Privatization - The Times Of Central Asia

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Kindergarten Privatization

Tashkent Faces Kindergarten Shortage as Authorities Propose Sales

Uzbekistan has earmarked kindergartens for possible sale, including some still in use, even as Tashkent faces a shortage of 65,000 preschool places. Officials say the properties must continue to be used as kindergartens, but have not said how much their new owners could charge parents. Gazeta.uz reported plans to sell around ten kindergartens following an October 8 press conference held by Sohibjon Murodov, director of the State Assets Management Agency. The published privatization list includes state kindergarten No. 58 in Tashkent’s Yakkasaroy district, which has a capacity of 120 children. Murodov said the building is very old and claimed that it does not even have a foundation. The children are to be transferred to a new state kindergarten with 720 places, currently under construction in the same neighborhood. The vacated 0.56-hectare plot is expected to be sold on the condition that a private kindergarten is established there. Murodov said the Yakkasaroy property had not yet been put up for auction and that inclusion on the privatization list does not necessarily mean a property will be sold. If residents' objections are found to be justified, individual properties could be removed from the program in coordination with the Presidential Administration. In Kashkadarya Region, another kindergarten on the list belongs to a state-owned oil and gas company but is already leased to a private operator. Selling it would therefore transfer ownership of a facility that is already privately run. The proposed sales have also exposed differences between national and city authorities. Tashkent Mayor Shavkat Umurzakov opposes transferring land belonging to state schools and kindergartens to private education projects, including through public-private partnerships. He argues that such sites should be reserved for state institutions. The State Assets Management Agency, by contrast, allows kindergarten properties to be sold provided they retain their educational purpose. The potential cost to parents is a particular concern. According to an estimate based on crowdsourced data cited by Anhor.uz, the average monthly fee for a private kindergarten in Tashkent was around 3.8 million soums (approximately $315) in May 2026. Fees at state kindergartens are regulated by the government and increased by approximately 6.8% in September 2026. Even after the increase, a standard nine-hour place in Tashkent costs around 290,500 soums ($24) a month, less than one-tenth of the estimated private-sector average. Tashkent authorities plan to create 40,000 additional places by 2030 and increase preschool enrollment to 92%. In October, plans for 28 new institutions with a combined capacity of 16,000 places were presented to the president. Even so, the proposed 40,000 new places would be 25,000 fewer than the city's estimated current shortage, although demand may change by 2030. According to city administration figures reported by Gazeta.uz, preschool enrollment rates in 11 of the capital's 12 districts are projected to be lower in 2026 than in 2023. The largest declines are projected in Sergeli, Yakkasaroy, and Bektemir districts. Authorities have not explained the reasons. Across Uzbekistan, however, preschool enrollment rose from 27% in 2017 to approximately 75% in 2025, according...

Oil Licenses

Uzbekistan Confirms Cancellation of Saneg Oil Licenses

Uzbekistan has revoked some oil-field licenses held by Sanoat Energetika Guruhi (Saneg), a major Uzbek private oil and gas producer, after the company failed to develop deposits and meet licensing conditions. The move is another setback for the company, formerly known as Jizzakh Petroleum, following the collapse of its $100 million agreement to purchase the Fergana Oil Refinery. When the refinery sale was announced in 2022, Saneg was reported to account for approximately 80% of Uzbekistan's oil production and hold development rights to 103 oil and gas fields. Officials have not said how many licenses have been canceled, which fields are affected, or what impact the decision will have on the company's operations. Speaking at an October 8 press conference, Sohibjon Murodov, director of the State Assets Management Agency, said the affected deposits had not been developed and licensing conditions had not been met. He did not disclose when the licenses were canceled. The Ministry of Mining Industry and Geology is now preparing measures for the affected fields. Asked why Saneg had originally received development rights without competitive auctions, Murodov explained that under the previous system, the first applicant could obtain a license after paying the prescribed fees. Auctions for hydrocarbon licenses were introduced in 2023–2024. He stressed that the deposits themselves had remained state property. A Privatization Reversed The government transferred management of the Fergana refinery to Saneg, then operating as Jizzakh Petroleum, in 2020. In May 2022, it announced the $100 million sale, accompanied by a separate commitment to invest $380 million in modernization. The transaction was intended to address longstanding problems. Reporting at the time described shortages of raw materials and said the refinery had not undergone major modernization or reconstruction for two decades. Saneg's investment commitments covered improvements to fuel production and processing facilities. Despite the announced sale, the state still held 58.5% of the refinery in May 2026, while Saneg owned 41.5%. By June, the State Assets Management Agency was its sole owner, according to registry information reported by Interfax. Explaining the termination in October, Murodov said financial difficulties in the investor's other projects had prevented it from making purchase payments on time. The contract allowed termination if payments were three months overdue, he said. The agency consulted international legal advisers and notified Saneg before ending the agreement. Saneg had previously maintained that it had fulfilled its payment and investment obligations, according to Interfax's June report. However, the amount of the overdue payments remains unclear, as does how earlier payments and investments will be treated and how much modernization work was completed. State-Directed Debt Recovery The state had already intervened in January to address financial problems at Saneg, oilfield services company Eriell, and engineering contractor Enter Engineering. Uzbek reporting has linked all three businesses to businessman Bakhtiyor Fozilov. A January 22 government resolution recorded combined unpaid wages of approximately $131 million owed to 38,700 employees across the three companies, according to reporting by Spot in March. The government ordered the sale of non-core assets to...

