Project detail - Nur Bukhara Solar PV FE LLC

Who is our prospective customer?

Nur Bukhara Solar PV LLC FE (the “Company”) is a renewable energy company that will build, own and operate an up to 250MW solar PV with 63MW battery energy storage system in Uzbekistan. The Company is owned by Abu Dhabi Future Energy Company PJSC (“Masdar”) which is ultimately owned by Mubadala Investment Company, Abu Dhabi Developmental Holding Company, and Abu Dhabi National Oil Company. Established in 2006, Masdar is a global leader in renewable energy and sustainable urban development, active in over 40 countries across six continents with a total capacity of over 20 gigawatts (GW) (with credit ratings: Fitch (A+) and Moody’s (A2)).

What is our funding objective?

FMO will participate as a lender together with two multilateral development banks. The long-term financing provided by the lenders will be used to fund the investments needed for the construction 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 their renewable energy assets in the country, accelerating the sustainable energy transition in Uzbekistan. The investment has been classified as 100% green.

What is the Environmental and Social categorization rationale?

FMO’s E&S category for this transaction is preliminary B. The key E&S risks relate to land acquisition, resettlement and compensation (no physical resettlement though), and biodiversity. A further specific risk is related to the construction phase, and includes an engineering, procurement, and construction contractor and sub-contractor and their E&S performance, with topics like labour, occupational health and safety, community impacts, community benefits, site security, management of hazardous and non-hazardous materials and waste. Another specific risk is on contextual human rights risks as well as human rights concerns related to the global solar supply chain. The risks are significantly lower during the production phase with a limited amount of staff on-site required, and limited remaining impacts on local communities. The following IFC Performance Standards are triggered. This is confirmed in the Environmental and Social Impact Assessment. • 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; • (Potentially applicable, to be confirmed during due diligence) PS 5: Land acquisition and involuntary resettlement; and • PS 6: Biodiversity conservation and sustainable management of living natural resources. IFC PS 7 (Indigenous Peoples) is not triggered as the baseline studies confirm that there are no indigenous people in the project area. IFC PS 8 (Cultural Heritage) is not triggered as there are no cultural heritage sites in the vicinity of the project area, however, a ‘Chance Find Procedure’ will be in place.