INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: 159586 Date ISDS Prepared/Updated: May 27, 2021 I. BASIC INFORMATION A. Basic Project Data Country: Uzbekistan Project ID: P174322 Additional Project ID (if any): Project Name: Uzbekistan: Scaling Solar Independent Power Producers (IPPs) Project Task Team Leader: Ferhat Esen, Zhengjia Meng, Maksudjon Safarov Estimated Appraisal Date: October 2021 Estimated Board Date: December 2021 Managing Unit: IECE1 Lending Instrument: Guarantees Sector: Energy and Extractives Theme: Climate Change, Public-Private Partnerships IBRD Amount (US$m.): US$50 million IDA Amount (US$m.): GEF Amount (US$m.): PCF Amount (US$m.): Other financing amounts by source: US$950 million by Private Sector Environmental Category: B Simplified Processing Simple [ ] Repeater [ ] Is this a transferred project Yes [ ] No [X] B. Project Objectives: The Project Development Objective (PDO) is to increase and diversify electricity generation through private investment in Uzbekistan. C. Project Description: The proposed Project will be a next step to support new investments into the power sector and strengthening the ongoing Uzbekistan’s energy sector reform. The Project Concept Note presents the proposed Project (WB Guarantees or Project) for new Scaling Solar Independent Power Producers (IPPs), consisting of development of 900MW solar photovoltaic (PV) capacities as components of 400MW (Scaling Solar 2; Component 1) and 500MW (Scaling Solar 3; Component 2). It will support the Government’s reform in the energy sector, introduce competitive mechanisms, diversify power-mix from domestic resources (renewables/solar), promote private sector participation and contribute to the country’s energy transition and decarbonization agendas. It would also help demonstrate benefits of competitively-selected PPP/IPP transactions. The proposed Project has been structured under two components and to be prepared in a similar success manner to the Navoi Scaling Solar IPP (P170598; supported by the WB/IBRD Guarantee). The standardized and tested Scaling Solar approach is expected to save transaction cost and speed up project development. Components 1 and 2 of the presented Project are listed below with a total combined installed capacity of 900MW: 1 i. Scaling Solar 2 (Project Component 1): 220MW at Jizzakh and 180MW at Samarkand provinces, 400MW in total. The Request for Proposal (RfP) was issued on December 17, 2020. The targeted commercial close of the project is in summer 2021. Respective World Bank institutions (i.e. IBRD, IFC and MIGA) are going through concept review meetings or equivalent to allow the release of detailed term sheets of IBRD guarantees, IFC loans and MIGA political risk insurances, as part of the “staple financing� package. ii. Scaling Solar 3 (Project Component 2): 250MW at Bukhara, 150MW at Namangan and 100MW at Khorazm provinces, 500 MW in total, for which EoI is expected to be issued by March/April 2021 to reach commercial close in 12 months. This ISDS covers the project, which consists of the development, financing, construction, operation, and maintenance by the private investor to be selected of a 900MW AC solar PV plants at the aforementioned locations. The electricity generated from the project will be sold to National Electric Grids of Uzbekistan JSC (NES/off-taker) through power purchase agreements (PPAs). The selected project developer will prepare, disclose, and submit safeguards instruments prior to the Board presentation. Currently the Project’s ESRC/Categorization assigned as Substantial (Env & Social)/Category B, but it will be revisited during preparation / Appraisal. Borrower Capacity: The proposed Project will be implemented by the project developer who will be competitively selected for private power generation projects. It is expected that special purpose vehicles (SPVs/PIUs) will be established which will be responsible for designing, financing, developing, commissioning, operating, and maintaining the proposed projects. The SPVs//PIUs will enter into agreed contractual relationship with reputable companies for Engineering, Procurement, and Construction (EPC), and O&M. The SPVs/PIUs should include, at a minimum, dedicated environmental and social specialists. The Ministry of Investments and Foreign Trade (MIFT) will be responsible for ensuring that all relevant environmental and social requirements are properly included in the project tender documents. It will also be responsible for ensuring that all necessary permissions and/or agreements required from the relevant government institutions are received by the project developer prior to any construction work, for ensuring that the developer and its contractors understand their environmental and social obligations. In addition, MIFT should make it clear in the RFP that the project developer’s sub -contractors will adhere to the requirements of the World Bank Performance Standards (PS) as well. PPP approach & E&S Instruments: The GoU has requested support from other IFIs to conduct additional competitive tenders such as Asian Development Bank (ADB) for 1 GW solar and European