State Asset Sales

Uzbekistan Privatization: Unsold State Assets Relisted With $85 Opening Bids

Uzbekistan has begun putting previously unsold state assets back on the market, with opening bids starting at 1 million Uzbek soums, or about $85. The first lots include stakes in small companies, a district laboratory, vacant buildings, and a former mineral fertilizer warehouse. That figure is the opening bid in an electronic auction, not a valuation of the property. The final price will be determined by bidding. The new rules took effect on September 8 and cover 84 previously unsold assets. They are part of a new privatization package approved by President Shavkat Mirziyoyev on August 28. The government also plans to offer stakes in another 84 companies, 1,242 real estate properties, and about 8,000 hectares of land. The package also calls for 85 enterprises to be liquidated or reorganized. Among the first offerings is a 100% stake in Bukhsu Scientific Biotechnology, a limited liability company registered in Bukhara. Despite its name, the state registry lists its activity as auxiliary services in the field of education. Another lot is a 100% stake in Yangiyo‘l tuman laboratoriya, a district laboratory in Yangiyul District, Tashkent Region. The state had already tried to sell it, offering the stake for about $820 in May 2026, but no buyer emerged. Also for sale are a 100% stake in Iqtisod-Moliya and a 30% stake in Ferula Shifobaxsh. The latter is associated with agriculture and is currently listed in the state registry as inactive. The real estate lots include retail premises, vacant buildings, and a former warehouse used to store and distribute mineral fertilizers. In Samarkand Region, authorities separately announced the renewed sale of five properties in the Narpay, Kattakurgan, Pakhtachi, and Urgut districts. All of the assets have been offered for sale before without success. Uzbekistan has been selling state-owned companies, banks, real estate, and land for years. Large transactions attract international capital. Alongside them, however, is a less visible part of the state economy: small businesses and properties with no obvious buyer. The problem predates the latest decree. As of April 1, 2025, more than 3,600 state assets remained on sale with a combined starting value of about $1.4 billion. Prices had been reduced for 440 assets after they remained unsold for more than three months. In 153 cases, prices had been cut by 70–90%. In 2024, Mirziyoyev criticized slow sales and inflated valuations of some state property. A new privatization program at the time included stakes in hundreds of enterprises and more than 1,000 real estate properties. The latest decree accelerates the process. After three months without a buyer, the price of an asset can be reduced in stages. Some properties can also be sold through a hybrid auction, in which the price falls until a bidder emerges and then rises as participants compete. Payment terms are also changing. Buyers need to make an initial payment of only 15%, with the remainder payable in interest-free installments. If 35% is paid within the first three months, the balance can be spread over up to five...

Privatization

Kazakhstan Proposes Privatization of Two Major Oil Refineries

Kazakhstan’s Agency for Protection and Development of Competition (AZRC) has proposed the partial privatization of the Atyrau and Pavlodar oil refineries. According to Rustam Akhmetov, the agency’s first deputy chairman, the proposal involves selling 50% of the state’s stake in these assets. Current Refinery Ownership Structure Kazakhstan operates three major oil refineries, located in: Pavlodar (northeast) Atyrau (west) Shymkent (southern region) The Pavlodar refinery is fully owned by KazMunayGas Refining and Marketing JSC, a subsidiary of the state-owned KazMunayGas (KMG). Similarly, the Atyrau refinery is 100% state-owned through KMG. In contrast, the Shymkent refinery operates under a 50-50 joint venture between KMG and China National Petroleum Corporation (CNPC) through PetroKazakhstan Group. Shymkent as a Model for Privatization AZRC cites the Shymkent refinery as the most efficiently operated among the three. “We see a successful example in Shymkent, where 50% is owned by the private sector. Most importantly, private management means fewer government officials in operational roles. As a result, there are significantly fewer accidents, fewer technological failures, and less downtime for repairs. This confirms that private sector management is more effective,” Akhmetov told reporters on the sidelines of Parliament. He also noted that preliminary discussions on privatization have already taken place within the government. Oil Refining in 2024 According to the Ministry of Energy, Kazakhstan is expected to refine 17.9 million tons of oil in 2024, yielding 14.5 million tons of oil products. The three main refineries processed similar volumes in the previous year: Shymkent refinery 5.74 million tons of oil processed 2.09 million tons of motor gasoline 1.78 million tons of diesel fuel 319,000 tons of jet fuel 335,000 tons of liquefied petroleum gas Atyrau refinery 5.5 million tons of oil processed 1.6 million tons of gasoline 1.6 million tons of diesel fuel 188,000 tons of jet fuel 213,000 tons of autogas Pavlodar refinery 5.5 million tons of oil processed 1.6 million tons of gasoline 1.8 million tons of diesel fuel 236,000 tons of jet fuel 321,000 tons of liquefied petroleum gas In addition to these major refineries, more than two dozen mini-refineries across Kazakhstan contribute to oil processing. Privatization of Other Key Sectors Akhmetov also revealed that AZRC has recommended the privatization of most municipal utilities in the housing and communal services (HCS) sector, including heat and power plants. Additionally, the agency, in coordination with sectoral government bodies, has agreed to privatize a significant portion of the defense-industrial complex, including firms handling government contracts. However, some strategically important enterprises will remain under state control. Akhmetov did not specify which companies would be exempt from privatization. As The Times of Central Asia previously reported, Kazakhstan plans to establish a major defense industry hub at Semey’s tank repair plant, the only such facility in Central Asia.

