44944-014: UZB: SURGIL NATURAL GAS CHEMICALS | Asian Development Bank

Uzbekistan: UZB: SURGIL NATURAL GAS CHEMICALS

Nonsovereign (Private) Project | 44944-014 Status: Approved

Project Details

Project Officer
Singh, Samarendra Private Sector Operations Department Request for information
Country
  • Uzbekistan
Sector
  • Industry and trade
 
Project Name UZB: SURGIL NATURAL GAS CHEMICALS
Project Number 44944-014
Borrower/Company UZ-KOR GAS CHEMICAL LLC
Country Uzbekistan
Location
Type or Modality of Assistance
7351/2850 Guarantee USD 275.00 million Approved
7351/2850 Loan USD 125.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Industry and trade / Industry and trade sector development

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Singh, Samarendra
Project Sponsor(s) Kor-Uz Gas Chemical Investment Ltd.
Uzbekneftegaz
Description
Objectives and Scope The ADB assistance will finance, on a limited recourse basis, the engineering, procurement, and construction of gas wells, connecting pipeline, gas separation plant, ethylene cracker, polymer process plant, and associated utilities and offsite installations.
Status of Development Objectives The Project seeks to add incremental economic value to Uzbekistan's natural gas resources, enabling higher value products to be manufactured and exported. Demonstration effect of successful implementation of a pioneering investment framework will catalyze foreign direct investment in Uzbekistan's private sector large-scale manufacturing industry. ADB's presence as a direct lender provider will incubate scarce long-term cross-border commercial lending into Uzbekistan. Natural gas is a core economic resource for Uzbekistan and the project is a PPP of government and foreign investors.
Status of Operation/Construction Project construction is in progress.
Material Changes None
Linkage to Country/Regional Strategy The Uzbekistan Country Strategy and Program (CSP) 2001-2010 seeks to promote development in sectors where Uzbekistan has a comparative advantage, namely natural gas and manufacturing. Demonstration of the Investment Agreement structure supports the strategy objective of improving the business environment through improved financial norms and enabling investments for sustained GDP growth. The Project is aligned with the Strategy's focus on developing sectors where Uzbekistan has a comparative advantage in natural gas and manufacturing and leveraging that advantage for increasing the value-addition of exports and upgrading the practices and skills of its large scale manufacturing industry.
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The proposed Project involves drilling additional production wells and constructing upstream infrastructure including expanding the complex gas treatment unit (CGTU) and constructing a 115km pipeline at the Ustyurt plateau to connect to the Ustyurt Gas Chemical Complex (UGCC) which will be located within a 100 hectares greenfield development site as well as access roads and other support facilities. Since the Project involves existing facilities, an environment and social compliance audit of existing facilities and activities within Surgil Field will be conducted by the Borrower in accordance with the SPS requirements. Where land has already been acquired for any of the project components, the compliance audit will identify past or present concerns related to impacts on the environment, involuntary resettlement and indigenous peoples and plan corrective measures to address outstanding compliance issues. Where new land acquisition is required, appropriate resettlement planning documents will be prepared to mitigate impacts. The Project has created approximately 10,000 jobs during construction and 2,000 jobs are expected during operation.
Involuntary Resettlement No impact. The Surgil gas field will utilize 1,188 ha of land in the bed of the Aral Sea; the pipelines, transmission lines, UGCC, and other support facilities will be constructed on 1,423 ha of state-owned semi-arid, uninhabited, and undeveloped desert lands in the Ustyurt Plateau.
Indigenous Peoples No impact. Karakalpakstan has a multiethnic population and the project facilities will not affect any indigenous peoples.
Stakeholder Communication, Participation, and Consultation Consultations were conducted in July 2010, March and July 2011 in Akchalak, Muynak and Kungrad settlements which were attended by local residents and officials from the district governments. Information on the Project and its impacts were disclosed and issues and concerns raised were incorporated into the project design. The ESIA was disclosed on ADB website in August 2011. Uz-Kor has appointed a Community Liaison Officer to address enquiries or complaints related to the Project.
Timetable for assistance design, processing and implementation
Concept Clearance 24 Jan 2011
Credit Committee Meeting 14 Nov 2011
Approval 17 Jan 2012
PDS Creation Date 11 Aug 2011
Last PDS Update 24 Sep 2014

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Title Document Type Document Date
Surgil Natural Gas Chemicals Project: Report and Recommendation of the President Reports and Recommendations of the President Dec 2011

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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