Bank for Reconstruction and Development (EBRD) for 1 GW wind. The ADB launched its RfP for a project of 200 MW solar PV in Surkhandarya in December 2020, similar to the EBRD-supported 100 MW wind at RfQ in Karakalpakstan region. As an unsolicited proposal the energy company Total Eren plans to build a 100 MW solar PV plant in Samarkand region. In addition, Masdar (500MW) and ACWA (up to 1GW) companies have signed power purchase agreements (PPAs) with the GoU on a bilateral basis to develop a total wind farm capacity of 1.5GW. Under the GoU request, the WB might consider supporting such renewable energy projects, if they meet a set of PS criteria. Given the geographic diversity, it is expected that the IFI-supported renewable developments, including the proposed Project sites in Scaling Solar 2 and 3, will each have site specific ESIAs and ESMPs that are prepared by the selected developer in a manner acceptable to the financing institutions and within the government’s overall energy sector framework. Should one developer be selected for more than one site, one ESIA with separate, site specific ESMPs may be prepared. The ESIA/ESMPS are expected to be complemented by related supporting docs (BA, SEP, LMP, RPF, GRM) to cover all five projects. Site selection: All five sites for Solar PV were selected based on the predefined criteria with the technical assistance of the WB. The team that comprised the representatives/specialists from: the Ministry of Energy; 2 National Electrical Networks and its local branches; Local municipalities, and appointed for this task consultants visited all proposed sites and by walking through each sites preliminary studied all those areas for potential risks availabilities, logistical roads, grid connection options, birds and animals vicinity from the area and so on. Project location Baseline conditions of the area Scaling Solar 2 Jizzakh (Gallaorol) The project site is located on a flat elevated plateau with small undulating topography reflecting the alternance of layers with gravels or sands. The elevated plateau inclines slightly in a northeast direction, towa rds the watercourse which flows along the north and the east of the project site. From a social perspective, the project is not expected to cause resettlement and livelihood impacts. The area of the project site is currently being used as a transit area for cattle/livestock, between the main settlements on the southern flank and the upper grazing areas in the mountains. As a consequence of the installation of the PV plant, some of the crossing paths commonly used by shepherds will not be accessible. Samarkand (Kattakurgan) The surface of the terrace on which the Project is located is slightly hilly and inclines slightly towards the Zarafshan river valley and is densely indented by canyon-like deep gullies, irrigation canals and ravines. The surface elevation of the Project site varies from 535.5 to 582.5 m (unknown datum). The main water course in the area is the Zarafshan River, located approximately 2 km to the north. The project site is also crossed by numerous ditches and temporary watercourses. Two ongoing physical displacement processes, affecting two legally established farms, have been identified. Scaling Solar 3 Bukhara (Alat) Non-irrigated land. Based on the provided coordinate (by google earth program) of the site it was observed that south part has partially plowed land. Also, on the south site there is agricultural plots and canal. Solar PV plant (~250 MW) shall be connected to the existing Hamza- 3 substation, through a new 220 kV overhead line, approximate length 2 km, double circuit. Namangan (Pap) Non-irrigated, disturbed agricultural lands, but according to preview by google earth program there are 2 structures, perhaps belong 2 households / farmers. Solar PV plant (~ 150 MW) shall be connected to the actual Obi-Hayet substation in 220 kV through a double circuit. Khorazm (Urgench) 3 options currently under evaluation, all to the south east of Urgench along the A380 Expected to consist of short (< 5km) 220 kV, double circuit line to existing substation. Transaction Team: •Lead Transaction Advisor –IFC Transaction Advisory •Legal Advisors – Hunton Andrews Kurt and Centil Law •Technical Advisors –TYPSA 3 Project Locations: Project location Target capacity, Total available MW area, ha Scaling Solar 2 400 Jizzakh (Gallaorol) 220 601 Samarkand (Kattakurgan) 180 427 Scaling Solar 3 500 Bukhara (Alat) 250 1035 Namangan (Pap) 150 700 Khorazm (Urgench) 100 n/a Key Issues The activity consists of the development, financing, construction, operation, and maintenance by the private investor to be selected for 180 MWac Samarkand Solar (Katta Kurgan), 220 MWac Jizzakh Solar (Gallaorol), 250MW Bukhara (Alat), 150MW Namangan (Pap) and 100MW Khorezm (Urgench) PV Projects in Uzbekistan. The electricity generated from the project will be sold to National Electricity Grid of Uzbekistan JV (NES) under the Ministry of Energy (off-taker entity) through 25-year power purchase agreements (PPAs). Each plant will be developed on a separate site to be provided and leased by the GoU. The private partners are to enter into Public Private Partnerships (“PPP�) with the Government of Uzbekistan. 