institutional capacity to help attract investment at scale.
Strengthening the Economic, Financial and Technological Dimensions of Water Efficiency in Uzbekistan
Highlights of a National Dialogue on Water
Abstract
Uzbekistan is projected to face the largest financing shortfall among all Central Asian countries for achieving the goal of ensuring clean water and sanitation for all and improving overall efficiency of water use by 2030, with an estimated gap of approximately USD 5 billion for the 2025-2030 period (Vinokurov, 2024[1]). To bridge the funding gap, there is a clear need to identify and remove barriers that may constrain investment to attract and accelerate greater financing.
This chapter aims to identify the current barriers and opportunities in the enabling environment for investment in water security in Uzbekistan by applying the OECD Scorecard for Assessing the Enabling Environment for Investment in Water Security (the “Scorecard”).1 The Scorecard offers a comprehensive method for assessing the current investment environment as a basis for identifying key areas where reforms can be implemented to facilitate investment. The assessment of the enabling environment is based on external data sources and data collected by a national expert. This assessment in turn provides a basis for understanding how PPPs can be effectively implemented, as discussed further in Chapter 4.
The purpose of the OECD Scorecard is to pinpoint issues that hamper water security-related investments by public and private investors. The Scorecard is tailored to meet the needs of policymakers, donors and investors who want to improve the enabling environment for water security.2 While the assessment highlights key areas for attention, the ultimate decision on prioritisation rests with decision-makers and should be adapted to the circumstances of each country.
The Scorecard categorises the enabling conditions for investment in water security into four dimensions as demonstrated in Figure 3.2. These include the country’s policy framework for investment (Dimension 1), the water policy framework for investment (Dimension 2), the underlying framework to ensure projects are bankable and sustainable (Dimension 3) and the contribution of other economic sectors to water security (Dimension 4).
Source: (Sanchez Trancon et al., 2024[2]).
The Investment Policy Framework (Dimension 1) focuses on the investment framework in the country. It aims to assess whether the country is attractive for investors at a general level.
The Water Policy Framework (Dimension 2) focuses on how water related policies can generate the conditions for water projects to generate value and attract investment. This dimension is organised around cross-cutting water issues. It evaluates the water sector’s policy framework by identifying market conditions, policy barriers and regulatory shortcomings that might hinder successful water security investments.
The Water Project Framework (Dimension 3) assesses whether the water-related institutional structures, mandates, policies and regulations are conducive to bankable and sustainable water projects. This considers business models, economic and financial viability and their broader societal and environmental impacts.
Dimension 4 relates to “Other economic sectors” and centres on the impact of other economic sectors on water security. Investments in agriculture and food, energy and other sectoral resilience, urban development and other domains can have significant unintended consequences on water availability and exposure and vulnerability to water risks.
The four dimensions are interlinked. However, the nature of the linkages between dimensions can differ among countries and regions. The tool explores these four dimensions by identifying key indicators to aid governments and relevant partners in removing investment barriers.
Each dimension and question is scored on a scale of 0-5.
Overall, Uzbekistan’s environment for investment in water security is only moderately attractive and still requires improvement, as shown in Figure 3.2. The Investment Policy Framework (Dimension 1) in Uzbekistan shows moderate progress, with a score of 2.31, demonstrating some strengths in the overall policy framework for investment ahead of most Central Asian countries, as evidenced in Figure 3.4.
The water policy framework (Dimension 2) and the sustainability and bankability of projects (Dimension 3) scored 1.71 and 1.88 respectively, demonstrating early steps for both dimensions. Other economic sectors (Dimension 4) posted the highest score of 2.28, demonstrating movement towards enhanced efficiency.
Note: Dimension 2 covers water resource management, urban and rural drinking water, urban and rural sanitation, hydropower and irrigation. Data for rural and urban drinking water are analysed together because no disaggregated data are available; for the same applies to sanitation.
Source: Country consultations, including at the Policy Dialogue on Water Finance and Technologies in Uzbekistan, https://www.oecd.org/en/events/2024/12/policy-dialogue-on-water-finance-and-technologies-in-uzbekistan.html.
Cumulatively, Uzbekistan scored 8.18 out of 20, reaching an “engaged” stage.3 However, there are areas in which Uzbekistan can progress to strengthen the enabling environment for investment in water security before attracting private sector participation at scale.
While Uzbekistan demonstrates notable strengths in the enabling environment for investment, the overall analysis was constrained by data limitations. In several areas, restricted data availability affected both the depth and scope of the assessment, with approximately half of the total indicators (327) unable to be evaluated due to missing data. This challenge was particularly evident in the irrigation and rural sub-sectors. In addition, due to Uzbekistan’s legislative and service delivery model, drinking water and wastewater are treated as a single sector, which further shaped how the data was presented. A granular approach was applied wherever possible, allowing for more nuanced insights when data permitted.
3.2.1. Dimension 1: Emerging evidence of a promising policy framework for investment
The Investment Policy Framework (Dimension 1) in Uzbekistan is considered solid, with a score of 2.31, demonstrating clear strengths in the overall policy framework for investment. Uzbekistan scored higher than most regional counterparts, as shown in Figure 3.3, with clear strengths demonstrated in the domestic financial sector.
Achieving an improvement in the policy framework for investment will require addressing public governance mechanisms, alongside expanding financial accessibility and streamlining regulatory frameworks. Overall, Uzbekistan outperforms the average for regional counterparts regarding the strength of domestic finance and corporate governance mechanisms, and underperforms in areas including public governance mechanisms, one of Uzbekistan’s weakest indicators, as indicated in Figure 3.4.
Note: The results from Uzbekistan’s D1 analysis were compared against neighbouring countries in Central Asia to provide a basis for comparison.
Source: OECD analysis of data from OECD-UCLG World Observatory on Subnational Government Finance and Investment, World Bank, IMF, World Economic Forum, and Fitch.
Uzbekistan has a stable macroeconomic landscape, characterised by higher GDP growth than its neighbours the Kyrgyz Republic and Kazakhstan (World Bank, 2024[3]). This robust economic performance is further supported by a lower inflation rate and a notably strong domestic finance sector. (World Bank, 2024[4]). However, some areas remain on par with or slightly lower than regional counterparts. This includes issues such as a lack of public governance mechanisms and slightly lower scores in decentralisation, which lower its score in terms of the Policy Framework (Dimension 1), as illustrated in Figure 3.4 below. In terms of credit ratings, Fitch Ratings maintained Uzbekistan's rating at BB- with a stable outlook during the most recent update in August 2024.
