Project Description
The provision of a loan of up to €250 million in favour of the Republic of Uzbekistan, with loan proceeds to be on-lent to JSC Thermal Power Plants (JSC TPP), a wholly state owned power generation company incorporated in Uzbekistan and the Bank's existing client, to finance its operational expenses.
Project Objectives
The loan proceeds will be used to finance working capital and operational liquidity needs in the aftermath of the COVID-19 pandemic. The project will provide immediate liquidity to the company to support its operations, ensuring the company's appropriate preparation and maintenance ahead of the next winter season. The project will combine immediate response with long-term reform objectives such as supporting decarbonisation and tariff reform.
Transition Impact
ETI score: 75
The project is expected to contribute to the Resilient and Inclusive Transition Impact qualities. The Project will enhance the capacity of JSC TPP to actively contribute to a 'just' transition by supporting the redeployment and reskilling of JSC TPP employees and will support the development of a strategic vision for JSC TPP's HR function. The Bank's loan will be used to support the working capital and operational liquidity needs of the company to help ensure the company's power generation capacity is adequately preserved in the aftermath of the COVID-19 pandemic. The project will also help JSC TPP operationalise its tariff calculation methodology.
Client Information
UZBEKISTAN SOVEREIGN
The state power generation company JSC "Thermal Power Plants"
EBRD Finance Summary
EUR 250,000,000.00
A loan of up to €250 million in favour of the Republic of Uzbekistan, with loan proceeds on-lent to JSC TPP.
Total Project Cost
EUR 250,000,000.00
Additionality
The EBRD financing covers a financing gap caused by adverse market conditions and the COVID-19 impact, as financing from local commercial banks is constrained and is not available at the required terms. The client will also benefit from the EBRD's expertise on higher environmental standards.
Environmental and Social Summary
Category B (ESP 2019). This is a repeat transaction with an existing client and provides an opportunity for continued engagement with the country's major gas-fired power capacity manager which is essential for implementation of the sectoral low carbon pathway developed with the EBRD's support. The key E&S risks are associated with attaining decarbonisation plans and targets as well as compliance with the Bank's PRs including EU environmental standards such as EU BAT, which may be demanding and going beyond national legislation.
An independent consultant will undertake the ESDD and review the status of compliance for the existing ESAP and commitments, and ascertain environmental social risks associated with current operations in terms of environmental performance, health and safety as well as review of planned project pipeline. As part of the ESDD a review will be made of the client's commitment to decommission fossil fuel powered generation capacity. Overall the project will support the Company and the country in moving along the Low Carbon Pathway developed for the energy sector with help of the EBRD and published by the Uzbek authorities in early 2021. The ESDD will review the current status of compliance and progress with the LCP and the company's decarbonisation efforts in the context of the country's recently upgraded NDC under the Paris Agreement. Based on the ESDD the existing corporate ESAP will be revised and updated inclusive of corporate reporting and disclosure requirements as well as decommissioning and decarbonizing plans.
The PSD will be updated based on the results of the ESDD.
Technical Cooperation and Grant Financing
The following pre-signing technical co-operation ('TC') assignments are envisaged:
- TC 1: Environmental and Social due diligence, funding amount and source to be confirmed;
- TC 2: Tariff methodology support, funding amount and source to be confirmed;
- TC 3: Capacity building activities to support the Company in project implementation and structuring, funding amount and source to be confirmed.
Company Contact Information
JSC "Thermal Power Plants", International Cooperation and Investment Attraction Department - Rakhimov Aziz
uvespi@tpp.uz
+998 99 8005861
https://www.tpp.uz/
23 Bunyodkor Avenue 100097 Tashkent, Uzbekistan
Implementation summary
PSD last updated
16 Jul 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.
