Uzbekistan Water Supply - Energy Efficiency (Phase II)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a sovereign loan of up to US$ 250 million to the Republic of Uzbekistan for the benefit of the Ministry of Water Resources (MWR), to finance the modernisation of pumping stations (PSs) for irrigation water conveyance (IWC) in 10 regions of Uzbekistan. The project complements the second phase to the ongoing EBRD transaction (Phase I) which covers the modernisation of 118 PSs in the three regions of Fergana Valley in the country.

Project ID 54727

Status Passed Final Review, Pending Approval

Location

Uzbekistan

Business Sector

Municipal Infrastructure

Notice Type

State

Project timeline

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

Company Contact Information

Sevar Astanov, Acting Director, Center for Implementation of Foreign Investment Projects in Water Sector
agency@minwater.uz
+998 55 520 1019
https://gov.uz/oz/suvchi/departments/subordinate?active=1242
1a Labzak street, Tashkent City, 100000, Uzbekistan

Project ID 54727

Status Passed Final Review, Pending Approval

Location

Uzbekistan

Business Sector

Municipal Infrastructure

Notice Type

State

Environmental Category

Approval Date

29 May 2025

Disclosure date

19 Feb 2025

Project Description

Project Objectives

The project is expected to enhance the resilience to climate change by improving energy and water efficiency in the national IWC system.

Transition Impact

ETI score:72

ary Quality: Green. The Project will promote climate change mitigation through substantial energy efficiency savings and GHG emission reductions. Secondary Quality: Inclusive. The Project will expand reliable water supply for irrigation, creating greater economic opportunities for farmers. The Project's expected GET share is 100%.

Client Information

UZBEKISTAN SOVEREIGN

The Ministry of Water Resources of the Republic of Uzbekistan

EBRD Finance Summary

USD 250,000,000.00

Financing will be provided in tranches.

Total Project Cost

USD 287,100,000.00

Additionality

The EBRD offers a tenor and/or a grace period above the market average, which is necessary to structure the project. The EBRD investment is needed to close the funding gap. At the same time, the EBRD does not crowd out other sources, such as from IFIs, government, commercial banks and/or complements them.

The Bank will support the Ministry in achieving higher standards through its conditionalities (e.g. Procurement Policies and Rules, ESAP).

The EBRD involvement in the project will contribute to developing the RoU's long-term IWC sector reform.

Environmental and Social Summary

Categorised B (2019 ESP). The environmental and social (E&S) risks and impacts associated with the rehabilitation of 110 pumping stations used for irrigation water conveyance in 10 regions of Uzbekistan are site-specific and readily identified. These will be managed by the implementation of an Environmental and Social Action Plan (ESAP) by the Client and via the implementation of an Environmental and Social Management Plan (ESMP) to guide construction works and operations that will be included into the tendering documentations and binding for contractors. The ESMP will be updated once the environmental and social due diligence (ESDD) findings are finalised, prior to the tender package publication. Phase I, signed in February 2023 (OpID 50996), is yet to start implementation. The ESDD for the Project has been carried out by an independent consultant; it includes an audit of the existing Client's operations and site visits to selected PSs, as well as review of supporting materials. The Project is expected to result in positive impacts on the irrigation coverage, sustainability and reliability, which, in turn, will provide additional opportunities for individual farmers or farming organizations engaged in agriculture. The PSD will be updated when ESDD is completed.

The ESDD indicates that the Client has limited E&S capacity, no E&S policy, nor a functional E&S management system (ESMS) is in place. As a result, some requirements of national environmental legislation are not fully implemented. The Client will be required to obtain the missing emissions and disposal permits, to appoint E&S specialists at the MWR's Pumping Stations and Energy Division and at all Regional Pump Stations and Energy Departments, and to develop ESMS aligned with PR1. All labour practices are in line with national legislation, PR2 requirements, and ILO fundamental conventions ratified by the RoU. However, a formalised Human Resources Policy and workers' grievance mechanism would need to be developed.

The main E&S risks during the rehabilitation/construction/installation works are related to potential hazardous waste generation and soil contamination, as well as disturbance of nearby population by noise and air emissions. The Client will be required to perform segregated waste collection and improve waste management practices and hazardous substances and materials handling to further comply with PR 3. In terms of PR 4, some gaps in implementation of the national fire and electrical safety, sanitary-hygienic provisions and proper assets' fencing to ensure community safety will be addressed via ESAP. The land plots of the PSs are state-owned land, located in water protection zones of canals and rivers. As minor land take would be necessary in some cases (for building construction or installation of fences), the MWR is required to develop a procedure for formalising land tenure and identifying any land users (having farming activities / pastureland) around the stations, investigating the extent of the Project-induced impact on their livelihood and eligible compensation to adversely affected people, if necessary. ESAP will include a commitment to prepare a Land Acquisition and Livelihood Restoration Plan, if displacement impacts are confirmed. Additionally, a Stakeholder Engagement Plan and grievance mechanism have been developed for the Project.

One out of 110 PSs is located on the border of the Ugam-Chatkal State National Nature Park, 14 kilometres away from the sensitive protection zones, and no impact is anticipated from the works on park's conservation objectives. However, following precautionary principle the Client will implement specific biodiversity mitigation measures for the rehabilitation work and operations to ensure full compliance with PR6. This includes avoidance of breeding period for the rehabilitation work, installation of appropriate fencing on site and boxing on energized equipment. Additionally, as only some stations are equipped with fish protection structures, and ESAP would require all water intakes to be equipped with such.

An updated ESAP is prepared and will be agreed with the Client prior to Board considerations. A Project Implementation Support (PIS) consultant will be hired by the Client and will, among others, assist with ESAP implementation. The Lender's Monitor will also cover E&S matters within its assignment. The Bank will monitor general compliance with EBRD PRs and implementation of the ESAP through review of Lender's Monitor's reports, Annual Environmental and Social Reports (AESR) prepared by the Client, and site visits as necessary.

Technical Cooperation and Grant Financing

Pre-signing:

Feasibility Study (technical, environmental and social due diligence and green assessment) contemplating an update to the Feasibility Study commissioned by the Bank in 2020-2021.

Post-signing:

Lender's Monitor / Technical Advisor to assist the Bank in monitoring the preparation and implementation of the EBRD-financed projects in the IWC sector.

Economic Inclusion ex-post assessment to monitor and measure the Project's impact, effectiveness and sustainability in improving economic opportunities for rural citizens, farmers, and women.

Company Contact Information

PSD Last Updated

19 Feb 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.

Environmental and Social Documentation is not available for this project.

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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Uzbekistan Water Supply - Energy Efficiency (Phase II)

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)