Sazagan-1 Solar PV and BESS

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a long-term, senior loan up to US$ 70 million, for the development, design, construction and operation of a 500MW solar photovoltaic power plant and 500 MWh battery energy storage system (BESS) located in the Samarkand region in Uzbekistan in addition to the interconnection facilities. ACWA Power Sazagan Solar 1 LLC, a special purpose vehicle established in Uzbekistan, will act as the borrower. ACWA Power will act as the sponsor for the Project. Sumitomo Corporation will be a co-sponsor.

Project ID 54550

Status Exploratory

Location

Uzbekistan

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Farman Ahmed Khan Lodhi
flodhi@acwapower.com
+998(90)0116155
https://www.acwapower.com
ACWA Power Uzbekistan Office, Business Center SIMURG 88a Amir Temur Avenue, Yunusabad District, 100084, Tashkent, Uzbekistan

Project ID 54550

Status Exploratory

Location

Uzbekistan

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

29 May 2025

Disclosure date

27 Jan 2025

Sazagan-1 Solar PV and BESS (Uzbek) (PDF, 0.17MB)

Project Description

Project Objectives

The Project will add 500 MW of solar generation capacity and 500 MWh of BESS to the power system of Uzbekistan. The Project will help to improve reliability of intermittent solar power generation in Uzbekistan by introducing battery storage. The Project is among the largest in Central Asia. Successful implementation of the Project will pave the way for broader implementation of renewable projects as BESS helps mitigate intermittence constraints of renewables' capacity.

Transition Impact

ETI score:72

expected transition impact of the project will derive from the increased renewable energy generation and energy storage capacities, which will contribute to the transition to a low-carbon economy in a country that has a high reliance on thermal power generation (Green). The project will also be highly representative in terms of absorbing intermittent renewable generation and the successful implementation of the Project will set an example for the future deployment of electricity storage systems in the country.

Client Information

ACWA POWER SAZAGAN SOLAR 1 LLC

ACWA Power Sazagan Solar 1 LLC is a newly established special purpose vehicle incorporated in Uzbekistan for the development and implementation of the Project. ACWA Power is an international developer of power generation, desalinated water and green hydrogen production projects. Sumitomo Corporation is a global trading and investment company and operates across various geographies and industries including infrastructure, construction systems and energy.

EBRD Finance Summary

USD 70,000,000.00

EBRD senior loan of up to US$ 70 million to the Borrower to finance the Project.

Total Project Cost

USD 770,000,000.00

Additionality

Financing structure: The Bank is highly additional in providing long-term financing at terms and conditions not available in the local market for this major infrastructure project.

Policy, sector, institutional, or regulatory change: The Bank is actively involved in the development of renewables and decarbonisation frameworks in Uzbekistan. The Project is a key milestone for the country's renewables sector due to the storage component which mitigates the intermittency of renewables, and will further its green agenda.

Environmental and Social Summary

Category A (ESP 2019). The construction and operation of two PV plants totalling 500 MW and a 500MWh battery energy storage system, associated with high-voltage transmissions lines, may be associated with potentially significant Environmental and Social ("E&S") impacts and requires a full Environmental and Social Impact Assessment ("ESIA") in line with the EBRD Environmental and Social Policy ("ESP") as well as national and EU legislation. The Project has undergone a comprehensive ESIA preparation process, including several public consultations. The development of the ESIA was closely monitored by the EBRD, the Asian Development Bank ("ADB") as co-lender and an external consultant. The ESIA package, inclusive of Non-Technical Summary ("NTS"), Stakeholder Engagement Plan ("SEP"), Land Acquisition and Livelihood Restoration Plan ("LALRP") have been disclosed (including ESAP) on the Bank and Client's website in December 2024 for a 60-day consultation period in line with the Bank's Access to Information Policy prior to Board consideration. Independent ESDD is still ongoing, and the PSD will be updated when done. The permitting process is ongoing.

The ESDD shows that ACWA Power has the capacity to align projects with the EBRD PRs. The Client has ISO-certified Environmental and Health & Safety ("H&S") Management Systems, along with relevant policies and procedures in place at a corporate level. Past concerns related to contractor management and monitoring in relation to labour working conditions, occupational health and safety risks and arrangements over worker representation, and have led to an extensive engagement from the Bank at the corporate level with ACWA Power. This resulted in stronger oversight of projects under implementation from the Client, with the reinforcement of E&S, H&S and human resources capacity, and the set-up of more frequent internal audits. A comprehensive management system will be developed for the Project, including the development of specific management plans by the contractor, appropriately communicated to sub-contractors, and hiring of appropriate resources on both the client and contractor sides.

ACWA Power has comprehensive labour policy and procedures in place, including a worker grievance mechanism that will be adopted by the Project. Regular independent labour and Occupational H&S audits will be required to ensure compliance with PR2 and PR4 requirements during construction as per the ESAP. A specific labour management system will be developed for the Project, inclusive of provision to address management of the Project's workers hired through intermediary agencies (if any). Any worker accommodation needed for the Project will comply with the IFC-EBRD worker accommodation guidance (2009). Project-specific Occupational and Community H&S Plans will be developed with particular attention to worker influx, GBVH risks on workforce and communities, and traffic management. Appropriate ventilation system with be installed together with the BESSs, and emergency response plan covering fire hazards prepared for the operations.

ACWA Power has established a Supply Chain Management System ("SCMS") with a corporate code of conduct and policies that strictly prohibit forced labour. All suppliers undergo integrity due diligence, which includes human rights considerations. In addition to corporate policy reviews, the Project specific supply chain assessment included screening of potential risks related to solar PV suppliers and their lower tiers down to Metallurgical-grade silicon ("MGS") level. The screening of their detailed supply chain map in the form of a Bill of Materials confirmed no evidence of forced labour in the supply chain. ACWA Power will be required to monitor any future potential supply chain risks during project implementation as part of the ESAP.

