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NEWS

ADB Project # 48208-001: Kandym new PRG and amendment of existing loan/PRG

www.adb.org
8 September 2014

Project Data Sheet (PDS): Details

 

Description

The project will construct and operate gas wells, gas collection clusters, gas processing plant, ancillary infrastructure, and other associated facilities in the Kandym gas field in Uzbekistan.

Objectives and Scope

1) Development of environmentally safe, technically sound and financially sustainable gas field in Kandym; (2) successful mobilization of large-scale co-financing from foreign commercial banks and (3) increased local employment generation in a relatively poor rural area in the Bukhara-Khiva region.

Project Rationale and Linkage to Country/Regional Strategy

The project is consistent with ADB' s country partnership strategy (CPS) 2012-2016 and country operations business plan for Uzbekistan, which recognize the critical importance of private sector development and the need for ADB private sector operations to promote export potential and catalyze foreign investment in infrastructure (including energy). The project supports the CPS target of focusing on the upstream and downstream development of Uzebkistan 's natural resources, inclusive of petrochemical and refinery projects, to bolster value-added export products and support petroleum refining and logistics. With a foreign private company sponsoring the project, ADB 's support will further catalyze foreign direct investment to the country in a sector with significant export potential and will promote transparency in natural resource development.

Safeguard Categories

Environment: A

Involuntary Resettlement: B

Indigenous Peoples: C

Summary of Environmental and Social Aspects

Environmental Aspect Effective measures to avoid, minimize or mitigate and compensate for the identified environmental and social impacts have been incorporated in the Environmental Impact Assessment (EIA).

Involuntary Resettlement The area is mostly uninhabited arid desert land. Prior land acquisitions have been in accordance with Safeguard Policy Statement as documented in the ADB social compliance audit report. For any additional land acquisitions, the borrower will screen for involuntary resettlement impacts and follow the Resettlement Framework agreed with ADB.

Indigenous Peoples There are no Indigenous Peoples that will be affected by the project.

Stakeholder Participation and Consultation

Information disclosure and consultations are conducted in accordance with ADB requirements.

Project Sponsor

LUKOIL OVERSEAS UZBEKISTAN