Note: The results from Uzbekistan’s D1 analysis were conducted against neighbouring countries in Central Asia and OECD member countries.
Source: OECD analysis of data from OECD-UCLG World Observatory on Subnational Government Finance and Investment, World Bank, IMF, World Economic Forum, and Fitch.
In recent years, Uzbekistan has seen strong economic growth, as demonstrated in Table 3.1 below, which highlights areas such as GDP growth reaching 6% per year, significantly above the OECD GDP growth rate of 1.7% in 2024. The country has seen high annual GDP growth over the last decade, and growth rebounded quickly after the COVID-19 pandemic. Inflows of foreign direct investments (FDI) have increased. In 2000 and 2006, annual FDI inflows did not exceed USD 200 million, while in 2022 they reached a record USD 2.3 billion (World Bank Group, 2024[5]).
As the authorities continue with strong macroeconomic policies and reforms, growth is expected to remain strong in the years ahead. However, growth is estimated at marginal rates in 2025 and 2026, particularly for real disposable household income (ADB, 2025[6]). Despite this, the overall growth trajectory and general trend should allow the authorities to reach the goal of Uzbekistan becoming an upper-middle-income country by 2030 (IMF, 2022[7]).
Financial stability within Uzbekistan is evidenced by solid banking sector indicators such as Tier 1 capital adequacy and a low level of non-performing loans (IMF, 2024[8]). Yet the limited data on broader financial metrics suggests there is room for greater transparency and reporting to provide a more nuanced understanding of the financial landscape.
Recent government reforms have opened the country to investment, with efforts to ease business registration and licensing (OECD, 2023[9]). However, investors have called for a level playing field between public and private firms, highlighting competition policy and enforcement as significant challenges.
Some challenges identified include a weak institutional framework for competition policy, inadequate controls on market concentration, limited measures against cartels and concerted practices, alongside inadequate oversight of market dominance and monopoly practices. The simplification of cross-border trade remains a critical area needing further progress, with a consensus that significant advancements in trade facilitation have been limited over the past five years (OECD, 2023[9]). However, in terms of expansion and growth, recent government action has also facilitated an increase in international trade, particularly through policies including exchange rate liberalisation, the relaxation of currency restrictions and measures to further foster competition. Uzbekistan has also reaffirmed its commitment to join the World Trade Organisation at the 14th Ministerial Conference in 2026 and has adopted several legal acts to align its trade regime with WTO rules in several areas, alongside signing four bilateral agreements (World Trade Organisation, 2024[10]). Despite these efforts, persistent logistical bottlenecks and disruptions continue to make international trade slow and costly.
Available information suggests that enhancing access to domestic finance could significantly aid economic expansion. As access to finance is a cornerstone of investment, developing a more inclusive financial system could be advantageous for Uzbekistan's investment climate.
Efforts made by the government to refine the regulatory landscape for businesses have been acknowledged and remain on par with regional comparators, as evidenced in Figure 3.4. However, there is a need for accompanying pro-competition policies to guarantee free enterprise entry and fair market competition.
Governance mechanisms in Uzbekistan slightly lag in comparison with regional benchmarks, particularly in areas of accountability, government effectiveness and anti-corruption efforts (World Bank, 2024[11]). However, Uzbekistan has made clear progress in transparency in both budget and procurement processes. For example, the “Open Budget” portal outlines the core aspects of the budgetary process and publishes information about the main parameters of national and local budgets. Information on debt obligations, including those of major state-owned enterprises, has also been made publicly available since 2021 (World Bank, 2023[12]). In this regard, Kazakhstan's stronger governance indicators provide a model worth considering for good practices.
The country’s moderate performance in terms of decentralisation indicates a balanced distribution of subnational government functions but also points to the need for enhanced efficiency at the local governance level.
In terms of the regulatory environment, Uzbekistan has strong enabling conditions for business initiation and property registration. However, areas such as construction permit acquisition call for process optimisation, which is key for water and wastewater service delivery. Further pro-competition reforms can support private sector growth in Uzbekistan’s evolving regulatory environment. While progress in other reform areas has been positively received, firms remain concerned about competition issues, reflecting challenges in implementing legal reforms and their limited scope so far. These concerns are compounded by the need for complementary reforms in areas such as land markets, corporatisation and privatisation of state assets to ensure a level playing field between public and private enterprises (OECD, 2023[9]).
Assessment of non-commercial risks suggests regional parity in terms of political stability (World Bank, 2024[11]). Nonetheless, the regional comparison highlighted slight advantages for neighbouring countries in terms of political and security stability.
Regarding infrastructure within the country, Uzbekistan satisfies fundamental requirements with its reliable access to electricity. However, advancing in other infrastructural domains such as energy, internet access and healthcare facilities will be crucial to elevate the nation’s infrastructure to a level that actively draws investment (World Bank, 2024[13]).
3.2.2. Dimension 2: Further reforms to the water policy framework for investment are needed
Uzbekistan scored 1.71 in the water policy framework (Dimension 2), indicating an uneven enabling environment for attracting and maintaining investment in the water sub-sectors.4 Some notable positive areas indicate strengths around authorities in charge of water resources and transparent mechanisms to solve conflicts between water users. However, limitations are consistently observed around schemes for irrigation planning, service provider capacity levels and transparency of contracts.
The assessment of the water policy framework (Dimension 2) in Uzbekistan is significantly constrained by gaps in data collection, in particular the absence of disaggregated data between rural and urban areas. This presents an opportunity to improve data collection and reporting.
This data restriction limits the depth of analysis and the ability to formulate targeted policy responses. To strengthen the enabling environment for investment and provide clarity to potential investors, improvement in data availability will be an asset. Enhanced data granularity would support the identification of critical pressure points, inform the design of context-specific interventions to improve efficiency and enable a more accurate understanding of constraints across both rural and urban settings.
With the data available, current limitations identified in the water policy framework coalesce around the following key themes:
Uzbekistan has yet to establish a comprehensive legal framework that integrates market principles and mechanisms, which affects the drinking water, wastewater and irrigation sectors.
The regulatory framework for water-related sectors currently lacks an independent regulator responsible for decision-making or a clear attribution of regulatory functions among relevant bodies. This absence has been notable, and has led to blurred responsibilities between institutions, potentially resulting in undue influence and a decline in trust. While significant institutional reforms have been undertaken in recent years, including consolidation of sector responsibilities and adoption of the new Water Code, further clarification of regulatory mandates. Particularly tariff approval, oversight of service performance and PPP governance could strengthen transparency, reduce overlaps and enhance investor confidence.
