The provision of long-term senior debt of up to US$ 24.5 million for the development, construction and operation of a wind power plant with an installed capacity of 100 MW on a site in the Karatau mountain region in the Qorao'zak District of Karakalpakstan, Republic of Uzbekistan. The Project will be developed by a newly established special purpose vehicle in Uzbekistan, which will act as the borrower for the project financing. The ACWA Power Company -of Saudi Arabia (ACWA Power) will act as the sponsor for the project.
The Project will add 100 MW of wind generation capacity to the Uzbekistan power system. The project will contribute to the strategic priority of the government of Uzbekistan to increase the share of renewable projects in the national energy mix, assisting the country in its low-carbon transition drive. The Project will also result in strong environmental benefits with estimated annual CO2 emissions savings of up to 200,000 tonnes.
ETI score: 69
The transition impact of the Project will stem from its alignment with the EBRD's Green Economy Transition approach (GET) as it will allow producing electricity using wind power, which will assist the country in its low-carbon transition, reducing its current high reliance on thermal power generation.
The transition impact of the Project is also expected to stem from its contribution to the currently state-dominated Uzbekistan power sector by adding new capacity under private ownership.
ACWA POWER WIND KARATAU LLC
ACWA Power Wind Karatau LLC (the Borrower) is a limited liability company incorporated in Uzbekistan for the sole purpose of the Project.
ACWA Power is an international developer of power generation, desalinated water and green hydrogen production projects.
EBRD Finance Summary
Up to US$ 24.5 million loan to the Borrower to finance the development of a 100 MW wind power plant project. Along with the EBRD, a number of other international financial institutions are expected to support the Project.
Total Project Cost
The project cost will consist of EPC, non- EPC and financing costs.
Financing structure: The Bank offers financing on terms and conditions not available in the local market for this major infrastructure project, particularly in view of the limited liquidity caused by the Covid-19 pandemic.
Policy, sector, institutional, or regulatory change: The Bank is actively involved in the development of policy dialogue in Uzbekistan. The Project is a key milestone for the country's renewables sector as it is the first tendered wind power project in Uzbekistan.
Environmental and Social Summary
Categorised B (Environmental and Social Policy - ESP 2019) and High to Medium Risk due to the wind sector and potential impacts on biodiversity and land use.
Preliminary information suggests that the Project is not located in a proximity to any protected or sensitive areas. Bank has supported preparation of the wind auction for this site, including one-year bird survey and collision risk modelling, which suggests the collision risks are to be low, which should be verified once the Wind Power Plant design and turbine locations are determined.
The Client is well known to the Bank through previous project in Uzbekistan, has the well-established Environmental & Social (E&S) management systems, and has been duly implementing the Environmental and Social Action Plan (ESAP) agreed for the previous transactions. Environmental and Social Due Diligence (ESDD) for the Project is currently being undertaken by an independent E&S Consultant and will include review of the Client's Environmental and Social Impact Assessment (ESIA) documentation, assessment of cumulative impacts from the Project and the associated infrastructure, community and livelihood impacts resulting from land take and operation of wind farm, social, labour and safety aspects during construction and operation, as well as ongoing supply chain risk assessment management. Gender issues/risks will be also assessed in line with the EBRD Performance Requirements. The ESDD will establish need in additional avifauna survey and mitigation measures based on a bird collision risk assessment.
The Company has developed a draft Non-Technical Summary (NTS) and Stakeholder Engagement Plan (SEP), which will be based on the environmental and social assessments carried out for the project. This Project Summary Description (PSD) will be updated once ESIA is complete.
Technical Cooperation and Grant Financing
Company Contact Information
+994 12 465 99 38
PSD last updated
17 Jun 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Independent Project Accountability Mechanism (IPAM)
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