Uzbekistan launches $592 million in projects in Karakalpakstan

Uzbekistan has launched 11 investment projects worth $592 million in Karakalpakstan, while construction has begun on a further 47 projects with a combined value of $7 billion, the press office of President Shavkat Mirziyoyev said.

The projects are being implemented with foreign partners across the energy, digital economy, industrial, transport, healthcare and services sectors. Together, they are expected to create around 8,000 high-paying jobs, Caliber.Az reports via Uzbek media. 

Mirziyoyev attended a ceremony marking the launch of the projects and the start of construction during his visit to the northwestern region.

According to the presidential press office, conditions for entrepreneurship and investment in Karakalpakstan have improved in recent years. The region’s gross regional product increased from 8.5 trillion Uzbek sum in 2016 to more than 54 trillion sum by the beginning of 2026.

The private sector now accounts for 66% of production, while the number of active businesses has risen 2.5-fold to 26,500. More than $5 billion in investment has been attracted to the region over the past nine years, with foreign investment expected to reach $2.5 billion by the end of 2026. The number of foreign and joint ventures has increased 2.2-fold from 2018 to 271.

Energy, digital projects

Two wind farms with a combined capacity of 300 MW and a 100 MW energy storage system have been commissioned in Karauzak district.

In Kungrad district, construction has begun on a 1.5 GW wind farm valued at $2.6 billion. The project is being implemented with Saudi company ACWA Power and includes 1,500 kilometres of high-voltage transmission lines, three 500 kV substations and the modernisation of two existing substations.

In Takhiatash district, the first phase of a modular smart data centre developed by Linkwise at a cost of $150 million has been launched.

Projects worth a combined $2.281 billion are also being implemented with Chinese partners in Kungrad and Takhiatash districts to produce digital currency and establish data centres for artificial intelligence. Another data centre is planned for Takhtakupyr district.

Healthcare, transport

A 100-bed Sheikh Khalifa Hospital, built in cooperation with the United Arab Emirates at a cost of $27 million, has opened in Nukus, creating 80 jobs. The Karakalpak Scientific and Practical Medical Academy will also be used to improve healthcare and specialist training.

In Nukus, the $20 million SAPSAN TRANS NO‘KIS public transport project has been launched. Twenty-five buses and electric buses have already been delivered, with another 75 electric buses expected by the end of the year. The project is expected to create 200 jobs.

Construction has also begun on a 92-kilometre section of the A-380 Guzar-Bukhara-Nukus-Beineu motorway with support from the Asian Development Bank. The project is valued at $233 million.

Separately, with support from the European Bank for Reconstruction and Development, plans call for the purchase of 112 electric buses for Nukus and the construction of a depot.

Industrial, urban development

In Chimbay district, a project with Korean investors has been launched to produce 3 million cubic metres of biogas annually by processing liquorice root.

A $20 million gold-mining enterprise is planned at the Zengibobo deposit in Karauzak district, while a $15 million shopping centre is to be built in Amudarya district.

In the social sector, a university of medical sciences and a high-tech hospital are being established with Indian partners under a public-private partnership.

A $103 million shopping and entertainment centre, including leisure facilities, is also planned on the banks of the Dustlik Canal in Nukus with the participation of Turkish investors.

The concept for the “New Uzbekistan” residential estate in Nukus was presented during the ceremony. A 270-hectare site has been allocated for the project, and preparations for project documentation have begun. The development is planned to include high-rise buildings for about 30,000 residents, along with business centres, retail, service and leisure facilities.

Mirziyoyev called on representatives of the older generation, academics and the public to monitor the implementation of the projects.

He said the initiatives should contribute to improving household welfare, expanding opportunities for young people and creating a sustainable economic foundation for the Aral Sea region.

By Sabina Mammadli