France’s Veolia to invest €315mn in heat supply modernisation in Uzbekistan

Veolia has won a tender to modernise outdated heat supply systems in Uzbekistan.

The bidding process was organised by the city administration of Tashkent and concluded by the Asian Development Bank (ADB). The French company has experience in managing heat supply systems in Poland, the Czech Republic, Romania, Lithuania and Germany.

The city administration and Veolia will run the modernisation based on a public-private partnership (PPP). The company will invest €315mn of its own funds, with €1.08bn to be raised from income received during the project implementation term.

Uzbek President Shavkat Mirziyoyev on August 2 said that 72% of heat distribution networks in Uzbekistan were worn out. “This leads to an increase in costs and a decrease in the quality of service,” he added.

Thermal energy waste in the country due to inadequate equipment has reached 44%, equivalent to $60mn. Some 460mn cubic metres of natural gas, 55mn cubic metres of water and 154mn kilowatts of electricity were also used in vain due to insufficient energy transmission from production.

"The poor quality of heat supply causes serious complaints among the population," Mirziyoyev said.

The president also pointed out the necessity of securing special equipment and materials at optimal prices by holding open tenders in accordance with legislation on public procurement.