fbpx 50130-002: Sustainable Hydropower Project | Asian Development Bank

Uzbekistan: Sustainable Hydropower Project

Sovereign (Public) Project | 50130-002 Status: Active

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 Details

Project Officer
Suh, Yun Ji Central and West Asia Department Request for information
Country
  • Uzbekistan
Sector
  • Energy
 
Project Name Sustainable Hydropower Project
Project Number 50130-002
Country Uzbekistan
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3834-UZB: Sustainable Hydropower Project
Ordinary capital resources US$ 60.00 million
TA 9812-UZB: Enhancing Climate Resilience of Hydropower Plants
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 500,000.00
Climate Change Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
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 2011 2015 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 2015 2019 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.

Impact Inclusive economic growth achieved
Project Outcome
Description of Outcome Clean and renewable energy generation increased
Progress Toward Outcome Project approved on 30 September 2019. Procurement activities are ongoing.
Implementation Progress
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)

Procurement ongoing

Procurement ongoing

Procurement ongoing

In preparation.

Geographical Location Nation-wide, Qashqadaryo, Samarkand, Tashkent
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
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.
Business Opportunities
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 Suh, Yun Ji
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Joint Stock Company Uzbekhydroenergo
[email protected]
22 Navoi Street, Tashkent
Uzbekistan, 100011
Timetable
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 02 Apr 2020

Loan 3834-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2019 - - 30 Jun 2024 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 75.30 Cumulative Contract Awards
ADB 60.00 30 Sep 2019 0.00 0.00 0%
Counterpart 15.30 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2019 0.00 0.00 0%

TA 9812-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2019 26 Oct 2019 26 Oct 2019 31 Dec 2020 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 500,000.00 0.00 0.00 0.00 0.00 1,500,000.00 30 Sep 2019 0.00

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Sustainable Hydropower Project: Report and Recommendation of the President Reports and Recommendations of the President Sep 2019
Sustainable Hydropower Project: Technical Assistance Report Technical Assistance Reports Sep 2019
Sustainable Hydropower Project: Gender Action Plan Gender Action Plans Sep 2019
Sustainable Hydropower Project: Project Administration Manual Project/Program Administration Manual Aug 2019
Sustainable Hydropower Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Nov 2016

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 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.

Tenders

Tender Title Type Status Posting Date Deadline
Loan 3834-UZB: Sustainable Hydropower Project [UGE/PC-001] Invitation for Bids Active 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

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.