Azerbaijan : Alat Solar Power Project

Nonsovereign Project | 55340-001

The proposed loan will enable the borrower to construct a 230-megawatt solar photovoltaic based power plant in Azerbaijan.

Project Details

  • Project Officer
    Malik, Danyaal
    Private Sector Operations Department
    Request for information
  • Approval Date
    30 May 2022
  • Country/Economy
  • Sector
    • Energy
Project Name Alat Solar Power Project
Project Number 55340-001
Borrower / Company "Masdar Azerbaijan Energy" Limited Liability Company
Country / Economy Azerbaijan
Location Nation-wide
Type or Modality of Assistance
4182 Loan Ordinary capital resources USD 35.70 million Signed
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
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Malik, Danyaal
Project Sponsor(s) Abu Dhabi Future Energy Company PJSC - Masdar
Description The proposed loan will enable the borrower to construct a 230-megawatt solar photovoltaic based power plant in Azerbaijan.
Objectives and Scope ADB's support to the project will diversify the electricity generation mix of Azerbaijan by meaningfully increasing the share of renewables. In addition, the project will help foster reliable clean energy supply to improve energy sustainability, affordability, and security.
Linkage to Country/Regional Strategy The project is consistent with the ADB Energy Policy, which emphasizes promoting renewable energy, maximizes access to energy for all, and encourages private sector participation to increase energy sector efficiency. The project, with its competitive tariff, will improve the energy mix with affordable and sustainable renewable energy. The project also helps ADB strengthen its collaboration with the private sector and international development financial institutions. The loan will be categorized as climate financing and would help achieve ADB's annual climate finance target of $100 billion for 20192030. The project is consistent with ADB's Operational Plan for Private Sector Operations, 20192024 by tackling climate change, building climate and disaster resilience, boosting environmental sustainability; and mobilizing financial resources for development.
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Initial Environmental and Social Examination (IESE) prepared for the project included an assessment of baseline environmental conditions, a review of the relevant legislation, stakeholder engagement including public participation and consultation, the identification of potential environmental impacts, and the development of an appropriate management framework for the mitigation of adverse effects associated with the proposed Project. Key construction-related environmental impacts and risks include those related to noise and vibration, dust, cultural heritage assets, health and safety, increased traffic, and waste generation. During operations, the key environmental impacts relate to waste generation and visual impacts. Majority of the potential impacts are considered to be site-specific, few if any of them are irreversible, and in most cases mitigation measures can be readily designed. To address the anticipated visual impacts of the project, consultations with relevant stakeholders will continue and the project will implement site rehabilitation and landscaping measures to provide localized screening of the site from nearby sensitive receptors.
Involuntary Resettlement The project is located on the land allocated by the Ministry of Energy for the development of the Solar photovoltaic plant. The land is being used by farmers and herders for animal grazing, mainly during winter. The project will not cause involuntary physical displacement but is expected to cause involuntary economic displacement of some farmer and herder households. A social compliance audit was conducted to ascertain the impact and a livelihood restoration plan will be implemented by Borrower the to mitigate the impact on farmers and herders and to ensure the affected people have avenues to submit grievances.
Indigenous Peoples A social compliance audit undertaken for the project confirmed that the project will not affect indigenous peoples or vulnerable ethnic minorities.
Stakeholder Communication, Participation, and Consultation Meaningful consultations and information disclosure were undertaken when preparing livelihood restoration plan and other project environmental and social documentation. A project stakeholder engagement plan will be implemented to ensure continued engagement with the local community and other stakeholders.
Timetable for assistance design, processing and implementation
Concept Clearance 04 Mar 2022
Credit Committee Meeting 13 Apr 2022
Approval 30 May 2022
Last PDS Update 01 Jun 2022

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
Alat Solar Power Project: Report and Recommendation of the President Reports and Recommendations of the President May 2022
Alat Solar Power Project: Gender Action Plan Gender Action Plans May 2022
Alat Solar Power Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Mar 2022
Alat Solar Power Project: Draft Stakeholder Engagement Plan Documents Produced Under Grant/Loans/TA Mar 2022

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.