Uzbekistan: Solar Public-Private Partnership Investment Program

Sovereign Project | 54056-001

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

  • Project Officer
    Kim, Seung Duck
    Central and West Asia Department
    Request for information
  • Approval Date
  • Country/Economy
    Uzbekistan
  • Sector
    • Energy
Project Name Solar Public-Private Partnership Investment Program
Project Number 54056-001
Country / Economy Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Private Sector Loan
Source of Funding / Amount
GU 0113-UZB: Solar Public-Private Partnership Investment Program
Ordinary capital resources US$ 40.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Energy / Renewable energy generation - solar

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)

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

GU 0113-UZB

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 40.00 Cumulative Contract Awards
ADB 40.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 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.

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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.


Related Publications

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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.

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Tenders

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Contracts Awarded

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Procurement Plan

None currently available.