The Project’s overall objective is to support the country’s sector reforms, by improving the energy efficiency (EE) in energy-intensive industries, thus contributing toward affordable and clean energy and climate action. By saving demand for electricity and heat, Sub-Projects reduce carbon externalities, as well as, in most cases, air pollution and other negative externalities.

The Project also support the development of sustainable EE lending and practices by increasing the number of FIs with EE lending operations and EE awareness in the country.

The objective of this technical assistance (TA) operation is to support the implementation of the Uzbekistan Energy Efficiency Loan, while also contributing to capacity building and awareness raising on the need for energy efficiency and renewable energy projects in Uzbekistan.

More specifically, the objectives of this TA operation are to develop, improve the capacity of and provide support to:
the PCU to efficiently and sustainably:

• manage, coordinate and implement the EIB Uzbekistan Energy Efficiency Loan;
• raise awareness in the Uzbek society on financial, economic and environmental benefits resulting from the implementation of EE&RE projects; and
• effectively coordinate with other institutions active in the market.

the Financial Intermediaries in order to help them to efficiently and sustainably:

• promote and market their EE lending;
• select and prepare eligible Sub-Projects for funding; and
• handle management, reporting and disbursement of funds.

the Final Beneficiaries (FBs) in order to help them to efficiently and sustainably:

• prepare and structure Sub-Projects in line with lenders’ requirements.

Strengthening the capacity of the MEDPR Project Coordination Unit:

• The PCU capabilities to participate in the process of the EIB Uzbekistan Energy Efficiency preparation, appraisal, implementation, planning and prioritisation are enhanced;
• The PCU staff involved in the EIB Uzbekistan Energy Efficiency Facility is trained in general project management, sub-project identification, management of sub-project/programme implementation, tendering and contracting;
• The Project Report deliverables for the EIB loan are prepared and approved by the Lenders and the PCU.

To support the FIs in effective marketing of EIB UZEEF:

• The FIs are able to develop a marketing strategy towards EE/RE projects and to identify projects eligible for financing under UZEEF;
• The SMEs are aware of the UZEEF and of its requirements and are submitting applications to the FIs.

To strengthen the EE lending capacity of the Financial Intermediaries:

• The FIs are able to identify, screen and appraise EE/RE projects in an independent manner and in line with best practices and EIB’s requirements;
• Allocation proposals are prepared in line with EIB’s requirements and are approved by the EIB for further financing under UZEEF.

To support the effective project implementation by the Final Beneficiaries (SMEs and IEs):

• The Final beneficiaries are informed about the schemes eligible for EIB financing under the UZEEF;
• The final beneficiaries receiving loans under the UZEEF comply with the loan requirements, particularly energy audit, procurement rules, and environmental and social standards;
• Local engineering and consulting companies are trained to enable them to carry out high-quality energy audits and feasibility studies and participate in sub-project identification, preparation and implementation.

To support the PCU and FIs in project monitoring and verification:

• The sub-projects are duly monitored, with at least 60% of investment volume and 40% of projects disbursed visited by the TA;
• Project monitoring of up to 150 sub-projects has taken place in accordance with requirements set in the On-lending Agreements;
• The FI are better prepared to manage and monitor sub-projects.

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