Scale of Uzbekistan’s privatisation programme — 2025–2026

Presidential Decree No. UP-47 dated 21 April 2025 instructed privatisation of 29 state-owned enterprises in 2025–2026 — with IPOs and secondary public offerings of 12 large SOEs on domestic and international stock exchanges. Franklin Templeton was appointed as Trustee and Manager of the National Investment Fund of Uzbekistan — managing minority stakes in 18 SOEs with an approximate value of USD 1.5 billion. This represents the most significant wave of privatisation in Uzbekistan’s history and creates a substantial M&A pipeline for foreign investors.

Acquisition routes for foreign investors

Foreign investors can participate in Uzbekistan’s privatisation programme through: direct share acquisition via competitive tender or negotiated sale; participation in IPOs and secondary offerings on the Tashkent Stock Exchange (TSE); acquisition of assets from state-owned enterprises through asset sale procedures; and PPP arrangements for state-owned infrastructure assets. Bond Stone advises on the most appropriate route based on the target asset, investor profile, and investment objectives.

Post-privatisation investment obligations

Purchasers in Uzbek privatisation transactions often assume post-privatisation investment obligations — minimum capital expenditure commitments, employment preservation requirements, operational continuity conditions, and social infrastructure obligations. These obligations are binding on the acquirer — failure to fulfil them may result in rescission of the sale or financial penalties. Bond Stone reviews and negotiates post-privatisation obligations before transaction completion and advises on ongoing compliance.

PPP framework

Uzbekistan’s PPP framework enables foreign investors to participate in infrastructure development through concession agreements and public-private partnership arrangements. Key sectors for PPP investment include: roads and transport infrastructure; energy generation and distribution; water supply; and healthcare. Bond Stone advises on PPP concession agreement structure, risk allocation, government guarantee provisions, and dispute resolution.

BIT protections for privatisation investors

Foreign investors in Uzbek privatised enterprises and PPP projects are protected by Uzbekistan’s 50+ bilateral investment treaties — providing guarantees against expropriation without compensation, national treatment, and investor-state arbitration access. Bond Stone advises on structuring privatisation investments and PPP arrangements to maximise available BIT protections and on the interaction between EFI domestic protections and BIT rights.

SOE Acquisition — Manufacturing

Privatisation · Uzbekistan · Manufacturing

Advising a foreign investor on acquisition of an Uzbek SOE through the privatisation programme — tender due diligence, post-privatisation obligations, SPA negotiation, and BIT protection structuring.

TSE IPO — Foreign Institutional Investor

Privatisation · Uzbekistan · Capital Markets

Advising a foreign institutional investor on participation in a Tashkent Stock Exchange IPO of an Uzbek SOE — investment documentation, shareholder rights, EFI status analysis, and post-acquisition compliance.

PPP — Infrastructure Concession

Privatisation · Uzbekistan · Infrastructure

Advising a foreign investor on a PPP concession agreement for an Uzbek infrastructure asset — concession term, risk allocation, government guarantee provisions, tariff setting, and TIAC dispute resolution clause.

Post-privatisation Compliance

Privatisation · Uzbekistan · Corporate

Advising an acquirer on compliance with post-privatisation investment obligations — capital expenditure monitoring, employment preservation, social infrastructure fulfilment, and renegotiation with relevant state authority.

Franklin Templeton NIF — Investment Advisory

Privatisation · Uzbekistan · Capital Markets

Advising a foreign investor on acquiring a stake in an NIF-managed Uzbek SOE — NIF transaction framework, EFI status, BIT protection, and investment agreement advisory.

Energy PPP — BIT Protection

Privatisation · Uzbekistan · Energy

Advising a foreign energy investor on structuring a PPP arrangement in Uzbekistan’s energy sector to maximise BIT protection — treaty selection, investment vehicle nationality, government guarantee, and dispute resolution.