Uzbekistan : Solar Public-Private Partnership Investment Program
The program will increase the renewable energy share by developing private sector-led solar photovoltaic power plants of at least 1,000-megawatt capacity. The innovative application of the partial credit guarantee and the One ADB approach provide a one-stop shop solution for the government to enable private-funded solar power projects at competitive tariffs and provide lower the cost of electricity to sustain the economic development. The program is expected to be a landmark transaction accelerating the energy transition from fossil fuels to renewables and catalyzing private participation, which can be replicated in other sector and countries.
Project Details
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Project Officer
Kim, Seung Duck
Central and West Asia Department
Request for information -
Country/Economy
Uzbekistan -
Sector
- Energy
| Project Name | Solar Public-Private Partnership Investment Program | ||||
| Project Number | 54056-001 | ||||
| Country / Economy | Uzbekistan |
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| Project Status | Approved | ||||
| Project Type / Modality of Assistance | Private Sector Loan |
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| Source of Funding / Amount |
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| Operational Priorities | OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP6: Strengthening governance and institutional capacity |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Partnerships Private sector development |
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| Sector / Subsector | Energy / Renewable energy generation - solar |
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| Gender Equity and Mainstreaming | Some gender elements | ||||
| Description | The program will increase the renewable energy share by developing private sector-led solar photovoltaic power plants of at least 1,000-megawatt capacity. The innovative application of the partial credit guarantee and the One ADB approach provide a one-stop shop solution for the government to enable private-funded solar power projects at competitive tariffs and provide lower the cost of electricity to sustain the economic development. The program is expected to be a landmark transaction accelerating the energy transition from fossil fuels to renewables and catalyzing private participation, which can be replicated in other sector and countries. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | The use of partial credit guarantees (PCGs) will provide a complementary yet critical layer of confidence to investors by mitigating NEGU's credit risks by ensuring tariff payment. As Uzbekistan's power sector moves forward with its major reform agenda, the government and ADB believe that the application of PCGs will provide a signal to international investors of the government's commitment to stabilizing and implementing further reforms. The timely offering of PCGs will (i) attract private investors to consider investing in a country where it might otherwise have been difficult; (ii) promote fair competition among the potential investors; and (iii) allow potential investors to propose the lowest possible tariff, even for NEGU, which has not established a payment track record. Those projects included in the medium-term renewable investment program, 2021-2025 are priority projects benefiting from the incentives extended by the government. The policy framework and the road map can appropriately and adequately guide the long-term program of investments. | ||||
| Impact | Access to clean, sustainable, an affordable energy supply increased (power sector development plan, 2020-2030) |
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| Project Outcome | |
|---|---|
| Description of Outcome | Private sector-led renewable energy generation increased |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Solar power generation capacity increased Government's capacity for attracting private investment strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | All safeguards issues will be addressed in accordance with the ADB's Safeguard Policy Statement 2009. A safeguard due diligence was conducted for the first tranche project to assess, address and mitigate all impacts from the construction and operation of solar PV plant. The first tranche is categorized B for the environment. A detailed biodiversity assessment will confirm any impact on habitats of conservation value. |
| Involuntary Resettlement | The first tranche is categorized B for the involuntary resettlement. |
| Indigenous Peoples | The first tranche is categorized C for the indigenous people. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Responsible ADB Officer | Kim, Seung Duck |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Energy Division, CWRD |
| Timetable | |
|---|---|
| Concept Clearance | - |
| Fact Finding | - |
| MRM | - |
| Approval | - |
| Last Review Mission | - |
| Last PDS Update | 26 Oct 2021 |
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 |
|---|---|---|
| Solar Public-Private Partnership Investment Program: Proposed Extension of Approval Validity | Documents Produced Under Grant/Loans/TA | Sep 2022 |
| Solar Public-Private Partnership Investment Program: Report and Recommendation of the President | Reports and Recommendations of the President | Sep 2021 |
| Solar Public-Private Partnership Investment Program: Facility Administration Manual | Facility Administration Manual | Sep 2021 |
| Solar Public-Private Partnership Program: Concept Paper | Concept Papers | Jun 2020 |
| Solar Public-Private Partnership Program: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Jun 2020 |
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
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