The sector has limited accountability and transparency mechanisms, a lack of well-defined funding strategies and rigorous performance evaluations for service providers.
Historically, water supply and wastewater have not been appealing to private investors due to low tariffs and limited effectiveness in billing collection rates. The new tariff policy for the water supply and wastewater sector includes tariff revisions aimed at addressing cost recovery challenges, which could stimulate private sector investment. However, this is not consistently applied across all sectors, including irrigation.
In the current regulatory framework, Uzbekistan applies the principle of a unified tariff for the use of water resources. Any future reform of economic instruments should therefore be developed within the parameters of the existing legal framework and the unified tariff principle.
While the Tax Code establishes differentiated abstraction charge rates by source and activity type, stakeholders emphasise that tariff policy for water resource use is generally implemented under a unified framework without differentiated tariff structures applied across sectors in practice.
The water resource policy framework
Uzbekistan possesses clear strengths in terms of water resource allocation, as demonstrated in Figure 3.5 below. The roles and responsibilities regarding water resource allocation are clearly defined and delineated, and there are strong conflict resolution measures in place. However, there are limited cohesive economic instruments and a notable absence of data on water resources.
Source: Country consultations, including at the Policy Dialogue on Water Finance and Technologies in Uzbekistan, https://www.oecd.org/en/events/2024/12/policy-dialogue-on-water-finance-and-technologies-in-uzbekistan.html.
The government acknowledges that enhancing water use efficiency is essential to ensure future water security. Alongside the Water Sector Development Concept 2020-2030, which places water efficiency at the center of the national strategy (Government of Uzbekistan, 2020[14]), Uzbekistan has several documents guiding water management, water use and water supply in the country. These include the following:
The Law of the Republic of Uzbekistan on Water and Water Use (6 March 1993). It aims to regulate water relations and rational use of water, the provision of protection of water, improvement of water and the protection of rights of enterprises, institutions, organisations, farms and individuals relating to water relations.
The Concept of Development of the Water Management Sector of the Republic of Uzbekistan for 2020-2030. It aims to promote sustainable water management, attract investment, introduce market-based reforms and integrate modern technologies to improve infrastructure and efficiency in the sector. The concept includes the new Water Code, which is designed to codify all the norms of the existing legislation in relation to water delivery, use and consumption in Uzbekistan. The phased implementation of the concept is due to be executed based on Water Sector Development Strategies, approved every three years in line with high priority areas.
The adopted Water Code aims to address identified barriers to investment, such as limited transparency in water allocation regimes, and to shift from a reactive to a preventive approach in exceptional circumstances like drought and water pollution.
Data on water resources
Data gaps remain a predominant issue. The availability of data on water resources shows limited progress, which can be partially attributed to the absence of a centralised database for water resources in the country. Access to timely and reliable hydrological data remains constrained, primarily due to outdated or poorly equipped hydrometric stations in upstream areas. Irregular or incomplete data exchange between riparian countries, particularly regarding flow forecasting, river discharge and reservoir operations, further limits water availability. Such fragmentation hampers the effective use of information in planning and decision-making for both public and private investments.
Presidential Decree PP-4356 in Uzbekistan has mandated that all governmental bodies engaged in water management regularly report on the quantity and quality of water usage across sectors. The overarching aim is to facilitate the accounting, monitoring and maintenance of water supply quality and safety, but as of 2025 there was limited publicly available reporting.
Strong water resource allocation measures
The Law on Water and Water Use covers water allocation regimes, dispute resolution and water-use permits. It provides clarity on the legal status of water resources, the authorities responsible for issuing licenses for water abstraction and discharge depending on the water body, abstraction limits per type of user, procedures for dealing with exceptional circumstances and a priority order between users. However, there are no enforced obligations related to return flows (Government of Uzbekistan, 1993[15]).
Uzbekistan has introduced specific frameworks to support water resource allocation. This is particularly important in the context of droughts, as per capita water availability has decreased significantly over the past 15 years. Basin Irrigation Authorities are responsible for preparing basin management plans and submitting them to the Ministry of Water Resources and establishing specific measures for droughts and other extraordinary events.
Water resources are also monitored, and water abstraction limits, different for surface water and groundwater, are set for all water users and consumers. The abstraction limits are set by water management agencies for water sources for main canals (systems), secondary and tertiary irrigation systems, economic sectors, territories and water users/consumers, and, when concerning groundwater, by geology and mineral resources agencies. Specific charges5 for groundwater and surface-water abstraction have also been established for both individuals and commercial bodies, as indicated in Table 3.2 below.
Water resource allocation mechanisms for irrigation systems are planned according to the Law of Uzbekistan "On Water and Water Use", considering actual annual water availability. Planning of drainage-water use for agriculture considers the state of irrigated land and the quality of drainage water. The water-use plans are drafted and approved by public agencies such as the Water Supply Service, the Ministry of Water Management and the Basin Irrigation System Authorities.
Limited coherence between economic instruments constrains water security
The effectiveness of economic instruments for water management varies across sectors. The application of economic instruments for water management is not yet effective in protecting water resources and ensuring service delivery due to enforcement challenges. In addition, there is limited coherence in terms of water pricing strategy across water sectors and users.
The application of tariff reforms demonstrates a positive approach. However, the government has established tariffs only for service delivery to households and commercial users.
For farmers, water tariffs are embedded within the irrigation water-abstraction charge, referred to as the water-use tax, according to the official translation. This arrangement has weakened essential economic signals and reduced service accountability. While the reform has simplified administrative procedures, it has also created rigidities that impede progress on key sectoral objectives such as volumetric billing, the structuring of public–private partnerships and the sustainable financing of water infrastructure.
The water-abstraction charges (referred to as the water-use tax, according to the official translation)6 are differentiated by water source and type of economic activity (see Table 3.2) and are applied on a volumetric basis. There have been significant rate increases in recent years for some users to incentivise efficient water usage and reduce implicit water-consumption subsidies.
The tax on water-resource use (water-abstraction charge) primarily serves as an economic instrument to promote efficient and responsible water use, strengthen water-accounting and monitoring practices and reinforce the recognition of water as a valuable resource. Its principal objective is not revenue generation. Furthermore, the abstraction charge applies to water use within national jurisdiction and does not imply the introduction of payments or charges related to transboundary water flows.
