Uzbekistan : Sherabad Solar Power Project

Project Name

Sherabad Solar Power Project

Project Number

55101-001

Borrower / Company

• "Nur Sherabad Solar PV" Foreign Enterprise Limited Liability Company

Country / Economy

• Uzbekistan

Location

Nation-wide

Type or Modality of Assistance

Approval Number	Facility	Fund Source	Amount	Status
4301	Loan	Ordinary capital resources	USD 42.95 million	Committed
CF113	B-Loan / CFS	Commercial Lenders	USD 12.50 million	Committed

Operational Priorities

• OP2: Accelerating progress in gender equality
• OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability

Sector / Subsector

• Energy / Renewable energy generation - solar

Gender

Effective gender mainstreaming

Project Sponsor(s)

• Abu Dhabi Future Energy Company PJSC - Masdar

Description

Objectives and Scope

Uzbekistan's new energy policy emphasizes the deployment of renewable energy. Encouraged by early achievements to invite private sector investments in multiple large solar and wind power projects, the government is currently working on increasing the solar capacity to 5 GW and wind capacity to 7 GW. This project is expected to establish bankable precedents intended to catalyze further private sector participation in Uzbekistan's renewable energy sector.

Status of Operation/Construction

Under construction

Linkage to Country/Regional Strategy

The project is consistent with ADB's Strategy 2030, which includes tackling climate change and enhancing environmental sustainability as key operational priorities. The project is also consistent with the Uzbekistan Country Partnership Strategy 2019- 2023, as the project will help foster reliable energy supply to improve energy security and promote the use of renewable energy sources. ADB seeks to create conditions for greater private sector participation in Uzbekistan.

Safeguard Categories

Environment

B

Involuntary Resettlement

B

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

The project is classified as category B for environment. The initial environmental and social examination identified potentially adverse environmental impacts of the project including but not limited to impacts on surface water, groundwater, visual and landscape, biodiversity, soil quality, noise and air quality, traffic, and community and occupational health and safety. These impacts are considered to be site-specific, few if any of them are irreversible, and in most cases, mitigation measures can be designed readily. The project's environment, health, and safety risks and impacts have been identified and assessed, and appropriate mitigation measures have been developed, as detailed in the IESE.

Involuntary Resettlement

The Project is classified category B for involuntary resettlement under ADB's Safeguard Policy Statement (SPS, 2009). The solar power plant is located on a 631 hectares land plot that belongs to the government land reserve. The required land will be leased by the borrower from government under a 30-year term. Nearby villages seasonally use the wider solar site area for pasture and grazing of livestock, but the site area can be readily replaced by other higher quality nearby pasture sites. The footprint for the overhead transmission line is 50.5km long and its towers requires permanent acquisition of 1.17 hectares of land. Six-meter-wide access roads for heavy machineries, tower assembly areas and an 18-meter right of way for the TL between also cause temporary displacement impacts. Overall, the project will result in economic displacement of 40 households and a cotton farm business which employs 18 households. A Land Acquisition and Resettlement Plan (LARP) has been developed by the borrower in accordance with national legislation and regulations and ADBs SPS. The Plan provides for compensation and livelihood restoration support to the affected people. Implementation of the Plan is on-going.

Indigenous Peoples

The project is classified as category C for Indigenous People under ADB's Safeguard Policy Statement (2009). Results of the initial environmental and social examination (IESE) and the LARP done by the borrower's consultants indicate that the project will not have any impacts on Indigenous Peoples or on any vulnerable ethnic minorities, and its operations are not anticipated to result in any Indigenous Peoples impacts.

Stakeholder Communication, Participation, and Consultation

Consultations with relevant stakeholders including government agencies, khokimyats, civil society organizations, members of the project host communities, and affected peoples were conducted by the borrower and its third-party consultant as part of the IESE process. A Stakeholder Engagement Plan (SEP) was developed by the borrower. It identifies the approach and key steps that the borrower will need to undertake as part of its stakeholder engagement activities throughout the various stages of project implementation. The SEP include a grievance redress mechanism for the affected people and other relevant stakeholders to raise their concerns in the course of project implementation. Implementation of the Plan is on-going.

Contact

Responsible ADB Officer

Mokroussov, Sergey

Responsible ADB Division

Portfolio Management Division, PSOD

Responsible ADB Department

Private Sector Operations Department

Timetable for assistance design, processing, and implementation

Concept Clearance

-

Credit Committee Meeting

-

Approval

15 Mar 2023

Last PDS Update

24 Apr 2024