Samarkand Solar Power Plant

Location:

Uzbekistan

Project number:

51055

Business sector:

Energy

Notice type:

Private

Environmental category:

B

Approval date:

02 Dec 2020

Status:

Disbursing

PSD disclosed:

14 Aug 2020

Project Description

A senior loans of up to EUR 21.8 million on a project finance basis to a special purpose vehicle owned by Total Eren S.A., for the sole purpose of development, construction and operation of a solar photovoltaic power plant with a capacity of up to 100 MWac/131 MWp located in the Samarkand region of Uzbekistan (the Project).

Project Objectives

Samarkand SPP is among the first private solar projects in Uzbekistan which will pave the way for a pipeline of renewable projects in the country. It will contribute to climate mitigation by adding 131 MWp solar generation capacity to the national energy system and will assist the country in low-carbon transition, reducing its current high reliance on thermal power generation.

Transition Impact

ETI score: 75

The expected transition impact of the Project is twofold:

-         Competetive: The Uzbek power sector currently has no private sector participation, and the Project is expected to be one of the first two privately owned power sector projects in Uzbekistan and will introduce a new international power sector sponsor to the country. The successful implementation of the Project would set an example for further private sector participation.

-         Green: The Project will introduce 131 MWp of solar generation capacity in the Uzbek power system coming in line with the Bank's Green Economy Transition approach (GET).

Client Information

TUTLY SOLAR LLC

Tutly LLC is a special purpose vehicle incorporated in Uzbekistan for the purpose of developing, constructing and operating the Project. The Borrower is 100 per cent owned by Total Eren SA.

Total Eren S.A. is an independent global renewable energy operator active in the development and construction management of renewable energy projects with the main focus on onshore wind and ground-mounted solar PV technologies.

EBRD Finance Summary

EUR 21,849,492.00

Total Project Cost

EUR 106,892,128.00

Environmental and Social Summary

Category B (ESP 2014).  Construction of 131 MWp solar PV plant is not associated with significant adverse environmental and social impacts. Livelihood impacts are low due to site location and absence of physical displacement.  ESDD has confirmed that the Project is compliant with the host country's EHS legislation and can be structured to meet the Bank's Performance Requirements (PRs) through employment of good E&S management practices, implementation of the ESAP and monitoring.

The ESDD was undertaken by an independent international Consultant engaged by the Sponsor, following the requirements of the international Lenders and in line with EBRD ESP 2014.  ESDD included site reconnaissance, baseline data collection and analysis, technical review of the Project and development of the EIA package. The Project is subject to the national Environmental Impact Assessment (OVOS), which has been approved by the Competent Authorities.

Potential environmental or social impacts of the Project are associated mainly with the construction activities and the contractor's labour, health and safety and social standards. 

The ESDD identified that the project site is located in the area with large population on Steppe Tortoise (vulnerable under IUCN), therefore additional biodiversity assessment was undertaken to confirm that No Net Loss (NNL) can be attained. It was estimated that (in absence of any mitigation measures) the biodiversity loss caused by the earthworks and associated activities would result in the death of approximately 1.6% of total Central Asian Tortoise population on the project site, which is less than 0.006% of the population on a landscape level. Implementation of the mitigation measures will enable further reduction of the estimated loss due to site construction.  Given the low estimates of fatalities and the planned mitigation, reinstatement and other conservation actions planned for the tortoise the project will be able to achieve no net loss for this species. The Client will required to submit a Biodiversity Management Plan (BMP) and Species Management Plan for the tortoise as a CP for disbursement. The aim of the BMP will be to ensure no net loss and net gain in population through conservation measures.

No resettlement will be required for the project hence PR 5 has not been triggered. There are some impacts associated with informal land use by the local population, which have been addressed through public consultations and other stakeholder engagement activities. The local population (cattle farmers and other unofficial users of the Project Land) has been provided with access to pasture-land of equal quality, distance and accessibility compared to the Project area. The Community Liaison Officer has been already appointed and grievance mechanism implemented. The Client aims to develop a Community Development Strategy and CSR/ESG Programme and allocate budget for its implementation. 

A number of additional environmental and social management requirements were included in the ESAP, inter alia: development of the Project-specific E&S Management System and overarching construction E&S Management Plan, covering contractor and supply chain; implementation of temporary workers' accommodation, safety, security and social provisions; waste management and efficient water use; biodiversity management and monitoring; stakeholder engagement and grievance mechanism.

The ESAP has been agreed with the Client in principal and will be fully agreed prior to the Board meeting. Its implementation and overall E&S performance will be monitored by the Bank via Annual Environmental and Social Reports. Non-Technical Summary (NTS) is disclosed on the Client's web site - https://www.total-eren.com/en/documentation-uzbekistan/?cli_action=1605901706.673.

Technical Cooperation and Grant Financing

None

Company Contact Information

Félicie Moulard
felicie.moulard@total-eren.com
+33 1 58 97 26 64
www.total-eren.com

PSD last updated

27 Apr 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

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 compliance@ebrd.com. 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.

Specific requests for information can be made using the EBRD Enquiries form.

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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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