In practice, tariff-policy discussions in the water management sector proceed from the principle of applying a unified tariff for the use of water resources, and no differentiated tariffs are currently applied across sectors or categories of users. Any proposals for reform should therefore be grounded in the existing regulatory and legal framework and current implementation practice.
Note: Tax rates for abstraction from surface water and groundwater within the established limit are set in absolute value per cubic metre in 2025. Water resources used for the operation of hydraulic turbines of hydropower plants, as well as water discharged back by thermal power plants and cogeneration plants, water used for flushing saline agricultural lands, underground water extracted from mine drainage to prevent environmental harm, water used by health institutions for medical purposes and water used by non-profit organisations are not subject to taxation.
USD 1 equals UZS 12 590 UZS in July 2024; therefore, the tax ranges from USD 0.04/m3 to USD 2.71/m3 depending on the user.
For agricultural water, Article 445 of the Tax Code provides that a reduced rate applies when water-saving irrigation technologies are implemented and/or when water intake is measured using approved devices. A reduction factor of 0.5 applies when both measures are in place for irrigation, and a factor of 0.7 applies when only one is applied or when measuring devices are used in fish farming. Conversely, a higher rate is applied, using an increasing coefficient of 1.1, if neither water-saving technologies are used nor water intake is measured. These provisions are designed to incentivise the adoption of efficient water-management practices (Ministry of Economy and Finance of the Republic of Uzbekistan, 2025[16]).
The uneven deployment of metering across sectors undermines the effectiveness of economic instruments. However, notable efforts have been made to increase metering for drinking-water services, and incentives have been introduced in agriculture to expand the use of water-measuring devices. For drinking water, 73.2% of Uzsuvtaminot JSC customers (representing 218 000 units) now have metering devices (State Assets Management Agency, 2024[17]).
Furthermore, there has been limited success in implementing pollution charges based on the polluter-pays principle, which applies mainly to commercial and industrial users. Cabinet of Ministers Decision No. 202 of April 2021 highlighted that legal entities emitting pollutants into the environment, discharging wastewater and disposing of waste are required to pay compensation charges (Cabinet of Ministers of the Republic of Uzbekistan, 2021[18]). However, this is not in place for residential and agricultural users. This leads to inefficiencies in terms of discouraging water pollution and a lack of incentives for using treated wastewater for irrigation.
Dispute resolution
Uzbekistan demonstrates success in having established dispute-resolution mechanisms for water-related sectors, with the Law of Uzbekistan "On Water and Water Use" setting guidelines for water-conflict resolution with clear procedures at the national level. Several entities are involved, including the Cabinet of Ministers, local authorities, citizen self-governing bodies and authorised agencies. While the law specifies the circumstances under which each entity should address conflicts, some areas of ambiguity remain, which limit the full success of dispute resolution. These ambiguities can lead to contractual disagreements, which in turn deter potential investments.
Drinking water and wastewater policy framework
When examining the water-supply framework in Uzbekistan, as highlighted in Figure 3.6, economic regulation appears robust, providing a strong basis for facilitating access to private finance. The regulatory structure is somewhat clear, particularly in terms of reporting, with authorities required to report on service delivery, recommend planning and action and assess performance against targets. However, it lacks an independent regulatory body that is autonomous from the government. Areas where improvements could be made include introducing a comprehensive approach to sectoral investment planning, clarifying where responsibilities lie for investments and strengthening service provider capacity levels, where scoring is weakest.
Note: The figure provides data solely for urban water supply due to similar responses recorded for both rural and urban water supply, particularly as Uzsuvtaminot JSC and its divisions are responsible for providing both water-supply and sanitation services. A key difference observed is that a small number of rural water-supply systems are managed by private water companies, such as Obi Hayot, which is a group of private companies, responsible for delivering public water supply services in rural areas. Obi Hayot operates the new water-supply as part of a KfW-financed project.
Source: Country consultations, including at the Policy Dialogue on Water Finance and Technologies in Uzbekistan, https://www.oecd.org/en/events/2024/12/policy-dialogue-on-water-finance-and-technologies-in-uzbekistan.html.
Drinking water services investment plan
Uzbekistan does not currently have a single comprehensive water sector investment plan. A national investment programme is adopted for specific periods, with a particular focus on irrigation, land reclamation and pumping stations. A key benefit of these periodic investment programmes is that they are designed and implemented with due consideration of climate-mitigation measures and overseen by the Ministry of Construction, Housing and Communal Services.
Regarding sectoral planning, including accelerating work on improving the supply of clean water and sanitation for the population, Uzbekistan adopted Presidential Decree No. PP-257, which focuses on additional measures to increase the level of supply for drinking water and sanitation services. This decree includes measures such as increasing the population with access to drinking water to 87% and upgrading sewerage systems in over 32 cities and 155 regional centres (Republic of Uzbekistan, 2022[19]). A second decree was adopted in 2023, which also focused on additional measures, with targets to control water volume, improve financial conditions of drinking-water supply and strengthen tariff policy (Government of Uzbekistan, 2023[20]). However, neither of these decrees contains a detailed investment plan. Formal consolidation into a single plan could help increase clarity. It would also support the identification of investment needs in greater depth and help determine where funding could have the maximum potential impact.
Regulatory structures
The regulatory functions are divided across several entities. The Ministry of Construction, Housing and Communal Services acts as the regulatory authority for drinking-water supply and sanitation. A separate regulation has been adopted on the formation, approval and establishment of tariffs, which falls under the jurisdiction of the Ministry of Economy and Finance of Uzbekistan. The limited clarity surrounding the functions of the regulator and the lack of publicly available information create a fractured regulatory system with limited clarity on role delineation.
Assessing the extent to which economic regulation sustains and attracts investment yields an overall positive score, including a clear process for setting and revising tariffs; however, limited data make it difficult to assess its efficacy in practice. This is exemplified by the absence of reporting on contract arrangements for service providers and the lack of performance-based contracts.
The absorption of donor capital commitments is estimated to be at full capacity. However, there is a lack of data to assess whether cash flows are sufficient to meet financing obligations within the country.
In terms of the overarching aim of service authorities being capable of fulfilling their mandate, there is a lack of human resources for operations, maintenance, design and construction, which limits Uzsuvtaminot’s capacity levels.
The process of involving the private sector in operations has only just begun and remains at an initial testing stage, with regulations currently under development. A full discussion of Uzbekistan’s current ability to attract private-sector investment in water-related sectors is provided in Chapter 4.
