ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. AIIB’s Environmental and Social Policy (ESP), Environmental and Social Exclusion List (ESEL), including ESS1 (Environmental and Social Assessment and Management) and ESS2 (Land Acquisition and Involuntary Resettlement), will apply to this Project. ESS3 (Indigenous People) is not triggered, as there are no indigenous peoples in Uzbekistan that meet the criteria defined under this standard. AIIB loan proceeds will be allocated by CEOIC HK to support a portfolio of BESS subprojects across Uzbekistan. The Project is classified as Category B. Potential environmental and social (ES) impacts are expected to be site-specific, reversible, with no anticipated effects extending beyond the project's boundaries and these impacts can be managed through compliance with relevant ES procedures and implementation of subproject-specific ES instruments.
Environmental and Social Instruments. An environmental and social due diligence (ESDD) was conducted, including a review of China Energy Overseas Investment Co., Ltd. (the direct controlling shareholder of CEOIC HK, “CEOIC”)’s corporate-level Environmental and Social Management System (ESMS) for renewable project development and management, along with an evaluation of its application on sample projects during the due diligence process. Based on the outcome of the ESDD, an Environmental and Social Action Plan (ESAP) has been prepared which includes time-bound actions that CEOIC commits to carry out during project implementation. CEOIC has updated its corporate level ESMS and, using this framework, developed an ESMS tailored to BESS subprojects. This ESMS will guide the ES management of all financed subprojects under the Project.
Environmental Aspects. Potential environmental impacts linked with the BESS subprojects include deterioration of air quality due to earthworks, noise generated from construction activities, as well as generation of solid waste and hazardous waste, wastewater, soil contamination from potential spills and leaks of hazardous materials, traffic impacts during transportation of material and equipment, vegetation clearance, disturbance of fauna, occupational health and safety impacts. Operational impacts include generation of waste, noise from routine maintenance activities, management of end-of-life batteries, risk of fire and explosion and occupational and community health and safety. CEOIC updated existing ESMS and incorporated ESP, robust screening and categorization processes, ES risk management principles, emergency preparedness and response mechanism, monitoring and reporting requirements and institutional arrangements with defined roles and responsibilities across CEOIC departments and project companies. Detailed management procedures for biodiversity, enhancing protocols for pollution prevention (air, water and noise), waste and chemical management, health and safety management, incident management, emergency response, traffic and road safety and preparation of subproject specific instruments are prepared as part of the updated ESMS. This updated ESMS will be adopted to manage environmental risks and impacts of the Project. The contractors will prepare site-specific ES management plans to manage the construction and operational impacts.
Social and Gender Aspects. The ESDD identified gaps in CEOIC’s previous ESMS regarding social impact assessment, stakeholder engagement, land acquisition procedures, labor management, and grievance mechanisms, as well as gender and Gender-Based Violence and Harassment (GBVH) measures. To address these, an ESAP has been agreed, and CEOIC has established an ESF-aligned ESMS that incorporates policies, screening, impact assessment, management plans, engagement, and monitoring. Key actions include strengthening labor and contractor management, integrating gender and GBVH policies, enhancing grievance mechanisms, and implementing stakeholder engagement plans. The updated ESMS also provides a structured approach for managing land acquisition and involuntary resettlement through early screening, gender-sensitive surveys, and preparation of Resettlement Action Plans (RAP) or Livelihood Restoration Plans (LRP) where required, ensuring compensation at full replacement cost and special attention to vulnerable groups. In addition, a gender analysis conducted during the ESDD and to address the gaps identified, a Gender Action Plan (GAP) has been developed. Key actions include developing and implementing Gender and GBVH Policies, integrating gender impact management procedures into the ESMS, and providing mandatory training for employees and contractors. The GAP also introduces internship and mentorship programs to enhance women’s participation, gender-sensitive stakeholder engagement, and a formal internal GRM with referral protocols for GBV-related concerns.
Occupational Health and Safety (OHS), Labor and Working Conditions (LWC). CEOIC prepared an OHS management framework as part of updated ESMS which provides guidance on handling occupational and community health and safety concerns, emergency preparedness and response, as well as traffic and road safety issues at the subproject level. CEOIC’s ESMS includes a supply chain framework requiring suppliers and EPC contractors to comply with AIIB’s ESF, labor standards, and national laws. It mandates contractual clauses on labor conditions, confidential worker grievance mechanisms, and due diligence through risk-based assessments before the contract award. Ongoing monitoring, corrective actions, and cascading ESMS requirements across supply chains ensure ethical procurement and alignment with AIIB standards.
Stakeholder Engagement, Consultation and Information Disclosure. Stakeholder engagement will start at the site selection stage and continue throughout implementation, guided by CEOIC’s ESMS. Each subproject will prepare a Stakeholder Engagement Plan (SEP) to ensure timely information disclosure, meaningful consultation, and access to grievance mechanisms. SEPs will identify and map stakeholders, outline engagement methods, and include monitoring provisions, with special attention to vulnerable groups. An overview of updated ESMS in English and Uzbek have been disclosed on CEOIC’s website.
Project Grievance Redress Mechanism (GRM). A multi-tiered GRM has been established under CEOIC’s ESMS to handle concerns from communities, Project-Affected People, and Project contracted workers. At the corporate level, the General Administration Department oversees the system, while each subproject will maintain separate GRMs for workers and external stakeholders. EPC contractors are also required to implement workforce-specific GRMs with contact details disclosed in the local language. The mechanism allows free, confidential, and anonymous submissions through multiple channels, ensures acknowledgment within three days and resolution within one month, and provides escalation to senior management if needed. It guarantees protection against retaliation and maintains records for monitoring and improvement. The information of established GRMs including the information of AIIB’s Project-affected People's Mechanism (PPM) will be timely disclosed in an appropriate manner.
Monitoring and Reporting Arrangements. CEOIC will assign one EHS officer and one social officer at Tashkent office to oversee environmental, health and safety and social issues for all AIIB financed subprojects. The sub-projects will also deploy ES staff to monitor the implementation of project specific ES instruments. CEOIC will carry out periodic review of ESMS and will update to incorporate any project changes and new regulatory requirements. Implementation progress reports from the subprojects will be shared with the CEOIC corporate office on a regular basis. CEOIC will submit ES monitoring reports to the Bank on a semi-annual basis and an agreed format during the construction phase of the subprojects and on an annual basis during the operation of the subprojects. The Bank’s ES Specialists will carry out field-based ES monitoring missions during the project implementation.
