Sarimay-Djankeldy Transmission

Location:

Uzbekistan

Project number:

52874

Business sector:

Energy

Notice type:

State

Environmental category:

A

Approval date:

07 Sep 2022

Status:

Concept Reviewed

PSD disclosed:

16 May 2022

Project Description

The Bank is considering providing a US$ 53 million loan to finance the construction of a 125 km 500 kV overhead transmission line between the settlements of Sarimay (Khoresm region) and Djankeldy (Bukhara region), and 10 km 500kV overhead transmission line connecting a new 500kV open switchgear with the 500kV Navoi transmission line. The project will be implemented by Joint-Stock Company National Electric Grid of Uzbekistan (NEGU).

Project Objectives

Implementation of the Project shall significantly improve reliability, efficiency and stability of the transmission network as well as the quality and security of electricity supply. The project will also facilitate the transmission of electricity generated by renewable energy power plants under development in the Bukhara region to the national grid.

Transition Impact

ETI score: 62

The project is expected to contribute to the Green and Resilient Transition Impact qualities.

The project will facilitate integration of renewable energy into the grid by supporting connection of renewable power plants of the Bukhara region to the national grid. Also, through the project, the region's power supply reliability will be improved by reducing system losses and electricity outages especially during peak demand periods. The Project is part of the required grid upgrades that the country needs to enable reliable and efficient evacuation of energy generated from renewable sources from the Bukhara and other northern regions to the energy users. The policy dialogue and technical cooperation of the EBRD attached to this project are expected to facilitate the integration of renewable energy sources to the national grid by improving the national dispatching practices to embrace increasing renewable energy capacities. 

Client Information

NATIONAL ELECTRIC GRIDS OF UZBEKISTAN JSC

NEGU is a state-owned power utility company in charge of Uzbekistan's high voltage transmission network and electricity dispatch.  

EBRD Finance Summary

USD 53,000,000.00

Total Project Cost

USD 53,000,000.00

Additionality

The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions whereas such financing is necessary to structure the project.

 

The EBRD helps the client to mitigate carbon transition risks and take climate action, such as to move along a low carbon transition pathway.

 

EBRD helps the client achieve higher standards, e.g. in ESG management.  

 

EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthening the capacity of the client.

Environmental and Social Summary

Categorised A (ESP 2019). The construction of a high voltage line may be associated with potentially significant E&S impacts, and requires a full Environmental and Social Impact Assessment ("ESIA") in line with the EBRD Environmental and Social Policy ("ESP") as well as National and EU legislation. The Project is will be subject to the national EIA and permitting.

 

An independent consultant has been retained to undertake an Environmental and Social Due Diligence ("ESDD") of the Project and prepare ESIA supplementary disclosure package. The ESIA was disclosed on 16 March 2022.

 

The Project is the construction of (i) a c. 125 km 500 kV transmission line in Uzbekistan between the settlements of Sarimay (Khoresm region) and Djankeldy (Bukhara region), and (ii) a c. 10 km 500kV transmission line connecting a new 500kV open switchgear with the 500kV Navoi transmission line. Implementation of the Project will significantly improve reliability, efficiency and stability of the transmission network as well as quality and security of electricity supply. The Project will be implemented by JSC National Electric Grid of Uzbekistan ("NEGU"), a state power company in charge of the country's transmission network.

 

An ESIA has been undertaken of the project taking into account environmental and social issues and the Bank's Performance Requirements ("PRs"). The independent ESDD has confirmed that the Project is structured to meet the Bank's PRs and National and EU requirements and adulate mitigation measure have been developed through the implementation of the Environmental and Social Action Plan ("ESAP") and the Environmental and Social Management and Monitoring Plan ("ESMMP") developed as part of ESIA. 

 

The ESDD has confirmed that the Project, through the implementation of the ESAP will not have material biodiversity impacts (including avifauna), and is compliant with PR 2 and PR 5 in terms of labour influx and land use impacts. The Project will not be associated with impact on protected areas or critical habitats and will not be associated with resettlement. The project is deemed not to be significantly exposed to physical climate risks and is considered Paris aligned.

 

Specific attention was placed on the route selection and avoidance of land acquisition impacts. The ESDD also included comprehensive birds and bats studies that had to be undertaken during autumn 2021/spring 2022 migratory seasons to assess and develop appropriate conservation and mitigation measures. These have been included in the ESMMP and ESAP.

 

Based on the ESDD, Project specific disclosures documentation, inclusive of Non-technical Summary ("NTS") and Stakeholder Engagement Plan ("SEP") and Land Acquisition and Resettlement Framework ("LARF") have been developed. The Bank will work with NEGU in terms of strengthening its corporate management system to allow for the implementation of the project and ESAP as well as development of a corporate Environmental, Social and Governance (ESG) management system to enable future disclosure of sustainability data.

 

The full ESIA disclosure package can be downloaded here.

Technical Cooperation and Grant Financing

 Technical Cooperation funds may be sought to support Project preparation and implementation as well as policy dialogue.

Company Contact Information

Islombek Saparmatov
sarimay.jankeldi@gmail.com
+998 71 236-68-08
uzbekistonmet.uz
Uzbekistan, Tashkent city, 100084, Yunusabad district, Osiye street, 42

PSD last updated

16 May 2022

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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