Early signs of private interest in the water and wastewater sector
The government has introduced several reforms to attract private investment into water and wastewater services, including those related to economic regulation and the legal status of service providers. There are no financial rules in place in Uzbekistan that constrain financial flows for investment. According to existing legislation, enterprises can issue securities on the capital market. However, limited progress has been made in attracting private and public financing.
According to current legislation, joint-stock companies can raise additional funds by issuing securities (shares and bonds) on the capital market. Uzsuvtaminot JSC issued USD 990 000 worth of shares in 2021 and USD 6.09 million in 2022. Additionally, relevant projects of Uzsuvtaminot JSC can be financed by bank loans.
As of 2025, private sector participation remained limited; however, early signs of growth were beginning to emerge. The drinking-water supply and wastewater systems of the cities of Kagan, Shirin, Yangiyer, Bekabad and Yangiyul were transferred to the private sector through public-private partnerships starting in July 2024.
To attract private investment in water-related sectors, the government of Uzbekistan offers a series of incentives, including:
government guarantees for investments in the sector
provision of land with essential infrastructure (e.g. gas, electricity, water and transport) for project development
tax and customs privileges and preferences for investors
Service providers have access to finance; however, they can only access financing with limited maturity and interest rates that are not adapted to their needs. The Republic of Uzbekistan's Investment Programme for the first quarter of 2024 allocated USD 48.7 million for Uzsuvtaminot JSC projects to be financed through foreign loans under state guarantee. By year-end, the company had implemented 20 drinking-water-supply and sanitation projects, utilising credit funds totalling USD 179 million and exceeding planned targets by 4.5 per cent. The financing was sourced from multiple international partners: the Asian Development Bank (USD 90.6 million), SUEZ (USD 26 million), the European Bank for Reconstruction and Development (USD 24.1 million), the Saudi Fund for Development and OPEC funds (USD 21.2 million) and the World Bank (USD 8.4 million). This demonstrates successful mobilisation of additional international financing beyond initial programming.
In addition, Resolution No. 107 of the Cabinet of Ministers (9 March 2022) established risk categories for state-owned enterprises engaging in external-debt financing. This system categorises enterprises based on their financial and economic performance and the volume of external-debt funds secured.
Adjusting tariff setting for cost-recovery
The tariff setting process for water and wastewater services is clearly delineated, with annual adjustments based on the inflation index and consultations with relevant ministries. However, tariffs are still set below cost-recovery levels. The methodology for cost assessment and tariff revision in water supply and wastewater is developed and agreed with the Ministry of Economy and Finance, the Ministry of Construction, Housing and Communal Services and Uzsuvtaminot JSC.
The responsibility for setting drinking-water and wastewater tariffs is decentralised, despite the presence of a national operator, Uzsuvtaminot JSC. Under the 2022 Law “On Drinking Water Supply and Wastewater Disposal”, regional water-supply organisations are mandated to develop cost-reflective tariffs based on production costs, financial and operational expenses and provisions for infrastructure modernisation. These proposed tariffs are then subject to approval by local authorities rather than a central regulatory body. While Uzsuvtaminot co-ordinates service delivery and tariff preparation, final decisions rest with subnational governments, resulting in significant regional variation in tariff levels and periodic adjustments based on local economic and infrastructural conditions.
Tariffs are automatically updated on an annual basis, without submitting new or revised applications for approval, taking the inflation index into account, upon agreement with the Ministry of Economy and Finance, the Ministry of Construction, Housing and Communal Services and Uzsuvtaminot JSC.
Since 1 January 2024, new tariff-setting rules have been implemented under Presidential Decree No. PP-343 of 24 October 2023, establishing cost-based pricing for drinking-water supply and wastewater services. Tariffs are calculated based on total costs including production expenses, current expenditures, development and modernisation investments, financial costs, taxes, Uzsuvtaminot JSC operational costs and organisational profitability levels. Where regional authorities and municipalities set tariffs below the calculated cost amount, the difference is covered from the State Budget through a state-order mechanism, ensuring financial sustainability while maintaining affordability controls at the local level. Subsidies currently exist for multi-child families and certain classes of citizens, including citizens with disabilities.
Clarity of roles
Uzsuvtaminot JSC is the national holding company responsible for the strategic management, development and modernisation of Uzbekistan's centralised drinking-water supply and sanitation systems. It has the primary mandate for investing in drinking-water and sanitation infrastructure, in partnership with the government. However, the mandate to invest in water-resource management remains unclear within the Ministry of Water Resources.
Regional Vodokanal enterprises and municipal providers have an obligation to provide services to the poorest households and households without access. In 2010, the Ministry of Housing announced a call to encourage water-supply and sanitation service provision by non-profit organisations and community organisations in rural settlements that do not have access to centralised drinking-water supply (Decree UP-6074); however, this has not been systematically implemented.
Uzsuvtaminot JSC operates as the central contractual hub of Uzbekistan's water sector, simultaneously fulfilling multiple, potentially conflicting roles as service provider, procurement client, concession grantor and borrower. Under its updated charter (registered September 2024), the company has been granted extensive contractual powers that span the entire water value chain, from direct service provision through standard consumer contracts mandated by the 2022 Law on Drinking-water Supply and Wastewater to acting as the sole procurement client for major infrastructure projects under Article II provisions.
The charter explicitly empowers Uzsuvtaminot to introduce and monitor public-private partnerships, as demonstrated through its role as concession-granting authority for the 2022 Tashkent management contract with SUEZ and the five-city PPP programme launched in October 2023. Additionally, the company serves as the national executing agency for international financial-institution projects under Presidential Decree PF-5883 while simultaneously managing social-contract grants with NGOs for rural water access under Decree UP-6074. This concentration of diverse contractual functions within a single entity creates a complex institutional architecture that, while enabling co-ordinated sector development, raises potential concerns regarding conflicts of interest and the separation of regulatory, operational and commercial functions within the water-sector governance framework.
A need for capacity building to improve service delivery
One of the key challenges in the water and wastewater sector, which limits its efficiency, is the low capacity of human resources for operation and maintenance, design and construction of the networks and investment planning. The staff of Uzsuvtaminot JSC averages 5-6 people per thousand connections, which is higher than the 2-3 per thousand connections that usually apply to utilities considered efficient. Despite this, issues remain, including insufficient tariff collection, a lack of up-to-date technologies and non-revenue-water levels that are still high. For example, there is no reporting on operating-cost coverage and debt-service ratio data are not available.
