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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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Explore different types of political risk insurance guarantees provided to investors and lenders.

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Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Uzbekistan

Dzhankeldy Wind Farm Project

$332.5 million
Power
Early Disclosure
Proposed
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Project description

This early disclosure covers an application by Standard Chartered Bank, UK and other commercial lenders currently in the process of being identified (collectively, the “Lenders”), for their non-shareholder loans and interest rate swaps to the FE ACWA Power Dzhankeldy Wind LLC (the “Project Enterprise”), wholly owned by ACWA Power of Saudi Arabia (ACWA) for the development of a wind power project in Uzbekistan (the “Project”). The Lenders are seeking guarantees of up to US$ 332.5 million against the risks of Breach of Contract, Transfer Restriction, Expropriation and War and Civil Disturbance for a period of up to 20 years.

The Project involves the design, construction, operation, and maintenance of a 500 MW greenfield Dzhankeldy wind farm, located in Peshku district, Bukhara region. The Project also includes construction of purchaser electrical facilities (128.5 km 500 kV overhead transmission line to connect the wind farm to Bash wind farm) and common electrical facilities shared with Bash wind farm (switchyard with transformers, 500/220 kV pooling station).  The Bash wind farm is also being considered for a MIGA Guarantee. Early disclosure of the Bash wind farm project can be found here. The power generated by the Project will be sold to the state-owned JSC National Electric Grid of Uzbekistan (NEGU) under a 25-year Power Purchase Agreement (PPA).

Environmental Categorization

The Project is Category A under MIGA Policy on Environmental and Social Sustainability (2013).

Through this early disclosure, MIGA provides early access to the Project’s Environmental and Social Impact Assessment (ESIA) and relevant documents.

The ESIA, SEP and RAP  have been commissioned by ACWA and should not be taken as an indication that MIGA has completed its review of the Project. Any documentation included or attached herein has been prepared and authorized for public release by entities other than MIGA.

The disclosure of the ESIA, SEP and RAP should not be construed as presuming the outcome of MIGA’s environmental and social (E&S) review. MIGA’s E&S due diligence will be carried out in accordance with the MIGA Policy on Environmental and Social Sustainability (2013). Details of MIGA’s findings and gaps to the MIGA Performance Standards on E&S Sustainability (2013) will be reflected in an Environmental and Social Review Summary (ESRS) for the Project, supplemented with an Environmental & Social Action Plan (ESAP), and published on MIGA’s website ahead of the Project’s consideration for approval, per MIGA’s Access to Information Policy (2013).

The ESIA volumes and the relevant documents are also available at the ACWA’s website:

https://acwapower.com/en/projects/dzhankeldy-wind-ipp/

MIGA does not guarantee the quality of the ESIA, SEP and RAP.

Development Impact

The Project is expected to: (i) add green electricity capacity into the grid to meet planned growth in demand; (ii) reinforce the relevance of renewable sources within sustainability objectives to meet climate action goals; and (iii) signal Uzbekistan as a viable destination for foreign investors in support of the country’s objective to modernize its economy, including in generation.

 

 

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