250MW Bukhara (Alat), 150MW Namangan (Pap) and 100MW Khorezm (Urgench) PV projects are under E&S assessments while the 180 MWac Samarkand Solar (Katta Kurgan), 220 MWac Jizzakh Solar (Gallaorol) were finished. I. Access to the Samarkand Site (Katta Kurgan) is reasonably good. The access for the area under consideration uses the 4P46 road, an asphalt road in good condition coming from Samarkand and passing by Juma, and then turn to the north by an unpaved access track of around 5 km. Observations at the site suggest this access road may be suitable for light cars and heavy trucks. Total available area: 427 ha. The fence surrounding the PV plant: 9.9 km long covering an area of 405.30 ha. The total length of the proposed internal road network: 28 km. Gated access to the facility will be located at the south end of the facility, as well as the temporary workers camp for the construction phase of the project. The project sub-station will be located towards the southwest boundary of the site. 4 Ground conditions. Bearing capacity of the ground is very low which means there is a risk of subsidence/ collapse. There are technical solutions (e.g. helical screw piles for the PV arrays, compaction below heavier structures such as the substation/ buildings) but a degree of risk will remain. Seismic risk is relatively high. This is true for the whole region (including Tashkent) but the poor ground conditions amplify this risk to an extent. With appropriate structural and foundation design it can be mitigated. Access to water–unclear if extracting water from the nearby canal is viable, ground water is deep (100 to 200m). Water supply will be possible, in some way, but costs may be higher than normally found. Access to the Jizzakh (Gallaorol) Site is reasonably good. An asphalt local road in good condition - named R-42 -goes from Gallaorol to Karakchi and runs parallel to the site. A dirt road from R-42 to the proposed site crosses a residential area and a small water stream that runs parallel to the main road. Five (5) access points have been identified to access the site from the R-42 road. Two (2) access points may be only suitable for light cars, two (2) might be suitable to heavy machines if confirmed by further studies – one of them crosses a residential area, and one (1) is suitable for heavy machines but will need reconditioning of a pipeline crossing the access. Apparently, access point C seems to be the most appropriate alternative. Total available area: 601 ha. The fence surrounding the PV plant: 14.8 km long covering an area of 553.7 ha. The total length of the internal road network: 35 km. 5 Gated access to the facility will be located at the south end of the facility, as well as the project sub-station. The proposed layout uses north-south oriented internal service roads (5 m wide) to access the different inverters and areas of the PV plant and a few east-west internal service roads. A community pathway is included towards the north of the solar PV plant to allow community members and their herds to cross the area. Ground conditions: - Bearing capacity is low but not as low as for Katta Kurgan. - The ground is highly corrosive –with appropriated sign of foundations, structure sand cabling, this can be mitigated. Seismic risk is relatively high. This is true for the whole region (including Tashkent) but the poor ground conditions amplify this risk to an extent. With appropriate structural and foundation design it can be mitigated. Erosion–the site is crossed by several active gullies. Engineering measure should be taken to avoid these expanding, particularly as the PV plant will alter water flow across the site. Grid connection–the connection is approximately 15 km long and involves crossings roads, other transmission lines, a river valley and the main railway line from Tashkent to Samarkand. It is all technically feasible but it adds significant complexity (technical and permitting). Access to the Namangan Site: Location of the site in Pap District of Namangan Region. Reasonable access road. Accessible by a dirt road in reasonably good condition, of about 5 km, that connects the site with the asphalt road R-112. Total available area: 700Ha. GHI Potential: 1591.1 kWh/m2/yr. Yearly Average Air Temperature: 13.3 °C (SolarGIS). 