A loan of up to USD 106 million in favour of the Republic of Uzbekistan, with loan proceeds on-lent to finance regulated operational expenses of JSC National Electric Grid of Uzbekistan (the "NEGU"), state power transmission and dispatch company incorporated in the Republic of Uzbekistan.
The operation will support the core power utility of Uzbekistan by providing highly needed liquidity to NEGU as it is dealing with the challenging macroeconomic environment and tightening affordability constraints post-covid.
ETI score: 62
The expected transition impact of the project is two-fold.
Resilient: The project will support the single buyer function with a set of activities aimed at strengthening the organisational structure and corporate governance practices.
Inclusive: The project will also broaden cooperation with NEGU on the gender equality principles in line with the recently adopted Laws on Protection of Women and Gender Equality and the Strategy for Achieving Gender Equality in the Republic of Uzbekistan until 2030.
The loan will be on-lent to NEGU. It is a state-owned power utility company in charge of Uzbekistan's high voltage transmission network and electricity dispatch.
EBRD Finance Summary
Total Project Cost
Financing structure: The Bank is additional in providing financing at terms and conditions not available in the local market, particularly in view of the limited liquidity caused by the COVID-19 pandemic, helping support the financial sustainability of the company.
Policy, sector, institutional, or regulatory change: The Project will include a number of TC assignments supporting the single buyer function.
Environmental and Social Summary
Categorised B (ESP 2019). Liquidity support through financing of the Client's operational expenses is associated with Project-specific E&S impacts that can be readily assessed and addressed via implementation of good stewardship practices.
NEGU is an existing Bank's client and has been subject to comprehensive project and corporate ESDDs for a number of projects performed over the period of 2018-2022, which have confirmed NEGU's compliance with Uzbekistan national E&S legislation and availability of the institutional capacity to perform projects in line with the Bank's PRs.
The Bank has been supporting NEGU in strengthening its institutional E&S capacity through the engagement of the PIU consultants as part of other projects' CAPEX.
In-house desktop-based ESDD for the current Project is being currently undertaken and this comprises review of the Client's E&S regulatory compliance, status of E&S management systems implementation, and progress in implementing corporate Environmental and Social Action Plans (ESAP), agreed for the previous deals.
The Bank will be looking to assist the newly created offtaker in the Uzbek power sector in establishing their E&S capacity and Environmental and Social Management Systems in compliance with Bank's ESP. Based on ESDD the ESAP will be developed, if required, to address any potential gaps.
PSD will be updated following the outcomes of ESDD.
Technical Cooperation and Grant Financing
Technical Cooperation may include:
- policy dialogue assignments to support strengthening the organisational structure and corporate governance practices of the single buyer function; and
- project preparation and implementation support.
Donor funding for these assignments will be sought from the Bank's Shareholder Special Fund ("SSF") and/or an international donor.
Company Contact Information
+998 71 236-62-26
PSD last updated
19 Aug 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to firstname.lastname@example.org. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.