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, Principle 6 Infrastructure Governance
QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 1: Wider economic benefits, 2: Operation and maintenance, 2: Technological innovation, 2: Risk management, 3: Environmental Impact Assessment, 5: Occupational health and safety, 6: Growth & development strategies, 6: Financial & debt sustainability, 6: Access to information and data, 6: Transparency of infrastructure investment, 6: Enabling Environment, 6: Policy
Overview
Cost: USD 82.5mln
Size: USD 82.5mln
Parties involved (public and private): Republic of Uzbekistan, National Electric Networks of Uzbekistan (a 100% state owned power utility responsible for power transmission and grid connection)
Relevant contractual details (type, length etc.): 15-year tenor sovereign loan
Aim(s) of the project: Finance the construction of a high voltage transmission substation and related equipment in Uzbekistan.
Timeline
The Project will be implemented over 2018-2024.
Relevance to QII
The implementation of the Project will strengthen reliability and stability of the transmission network and improve capacity of the electricity system, ultimately leading to the reduction of system losses by up to 4.2%. Based on the regional 2020-2026 grid development study completed by the national institute for transmission systems, technical transmission losses are expected to decrease from 6.3% to 2.1% in the Navoi portion of the grid and from 3.1% to 1.7% in the North West portion.
Energy savings in the Navoi area alone are anticipated to be in the range of 200,000 MWh per year, which corresponds to a GHG emission reduction of around 107,000 tCO2e per year.
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. Based on the ESDD, an Environmental and Social Action Plan (ESAP) has been developed to address institutional strengthening issues as required. The ESAP includes, inter alia, enhancement of the corporate Environmental, Health & Safety and Social Management Systems, supply chain management and construction safety, implementation of the Stakeholder Engagement and grievance tools, implementation of the Land Acquisition procedures compliant with Bank's policy and others. The ESAP also includes requirements associated with the construction of the associated power lines and need for separate consultation.
Benefits
The Project, part of a broader grid strengthening programme in the region, shall strengthen reliability and stability of the transmission network and improve capacity of the electricity system and will ultimately lead to the reduction of system-wide losses and integration of renewables. The Project involves support to the Company in strengthening its compliance practices through a technical cooperation assignment (as of today, the Company has successfully established compliance department and equipped it with qualified personnel with the assistance of the Bank).
Metrics
The Company will report on ESAP and Compliance Action Plan implementation.
Transmission technical losses are set to decrease 6.3% to 2.1% in the Navoi portion of the grid and from 3.1% to 1.7% in the North West portion.
Training and workshops on tariff affordability were successfully conducted by Council of European Energy Regulators (CEER) under the EBRD-CEER TC Framework.
Name of Institution
European Bank for Reconstruction and Development
Website URL