Project Description
The provision of a sovereign loan of up to US$ 55 million to the Republic of Uzbekistan for the acquisition of electric buses ("e-buses") with charging units and construction of e-bus depot infrastructure for the city of Samarkand (the "Project"). The Project will serve as a 'trigger' investment under the EBRD Green Cities, formally initiating the participation of the city of Samarkand in the programme. Through the Project, the city will commit to develop a Green City Action Plan ("GCAP")
Project Objectives
The project will support initial deployment of e-buses and expansion of public electric mobility ("e-mobility") in Samarkand to improve public transportation services. The shift to e-mobility will significantly reduce greenhouse gas emissions, tail pipe air pollutant emissions and noise pollution. It also encourages a modal shift from private to public transportation with more safe and reliable public bus services.
Transition Impact
ETI score: 70
The Project supports Green quality by reducing greenhouse gas emissions and contributes to the Well-governed quality through signing of a performance-based public service contract (PSC).
Client Information
UZBEKISTAN SOVEREIGN
EBRD Finance Summary
USD 55,000,000.00
Total Project Cost
USD 63,200,000.00
Additionality
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, the EBRD does not crowd out other sources, such as from IFIs, government, commercial banks and/or complements them.
The Bank will support the client in achieving higher standards (e.g. PP&R, ESAP, GCAP).
The EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client.
Environmental and Social Summary
Categorised B (ESP 2019). Any environmental and social impacts potentially associated with the Project will be site-specific and addressed through appropriate mitigation measures. An environmental and social analysis of the proposed investment as well as a review of environmental, social, health and safety policies and procedures and the capacity of the company to manage risks associated with the proposed Project was completed by external E&S consultants and confirmed that the Project is structured to be in line with the EBRD's Performance Requirements (PRs).
The environmental and social due diligence ("ESDD") showed that the Project will bring substantial environmental and public health benefits through deployment of electric buses and expansion of public electric mobility in Samarkand. The Project will improve air quality in the city, accessibility and mobility for all user groups and improve overall quality, safety and efficiency of urban transportation. The ESDD identified that the Company needs enhancement of their institutional capacity to implement the Project in compliance with the Bank's PRs. The Project implementation is limited to the urban area within the boundaries of the existing urban development and no sensitive ecological receptors or protected zones will be affected. In addition, it is confirmed that the Project will not have significant adverse social impacts to local communities or other Project affected parties, nor will the Project require the acquisition of land or result in involuntary resettlement or economic displacement.
ESDD also included a supply chain due diligence on potential e-bus suppliers that involved mapping of typical e-bus supply chain, establishing traceability of key elements of the supply chain for e-buses, and open source media search. No material supply chain concerns were identified with regards to the potential E-bus suppliers. Given dynamic nature of the supply chain, the Environmental and Social Action Plan ("ESAP") included a commitment for the Company to prepare and implement a supply chain management plan to manage e-bus supply chain transparency and maintain reporting to the Bank if any concerns arise in future.
The ESAP has been developed to address the areas for improvement identified during the ESDD and needs to be agreed with the Company before the Board. Implementation of the ESAP will enable the Company to comply with national regulations and the Bank's PRs. The ESAP covers development and implementation of the Environmental Management and Occupational Health & Safety Management Systems, enhanced E&S standards and practices during construction and operation stages, requires road safety trainings and improvements, as well as disclosure of environmental and social performance.
Additional capacity building support with implementation of the ESAP will be provided by the post signing Project implementation support consultants.
The environmental and social performance of the Project and implementation of the ESAP will be monitored through annual E&S reports and site visits when deemed necessary.
Technical Cooperation and Grant Financing
TC 1: Feasibility Study, including technical, financial, economic, market, institutional, regulatory, environmental and social (incl. gender) due diligence, as well as preparation of technical specifications for project components and technical support during procurement.
TC 2: Corporate development and capacity building for the new e-bus operator and the transport authority.
TC 3: GCAP development for Samarkand to prioritise investment, capacity building and policy objectives in support of the green agenda. The GCAP methodology includes inclusion and gender considerations.
Company Contact Information
Nurmukhammad Khoshimov
khoshimov.n@samarkand.uz
+998 90 251 48 72
www.samakrand.uz
Implementation summary
PSD last updated
11 Jan 2023
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.
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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
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Tel: +44 20 7338 6794
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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.
