Sherabad Solar Revolving Facility



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

23 Feb 2023



PSD disclosed:

19 Jan 2023

Project Description

A revolving facility to finance quarterly VAT payments during the construction of 457 MW solar power project in the Surkhandarya region of Uzbekistan.

Project Objectives

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. It will contribute to the mitigation of climate change impact by adding 457 MW of solar generation capacity to the national energy system and will assist the country in its low-carbon transition drive.

Transition Impact

ETI score: 80

The transition impact stems from the potential contribution of the project to the EBRD Green Economy Transition ("GET") approach as it will allow producing electricity using solar power, which will reduce the country's current high reliance on thermal power generation.

The transition impact of the Project is expected to come also from its contribution to the currently state-dominated power sector in Uzbekistan by adding a new private entrant.

Client Information


The Borrower is an Uzbek Project SPV fully owned by Masdar.

Sponsor: 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.

EBRD Finance Summary

USD 38,500,000.00

Total Project Cost

USD 418,000,000.00


Financing Structure: the EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period and flexible revolving credit facilities to support VAT financing. Such financing is necessary to structure the project.

Risk mitigation: the EBRD's long-term relationship with a client provides comfort to the client to be willing to take on more risk and/or finance, enabling outcomes such as innovation or expansion into new markets.

Environmental and Social Summary

The Project has been Categorised B in accordance with the EBRD's Environmental and Social Policy (ESP) 2019. An Environmental and Social Impact Assessment (ESIA) has been completed by the Sponsor's consultants and Environmental and Social Due Diligence (ESDD) has included a review of the environmental and social documentation by the Lender's independent E&S Consultant (LESC).

The draft ESIA including Non-Technical Summary (NTS), Stakeholder Engagement Plan (SEP) and Livelihood Restoration Plan (LRP)was disclosed in December 2022 by the Sponsor on the Project website ( and has been disclosed locally for a public consultation period with consultation activities to be undertaken as outlined in the Project Stakeholder Engagement Plan (SEP). Results of the ESDD undertaken by the EBRD, the wider Lender group and the LESC, are summarised below and conclude that the Project is structured to comply with the EBRD Performance Requirements (PRs).

A site selection process was undertaken prior to the Sponsor securing the Project by the Government of Uzbekistan, with support from international consultants as part of preparations for the Project auction. The process considered technical, financial and environmental and social factors and the selected site had a longer grid connection but was preferred due to its increased distance from designated areas for avian biodiversity, favourable topography and due to lower social impacts from access compared with alternative sites.

The majority of impacts are currently expected to be site-specific and mitigated through the measures outlined in the ESIA and through the implementation of an Environmental and Social Action Plan (ESAP) which has been agreed in principle with the Sponsor and will be finalised prior to Board approval. The Borrower is fully owned by the Sponsor who has the capacity to implement the Project in accordance with the PRs.

The area of land required for the solar photo-voltaic (PV) site is 631ha and is located in modified habitat on land which was historically cultivated in Sherabad district. The 50.5km 220kV new Overhead Transmission Line (OHL) crosses a mainly agricultural landscape in the Sherabad, Kizirik and Jarkurgan districts connecting to the existing Surkhan sub-station. The Critical Habitat and Priority Biodiversity Features (PBFs) assessment undertaken for the Project notes that the PV site supports very low numbers of Central Asian Tortoise and could potentially support a number of other reptile species and marbled polecat which have been classified as PBFs, for which No Net Loss (NNL) is required to be achieved through a combination of mitigation measures including pre-construction translocation, adapted fencing and offset of lost habitat through restoration of the available modified habitat within the PV site. The Khaudag Ridge area at the eastern end of the OHL has been classified as Critical Habitat for a reptile species, Tajikistan Toadhead Agama, however permanent impacts will be limited to areas affected by tower footings and a Net Gain (NG) of the species will be achieved through habitat restoration in this area.

The Project is not located on a major bottle-neck or geographical feature that would concentrate migrating bird species and does not contain features which would attract migrating or over-wintering birds. Several species of birds have been assessed as PBFs and operational phase collision risk will be mitigated by the installation of bird diverters along the entire length of the OHL. The Sponsor will be required to develop and disclose a Biodiversity Action Plan to elaborate on the offset strategies and monitoring of mitigation and offset measures proposed in the ESIA, to demonstrate NNL/NG for CH and PBFs.

No physical resettlement is required and economic displacement has been reduced since the PV site largely avoids agricultural lands. The final route and tower location for the OHL have been selected in consultation with leaseholders to avoid structures and higher value crops where possible. No livelihood impacts are anticipated at the PV site, since the area provides a relatively low quality grazing area for livestock from three adjacent communities, with alternative areas available and includes only two leaseholders who did not use the land. Land used by one informal user has largely been avoided by adjustments to the site boundary, however affected agricultural assets will be compensated. Compensation for temporary and permanent impacts to 56 households along the OHL will also be provided. A draft Livelihood Restoration Plan (LRP) has been developed and disclosed for the PV site and the OHL and will be subject to finalisation in consultation with affected people.

The remaining project impacts are anticipated to be generally restricted to the construction phase and mitigated with good practice environmental and social mitigations. The ESIA includes the Project's framework Environmental and Social Management and Monitoring Plan (ESMMP) which includes such mitigation and monitoring measures and responsibilities through the project life-cycle. These measures will be incorporated into the Project's Environmental and Social Management System through Construction and Operational Environmental and Social Management Plans. The Engineering Procurement and Construction and Operation and Maintenance contractors will also be required to develop and implement a range of management plans consistent with the requirements of the ESMMP.

Traffic impacts to and from the site will be managed through selection of final site access roads to minimise safety and disturbance impacts and implementation of a traffic management plan. Workforce will either be accommodated in large population centres where sufficient capacity and infrastructure exists or a dedicated workforce camp will be developed. All accommodation will be managed in accordance with a Workforce Accommodation Management plan consistent with IFC/EBRD guidance. Given peak workforce numbers of up to 1100 during the short construction period, a Local Hiring Plan will be developed to maximise employment opportunities for local communities. In addition, measures to mitigate potential influx of people and Gender Based Violence and Harassment (GBVH) risks will be implemented. The Sponsor will also develop and implement a Community Development Plan in consultation with the local communities that aims to provide a range of benefits, particularly to communities subject to land access restrictions to offset any residual impacts.

Enhanced supply chain due diligence has been conducted for the solar components in accordance with the Management Approach for Solar Supply Chain Risk Management. The Sponsor has provided evidence of a functioning supply chain management system including a number of policies and position statements stating that the Sponsor has a zero tolerance to labour violations. The supply chain for this particular Project, to polysilicon, has been mapped and will be verified by an independent consultant for point of origin. The Financing Agreement and ESAP require the Sponsor and Borrower to maintain due diligence and management procedures for the sourcing of solar modules in accordance with Good International Practice. Due to the size of the Project there are a number of potential suppliers of solar modules, all of which have provided supply chain maps to the polysilicon level and all of which have been subject to enhanced due diligence.

The Project will be monitored regularly by independent Environmental and Social consultants to ensure compliance with the ESAP and the Performance Requirements.

Technical Cooperation and Grant Financing


Company Contact Information

Carlos Ponte
PO Box 54115, Abu Dhabi, UAE

PSD last updated

07 Feb 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.

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

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


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