COUNTRY | Uzbekistan
REGION | Asia
SECTOR | energy
QII Principles | Principle 1 Sustainable Growth & Development, Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 4 Building Resilience, Principle 5 Social Considerations
QII Sub-Principles | 1: Paris Agreement, 2: Operation and maintenance, 2: Technological innovation, 3: Environmental Impact Assessment, 3: Environmental Impact Mitigation, 3: Climate, 3: Emissions, 4: Resilience, 5: Social Impact Assessment, 5: Job creation, 5: Capacity and institutional building, 5: Occupational health and safety
Overview
Cost: USD 1 billion
Size: 900MW capacity, USD 240 million sovereign loan
Parties involved (public and private): Republic of Uzbekistan, JSC Talimarjon TPP, JSC Thermal Power Plant, ADB.
Relevant contractual details (type, length etc.): sovereign loan with 18-year tenor.
Context: Construction of an additional 900 MWe of Combined Cycle Gas Turbine (CCGT) generation capacity at the existing Talimarjan Power Plant.
Aim(s) of the project: The Project will improve energy efficiency and reliability of the power supply in Uzbekistan and contribute to the Government of Uzbekistan's initiative to modernise the country's power generation capacity.
Timeline
- Tender: November 2020
- Contract award: September 2021
- Completion of construction: October 2024
Relevance to QII
Thanks to the high-efficiency design, the Project is expected to achieve a carbon intensity of around 350 kgCO2/MWh, nearly half of the current average intensity of the sector, thus significantly contributing to the decrease of the overall grid GHG emissions factor, resulting in a positive contribution towards climate change mitigation. The CCGT will allow Uzbekistan to advance its low-carbon transition agenda, by providing flexible low-carbon supply while enabling a higher integration of renewable energy necessary to reach the Nationally Determined Contributions under the Paris Agreement. Additionally the Bank worked with Uzbek counterparties on enhancing the water efficiency and climate resilience of the Project.
The Bank's Environmental and Social Due Diligence (ESDD) was undertaken by an independent consultant and included a review of current operations at the existing facility. ESDD consisted of an environmental and social audit of the existing power plant and an ESIA of the new 900 MWe CCGT plant and associated facilities. The existing plant is well kept, operates in compliance with National environmental standards and has an effective environmental, health and safety management system. The ESDD concluded that additional capacity building will be required to meet good international practices. This has been included in the Environmental and Social Action Plan (ESAP).
Benefits
The Project will introduce modern climate resilient technologies which could be replicated across the sector and will help improve the efficiency and reliability of the power sector. It will add 900 MW of energy and water efficient capacity to demand centres located 440 km southwest of the densely populated Tashkent metropolitan area and will help address a significant electricity supply gap, which was estimated to be 3.5% of demand in 2016.
Metrics
The Company will report on ESAP implementation on a regular basis. As part of ESAP the Company agreed to provide audit to confirm NOx, GHG emissions and water use. Moreover the company as part of ESAP agreed to develop E&S management systems to be aligned with ISO 14001, ISO 45001 and SA 8000.
In addition EBRD agreed to deliver as part of the project several key TC assignments including low carbon pathway, water intensity in the power sector and capacity building component on renewable auctions design.
Name of Institution
European Bank for Reconstruction and Development
Website URL