In terms of operational performance, Uzbekistan’s drinking-water and wastewater sector shows mixed results. Continuity of service is relatively low, estimated at 21.3 hours per day, representing 88.75% availability. Customer-metering coverage in the drinking-water supply system is reported at 73.2% (State Assets Management Agency, 2024[17]). However, from 2024 it is mandatory to include water metering in all drinking-water-supply and sewerage-facility and network designs, to install metering devices on water infrastructure and networks, and to install household water meters connected to a unified billing system when extending networks to those households (Resolution of the President of the Republic of Uzbekistan, 2023[21]).
The collection ratio is estimated by IBNET at 88% in urban areas. The level of non-revenue water is high at 36%. However, water losses in some cities can reach 50%, largely attributable to ageing infrastructure and a lack of sufficient investment in maintenance. This presents a significant challenge in attracting and sustaining investment. Non-revenue water generates financial losses due to the inability to recover production, treatment and distribution costs. Furthermore, high non-revenue water can cause supply interruptions, leading to customer dissatisfaction. Investors often view high non-revenue water as an indicator that infrastructure may be nearing, or has passed, the end of its lifecycle, which can necessitate increased borrowing or complicate fundraising activities and financing mobilisation. Such conditions also lead to deferred investments: resources that could otherwise fund system improvements such as energy efficiency or network expansion, are instead allocated to overdue maintenance and replacement.
The results of this Scorecard highlight the need to strengthen monitoring levels to generate a more accurate picture of Uzbekistan’s water usage and, consequently, provide more informed sectoral decision-making. For example, current collection rates make it challenging to demonstrate the creditworthiness of the provider, a crucial factor for attracting private investment. There is not yet a consensus among decision-makers on the importance of enhancing tariff collection. Based on data from 2016, 2017 and 2020, collection rates in the sector averaged 70%, 75% and 77% respectively, with Syrdarya province at 65.8%, Kashkadarya province at 63.3% and Khorezm province at 60%.
Recent reforms under Presidential Decree No. PF-74 (7 May 2024), which increased salary levels for water-sector employees and expanded revenue sources for performance-based incentives financed through extra-budgetary funds, represent an important step toward strengthening institutional capacity.
Irrigation
Due to limited data availability, a comprehensive assessment of the irrigation sector could not be conducted. However, the analysis did yield valuable insights into key barriers and opportunities, which are outlined below.
There is no single comprehensive sectoral investment plan for irrigation. However, the country’s special investment programme is adopted for specific periods and covers irrigation. Furthermore, the Decree for the Development of Water Management for Uzbekistan for 2020 to 2030 places specific focus on expanding water-saving irrigation technologies and ensuring the sustainability of irrigated lands, alongside increasing the efficiency of irrigation systems.
The Ministry of Water Management both oversees and provides water services for irrigation. All investment projects in this sector align with national climate-change-mitigation targets. Monitoring of irrigation programmes is not systematically conducted. However, in 2021, the Cabinet of Ministers issued a decision to improve certain legislative acts related to the activities of the Ministry of Water Resources, which introduced water accounting and reporting specifically for irrigation-system administrators (Cabinet of the Ministers of Uzbekistan, 2021[22]).
The low capacity of human resources for operation and maintenance, design, construction, monitoring and evaluation of irrigation networks is a major barrier for attracting investment. Service providers lack experience in preparing investment plans and in operating and managing infrastructure, as illustrated by high water losses in irrigation channels.
Water losses remain high in irrigation channels within the country. Irrigation efficiency at the Water Users’ Association (WUA) level was estimated to be around 65.2%, with even lower indicators in several regions, and 35-40% of water is lost in irrigation networks.
Subsidies, soft loans and water tax preferences for water-saving irrigation technologies, as well as subsidies to cover the cost of electricity consumed by pumping units and irrigation wells, are available to agricultural producers. However, if not properly monitored, these incentives could pose a risk to future water security by potentially leading to over-exploitation of resources.
3.2.3. Dimension 3: Limited sustainability and bankability of water-related projects
The framework for assessing project sustainability and bankability (Dimension 3) highlights that water-related projects in Uzbekistan face significant barriers. Limitations include a lack of unified methodologies for environmental and social impact assessments, cost-benefit analysis and data-collection methodologies, as well as limited data availability. However, as demonstrated in Figure 3.7 below, positive elements include the existence of legislative frameworks to guide investment decisions, national guidelines to assess project viability and strong stakeholder participation in projects.
Note: The data recorded in Uzbekistan showed a score of 0 for both cost-benefit analysis and pooling finance, thus reducing the overall score of Dimension 3.
Source: Country consultations, including at the Policy Dialogue on Water Finance and Technologies in Uzbekistan, https://www.oecd.org/en/events/2024/12/policy-dialogue-on-water-finance-and-technologies-in-uzbekistan.html.
Positive levels of stakeholder involvement
Stakeholders are involved in several steps of the project cycle according to legislation. As per GLAAS reporting, the extent to which service users and communities participate in decisions remains high, and the percentage of the population with access to formal feedback mechanisms to address concerns and complaints is also high, estimated at between 75-94%.
A procedure for public hearings exists to ensure discussion of economic activities that may negatively impact on the environment (Cabinet of Ministers Decree No. 541 of 07.09.2020). Following these hearings, decisions can be made to either support or reject the planned economic activity in the specified area. Measures may also be taken to mitigate the impact of ongoing activities on the natural environment.
Progress has been made in terms of assessing the environmental impact of projects
There is no unified methodology that addresses water security and water-related risks, including those extending beyond a project’s boundaries. This presents a key area where water-related risks could be further factored into decision-making, including through the creation of a risk-analysis matrix.
However, the Cabinet of Ministers of the Republic of Uzbekistan has made improvements to the environmental-impact-assessment mechanism, building on the Presidential Decree on the “Approval of the Concept of Environmental Protection of the Republic of Uzbekistan until 2030” to bolster regulation on the environmental impacts of projects. Several laws and regulations, including the Law on Environmental Control, the regulations on compensation payments for pollution and waste disposal, the Law on Nature Conservation and the Regulations on Water Use and Water Consumption, contain provisions for assessing social and environmental elements.
There is no official methodology for conducting cost-benefit analyses for all types and sizes of projects. For projects related to the construction and reconstruction of facilities affecting water and water bodies, approval is required by the authorities responsible for ecology, environmental protection, geology and mineral resources. Additionally, these projects must undergo a state expert review in accordance with legislation.
Limited availability of data on water projects
There is no centralised platform for potential investors and project developers to access comprehensive information on water-investment needs or water projects. However, some information on projects is made available to the public through the official websites of relevant ministries and agencies, local authorities and the Statistical Agency under the President of Uzbekistan.
