AIIB Watch Cases

Status: Approved
Timeframe: 2020 - ?
Area: Shirin, Uzbekistan
AIIB Investment Amount: 100 million USD
Total Project Cost: 1.02 billion USD
Co-financier:  EBRD, DEG, OPEC Fund for International Development, ACWA Power Sirdarya LLC
Energy type: Gas

E&S Category: A

Project details: The project aims to enhance high-efficiency gas power generation capacity in Uzbekistan by constructing, operating, and maintaining a 1,500MW greenfield combined-cycle gas turbine (CCGT) plant. ACWA Power is developing the project as an Independent Power Producer (IPP), under a 25-year Power Purchase Agreement with JSC National Electric Networks of Uzbekistan (NENU) since March 2020.
 

Project Concerns: 

The project requires the acquisition of 84 hectares of agricultural land directly impacting 12 farms that were either leasing or subleasing the land. The termination of leases by authorities in 2020, despite some farmers having over 20 years remaining on their contracts, as per ACWA Power documentation, exacerbates concerns.

Adverse effects on the livelihoods of workers employed on farms and at a nearby gas station is anticipated. This includes approximately 110 seasonal workers and 80 permanent workers for the farms, yet the extent of their vulnerability remains unclear, particularly concerning their employment stability and wages. The 18 employees of the gas station are expected to receive lower wages during the project construction due to disruption of business and fuel supply of the gas station.

The destruction of fruit trees, other vegetation, and grazing grounds compounds the challenges faced by affected farmers.

There is a possibility of further adverse effects, such as additional land acquisition and livelihood disruptions, if a sanitary protection zone is deemed necessary by the authorities. However, there have been no updates in documentation on this matter since 2020.

There are no implementation monitoring reports available and the documentation on the EBRD is inaccessible. This raises concerns regarding the transparency of the project. This lack of information hinders stakeholders' ability to monitor the project's progress and advocate effectively for their rights.

Further information: AIIB Page, ACWA Power Page

Last update: 17.04.2024