6 Indicative Specific Yield: 1769 kWh/kWp. Grid connection: solar PV plant (~ 150 MW) shall be connected to the actual Obi-Hayet substation in 220 kV through a double circuit. Location: Khorezm 3 options currently under evaluation, all to the south east of Urgench along the A380. GHI Potential: 1710 kWh/m2/yr. Access to the site: Good. Major asphalt road close (< 5km) to site. Grid connection: Expected to consist of short (< 5km) 220 kV, double circuit line to existing substation. Yearly Average Air Temperature: 14.7 °C (SolarGIS). Location: Bukhara 24 km east of Alat city, in the Bukhara region. Size: 1035Ha available land. GHI Potential: 1774.1 kWh/m2/yr. Yearly Average Air Temperature: 17.1 °C (SolarGIS). Indicative Specific Yield: 1989 kWh/kWp. Access to the site: reasonable access road, asphalt roads are in good condition. Grid connection: solar PV plant (~250 MW) shall be connected to the existing Hamza-3 substation, through a new 220 kV overhead line, approximate length 2 km, double circuit. Social risks at this stage are assessed as substantial. At this stage it is unclear how much agricultural land will be required, resulting in termination of land use rights for people (there are no privately-owned lands in Uzbekistan). IFC-commissioned environment and social report suggests that impacts on livelihoods and on several farms adjacent to the proposed project sites may be expected. Land acquisition and livelihoods impact related risks will be assessed further through the site-specific Environmental and Social Impact Assessments (ESIAs). If such impacts are confirmed, site-specific Resettlement Action Plans and/or Livelihoods Restoration Plans will need to be prepared, on the basis of a Resettlement and/or Livelihood Restoration Framework prepared for the whole project, setting out the guidelines, principles and procedures to be followed for the preparation of such site-specific Resettlement Action Plans for any project sites that may require termination of formal or informal land use rights or cause economic or physical displacement. The bidder documents shall include the following instruments for the proposed Solar PVs under the Project, to be approved by the Bank prior to appraisal: an Environmental and Social Impact Assessment (ESIA) and Management Plan (ESMP); Biodiversity Assessment (BA); Resettlement and/or Livelihood Restoration 7 Framework (R/LRF), Labor Management Procedures (LMP) for the project; a Grievance Redress Mechanism (GRM); and a Stakeholder Engagement Plan (SEP). During project preparation, the Bank will work with the winning bidders to identify appropriate monitoring framework to ensure that the Bank performance standards will be complied by the solar PV power plants supported under the proposed guarantee program. The planned Solar PV plants are not expected to trigger the World Bank’s Operational Policies on Projects on International Waterways (OP 7.50) or Projects in Disputed Areas (OP 7.60). According to preliminary ESIAs in Jizzakh and Samarkand the construction of a PV plans with the proposed installed capacity is expected to employ 700 to 1,000 personnel between technicians and low-skilled personnel. Additionally, the Project is expected to positively influence the local and regional economy during construction from the direct procurement and supply of materials and services from companies based in the local and regional area. Experience from similar projects has indicated that, whilst local employment is a positive impact, significant adverse impacts can occur if the local recruitment process is not adequately managed, risking into poor acceptance of the project by local communities and possible grievances. Based on the preliminary ESIA in Samarkand there are 10 species of birds included in the National Red Book. Four species breed (Pigmy Cormorant Phalacrocorax pygmaeus, Ring-necked Pheasant Phasianus colchicus, Asian Houbara Chlamydotis undulata, and Pin-tailed Sandgrouse Pterocles alchata). This site plays an important role in the protection of the two latter species. Many species of birds stop to rest and feed during spring and autumn migration, but none of the species for which the IBA site was designated use the proposed Project area. Based on the information provided in the Preliminary Environmental and Social Report, prepared by IFC, the Environmental risks is assessed as substantial. Physical works envisaged under the project are of a small to medium scale and the expected environmental impacts are sites specific, easily identifiable, and mitigation is readily identifiable. Those impacts, which are associated with the proposed construction, may include increased pollution due to improper care, handling and storage of construction material and waste, generation of excessive noise and dust levels. The following Performance Standards apply to the project: • Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts • Performance Standard 2: Labor and Working Conditions • Performance Standard 3: Resource Efficiency and Pollution Prevention • Performance Standard 4: Community Health, Safety, and Security • Performance Standard 5: Land Acquisition and Involuntary Resettlement • PS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources1 • Performance Standard 8: Cultural Heritage Key Information Sources The key documents for 180 MWac Samarkand Solar (Katta Kurgan), and 220 MWac Jizzakh Solar (Gallaorol) reviewed by the Bank team included: • IFC-commissioned Environmental and Social Summary Report • Implementation Plan prepared by IFC through its Advisory Services 1 Performance Standard 6 can be applied if there are protected areas, critical habitats, or endangered species in the vicinity of the project site. 8 • IFC’s Concept Note • Initial Environment and Social Suitability Report prepared by TYPSA consultant (commissioned by IFC). PS1: Assessment and Management of Environmental