To improve digital connectivity in Uzbekistan by expanding Uztelecom’s high-speed wireless and fixed broadband network.
Uztelecom is in the process of expanding its fixed broadband and wireless network population coverage. This will improve access to digital services and contribute towards accelerating the digitization of the Uzbekistan economy.
AIIB would undertake a bilateral, USD100 million, CNY-denominated loan to Uztelecom for the purposes of part-financing Uztelecom’s network expansion.
Applicable Policy and Categorization. The Bank’s Environmental and Social Policy (ESP) including the Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL) is applicable to this Project. As per the Bank’s ESP, the Project is classified as Category B, considering the nature and scale of civil works which have limited adverse environmental and social (ES) risks and impacts that are temporary, short-term, site-specific, reversible, and can be effectively mitigated with known measures and sound management practices. ESS1: Environmental and Social Assessment and Management is applicable to this Project. ESS2: Land Acquisition and Involuntary Resettlement will be avoided because the land either already belongs to the Borrower, or is being leased from a third party, or in use through co-sharing arrangements with other telecommunication companies. ESS 3: Indigenous Peoples (IP) is not relevant to the Project, as there are no IP groups in the country as per the IP definition stated in ESS3.
Environmental and Social Instruments. Given the Project provides a corporate loan to support a program of activities, an Environmental and Social Management System (ESMS) is developed by Uztelecom for the Project to screen, assess, manage and monitor the ES risks and impacts in compliance with applicable national legislations and AIIB’s ESP. The ESMS describes the Company’s ES policy; ES management procedures including stakeholder engagement and Grievance Redress Mechanism (GRM), monitoring and reporting arrangements; organizational responsibilities; and in its annexes ES exclusion list and a screening checklist, a generic Environmental and Social Management Plan (ESMP) for small civil works, and a template for semi-annual ES performance report.
Environmental and Social Aspects. The Project will have limited, localized and short-term adverse impacts on the environment associated with new construction or modernization of base stations, and installation of communication equipment and optical fiber cables, which include dust and traffic disturbance during excavation, noise and air emissions associated with service vehicle operation. The new base stations/towers will not be located at environmentally sensitive areas, and the towers are normally between 24-35 meters high for which there has been no reported incidence of bird collision. The hazardous wastes including electronic wastes generated will be disposed or recycled by certified third-party companies contracted by the Company. The Project is designed to avoid physical or economic displacement and loss of structures, though some impacts may be unavoidable. Cable infrastructure will primarily be built on unoccupied government land or along existing roads and transmission lines. Construction may cause temporary or partial loss of productive assets but these impacts are minor and mitigable, with compensation and arrangements handled per national law, AIIB ESF, and Uztelecom’s ESMS. Additionally, Bank has reviewed gender policies and found the Company aligns with national gender equality standards, promotes female professionals, and offers female-led households services by female technicians.
Occupational Health and Safety (OHS), Labor and Employment Conditions. Telecommunications workers may face occupational hazards during excavation and construction, including contact with live power lines, falls, and fire risks. Civil works will be conducted by Company staff under its OHS system, which aligns with ESP requirements. Labor and working condition (LWC) are in place by national legislation and the Borrower`s internal system, and any potential LWC risks associated with the Project will be mitigated according to national legislation and the Project’s ESMP.
Stakeholder Engagement, Consultation and Information Disclosure. The ESMS includes stakeholder engagement procedures and plans to meaningfully consult various stakeholders, including vulnerable and disadvantaged groups, throughout the Project cycle. This includes timely disclosure of Project’s ES information and incorporates the viewpoints from the stakeholders into the Project’s design and ES mitigation measures taken. The Company will disclose the ESMS in English and at least a summary version in Russian and Uzbek 30 calendar days before Project approval.
Project Grievance Redress Mechanism and Monitoring Arrangement. Uztelecom’s existing GRM has been reviewed, and a multi-tier, gender-sensitive mechanism will be established under the ESMS to address both community and workplace grievances. The information of the GRMs, including AIIB’s Project-affected People’s Mechanism (PPM), will be disclosed timely in an appropriate manner and will be operational prior to any activities requiring its coverage. During Project implementation, the Company will prepare and submit for Bank’s review semi-annual ES performance reports using the ESMS template, with frequency adjustable based on the Bank’s assessment. The Bank will monitor ES compliance through these reports and the field monitoring missions.
Asian Infrastructure Investment Bank
Dominic Richards
Principal Investment Officer
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