Project detail - ACWA Power Sazagan Solar 1 LLC

Who is our prospective customer?

ACWA Power Sazagan Solar 1 LLC (the “Company”) is a special purpose vehicle established for the development, construction, and operation of 500MW Solar Photovoltaic Plant and 334MW Battery Energy Storage System as well as for the construction of associated Electrical Interconnection Facilities (together the “Project”) in Uzbekistan. The majority shares of the Company are ultimately owned by ACWA Power Company, a publicly listed international power generation and desalination developer active in multiple countries in the Middle East and North Africa, Southern Africa, and Southeast Asia.

What is our funding objective?

FMO participates as a B Loan Participant with ADB in the lead. The long-term financing will be used to fund the investments needed for the completion of the Project. Such long-term funding is not available from local banks.

Why do we want to fund this investment?

The funding contributes to the Company’s construction and expansion of its renewable energy assets in the country, accelerating the sustainable energy transition in Uzbekistan. The investment has been classified as 100% FMO Green label.

What is the Environmental and Social categorization rationale?

FMO's E&S category for this transaction is A, reflecting potential significant risks and/or impacts relating to land acquisition, economic displacement, and potential significant impacts on biodiversity. Risks are also posed in relation to labor, worker influx, human rights/ vulnerable workforce, and community H&S, particularly during construction, as well as potential Solar PV and Battery Energy Storage System supply chain Human Rights issues. Please refer to ADB’s project disclosure page for further E&S information: https://www.adb.org/projects/58290-001/main According to the information currently available, the following IFC Performance Standards are triggered: PS 1: Assessment and Management of Environmental and Social Risks and Impacts; PS 2: Labor and Working Conditions; PS 3: Resource Efficiency and Pollution Prevention; PS 4: Community Health, Safety and Security; PS 5: Land acquisition and involuntary resettlement; PS 6: Biodiversity conservation and sustainable management of living natural resources; and potentially PS 8: Cultural Heritage. IFC PS 7 (Indigenous Peoples) is not triggered as the baseline studies confirm that there are no Indigenous people in the Project area.