ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. The Project is co-financed with ADB, and impacts of the Project have been assessed in accordance with ADB’s Safeguard Policy Statement (SPS) 2009. To ensure a harmonized approach in addressing the Environmental and Social (ES) risks and impacts of the Project, and as permitted under AIIB’s Environmental and Social Policy (AIIB’s ESP), ADB’s SPS 2009 will apply to the Projects in lieu of AIIB’s ESP. AIIB has reviewed the ADB’s SPS and is satisfied that: (a) they are consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESP, including AIIB’s Environmental and Social Exclusion List (ESEL) and the relevant Environmental and Social Standards (ESSs); and (b) the monitoring procedures that are in place are appropriate for the Project. The Project includes development of wind turbines, battery energy storage system and 220 kV overhead transmission line (OHTL). It is estimated that the ES risks of the Project are categorized as Category B for environment, Category B for involuntary resettlement and category C for indigenous people, which is equivalent to Category B if AIIB’s ESP were applicable.
Environmental and Social Instruments: The client has prepared an Environmental and Social Impact Assessment (ESIA) including Environmental and Social Management Plan (ESMP), non-technical summary of the ESIA (NTS), stakeholder engagement plan (SEP) and is currently finalizing the Land Acquisition and Livelihood Restoration Plan (LALRP). Critical Habitat Assessment (CHA) for the Project has been carried out and biodiversity management measures have been prepared. Lenders’ Environmental and Social Advisor (LESA) hired by the Project carried out environmental and social due diligence (ESDD) and reviewed the project ES documents as well as the client’s ES management capacity. The ESDD report and draft environmental and social action plan (ESAP) prepared for the Project will be finalized before the Project approval.
Environmental Aspects: The environmental impacts linked with the construction phase include increased dust levels, gaseous emissions, noise and vibration, generation of solid waste and hazardous waste, wastewater, soil contamination, traffic impacts and occupational health and safety impacts. The mitigations measures have been prepared and will be implemented to manage the construction phase impacts. CHA concluded that critical habitat (CH) is triggered for Bukhara Red Deer and Common Crane. The Lower Amu Darya State Biosphere Reserve (LADSBR) is known to hold the largest remaining concentration of this endangered subspecies. The Common Crane was not observed during the spring, 2024 vantage point (VP) surveys conducted along the Project’s OHTL route. However, notable sightings of these species were recorded at the Nukus I wind farm. Therefore, a Biodiversity Action Plan (BAP) will be developed prior to the start of construction activities to achieve net gains for biodiversity values for which CH was identified. During the assessment 36 species were identified as Priority Biodiversity Features (PBFs), for which mitigation measures were also developed to attain No Net Loss (NNL) of biodiversity. Detailed biodiversity management measures are included in the ESIA. The environmental impacts during the operational phase of the wind project include bird and bat collision-related fatalities, noise, electrocution of birds within the overhead transmission line footprint, generation of waste, and spills and leaks during maintenance activities. The mitigations measures are included in the ESIA and detailed plans to manage operational phase impacts will be prepared as part of the operational phase ESMP.
Social Aspects: The entire land in Uzbekistan as per the country law belongs to the government. The Wind Farm (WF) and the OHTL will require land acquisition of around 103 Ha. According to the census conducted in 2024, the Wind farm and OHTL will impact a total of 39 households, 6 will be impacted by the WF and 33 by the OHTL. The project will not cause any physical displacement. These land users include 6 state organizations (e.g., Beruniy district Municipality), agricultural enterprises, individual farmers, owners of commercial and residential land plots as well as informal herders. The project will result in the impact of two commercial and 7 residential plots. ESIA assessed loss of wages by the agriculture farm workers. The number of workers on the impacted agricultural farms varies depending on the season, such as during harvesting or planting periods. However, the livelihoods of engaged workers are not expected to be impacted, as the impacts on those lands are anticipated to be low. There are only 3 females headed HH within the impacted land plots. A total of 25 households have been categorized as vulnerable as per the definition agreed for vulnerable households. As part of the LALRP, a comprehensive Livelihood Restoration Program has been developed. Under this program, affected households, severely impacted PAPs, and vulnerable groups including women, youth, and persons with disabilities will be eligible for livelihood restoration support in addition to the compensation they receive.
