The provision of a sovereign loan of up to US$ 50 million (€ 41.3 million) to the Republic of Uzbekistan for the benefit of Horezm Toza Hudud, a state unitary enterprise owned by the State Committee for Ecology and Environmental Protection, to finance the modernisation of solid waste management (SWM) infrastructure in Horezm Region.
The loan proceeds will be used to finance the construction of new EU-compliant sanitary landfills, waste sorting plants, waste transfer stations and the supply of special equipment and vehicles. The project is expected to bring significant health and environmental benefits and result in greenhouse gas (GHG) emissions savings.
ETI score: 62
Primary TI Quality: Green. The Project will promote resource efficiency by introducing sustainable waste management practices in the region through the construction of sanitary landfills designed to EU standards and waste sorting plants. It is expected to contribute to GHG emissions savings and result in significant health and environmental benefits. The Project's GET share is 100 per cent.
Secondary Quality: Inclusive. The Bank will support the Committee in rolling-out a training programme to improve skills development for youth in the region in partnership with local vocational schools. The focus will be on the development of market-relevant technical skills needed for middle and high skill job opportunities in the SWM sector and transferable green skills. The Bank will also support the Project Company in developing an Equal Opportunities Action Plan to increase female representation in male-dominated occupations.
EBRD Finance Summary
An up to US$ 50.0 million loan to the Republic of Uzbekistan for the benefit of Horezm Toza Hudud.
Total Project Cost
Financing structure: the EBRD offers a tenor and/or a grace period above the market average, which is necessary to structure the project. The EBRD investment is needed to close the funding gap. At the same time, EBRD does not crowd out other sources, such as from IFIs, government, commercial banks and/or complements them.
Risk mitigation: the EBRD helps the client to mitigate environmental, social and governance (ESG) risks, helping the client to identify risks related to the depletion of natural capital assets, raw materials and water availability etc. and manage these risks.
Standard-setting: helping projects and clients achieve higher standards: Client seeks the EBRD expertise on higher environmental standards, above 'business as usual' (e.g. adoption of emissions standards, climate-related ISO standards etc.).
Environmental and Social Summary
Categorised B (ESP 2014). The independent environmental and social due diligence (ESDD) is being finalised. It included site visits to proposed landfill sites and current landfills to select the most suitable location for Project facilities, interviews with the State Ecological Committee and representatives of Toza Hudud enterprises responsible for waste handling, reviews of available documentation and proposed landfills design.
The ESDD to date, conducted as part of the Feasibility Study, identified that potential adverse impacts of the Project would be local and temporary, whereas the implementation of the Project will improve the waste handing standards and thus sanitary and epidemiological situation in Horezm region. Currently there are no EU-compliant landfills in Uzbekistan and current landfills tend to be waste dumps with no leachate and landfill gas control. The Project is structured to meet EU standards and the proposed landfills design and waste transfer stations are based on EU Landfill and BAT Conclusions for Waste Treatment Facilities, as well as Waste Incineration Directives for the proposed small medical waste incinerator. The land plots for the proposed landfills have been allocated by the Uzbekistan authorities in 2017.
The majority of the proposed waste transfer stations will be built within the perimeter of the current landfills, which should minimise the land take required for the Project. The ESDD identified that the Project is largely compliant with the Uzbekistan national legislation; however the national Environmental Impact study will need to be updated to consider the most recent design and location of the landfills. The environmental and social management structure and capacity of the client will also need to be enhanced to facilitate the implementation of and compliance of the Project with the EBRD Performance Requirements.
The Project will need to develop Contractor Management procedures to ensure that construction and transportation and other service contractors adhere to the Bank's Performance Requirements. The client will also need to develop and rollout an worker grievance mechanism in line with the Bank's requirements. As the Project involves the use of current landfills for siting of the Waste Transfer Stations, required soil and groundwater contamination surveys will need to be conducted prior to construction to identify any legacy issues and also incorporate required clean-up and remediation measures. The robust design of the new landfills should allow mitigation of potential impacts on soil and groundwater quality, and also monitor odours, air emissions and noise levels.
The Project design also provides for waste sorting plants to separate recyclables and compostable waste. A small quantity of hazardous waste will be mixed with the municipal solid waste and will be disposed in the landfill. Considering the location of the landfill, robust design and the operational measures that will be put in place, the mixing of this small quantity is not expected to result in any significant risk for environment or human health.
Road traffic safety impacts from the use of communal access roads will need to be assessed. There are no residential buildings within 500m of the proposed landfills. There are a number of cultivated fields and a fishpond located within the boundaries of the statuary Sanitary Protection Zones of the proposed landfills and such activities will be prohibited when the landfills enter operation. A Livelihood Restoration Framework is under development as part of the ESA and a Livelihood Restoration Plan will need to be implemented by the client when final SPZ is defined, which will include air dispersion modelling, and the extent of impacts is fully defined. One of the proposed landfill sites is also located in the vicinity of the Important Bird Area; therefore a field biodiversity survey will need to be conducted to identify potential impacts, for example an increased number of predator birds, noise, etc. and develop required mitigation measures, which may potentially include seasonal restrictions to the construction, installation of the acoustic barriers, etc. Stakeholders of the project and potentially affected people will need to be consulted and a Stakeholder Engagement Plan is under development which will identify the appropriate timing frequency and modality of engagement. The draft ESAP is being finalised and will need to be agreed prior to the Board review of the Project.
Technical Cooperation and Grant Financing
Feasibility study for the Project to include technical, financial, environmental and social due diligence. The assignment's cost is up to € 440,000, funded by the EBRD Shareholder Special Fund ("SSF").
Preparation of a Livelihood Restoration / Resettlement Framework. The assignment's cost is estimated at € 72,000, expected to be financed by the SSF. The assignment also covers Karakalpakstan Solid Waste Project (OpID 50696).
Corporate Development Programme to the Project Company to enhance its institutional, operational and financial capacity. The assignment's cost is estimated at € 200,000, to be financed by an international donor or the EBRD SSF.
Skills Training Programme for youth in the region. The estimated cost of the assignment is up to € 90,000, proposed to be funded by a bilateral donor or SSF under the Gender and Economic Inclusion TC Framework.
Company Contact Information
State Committee for Ecology and Environmental Protection Khusniddin Allayarov
2A, Toytepa str., 100077 Tashkent, Uzbekistan
PSD last updated
10 Sep 2021
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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).
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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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.