Why is this important
This project will become a precedent for attracting foreign experience and investments in regional aviation infrastructure. Improved terminals and management can improve service quality, increase passenger traffic, and promote Urgench as a transport hub for the Khorezm region.
Key details
- The partner’s investment amount is $132 million.
- The private participant undertakes to increase the capacity of the terminals by 5 times.
- The PPP project is estimated at a total budget of $222 million, with a management term of up to 2047 (a 19-year concession period).
- Incheon won a competitive tender involving 8 companies, 5 of which advanced to the final.
- The private partner will be responsible for the terminal part: passenger and cargo terminals, ground service. The state will retain control over the aerodrome facilities: runway, apron, and related infrastructure.
- The project is being implemented under the Build‐Operate‐Transfer (BOT) model under the supervision of Uzbekistan Airports together with the Ministry of Transport and the Ministry of Finance.
- Incheon Airport Corporation will receive 100% of the rights to manage the terminals and appoint key project managers.
Context and risks
For Incheon, this is the first major foreign airport management project in Central Asia. The development of Uzbekistan’s aviation infrastructure is part of the strategy to make the country a regional hub.
Possible risks: implementation delays, non-compliance with ICAO standards, conflicts of interest between private and public partners. Successful implementation will serve as a model for similar projects in other airports of the republic.
