Uzbekistan: Zarafshan-01

Date Filed
25 Jul 2023
Status
Open
Phase
Dispute Resolution (DR)
Country
Uzbekistan

Case Tracker

Eligibility
Eligibility
Assessment
October 24, 2023-February 15, 2024
Assessment
Dispute Resolution
Mediation
Status as of February 22, 2024
Compliance
CURRENT Status
Mediation (DISPUTE RESOLUTION)
Status as of February 22, 2024

Complaint Overview

Complainant

Herder and landlord of the property where the cement plant is located

Concerns

Soil damage from heavy machinery oil spills, environmental and biodiversity effect from dust, unfenced project site, and damaged road.

Cross-Cutting Issues
Biodiversity Community Health and Safety Private / Personal Property Damage

Project Information

Region
Middle East, Central Asia & Türkiye, Afghanistan, Pakistan
Institution
IFC
Name & Number
IFC Project #44364.
Company
Shamol Zarafshan Energy FE LLC
Sector
Infrastructure
Department
Infrastructure
Category
A
Commitment

 IFC is providing an A loan for IFC's own account in the amount of up to US$75 million and mobilize financing through a B loan.

Synopsis

Project Overview

IFC has an active project consisting of the development, design, financing, construction, operation and maintenance of the 500MW Zarafshan wind power plant located in the Navoi region of Uzbekistan under the terms of a 25-year Power Purchase Agreement with the JSC National Electric Grid of Uzbekistan (NEGU), the state-owned single buyer and off-taker. The wind power plant will comprise of up to 111 wind turbine generators.

Complaint

In July 2023, the CAO received a complaint submitted by a resident and landlord of the property where the cement batching plant for the project is operating in the Tamdy district, Uzbekistan. The complaint cited concerns related to the following issues: i. heavy machinery used by the project spilling waste/oil on his land and damaging his property; ii. government authorities fined the complainant for the oil spillage on his land; iii. environmental impacts of the construction work, such as dust distributed by the turbines, making it impossible for animals to feed and graze in the area, as the plants are covered with dust; iv. impact on animal health, with unfenced trenches that pose a danger to animals; and v. economic loss suffered by the complainant, who lost eighteen sheep and one horse due to the aforementioned situations and adverse impacts on his land. This land, utilized for animal breeding purposes, serves as the main source of his economic subsistence.

CAO Action

In October 2023, CAO found the complaint eligible and conducted an assessment. During the assessment process, the complainant and the IFC client expressed an interest in engaging in a CAO-facilitated dispute resolution process to resolve the issues raised in the complaint using a collaborative approach. In accordance with the CAO Policy, the case will be transferred to CAO’s Dispute Resolution function.

The assessment report is available in English and Russian in the “Case Documents” section below.

Status

The dispute resolution process is ongoing.

Status as of February 27, 2024.

Case Documents

  • Complaint & Assessment

    Assessment Report
    Assessment Report
    Feb 27, 2024
    English
    Assessment Report
    Assessment Report
    Feb 27, 2024
    Russian
    Assessment Report
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