Uzbekistan: Sustainable Hydropower Project
1.The project will construct three new run-of-river small-sized hydropower plants (HPPs), and provide capacity development for mini/micro HPPs development in the Republic of Uzbekistan. The three sub-projects are selected based on technical and economic viability, and prioritized in the national investment program. The project will contribute to increasing renewable energy and access to reliable energy, and building capacity for sustainable clean energy development.
Central and West Asia Department
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|Project Name||Sustainable Hydropower Project|
|Country / Economy||Uzbekistan
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Energy / Energy efficiency and conservation - Renewable energy generation - small hydro
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||1.The project will construct three new run-of-river small-sized hydropower plants (HPPs), and provide capacity development for mini/micro HPPs development in the Republic of Uzbekistan. The three sub-projects are selected based on technical and economic viability, and prioritized in the national investment program. The project will contribute to increasing renewable energy and access to reliable energy, and building capacity for sustainable clean energy development.|
|Project Rationale and Linkage to Country/Regional Strategy||
2.Uzbekistan economy grew by 8% in 2015, averaging 8.2% for 2005-2015. The Government of the Republic of Uzbekistan is pursuing an industrial growth and export-led development strategy and sustainability of the power sector will be critical to support Uzbekistan's development vision. However, the power supply growth, based on 13,500 MW installed generation capacity, remained only at 2% on an average for 20112015 due to the need for rehabilitation and replacement of existing old and inefficient power generation units and a lack of investment to expand the generation capacity. The growing demand-supply gap may soon become a critical challenge for the national welfare and economic growth.
3.Uzbekistan is one of the most energy and carbon intensive countries in the world. Thermal power, primarily based on natural gas and steam turbine technology with an average efficiency of 32%, contributes 85% of total power generation, consuming 12 billion cubic meters or 20% of the gas produced in Uzbekistan per annum. This results in (i) missed opportunities for higher value gas exports; (ii) limited system reliability and inefficient load management; and (iii) limited diversification of electricity generation mix vulnerable to long term climate change and unavailability of natural resource. Aware of the need, the Uzbekistan's energy policy has been shifting toward an emphasis on the improvement of energy efficiency and deployment of renewable resources with a target of doubling the share of renewable energy by 2030.
4.With developed capacity of 1,800 MW out of 12,000 MW hydropower potential in Uzbekistan, hydropower accounts for only 11% of total electricity generation capacity. The hydropower facilities are outdated and require considerable investment in modernization for the efficient use of existing water resources. Harnessing the hydropower potential of 650 rivers, irrigation canals and reservoirs will contribute to improving the sustainability of the energy sector in the country. There also exists the potential of local enterprises and organizations to manufacture mini/micro hydropower equipment and facilities. Recognizing this, the government of Uzbekistan recently approved a new program on hydropower sector development for the period of 20152019 where the government plans to allocate around $890 million in modernization of hydropower generation facilities and construction of new HPPs in the country with support by the international financial institutions.
5.The Asian Development Bank (ADB) supports energy efficiency and renewable energy projects in Uzbekistan. Lessons from these projects include the need for continued support for project preparation and project readiness, close coordination with the project executing agency on procurement, and need for continued engagement for sector reforms, all of which are addressed under this project. All key sector reforms and institutional improvements are under way with ADB support: the International Financing Reporting Standards and the International Standards on Auditing have been introduced to strengthen financial management capacity; key performance indicators have been introduced; law on renewable energy has been drafted; capacity development activities to strengthen safeguards and gender consideration are under implementation. The sector has been sustainable with cost-recovery tariff; however, further works are necessary to strengthen service delivery and promote private sector participation.
6.The proposed project is aligned with ADB's strategy for Uzbekistan which focuses on energy efficiency and reliable power supply and directly supports the government's policy to modernize and diversify the electricity generation through renewable energy resources. The government requested for stand-alone sovereign lending for the proposed project considering that it is a strategic public asset that is best implemented through turnkey contracts.