To ensure compliance with construction standards and rules, a government resolution mandates that the Ministry of Water Management oversee data collection on water projects (No. 573 of 17 September 2021). Some of this data is shared and collected with the involvement of experts from the water sector, agriculture, land planning and other relevant fields.
Measures designed to ensure project viability are in place, although they are not fully applied to the water and wastewater sector
There are national guidelines for project preparation, including for assessing project viability and risk distribution. However, implementation of these guidelines in the water and wastewater sector remains patchy.
Presidential Resolution PP-332 of 25 July 2022 outlines a procedure for developing infrastructure-investment projects, including provisions for conducting due diligence and approving pre-project documentation. It emphasises the importance of conducting a feasibility study to evaluate cost-effectiveness and project payback. Specifically, it mandates that the feasibility study include project-management schemes for the whole lifecycle of the project, including legal frameworks, clear management structures and financial estimates. Furthermore, it stipulates the interaction among project participants and the allocation of costs, benefits and responsibilities, while addressing institutional risks, their primary factors, expected changes and measures for risk mitigation.
The Ministry of Water Management (concerning water bodies and water management facilities), the Ministry of Construction, Housing and Communal Services, and Uzsuvtaminot JSC (water supply and sanitation), along with Uzbekhydroenergo JSC (hydropower), jointly with other public authorities and local executive bodies, assess the economic efficiency and safety of priority investment projects. This assessment, particularly for projects involving foreign investments and international financial institutions, is conducted through an analysis of pre-established indicators.
Effective mechanisms and instruments to pool projects or manage joint accounts for specific funding are not yet available in the country.
3.2.4. Dimension 4: The performance of other economic sectors demonstrates a relatively positive contribution to water security, with room for improvement
Among all four dimensions, Uzbekistan demonstrates its strongest performance in the contribution of other economic sectors to water security. This demonstrates the importance of water efficiency as a national priority relevant to all sectors and reflects the presence of clear water-risk-mitigation strategies, particularly through insurance classifiers.
However, despite the prevalence of many sectoral strategies, which lead to a strong score for this dimension, limitations are observed in the inconsistent application of guidelines. Furthermore, the absence of data for some sector-specific strategies limits a comprehensive assessment of national water security. Strong and consistent implementation across sectors is required to ensure water security.
While the introduction of subsidies and benefits aims to enhance water security, certain structural challenges may reduce the efficiency of these tools, which is reflected in the low score for public policy. The lack of co-ordination between sectors, fragmented investment in isolated domains without consideration of their interconnectedness and the absence of a comprehensive approach can lead to inefficiencies and increase water insecurity. Initiatives related to water efficiency can also have unintended consequences, such as over-abstraction and salinisation, which are not currently considered by the government.
Regular multi-stakeholder National Policy Dialogues, envisaged under the ongoing OECD-led nexus programme in partnership with UNECE, could support broad sector co-ordination. Since 2008, the OECD and UNECE have facilitated such events and supported progress in areas including strengthening capacity to use economic policy instruments for water management. Dialogues are planned to continue in 2025 with support through the IKI-funded Energy, Water and Land-use Nexus Programme.
Note: A no-response score was recorded for disclosure standards and has therefore been removed from the graph and the scoring.
Source: Country consultations, including at the Policy Dialogue on Water Finance and Technologies in Uzbekistan, https://www.oecd.org/en/events/2024/12/policy-dialogue-on-water-finance-and-technologies-in-uzbekistan.html.
A strong national strategy for water
Uzbekistan adopted the Concept of Water Strategy for 2020-2030 to guide sectoral development. Several other sectoral documents also guide the country’s strategy towards water security, indicating the government’s awareness of the importance of water security for ensuring economic growth and achieving its environmental and development objectives.
The 2030 Strategy of Uzbekistan, Section III “Water conservation and environmental protection”, introduces indicators for the following key objectives:
Promoting sound water use and a water-saving culture.
Achieving sound water use in agriculture.
Developing irrigation and water conservation technologies, with wide involvement of the private sector and public-private partnership mechanisms in the sector.
Reducing energy consumption by pumping stations as part of the wider adoption of -energy technologies.
Goal 31 under the Development Strategy of New Uzbekistan for 2022-2026 also highlights the need to reform the water-management system and implement a dedicated state programme for the water economy to support economic objectives (Development Strategy Center, 2021[23]).
Further co-ordination on economic incentives, both across and within sectoral strategies, could bolster water security
The government has introduced some measures to support water security. For example, in 2015, a distinct tax category was created for enterprises using water in the production of non-alcoholic beverages, with the corresponding tax rate per cubic metre increasing by 90% since its inception. Furthermore, from 2019, dedicated tax rates were established for industrial enterprises and vehicle-washing stations, with the tax rate for surface water utilised by industrial enterprises increasing from UZS 61.9/m3 in 2015 to UZS 360/m3 in 2019. Additionally, from early 2019, small businesses with an annual turnover of up to UZS 1 billion (approximately USD 120 000) became liable for the water-abstraction charge (referred to as the water-use tax).
Uzbekistan has implemented policy measures aimed at promoting the use of water-saving technologies in agriculture. These measures are designed to support agricultural producers in adopting technologies that enhance water efficiency. Key measures include loan guarantees covering up to 50% of collateral (capped at UZS 2.5 billion) and interest-rate compensation provided through the State Fund for Support of Entrepreneurial Activity. Strong insurance schemes exist for water risks, providing compensation in cases of property loss and damage specifically related to water risks, including floods and droughts.
Since 2021, subsidies have been available to cover part of the costs for implementing water-saving technologies and acquiring laser-based land-planning equipment. Land plots using these technologies are protected from optimisation or withdrawal for at least five years, ensuring long-term investment security.
In addition to these subsidies, several benefits are extended to support farmers who implement these technologies, including:
exemption from land tax for a duration of five years
partial compensation for loan interest
exemption from customs duties for components of technology imported from abroad
subsidies for the installation of alternative energy sources, such as diesel generators and solar panels, in cotton and grain fields where water-saving technology is utilised
exemption from water-abstraction charge (water-use tax) for agricultural fields equipped with water meters
These initiatives are part of the government’s efforts to reduce the financial barriers associated with the transition to more efficient water use in agriculture.
