The EBRD is considering providing guarantees of up to US$ 24 million (the guarantee) to support the obligations of JSC National Electric Grid of Uzbekistan (NEGU or the off-taker) acting as an off-taker under power purchase agreements for wind power projects in Uzbekistan.
The first tranche of the guarantee in the amount of up to US$ 8 mm (tranche 1) will be provided to support the obligations of the off-taker for the pilot 100MW Karakalpakstan Wind Power Plant project awarded as a result of the competitive tender. The second tranche (tranche 2) in the amount of up to US$ 16 million is expected to cover the off-taker's obligations under the second wind tender for 200MW.
The goal is to provide an additional liquidity support for private investors entering the nascent renewables sector of Uzbekistan and help roll-out up to 2GW wind auctions in the country.
ETI score: 70
The Project will contribute to the Competitive quality as this innovative liquidity support structure will help attract stronger interest from international wind developers to the yet nascent renewables sector in Uzbekistan and will support competitively selected renewables. The Project will also contribute to the Green quality as wind power projects to be developed under this liquidity support mechanism will contribute to the avoidance of CO2 emissions, supporting the economic development of Uzbekistan along the low carbon pathway.
EBRD Finance Summary
Total Project Cost
The Bank offers an innovative financing structure on terms not available currently in the local market. The Bank provides comfort to investors by mitigating the off-taker's non-payment risks. The Project will involve technical cooperation aimed at policy dialogue on enhancing the creditworthiness of NEGU with the goal of making the company financially sustainable in the long-run.
Environmental and Social Summary
Categorized B (ESP 2019) and Low Risk, as the Bank is not financing wind projects itself and this is a guarantee to the electricity off-taker associated with limited E&S impacts. NEGU is an existing Bank's client and was subject to a comprehensive corporate ESDD in 2018 and 2019, which has confirmed NEGU's compliance with National E&S legislation and availability of the institutional capacity to perform projects in line with ESP PRs. In-house desktop-based ESDD is being undertaken for the current project and will comprise a top level review of the current E&S regulatory compliance, namely in regards to E&S management systems, labour and safety of the employee and stakeholders engagement, and progress in implementing corporate Environmental and Social Action Plan (ESAP), agreed for the previous projects. PSD will be updated upon completion of the ESDD.
As part of the institutional capacity strengthening the Bank will aim to set criteria for wind farm development, inclusive of appropriate avifauna assessment in line with best practices, which sponsors will be required to apply to its suppliers. Assessment and management of any potential environmental and social risks associated with electricity offtake shall be performed by sponsors in accordance with the EBRD's Environmental and Social Policy.
Technical Cooperation and Grant Financing
Technical Cooperation funds may be sought to support Project preparation and implementation.
Company Contact Information
+998 71 208 56 61
PSD last updated
18 May 2022
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