ESDD results indicate limited air emissions, minimal wastewater generation, and minor use of hazardous materials. Management plans will include dust control measures and waste handling procedures. Waterless cleaning will be used during operations, and specific actions regarding PV and BESS material sourcing, maintenance, and disposal will align with good international practices.

Appropriate mitigations have been set up with respect to the Project resulting in permanent land loss of 703 persons, representing more than 90% of ownership in a few cases. To mitigate this impact, a Land Acquisition and Livelihood Restoration Plan ("LALRP") has been prepared to PR5 standard, providing for compensation at full replacement cost and transition and assistance allowances as needed. Further meaningful consultation of the LALRP will be carried out and maintained until full implementation, and livelihood restoration measures will be further articulated following feedback from affected people. The Bank and ADB will observe part of the pre-implementation consultation process. The progress of the plan will be audited regularly during implementation and after completion.

Several Priority Biodiversity Feature (PBF) avifauna species have been identified through baseline studies already undertaken in Spring, Summer and Autumn. Habitat clearance and construction will be undertaken outside of breeding season, and mitigations measures including installation of bird divertors along the entire stretch of the overhead line corridors, will be implemented by the Project. Independent ornithological experts have confirmed that impacts on those species will be limited as long as the appropriate mitigation measures during construction and operation are implemented. No loss is anticipated with these measures, and a 3-year bird fatality monitoring program will be undertaken to confirm these assumptions, and additional mitigations will be developed to ensure full compliance with PR6. A priority biodiversity feature, the Central Asian Tortoise was also identified on the PV sites, resulting in safe relocation campaigns during the tortoise active period in 2024. Additionally, the contractor will need to develop a specific chance find procedure before starting invasive work on sites. The ESIA identified that the project will also affect Critical Habitat ("CH") for the Little Bustard, as the project locations intersect cyclical wintering area for this species. A Biodiversity Evaluation and Monitoring Plan ("BEMP") will be developed with the support of relevant third-party experts, this includes the preparation of a biodiversity action plan ("BAP") prior to board consideration. An outline BAP is part of the already disclosed ESIA, inclusive of various offset options to ensure a biodiversity Net Gain such as the burial of non-project overhead lines, removal of inoperative non-project lines, participatory conservation interventions for habitat protection in Gallorol District, and the set-aside, restoration and enhancement measures for a portion of suitable natural habitat in Nurobod District. This will be monitored as part of the project and information provided through reporting.

Site surveys and local authorities confirmed that no cultural heritage resources have been found on the sites, but a precautionary chance find procedure has been established to handle any accidental archaeological discoveries during construction phase.

A Stakeholder Engagement Plan ("SEP") including a grievance process was developed for the project and is disclosed in English, Russian and Uzbek languages. While early engagement with the authorities and adjacent communities has been undertaken by ACWA Power during national EIA and ESIA preparation process through local resources, dedicated Community Liaison Officers will be hired before the commencement of the construction phase, responsible for the implementation of the LALRP engagement, SEP and management of external grievances throughout the lifetime of the projects.

An Environmental and Social Action Plan ("ESAP") is being developed for the project and will be agreed prior to board, and a first version of the document is already disclosed on ACWA Power's and Bank's websites. The Bank will closely monitor implementation of the Project through E&S reporting from the Borrower and Lenders E&S Advisor, and monitoring visits to the Project, as necessary.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

PSD Last Updated

10 Mar 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Project ID 54550

Status Exploratory

Location

Uzbekistan

Business Sector

Energy

Environmental Category

Approval Date

29 May 2025

Disclosure date

27 Jan 2025

Project description

Senior secured loan of up to USD 70 million to ACWA Power Sazagan Solar 1 LLC (the “Sazagan 1 SPV”). The Loan to the Sazagan 1 SPV will finance the development, design, construction and operation of a 500MW solar photovoltaic power plant and 501MWh battery energy storage systems (“BESS”) located in the Samarkand region in Uzbekistan.

This is a landmark project for Uzbekistan as it introduces a 501MWh of BESS capacity, which helps the grid to mitigate the intermittency of renewables.

The Project is expected to result in significant environmental benefits through introduction of 500MW of new renewable energy capacity corresponding to a reduction of CO2 emissions.

ESIA disclosure package

Non-Technical Summary (NTS) – EN, RU and UZ
Environmental and Social Impact Assessment including outline BAP (ESIA) – EN
Critical Habitat Assessment (CHA) - EN
Stakeholder Engagement Plan (SEP) – EN, RU and UZ
Land Acquisition and Livelihood Restoration Plan (LALRP) – EN and UZ
Environmental and Social Action Plan (ESAP) – EN

Download zip package in English part I

Download zip package in English part II

Download zip package in English part III

Download zip package in Uzbek

Download zip package in Russian

Full ESIA availability

EBRD Resident Office in Tashkent
13th floor, Banking Association of Uzbekistan
1, Qoratosh Street, 100027, Tashkent, Uzbekistan

Tel. +99 (8781) 404400

and

Client website

Enquiries

Environmental or social enquiries

Farman Ahmed Khan Lodhi
ACWA Power Uzbekistan Office, Business Center SIMURG
88a Amir Temur Avenue, Yunusabad District, 100084, Tashkent, Uzbekistan
Tel. +99 (8900) 116155
e-mail: flodhi@acwapower.com

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Sazagan-1 Solar PV and BESS

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

Project description

ESIA disclosure package

Full ESIA availability

Enquiries

Environmental or social enquiries