ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. AIIB’s Environmental and Social Framework (ESF) will be applicable that includes Environmental and Social Policy (ESP), including the Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL). ESS1 (Environmental and Social Assessment and Management) is relevant to ensure adequate systems and procedures for identifying, assessing, and managing risks. ESS2 (Involuntary Resettlement) will be triggered where Project sites and associated facilities require land acquisition or lead to restrictions on land use. ESS3 (Indigenous People) will not apply as there are no Indigenous People present in the area. This Project is classified as Category A since the potential risks and impacts are likely to have significant adverse environmental and social (ES) impacts that are irreversible, cumulative, diverse or unprecedented.
Environmental and Social Instruments. A draft Environmental and Social impact assessment (ESIA) that includes Environmental and Social Management Plan Framework (ESMPF), Stakeholder Engagement Plan (SEP), Resettlement Plan (RP) have been prepared for the Project. At appraisal stage, the ESIA will be reviewed and any gaps identified will be addressed. An ES due diligence (ESDD) and site visit will be conducted during appraisal of the Project.
Environmental Aspects. The Project will reduce the dependance on fossil fuel powered energy sources and enable the country to achieve its Nationally determined contribution target of 35% by 2030 compared to 2010. However, construction and operation of the Project may have potential environmental impacts and risks. During construction stage, potential environmental impacts and risks include those related to dust, noise, health and safety, increased traffic, hazardous materials, and waste generation. Based on the footprint of the Project, these impacts will be minor and can be mitigated with development and implementation of management plans and procedures. The most relevant Important Bird and Biodiversity Area (IBA) to the Project is Ayakagitma lake, which is within 4 km to the Project wind farm site. During operation stage, there are risks of bird-bat collision with rotating blades and tower of the wind turbines. Further, the Project site is inhabited with herder’s hut, who might be potentially impacted due to shadow flicker and noise due to turbine operations. Draft ESIA has identified the issues and has incorporated mitigation measures such as shifting of proposed locations of WTP's due to various environmental risks such as noise, shadow flicker, flooding, lack of coverage in avi-fauna studies as well as relocation of herder’s hut amongst other measures.
Social and Gender Aspects. While wind farm construction will support local development and contribute to a cleaner energy future, the social outcomes depend heavily on inclusive planning, transparent communication, fair compensation, and robust community engagement to mitigate adverse effects and maximize local benefits. The construction may also lead to adverse effects such as loss of grazing land, increased traffic, dust, noise, and potential social tensions. The wind farm, located on government-owned land, will affect 12,626 hectares, with only a small portion utilized during construction and operation, allowing most land to remain accessible to leaseholders. The Project will necessitate the resettlement of assets for 23 herders, with compensation plans in place to address business interruptions and transitions. The land allocations for 1.5 km of OHTL tower footprint will be relatively minor with 30 m health protection zone (HPZ) from the power line. Substation will be located within the footprints of the wind farm. In addition, the predominantly male workforce on-site may increase risks of gender-based violence (GBV) or sexual harassment (SH), and inadequate facilities can further restrict women involvement. Women in nearby communities may be disproportionately impacted by land acquisition and livelihood changes. These risks will be addressed through specific measures in the Contractor’s ESMPs and Resettlement Plan (RP). The Project will cascade gender measures to site-specific ESMPs during project implementation, including inclusive recruitment, GBV and SH sensitization, safe working conditions, and gender-sensitive consultations.
Occupational Health and Safety (OHS), Labor and Employment Conditions. The Project poses construction-related OHS risks, including falls, crush injuries, and struck-by accidents due to working at heights, operating heavy equipment, and handling large turbine blades. Electrical works and cabling present electrocution and fire hazards, while welding, fuel storage, and chemical use add further dangers. Noise, dust, vibration, and adverse weather conditions can exacerbate safety risks, and the movement of oversized equipment raises road safety concerns for nearby communities. Labor challenges include ensuring fair wages, reasonable working hours, and adequate accommodation for the temporary workforce, with potential issues like inadequate grievance channels, weak labor rights enforcement, and discrimination or harassment risks, especially for women and vulnerable groups. To address these, site-specific ESMPs will incorporate robust OHS protocols, fair labor practices, signed worker codes of conduct, grievance mechanisms, and continuous contractor oversight to protect workers and communities. Supply chain labor and working conditions will be assessed as part of the ESDD.
Stakeholder Engagement, Consultation and Information Disclosure. As part of the ESIA and RP preparation processes, multiple engagements and public consultations were conducted by the Borrower and its third-party consultants with affected people and relevant stakeholders. SEP was prepared to set out the key steps taken and to be undertaken throughout the Project implementation. All ES instruments will be disclosed in a timely manner by the Borrower and the Bank in an appropriate manner.
Project Grievance Redress Mechanism (GRM) and Monitoring Arrangement. The Project Company holds overall responsibility and accountability for the grievance mechanism and the monitoring and the reporting of the implementation of ES instruments, though different parties will be involved depending on the Project phases. The EPC Contractor oversees the site-specific grievance mechanism during construction and decommissioning. The O&M Contractor manages the grievance mechanism during the operational phase. SEP includes a description of the project-specific two-tier GRMs and contact information for GRM focal points. The information of Bank’s Project-affected People’s Mechanism (PPM) in Uzbek will be disclosed to the local communities in an appropriate manner. More details of ES monitoring and reporting arrangement of the Project will be discussed and determined with the Borrower and other lenders during ESDD.
