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.
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.
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.
The state power generation company JSC "Thermal Power Plants"
EBRD Finance Summary
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
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
+998 99 8005861
23 Bunyodkor Avenue 100097 Tashkent, Uzbekistan
PSD last updated
16 Jul 2023
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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).
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