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Project UzA

Location:

Uzbekistan

Project number:

54085

Business sector:

Transport

Notice type:

State

Environmental category:

B

Approval date:

20 Mar 2024

Status:

Concept Reviewed

PSD disclosed:

08 Aug 2023

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The provision of a senior loan of up to €28 million to Uzbekistan Airports JSC ("UzAirports"), fully owned by the Government of Uzbekistan. The proceeds of the loan will be used to finance the priority investment programme in Tashkent International Airport and selected regional airports (the Project).

Project Objectives

The Project envisages financing of the priority investment programme, i.e. acquisition of specialised equipment for airfield maintenance and terminal/airside equipment to replace current obsolete equipment. The Project aims to address the growing demand for good quality airport services in Uzbekistan, in particular in Tashkent International Airport ("TAS"). 

Transition Impact

ETI score: 65

Primary TI Quality: Competitive. UzAirports is planning a complete business processes overhaul, including labour restructuring. This will result in at least a 5 per cent decline in operational costs (cost of goods sold and administrative expenses), while operational costs make up approximately 50 per cent of total costs. The specific measures and associated benchmarks will be defined during due diligence. This will be supported by a targeted TC to introduce best industry practices in terms of business processes management.

Secondary TI Quality: Well-governed. Despite being the largest airport in Uzbekistan, TAS does not meet international airport infrastructure standards. The required measures will be identified and an Environmental and Social Action Plan ("ESAP") will be agreed with ESD and CSD. This will require the company to adopt the occupational health and safety standards of ISO 45001 for airport operations. Introduction of a holding-wide Master Plan will be covenanted. This will establish a strategic road map for all potential investment and private sector participation in airport infrastructure, increasing capex efficiency and thus potential revenue. The Master Plan will also identify PPP potential and feasibility for regional airports.

Client Information

UZBEKISTAN AIRPORTS JSC

EBRD Finance Summary

EUR 28,000,000.00

Total Project Cost

EUR 33,000,000.00

Additionality

The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer tenor/grace period that is rarely available in the market. The EBRD helps to mitigate physical transition risks and take climate action, such as to identify and manage physical climate risks and build resilience to them. Client seeks/makes use of the EBRD expertise on policy/sector know how through the development of holding-wide Master Plan, which will streamline investment and prioritise investment needs and overall strategic development. 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. The Project involves financing the replacement of obsolete airport equipment. It is understood no civil engineering works will be financed under this transaction. ESDD will review compliance of the current operations with national E&S legislation, noise, air quality, fuel storage and handling of hazardous substances, occupational H&S and labour management. Operational safety management systems and its compliance with International Civil Aviation Organisation ("ICAO") and EU safety will be assessed as part of ESDD. Corporate E&S capacity to operate the airport in line with the EBRD PRs will be assessed.  An ESAP will be prepared and approved with counterparties to address any gaps identified.  The potential for a Gender Action Plan will be considered.

Technical Cooperation and Grant Financing

Technical Cooperation

Pre-signing:

TC 1: Technical and E&S due diligence. An independent consultant will focus on the review of project specification and costs, EIRR, implementation arrangements and an assessment of the client's capacity. The estimated cost of the assignment is up to EUR 75,000, proposed to be financed by an international donor or the EBRD Shareholder Special Fund ("SSF").

TC 2: Business processes optimisation. An independent consultant will focus on the review of current business processes management and propose an optimisation plan for TAS, in addition to the assessment of the potential for private sector participation and liberalisation.  The estimated cost of the assignment is up to EUR 300,000, proposed to be financed by and international donor or the SSF.

TC 3: Procurement Advisory. Consultancy services to support the Client's advance procurement of the equipment. The estimated cost of the assignment is up to EUR 75,000, proposed to be financed by an international donor or the SSF, or the team budget.

Post-signing:

TC 4: Master Plan. Introduction of a Master Plan is proposed to improve UzAirports investment and strategic decision making, as well as monitor TC2 implementation. The exact scope and tasks are to be agreed with the Client before FRM stage. The estimated cost of the assignment is up to EUR 500,000, proposed to be financed by international donor or the SSF.

Company Contact Information

Shaxzoda Isxakova
s.isxakova@uzairports.com
+998 555 01 47 47 Ext. 4644
-
www.uzairports.com
Qumariq 13, Tashkent-3 Airport Republic of Uzbekistan

Implementation summary


PSD last updated

08 Aug 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
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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