Regulatory measures can also be strengthened to support water security, particularly in relation to public procurement. A law on public procurement includes a sustainability principle that considers the economic, environmental and social impacts of procurement. It specifically mentions water consumption as a factor in evaluating bidders’ proposals and selecting contractors. However, it does not extend to water conservation, pollution reduction or other issues such as soil and flood protection.
There is no corporate-disclosure policy on water-related risks within non-financial reporting. However, regulatory measures support water security, including rules for commissioning production, water and other infrastructure, and regulations for establishing water-protection zones and sanitary zones of water bodies. Specific criteria are applied to bidders in public procurement to help improve the environment or reduce negative environmental impacts.
The purpose of conducting this assessment of barriers to investing in water security in Uzbekistan is to identify areas where reforms or adjustments could be enacted to facilitate easier financing flows. The results of the analysis based on the Scorecard suggest that Uzbekistan has made significant progress in strengthening the enabling environment. Targeted reforms could make a significant difference in attracting investment, including strengthening regulatory frameworks, improving data collection and introducing cost-benefit analysis of projects. This is particularly significant as Uzbekistan looks to scale up its PPP capabilities in drinking-water and wastewater services as well as irrigation, which is a key government priority. The following chapter leverages the results of the Scorecard to demonstrate which specific barriers could be removed to scale up PPPs in water-related sectors in the country.
References
[6] ADB (2025), Asian Development Outlook (ADO) April 2025: Uzbekistan, https://www.adb.org/sites/default/files/publication/1044336/uzb-ado-april-2025.pdf.
[18] Cabinet of Ministers of the Republic of Uzbekistan (2021), On further improvement of economic mechanisms for environmental protection in the territory of the Republic of Uzbekistan, https://lex.uz/en/docs/5367873#.
[22] Cabinet of the Ministers of Uzbekistan (2021), On improving certain legislative acts related to the activities of the Ministry of Water Resources of the Republic of Uzbekistan, https://lex.uz/ru/docs/5639095#5647350.
[23] Development Strategy Center (2021), Development Strategy of New Uzbekistan for 2022-2026., https://uzembassy.kz/upload/userfiles/files/Development%20Strategy%20of%20Uzbekistan.pdf.
[20] Government of Uzbekistan (2023), On additional measures for further improvement of the drinking water supply and sewerage system, https://lex.uz/docs/6648590.
[14] Government of Uzbekistan (2020), Presidential Decree No. UP-6024 validating the Concept for the development of water sector of the Republic of Uzbekistan for the period of 2020-2030..
[15] Government of Uzbekistan (1993), Law of the Republic of Uzbekistan on Water and Water Use of 6 March 1993..
[8] IMF (2024), Financial Soundness Indicators, https://data.imf.org/?sk=51B096FA-2CD2-40C2-8D09-0699CC1764DA&sId=1390030341854.
[7] IMF (2022), IMF Staff Concludes Visit to Uzbekistan.
[16] Ministry of Economy and Finance of the Republic of Uzbekistan (2025), Tax Code of the Republic of Uzbekistan, https://lex.uz/ru/docs/4674893#4689275.
[9] OECD (2023), Insights on the Business Climate in Uzbekistan, OECD Publishing, Paris, https://doi.org/10.1787/317ce52e-en.
[19] Republic of Uzbekistan (2022), On additional measures to increase the level of provision of the population with drinking water supply and sewerage services, https://lex.uz/docs/6033210.
[21] Resolution of the President of the Republic of Uzbekistan (2023), No. PP-343, https://cis-legislation.com/document.fwx?rgn=154323.
[2] Sanchez Trancon, D. et al. (2024), “Assessing the enabling conditions for investment in water security: Scorecard pilot test in Asian countries”, OECD Environment Working Papers, No. 235, OECD Publishing, Paris, https://doi.org/10.1787/b96936c4-en.
[17] State Assets Management Agency (2024), The consolidated report on the performance of state owned enterprises with state participation in 2023 and the condition of state propety usage, https://davaktiv.uz/uploads/pages/files/1224/Cons.report-2023%20%28website%29.pdf.
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[13] World Bank (2024), Access to Electricity (% of population), https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS.
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[11] World Bank (2024), Worldwide Governance Indicators, https://databank.worldbank.org/source/worldwide-governance-indicators#.
[12] World Bank (2023), Uzbekistan Infrastructure Governance Assessment, https://thedocs.worldbank.org/en/doc/9a1b20251d1688c58b83ce8d3baa250f-0080012023/original/Uzbekistan-InfraGov-Report.pdf.
[5] World Bank Group (2024), World Bank Country Data: Uzbekistan, https://data.worldbank.org/country/uzbekistan.
[10] World Trade Organisation (2024), Uzbekistan continues to make progress towards WTO accession, https://www.wto.org/english/news_e/news24_e/acc_24may24_e.htm.
← 1. The OECD Scorecard has been developed iteratively with a view to improving its functionality. The first version was trialled in six Asian countries, including Bangladesh, Mongolia, Nepal and Pakistan, in collaboration with the Asian Development Bank and partners. This pilot created a mechanism to identify conditions for attracting and sustaining investment in water security while refining the framework to ensure its global applicability. The second round of pilot tests was conducted in Armenia, Azerbaijan, Georgia, the Republic of Moldova and Ukraine, which offered recommendations on how to enhance water security. The third version of the Scorecard was utilised in Uzbekistan, constituting the latest version.
← 2. This includes, but is not limited to, ministries and other government agencies overseeing water services and water resources management, Ministries of Finance, Domestic Commercial Banks, National Development Banks and other entities capable of investing in water security. Furthermore, the tool is also relevant for international stakeholders (i.e. International Financial Institutions [IFIs], development agencies and bilateral donors) that are looking to invest in water security.
← 3. For the cumulative scoring, based on a maximum of 20, the classifications are as follows: 0-5 as “Nascent”, 5-10 as “Engaged”, 10-15 as “Capable”, 15-17.5 as “Effective” and 17.5-20 as “Model” (Sanchez Trancon et al., 2024[2]).
← 4. This includes, but is not limited to, irrigation and drainage, drinking water supply and sanitation, groundwater management, water use and co-ordination between authorities.
← 5. Under the Tax Code, abstraction charges are referred to as the “tax on water resource use” (according to the official translation). However, based on their described characteristics, they align with the OECD definition of water abstraction charges: a payment for the right to use a natural resource, often based on quantity abstracted (for the general state budget or earmarked). The charges are volumetric where water meters are available and otherwise based on estimated usage depending on the type and category of use (Ministry of Economy and Finance of the Republic of Uzbekistan, 2025[16]).
← 6. See previous footnote.