and Social Risks and Impacts The environmental risk is rated as substantial and social risk is rated as substantial. The environmental and social risk ratings will be reassessed during project preparation once more design details are known. The main risks of the projects are: Physical and economical resettlement and livelihood risks in connection with potential land acquisition/cancellation of tenure contracts for project affected people and restrictions on access. Work related risks relating occupational health and safety, social conflicts between workers and residents in project areas, the spread of transmissible diseases and including COVID-19 pandemic, particularly because the need for set up labor camps cannot be rules out. Towards addressing the risks, the winning bidder(s) will prepare the following instruments: (i) one detailed, overall Environment and Social Impact Assessment (ESIA)2, which in view of the scale & geographic distribution of the project will need to include a comprehensive cumulative impact assessment and a detailed site selection/analysis of alternatives; (ii) site specific Environment and Social Management Plans (ESMP) for each site in the bid; (iii) a Stakeholder Engagement Plan (SEP); and (iv) Labor Management Procedures (LMP); and (v) a Resettlement and/or Livelihood Restoration Framework. In case land acquisition/termination of land tenure contracts already have been implemented, a Social Audit may have to be conducted to assess whether the adverse impacts of resettlement have been addressed in a manner consistent with the national legal framework and the objectives of Performance Standard 5. Prior to construction, the winning bidder will prepare and conduct consultations on these instruments and then submit them to the Bank for clearance and disclosure by the client and the Bank. Among positive social effects is the potential for job creation -- workers may be needed for jobs related to operationalization of solar plants in the future. To raise awareness about the project and its short-term and long-term benefits, Stakeholder Engagement Plan (SEP) will need to be prepared together with a Grievance Mechanism to receive and facilitate resolution of concerns and grievances related to the client’s environmental and social performance. As part of the development of SEP – which will be prepared in a culturally appropriate manner – socially disadvantaged and marginalized groups incl. women will also be consulted. PS2: Labor and Working Conditions Considering that the potential size of construction workforce required is not yet known, it is not yet clear whether worker accommodation on site will be required or not. However, it is likely that the project’s workforce can be accommodated in the main town or any other residential area. The only significant potential risk associated to accommodating workforce in residential areas is conflict between workers and residents and the spread of transmissible diseases and risk of Sexual exploitation, abuse (SEA). Considering the current COVID-19 pandemic, the WB Guidance on COVID-19 protection in the context of construction works and labor camps shall be adhered to, and be included under contractor requirements. The LMP prepared by the winning bidder will set out details for preparing the labor management plans, including development of Grievance Mechanism for workers. Provisions will be made to train and hire as many as possible from local communities. The LMP may be amended at any time during the project implementation to reflect changing conditions. 2 The Terms-of-Reference for the ESIA(s) should be reviewed by the World Bank. 9 The ESIA/ESMP will also include sections on Environment Health and Safety (EHS) including specific instruments that will need to be prepared by the winning bidder prior to commencement of works (ESH checklists, codes of conduct; safety training etc.). The civil works contracts will incorporate social and environmental mitigation measures based on the WBG EHS Guidelines, the ESIA/ESMP, and SEP, as well as specific language referencing the prioritization of the hiring of unskilled local labor. The contract will also include industry standard Codes of Conduct that include measures to prevent Gender Based Violence/Sexual Exploitation and Abuse (GBN/SEA) and a Grievance Mechanism for workers to raise workplace concerns. PS3: Resource Efficiency and Pollution Prevention PSS 3 is relevant for this project. Assessment of risks and impacts and proposed mitigation measures related to relevant requirements of PSS 3, including raw materials, water use, air pollution, hazardous materials, and hazardous waste will be included within scope of the ESIAs/ESMPs, as relevant. If the generated waste is considered hazardous, the Borrower will comply with existing requirements for management (including storage, transportation, and disposal) of hazardous waste including national legislation and applicable national conventions. Where such requirements are absent, the Borrower will adopt GIIP alternatives for environmentally sounds and safe management and disposal, in measures accessible in country’s