AIIB Watch Cases

Status: Approved
Timeframe: 2023 - ?
Area: Uzbekistan
AIIB Investment Amount: 145 million USD
Total Project Cost: 634 million USD
Co-financier:  European Bank for Reconstruction and Development, Asian Development Bank, European Investment Bank, Masdar (Abu Dhabi Future Energy Company PJSC)
Energy type: Solar

E&S Category: B

Project details: The project aims to supports Uzbekistan's energy transition through expanding solar photovoltaic (PV) capacity. It entails designing, financing, constructing, and operating three solar PV independent power plants, totaling 897 MW (Samarkand 220MW, Jizzakh 220MW, and Sherabad 457MW). Developed by Masdar, selected via international competitive tender, the project involves interconnection facilities. Each plant has separate long-term power purchase agreements with JSC National Electric Grid of Uzbekistan, supported by government agreements and land leases.

 

Project Concerns: 

Jizzakh site

In Jizzakh, concerns arise over the loss of grazing and agricultural land, compounded by insufficient compensation processes identified by EBRD for lease terminations done before the project start. Due to the loss of land and the consequential livelihood loss economic displacement is the major concern.

Samarkand site

Similarly, in Samarkand, the loss of grazing and agricultural land, particularly community grazing areas is concerning. Four households that held sub-lease agreements will experience land loss.

Sherabad site

In Sherabad, the project's land requirements impact 24 households, primarily leaseholds used for commercial farming. Although interview findings suggest the affected grazing land is inferior to its surroundings, its loss still affects livelihoods, especially during grazing in spring months. In conclusion the land loss for grazing and farming will have adverse effects.

Further information: AIIB Page

Last update: 09.05.2024