04.10.2019

On October 4, President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting to discuss priorities in the uninterrupted supply of hot water and heat to the population.

Currently, part of the existing boiler units and heat supply networks is outdated and worn out. Foreign investment has never been attracted to the field.

For years, technological modernization has failed, and as a result the industry’s expenses for the purchase of energy resources make up 85 percent of revenues, while losses reach 35-40 percent. Due to excessive energy consumption and the imbalance of payments, accounts payable and receivables arise.

In this regard, the President defined the tasks for radically reforming the industry, for updating the existing capacities and improving the management of the sphere.

For the high-quality organization of heat supply, it was noted, there is need to renovate the industry enterprises, paying particular attention to the widespread use of energy-saving and multi-purpose technologies and building on the experience of Austria, Denmark, Germany and Finland.

Among these innovations is a padlocked heat supply system based on the principle of circulation and reuse of heat. For example, switching heat supply to a closed system in Tashkent will prevent the loss of 3 million gigacalories of heat worth 300 billion soums, save 320 million cubic meters of natural gas (160 billion soums) and 85 million kilowatts of electricity (25 billion soums).

Officials received instructions at the meeting to restore centralized heat supply to about 5 thousand houses in 12 cities and transfer them to a locked system. Thus, in the cities of Bukhara and Chirchik, such networks, following bids, will need to be put into operation as soon as in 2020.

Objectives were defined for the implementation of similar projects next year in the cities of Andijan, Samarkand and the Sergeli district of the capital with the efficient use of a $ 140 million World Bank loan. The President urged to modernize the heat supply network in the Mirzo Ulugbek and Mirabad districts of Tashkent with a $ 150 million loan from the European Bank for Reconstruction and Development. Measures should be taken to attract a $ 780 million loan from the Japan International Cooperation Agency to a project to introduce new technologies in the heat supply of Bukhara, Ferghana, Kuvasai, Urgench and Nukus. Instructions were also given to update the Angren Thermal Power Plant for $ 55 million from the Asian Infrastructure Investment Bank.

The importance of delivering a competitive environment in the sphere through the widespread introduction of market mechanisms was emphasized by the head of our state, adding that, first of all, free tariff formation will be essential. In this respect, measures have been identified to boost the investment attractiveness of the sector, to attract enterprises from the next year in the heat supply system of the city of Tashkent on the basis of public-private partnership.

In order to eliminate losses and reduce excess consumption, it is crucial to introduce an automated system for accounting for heat consumption, Shavkat Mirziyoyev indicated.

In Uzbekistan’s 119 cities and more than 11 thousand villages, there are almost 6 million individual houses. The meeting participants paid special attention to the issue of providing their residents with warmth in the autumn-winter period. The Ministry of Housing and Utility Services was tasked to cover the entire population with heat supply, not limited only to apartment buildings, and also to develop an integrated government policy on this front.

Recommendations were given on improving the structure of the Ministry of Housing and Utility Services, combining heat supply enterprises into a separate joint-stock company to increase the efficiency of managing the sector and actively attracting investments. Along with the operation of facilities, the company would be responsible for the elaboration of new projects and attraction of funds from international financial institutions.

The President stressed at the meeting that the ultimate goal of the reforms carried out in the field is to ensure the well-being of the people, boost the living standards, and justify the citizenry’s trust in government.

Responsible officials reported on the progress in the execution of earlier orders of the head of our state, and the meeting participants identified priority tasks for the future.

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