context. The ESIA/ESMP will also include provisions for the operational period of the project, specifically with regards to cleaning and maintenance of the solar facilities and the storage and disposal of batteries and solar panels. At present, there are no serves of utilization of PV panels in Uzbekistan. Disposal of PV should be regulated by national safety norms and requirements for such equipment and its components. The Appraisal-stage ESMS will describe the risk-taking source from ESMF that will assess national capacity for handling hazardous waste in more detail, identify gaps and offer harmonized specific and realistic measures in country’s context to achieve compliance. PS4: Community Health, Safety, and Security PSS 4 is relevant for this project. Construction and rehabilitation activities are often associated with the generation of dust and noises, soil disturbance, disruption of access and traffic congestion, generation of waste, labor influx and associated disturbances to local communities. Hazardous materials will be controlled so as not to open any access to them to the communities. Project activities are not expected to create emergency events, but this risk will be further assessed and reflected in ESMF, if found significant. However, in this Project, most locations are in remote, isolated peri-urban or urban areas and only some might be in close proximity with residential buildings (less than 100m) which will be further verified during Project preparation. These cases will be identified and the client will evaluate and put in place a mechanism to manage potential road safety risks, risk to workers, nearby communities and other road users. The risk of impact of electric cables (accumulators) on workers is considered low as modern technologies will be implement and appropriate trainings will be provided for workers. Such risk will be described in the ESMP with appropriate mitigation measures and discussed with public during public consultations. No significant risks related to labor influx, or community health and safety are expected under the project, as most project workers are part of existing contracts or will be recruited locally. At this stage, the GBV risk is assessed as moderate mostly due to the status of national GBV legislation, gender norms, and the peri-urban and urban location of most project activities. The GBV risks specifically in the context of the proposed activities will be assessed during preparation as part of the environment and social assessment process. The ESIA/ESMP will include assessment of work-related health risks; works and road safety; HIV/AIDS and sexually transmitted diseases; excessive noise and dust levels, site safety awareness and access restrictions; GBV/SEA; and labor influx. Fencing will be installed around the construction site and areas 10 where there is a risk to community health and safety. The winning bidder will be required to employ measures to control labor influx risks based on Bank requirements, as well as the IFC/EBRD Good Practice Note. As part of the SEP, a GRM for the public will be prepared and consulted on with local communities during project preparation. There may be security risks associated with the different project sites, and security management training/plans should be incorporated in the ESIAs. Considering the current COVID-19 pandemic, the ESMPs and LMP shall be adhering to the WB Guidance on COVID-19 protection in the context of construction works. PS5: Land Acquisition and Involuntary Resettlement PSS 5 is relevant for this project. The Project will be implemented in the Samarkand, Jizzah, Bukara, Namanga regions, and the exact location of Horezm will be confirmed later. The works will take place in relevant regions. The project activities (construction PV plants and TLs) can make impact to existing farmers, which may be requested land acquisition/termination of land user rights (as well as physical and/or other economic displacement), if such activities are confirmed during preparation. If permanent land acquisition or land use restrictions on privately owned/ used lands are found to be unavoidable during preparation, the Project owner will prepare RPF applicable to the Project before Appraisal, and potentially site-specific RAPs (if exact sites and impacts are identified prior to Appraisal). Moreover, prior land use or presence of other assets will need to be assessed further. All activities will be screened for impacts related to land acquisition, restrictions on land use, and involuntary resettlement, and such screening processes will need to be described in the RPF to be prepared by Appraisal. The Project will not finance any low-voltage distribution lines that would cause impacts on privately used lands or any private entities. The project will take into account broader country context in respect of forceful evictions and forced labor (as described under Section on Other Relevant Project Risks). The project will take into account broader country context in respect of forceful evictions and forced labor (as described under Section on Other Relevant Project Risks). At this stage