Gender Aspects. The Project provides an opportunity to advance gender equality by promoting women’s employment and empowerment. The SPV and EPC contractor are committed to hiring local workers, including individuals from vulnerable groups. Additionally, a Women’s Talent Development Program will be established to support at least 20 women with training and counseling aimed at advancing their professional careers, particularly in supervisory and managerial roles. The ESIA study identified several potential impacts of the Project that may disproportionately affect women and has proposed mitigation measures to address those impacts. These mitigation measures, along with other actions to address gender-related risks, will be detailed in the Gender Action Plan (GAP) and incorporated into other environmental and social management plans.
Occupational Health and Safety, Labor and Working Conditions: The construction workforce will consist of both skilled and semi-skilled laborers, with the EPC contractor required to prioritize local employment opportunities to promote community involvement and economic benefits. The project will involve occupational health and safety (OHS) risks typically associated with construction activities. These include, but are not limited to, collisions with moving machinery and vehicles, Hazards related to the use of explosives and hazardous chemicals, Risks of electric shock, mechanical and load-handling accidents, Exposure to noise, dust, and chemical vapors. To address these risks, mitigation measures have been outlined in the ESMP. Additionally, the SPV, EPC contractor, and O&M contractor will be required to prepare and implement a comprehensive LWCMP. This plan will ensure non-discrimination and equal opportunities in employment, GBVH risk management, provisions for managing migrant labor safety protocols are in place to protect workers and minimize risks during construction and operational phases. The plan will also include training, monitoring, and emergency response measures to promote a safe and healthy working environment.
Stakeholder Engagement, Consultation and Information Disclosure: As part of the scoping phase and the preparation of the ESIA and the LALRP, a SEP was developed. This plan includes a detailed mapping of relevant primary and secondary stakeholders, such as individuals, groups, and institutions impacted by or interested in the project. Additionally, a final consultation with affected households will be conducted with the specific objective of disclosing and gathering feedback on the LALRP entitlement matrix to ensure it adequately addresses community needs and concerns. The SEP will need to be updated to address stakeholder engagement requirements during the construction and operational phases of the project. All relevant ES documents, prepared in both English and the local language, will be disclosed in-country via ACWA Power and on AIIB’s website, hard copies of the documents in the vernacular language will be made available at the project site for the benefit of local communities and stakeholders, ensuring ease of access and informed participation in the process.
Project Grievance Redress Mechanism (GRM). A GRM has been established for the scoping and preparation phase of the project. GRM includes key principles, scope and detailed procedures along with a process flow and timeline for addressing grievances promptly. The GRM also allows for anonymous grievances to be processed and facilitates the Project-affected peoples (PAPs) to submit their grievances arising from the land and other asset compensation or any other issues in relation to the Project. During the construction and operational phases of the project, the SPV, EPC contractor, and O&M company will be required to develop and implement a Project-specific Workers’ Grievance Mechanism. The information of established GRMs and Bank’s Project-affected Peoples Mechanism (PPM) will be timely disclosed in an appropriate manner.
Monitoring and Supervision Arrangements: The SPV will hire qualified ES staff to monitor the implementation of ES management plans. EPC contractors will also deploy ES staff to implement the ES management plans at the Project sites. LESA will be engaged to monitor the ESAP implementation during the construction and operation stages of the Project. Monitoring report will be prepared based on agreed format semi-annually during construction and operational phases and will be submitted to AIIB for review by the client and LESA. The Bank’s ES Specialists will join the lenders’ group’s field-based ES monitoring missions, as necessary.
