Uzbekistan to factor whole-life costs into public procurement

The new approach has been termed "life cost". The contracting authority will take into account not only the initial purchase cost, but also expenditures on electricity, repairs, servicing, and operation over the entire service life of the product. The meeting emphasized that the practice of selecting goods based solely on the lowest price must be revised, as the subsequent costs of using cheap imports can turn out to be significantly higher than those of local products.

A test purchase of two 40-kilowatt transformers was cited as an example. The imported one cost 400,000 soums less than the local one, but it consumed 10% more electricity, and repairs during operation were four times more expensive.

The country purchases electrical products worth 10 trillion soums annually through public procurement. Previously, entrepreneurs had to track orders from state-owned enterprises across four or five separate platforms; now, all state contracts are consolidated on one. Starting January 1, 2027, preliminary publication of three-year public procurement plans will begin. According to the spokesperson, this will enable businesses to assess demand in advance, expand production, purchase equipment, and attract investors.

The meeting also addressed expanding cooperation between local electrical engineering enterprises and international financial institutions.