International Cooperation

Kuwaiti Companies Invited to Participate in Privatization of State-Owned Companies in Uzbekistan

At a business forum dedicated to strengthening ties between Uzbekistan and Kuwait, in Tashkent on October 16, Deputy Minister of Investment, Industry, and Trade of Uzbekistan Akram Aliyev noted the importance of partnership with Kuwaiti businessmen, especially in healthcare, agriculture, and tourism. The forum focused on prospects for joint projects mining, energy, textile industry, and logistics. Proposals were also mooted for Kuwaiti investors to participate in the privatization program of over 1,000 state-owned companies in Uzbekistan and improve logistics infrastructure to turn Central Asia into an international trade hub. Over recent years, there have been several developments in cooperation between Uzbekistan and Kuwait. At an investment and trade forum hosted by Kuwait in August and attended by business and ministry representatives from both countries, Uzbek Foreign Minister Bakhtiyor Saidov encouraged Kuwaiti investors to explore prospects for partnership in agriculture, light industry, medical products, and renewable energy. The foreign ministers then met again, in New York in September 2024, to discuss further steps to strengthen bilateral cooperation, including the establishment of joint trade committees and new initiatives in logistics and infrastructure.

Samruk-Kazyna National Wealth Fund Privatization Legislation Strategy Economy Finance

Liberalizing Kazakhstan’s Economy Must Not Become Uncontrolled Privatization, Expert Warns

Last week, President Kassym-Jomart Tokayev signed a decree on reducing the state’s participation in the economy, aiming to help develop competition and private business. This could be a significant boost to the economy, financial analyst Rassul Rysmambetov, an Almaty-based expert in distressed assets and Director of the Financial Freedom Public Foundation, told The Times of Central Asia, though everything will depend on how the decree is implemented. Firstly, the decree envisages creating a National Office for Privatization under the Agency for the Protection and Promotion of Competition. This office is to develop criteria for state assets subject to privatization and create a list of them. In addition, measures are provided to increase the autonomy, quality, and independence of corporate governance at Samruk-Kazyna, the National Welfare Fund, and its subsidiaries. “The government must establish a specific list of large entities that will offer major stakes in the next two years in IPOs,” President Tokayev explained. According to Tokayev, the quasi-public sector – bloated and often ridden with debt – needs serious reform. “We need to put an end to the question of where state participation should continue and where competition can be developed. The largest share of the state in the economy is represented by the group of companies held by the Samruk-Kazyna fund, so that is where this work must start. New, systemic measures are required to fundamentally rehabilitate the fund,” the president stated. A separate section of the decree presents measures aimed at protecting the rights and legitimate interests of business, including decriminalizing offenses related to economic activity and coordinating with prosecutors on prohibitive and restrictive measures initiated by government agencies. This is not the first time Kazakhstan has tried to liberalize its economy – it has even privatized social institutions, such as hospitals, schools, and creative centers for children before – but previous attempts yielded no tangible successes. “We need to continue to work to improve the quality of services, consistently reduce state participation and eliminate excessive regulation and restrictions. This applies to all sectors of the economy,” Tokayev stressed. “Uncontrolled monopolies, unequal access to resources and unfair trade practices must be eliminated at the root. A pillar of economic liberalization will be effective privatization. There have been so many privatization plans, but every time we make the same mistakes.” Rysmambetov believes that professionals should take the lead. “Liberalizing the economy is a process. By no means can it be limited to a single decree – it is a strategic course. I see here dozens, if not hundreds of by-laws, industry reference documents and possibly new laws and codes. I'm afraid that parliament will prove unable to keep up with the pace at which these reforms should be carried out,” he stated. According to Rysmambetov, Samruk-Kazyna could be dissolved tomorrow, but the holding has taken on a lot of debt for its subsidiaries, meaning that in the near term its assets can only be partially privatized. In general, each Samruk-Kazyna company has a related supervising ministry, so, to...