Project Name Jizzakh Solar Power Project
Project Number 55136-001
Borrower / Company "Nur Jizzakh Solar PV" Foreign Enterprise Limited Liability Company
Country / Economy Uzbekistan
Location Nation-wide
Type or Modality of Assistance
4303 Loan Ordinary capital resources USD 20.10 million Signed
CF112 B-Loan / CFS Commercial Lenders USD 12.50 million Approved
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
Sector / Subsector

Energy / Renewable energy generation - solar

Gender Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Rogan, Xeniya
Project Sponsor(s) Abu Dhabi Future Energy Company PJSC - Masdar
Description
Objectives and Scope Uzbekistan's new energy policy emphasizes the deployment of renewable energy, encouraged by early achievements to invite private sector investments in multiple large solar and wind power projects, the government is currently working on increasing the solar capacity to 5 GW and wind capacity to 7 GW. This project is expected to establish bankable precedents intended to catalyze further private sector participation in Uzbekistan's renewable energy sector.
Linkage to Country/Regional Strategy The project is consistent with ADB's Strategy 2030, which includes tackling climate change and enhancing environmental sustainability as key operational priorities. The project is also consistent with the Uzbekistan Country Partnership Strategy 2019-2023, as the project will help foster a reliable energy supply to improve energy security and promote the use of renewable energy sources. ADB seeks to create conditions for greater private sector participation in Uzbekistan.
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project is classified as category B for environment. The initial environmental and social examination (IESE) identified that the project location is not within or adjacent to any environmentally sensitive areas. It is noted however that the Great Bustard, listed by the IUCN as Vulnerable and Critically Endangered on the Uzbekistan Red List, is a species that could potentially use the airspace in the project's area of influence (AoI). Great Bustards are known to be susceptible to collision with overhead lines however, it is considered that there is a low likelihood that the project's OHTL (approximately 15km) would cause significant impacts on this population, as the OHTL is outside the habitat directly used by bustards. Nevertheless, specific measures will be put in place to reduce potential collision impacts for Great Bustards and to compensate for any that might occur. Further details on these measures will be presented in the project's Biodiversity Management Plan (BMP).

The IESE further identified potentially adverse environmental impacts including but not limited to impacts on surface water, groundwater, visual and landscape, biodiversity, soil quality, noise and air quality, traffic, and community and occupational health and safety. These impacts are considered to be site-specific, few if any of them are irreversible, and in most cases, mitigation measures can be designed readily. The project's environment, health, and safety risks and impacts have been identified and assessed, and appropriate mitigation measures have been developed, as detailed in the IESE.

Involuntary Resettlement

The Project is classified category B for involuntary resettlement under ADB's Safeguard Policy Statement (2009). The project has permanent and temporary land impacts. The Solar PV site area of 562 ha belongs to the government land reserve. The overhead transmission line (OTL) will require the acquisition of 2.54 ha land parcel of farmlands for its towers. The OTL's 15 km right-of-way for the transmission line traverses a mix of farmlands and government land, which are unoccupied and used for community grazing. Temporarily affected areas required during the construction phase include the tower assembly areas adjacent to each tower footprint and an 18m wide right of way along the OTL needed for the suspension of power cables. The sterilization zone includes land 32m meters wide on each side of the transmission line. This zone will not be occupied by the project, and users of this land can continue with their farming activities as long as they abide by safety conditions, such as trees or structures not going over a height of 6m.

The project site will be leased by Masdar under a 30-year term. There are no land leaseholders for the Solar PV site area. As for the OTL, there are seven leaseholder farmers (39 persons) with eight leaseholds, but the land taken is not significant to cause any income loss. The largest permanent and temporary land take is at 0.0055% and 4.88% respectively.

A Social Compliance Audit (SCA) to evaluate the compliance of land acquisition against ADB SR2 and a Livelihood Restoration Plan (LRP) is being prepared by the borrower to address the economic displacement impacts of the project.

Indigenous Peoples The project is classified as category C for Indigenous People under ADB's Safeguard Policy Statement (2009). Results of the Environment and Social Impact Assessment (ESIA) done by a third-party consultant indicates that the project will not have any impacts on Indigenous Peoples or on any vulnerable ethnic minorities, and its operations are not anticipated to result in any Indigenous Peoples impacts.
Stakeholder Communication, Participation, and Consultation Consultations with relevant stakeholders including government agencies, khokimyats, civil society organizations, members of the project host communities, and affected peoples were conducted by the borrower and its third-party consultant as part of the ESIA process. A Stakeholder Engagement Plan (SEP) is being developed by the borrower which identifies the approach and key steps that the borrower will need to undertake as part if its stakeholder engagement activities throughout the various stages of project implementation. The project will conduct meaningful consultations with project affected people regarding the project LRP. Included in the SEP is a grievance redress mechanism that the affected people and other relevant stakeholders can access to raise their concerns.
Timetable for assistance design, processing and implementation
Concept Clearance -
Credit Committee Meeting -
Approval 15 Mar 2023
Last PDS Update 15 Mar 2023
 
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Source URL: https://www.adb.org/projects/55136-001/main