Inclusive economic growth achieved
|Description of Outcome||
Clean and renewable energy generation increased
|Progress Toward Outcome||Project approved on 30 September 2019 and signed on 3 September 2020. Procurement activities are ongoing.|
|Description of Project Outputs||
Generation capacity of small HPPs increased
Climate resilience promoted in hydropower planning
Uzbekhydroenergo's institutional capacity enhanced
|Status of Implementation Progress (Outputs, Activities, and Issues)||
|Geographical Location||Nation-wide, Qashqadaryo, Samarkand, Tashkent|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Environmental impacts that could occur during construction and operation are mainly within the sections of the Aksu River between the weir and the powerhouse that will experience reduced water flows, on the corridors of the transmission line and access roads, and on nearby villages. The main impact during operations would be on the aquatic ecology and river ecosystem mainly related to the presence of the weir, which is an impassable obstacle to all fish, and the reduced flow, which will impact nearby villages and permanently impact the river ecosystem. As part of the EIA, an environmental-flow modeling was undertaken, and the study presents that the project design maintains the acceptable flow to ensure the river is not significantly impacted. A carefully designed fish ladder will be included as a mitigation strategy. The Aksu River is heavily modified by the large multipurpose dam and HPPs about 12 km downstream from the project area, which essentially dammed the valley. Information on the river's biodiversity value suggests few species of fish live in the river, and none are protected or redlisted nationally or internationally. No vulnerable species were observed during inventories of the area. Reduced water flow is an important concern for the local population, particularly in areas where piped waterway will pass, as some use river water for various purposes, including drinking. The water balance assessment further suggested that the river will maintain adequate water for people's daily use, livestock, and irrigation.|
|Involuntary Resettlement||The project does not envisage the acquisition of privately owned land, and only state-owned land will be acquired. Construction of facilities, such as the weir, pipelines, and the transmission line, will affect 33 households and 204 people. Of these, 27 households and 163 people are considered severely affected per the Safeguard Policy Statement (2009). A resettlement plan disclosed in June 2019 has an entitlement matrix and resettlement budget to provide compensation at replacement cost and restore livelihoods as per the Safeguard Policy Statement (2009); it will be updated to an implementation-ready plan upon completion of the detailed design and engineering by the engineering, procurement, and construction contractor. Uzbekhydroenergo will provide adequate resources to comply with all safeguard requirements in the resettlement plan. No physical and economic displacement will occur until full compensation at replacement cost and all other entitlements are paid to the displaced people following the final resettlement plan.|
|Indigenous Peoples||The project will not affect indigenous peoples as defined by the Safeguard Policy Statement (2009)|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||
The project is a national power generation project, and the general population is not involved in planning and development. However, 250 households were surveyed in two villages, Khisorak and Yakkakhona, in the project areas. In addition, 10 in-depth interviews and focus group discussions with one group of 15 men and women and another group of 14 women were conducted. Issues such as limited access
to income-generating opportunities, public infrastructure such as road and transportation, and health care services; and the limited housing situation were discussed with the local communities and governments. Civil society participation. During project preparation, ADB hired a social development and gender specialist to prepare a poverty and social analysis, including a gender assessment. Key informant interviews were held with key local government officials, and consultations were conducted with civil communities in the selected area.
|During Project Implementation||During project implementation, social mobilization and consultative processes will ensure the inclusion of vulnerable communities in program consultations. Civil communities around the project site will be periodically consulted to address their concerns and reflect their needs. Uzbekhydroenergo will hire social development consultants to assist civil communities in networking with and connecting to other groups in the country.|
|Consulting Services||It is expected that there will be one project implementation consultant package selected based on a quality cost based selection method with 90:10 ratio, considering the complex nature of the project.|
|Procurement||It is expected that there will be one turnkey package that includes all three subprojects which will be selected based on open competitive bidding.|
|Responsible ADB Officer||Musaev, Shokhimardon|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Uzbekistan Resident Mission|
Joint Stock Company Uzbekhydroenergo
|Concept Clearance||22 Nov 2016|
|Fact Finding||05 Nov 2018 to 16 Nov 2018|
|MRM||21 Aug 2019|
|Approval||30 Sep 2019|
|Last Review Mission||-|
|Last PDS Update||30 Sep 2020|
|Approval||Signing Date||Effectivity Date||Closing|
|30 Sep 2019||03 Sep 2020||20 Oct 2020||30 Jun 2024||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||69.50||Cumulative Contract Awards|
|ADB||60.00||25 Jan 2023||55.93||0.00||93%|
|Cofinancing||0.00||25 Jan 2023||10.85||0.00||18%|
|Status of Covenants|
|Approval||Signing Date||Effectivity Date||Closing|
|30 Sep 2019||26 Oct 2019||26 Oct 2019||31 Dec 2020||31 Dec 2021||09 Mar 2022|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|1,000,000.00||500,000.00||0.00||0.00||0.00||0.00||1,500,000.00||25 Jan 2023||1,239,037.21|
|Status of Covenants|
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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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.
None currently available.
The Access to Information Policy (AIP) 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.
Requests for information may also be directed to the InfoUnit.
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|Tender Title||Type||Status||Posting Date||Deadline|
|Loan 3834-UZB: Sustainable Hydropower Project [UGE/PC-001]||Invitation for Bids||Closed||29 May 2020||31 Jul 2020|
|Consulting firm for hydropower masterplan for climate resilience||Firm - Consulting||Closed||26 Oct 2019||24 Nov 2019|
|Project supervision consultant||Firm - Consulting||Closed||25 Sep 2019||28 Oct 2019|
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|PC-1: CONSTRUCTION OF SMALL-SCALE HYDROPOWER PLANTS (THREE UNITS) AND TRANSMISSION LINES||Loan 3834||23 Jun 2021||CHINA NATIONAL ELECTRIC ENGINEERING CO. LTD. | CNEEC BLDG. 9 SOUTH SHOUTI ROAD, HAIDIAN DISTRICT, BEIJING 100048, CHINA, PEOPLE'S REP. OF||JSC Uzbekhydroenergo||54,000,000.00||54,000,000.00|
|PROJECT SUPERVISION CONSULTANT||Loan 3834||19 Feb 2021||JV DOLSAR ENGINEERING LIMITED | ANKARA, TURKEY||JSC Uzbekhydroenergo||1,931,105.00||1,931,105.00|