Nur Navoi

Location:

Uzbekistan

Project number:

51454

Business sector:

Energy

Notice type:

Private

Environmental category:

B

Approval date:

30 Sep 2020

Status:

Approved

PSD disclosed:

24 Jul 2020

Project Description

The provision of an equity bridge loan of US$60 million to finance the construction and operation of a pilot solar auction project of 100 MW installed capacity located in Navoi region of Uzbekistan.

Project Objectives

Nur Navoi is among first 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 100 MW of 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: 86

The expected transition impact of the Project is twofold:

-         Competetive: The Uzbek power sector currently has no private sector participation, and the Project will be one of the first two privately owned power 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 100 MW of solar generation capacity in the Uzbek power system which will come in line with the Bank's Green Economy Transition approach (GET).

Client Information

NUR NAVOI SOLAR HOLDING RSC LTD

The Borrower is an UAE holding company fully owned by Masdar. The Borrower will hold majority ownership in an Uzbek Project SPV responsible for the project construction and operation.

Loan guarantor: Abu Dhabi Future Energy Company PJSC - Masdar (Masdar),  a global leader in renewable energy and sustainable urban development. It was established in 2006 as a strategic government initiative to invest, incubate and establish new energy industry in Abu Dhabi and around the world. Masdar is fully owned by Mubadala Investment Company, an investment company established and fully owned by the government of Abu Dhabi.

EBRD Finance Summary

USD 60,000,000.00

Total Project Cost

USD 111,000,000.00

Environmental and Social Summary

Category B (ESP 2014).  Construction of 100 MW solar PV plant is not associated with significant adverse environmental and social impacts. Biodiversity and 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 and IFC E&S Performance Standards.  ESDD included site reconnaissance, baseline data collection and analysis, technical review of the Project and development of the EIA package.  Additionally, Environmental and Social Management and Monitoring Plan (ESMMP) will be developed to meet condition precedent to disbursement.

The 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.  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.  Biodiversity impacts were also assessed to be low due to location and short duration of the construction impacts on potentially sensitive receptors.  Economic displacement and livelihood restoration of herders will be compensated in line with IFC and EBRD requirements through agreed settlements hence PR 5 has not been triggered.   A livelihood restoration framework will be implemented during Project design and is included as part of the ESAP.

A number of the 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; additional biodiversity surveys and development of the Biodiversity Management Plan; stakeholder engagement and grievance mechanism.

The ESAP has been agreed with the Client and its implementation and overall E&S performance will be monitored by the Bank via Annual Environmental and Social Reports.  ESIA for the project as well as Stakeholder Engagement Plan (SEP) and Non-Technical Summary (NTS) were developed and disclosed on the Client's web site.

Company Contact Information

Dr. Mohamed Asaad Taher
mataher@masdar.ae
+971 2 653 3333
+971 2 653 0002
http://www.masdar.ae
PO Box 54115, Abu Dhabi, UAE

PSD last updated

27 Oct 2020

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 how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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