it is the scale of termination of land use rights for people (there are no privately-owned lands in Uzbekistan) within the project areas is unclear. IFC-commissioned environment and social report suggests that impacts on local livelihoods including those related to several farms adjacent to the proposed project sites may be expected. According to preliminary ESIA report two ongoing physical displacement processes in Katta Kurgan (Samarkand), affecting two legally established farms, have been identified. This circumstance will require immediate action by the GoU in order to comply with PS5 standards. Additional informal activities have been identified in the project area, also requiring livelihood restoration interventions prior to the commencement of the works. Social Audit of the initiated land acquisition processes will have to be conducted to ensure compliance with PS5, with ToR of the Audit to be cleared by the WB., In case of any additional land acquisition, e.g. in relation to transmission lines, the developer will have to prepare a Resettlement Action and Livelihood Restoration Plan in compliance with PS5 and the Project’s Resettlement and Livelihood Restoration Framework. PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources The pre-construction baseline studies of the environmental and social conditions within the Project’s AoI provide the basis for assessing potential project risks and impacts and applying the mitigation hierarchy. Sound characterization local conditions, particularly protected areas and critical natural habitats, is essential 11 for the Project Sponsor as a means of identifying key risks that could affect the feasibility of the Project in terms of cost, schedule, regulatory constraints, public perception, and opinion. IFC has similar needs for a sound baseline for any Project in which it invests, as the baseline is an indicator of a Project’s viability and ability to be developed consistent with the IFC Performance Standards. Beyond the baseline studies, the ESIA(s) will include comprehensive assessments of each site and surrounding AoI for potential impacts to sensitive flora and fauna. Bird surveys will also need to be carried out during the ESIA to complete a full year of surveys to determine the use of the project area and its AoI by bird species to confirm their presence and evaluate the predicted impacts in more detail. Bird collision and/or electrocution is a risk for the transmission line that can be mitigated with flight diverters, but residual risks remain and therefore a post-construction bird mortality monitoring program should be implemented during the operation phase. PS7: Indigenous Peoples Performance Standards 7 does not apply to this proposed project as there are no indigenous peoples identified, and no PS7 impacts are expected. PS8: Cultural Heritage Uzbekistan is home to a rich and unique cultural heritage that include many ancient sites. The ESIA/ESMP will include a section on protection of Cultural Heritage including check-lists for "chance find" procedures to be carried out if artefacts are discovered during construction. Access to Client Documentation The Client will locally disclose and the World Bank on it’s website the following key documents for the project: • ESIA/ESMP. • SEP. • LMP. • Social Audit. • Resettlement Livelihood Restoration Framework III. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the ESRS would be disclosed and the PAD-stage ESRS would be prepared: August/September 2021 B. For Category C or Category FI projects that do not require an ESRS, the target date for preparing the PAD-stage ISDS: N.A. C. Time frame for launching and completing the safeguard-related studies that may be needed. 12 The specific studies and their timing3 should be specified in the PAD-stage ISDS: The winning bidder to be selected will prepare the following instruments for the proposed Solar PVs under the Project, to be approved by the Bank prior to appraisal: - an Environmental and Social Impact Assessment (ESIA) and Management Plan (ESMP); - Resettlement and Livelihood Restoration Framework (R/LRF); - Labor Management Procedures (LMP) for the project; - a Grievance Redress Mechanism (GRM); and - a Stakeholder Engagement Plan (SEP). During project preparation, the Bank will work with the winning bidders to identify appropriate monitoring framework to ensure that the Bank performance standards will be complied by the solar PV power plants supported under the proposed guarantee program. The planned Solar PV plants are not expected to trigger the World Bank’s Operational Policies on Projects on International Waterways (OP 7.50) or Projects in Disputed Areas (OP 7.60). IV. APPROVALS Signed and submitted by: Date Task Team Leader: Ferhat Esen, Zhengjia Meng, Maksudjon Safarov March 4, 2021 Cleared by: Regional Standards Coordinator: Alexandra Bezeredi / Funke Asaolu May 21, 2021 Comments: Approved by: Regional Standards Advisor: Agi Kiss May 21, 2021 Comments: Practice Manager: Sameer Shukla March 4, 2021 Comments: 3 Reminder: The Bank's Access to Information Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. 13