TECHNICAL ASSISTANCE COMPLETION REPORT Division: Division

Amount Approved: $225,000 TA 7846-UZB: Design and Strengthening of the Solar Revised Amount: $225,000 Energy Institute Executing Agency: Source of Funding: Amount Undisbursed: Amount Utilized: Ministry of Finance (MOF) Spanish Cooperation Fund $39,205 $185,795 for Technical Assistance1 TA Approval TA Signing Fielding of First TA Completion Date Actual: 30 Date: Date: Consultants: Original: 30 November 2011 November 2012 15 August 15 August September 2011 Account Closing Date Actual: 11 July 2011 2011 Original: 30 November 2011 2013 Description Uzbekistan has among the world’s highest energy and carbon intensities, both over 6 times the world average, requiring energy efficiency and (RE). is the only RE developed despite the huge potential, particularly that of . Solar research expertise revolved around the Soviet era solar furnace. Modern solar applications and manufacturing were lacking, impeding widespread development.

Following the 2010 Annual Meeting in Tashkent, the Government of Uzbekistan (GOU) requested ADB assistance to harness solar power. In May 2011, GOU and ADB signed a Memorandum of Understanding (MOU) to develop two solar technical assistance (TA) projects: this small-scale capacity development TA (S-CDTA) to design the Institute, which was later renamed as the International Solar Energy Institute (ISEI), and build solar capacity; and a $1.5 million policy and advisory TA (PATA 8008) approved in December 2011 to create the enabling policy environment and prepare solar projects. For both TAs, the Executing Agency (EA) was the Ministry of Finance, and the Implementing Agency (IA) was the Scientific Production Association on Solar Physics (Physics ).

Through the ISEI, the government aims to make Uzbekistan a regional knowledge hub on solar applications. The S-CDTA designed the ISEI to be internationally recognized as the leading solar energy research center in Central Asia and beyond. ISEI was designed, among others, to (i) promote solar technology transfer and commercialization; (ii) deliver training programs; (iii) promote international collaborations; (iv) provide linkages among research centers, industries, and funding sources for solar; and (v) support the design, development and installation of pilot and commercial projects under the PATA. Expected Impact, Outcome and Outputs The S-CDTA’s impact was the contribution to the establishment of the local solar industry, spurring manufacturing and installation of solar technologies. The S-CDTA contributed to increased environmentally sustainable and efficient power generation in Uzbekistan. The outcome was the establishment of ISEI as a regional knowledge hub for solar technology. The expected outputs were (i) recommendations on the structure and design of ISEI with cost estimates and financing plans, and (ii) developed capacity of the solar energy experts. Specific outputs were (i) a technical workshop in Tashkent to introduce modern solar energy technologies; (ii) two overseas study tours (indicatively to and Spain) for government officials to understand policies required to promote solar energy research and deployment; and (iii) an overseas technical training program in Spain for the solar experts to learn about modern solar energy research and deployment through collaboration with the industry. Over 60 Uzbek solar experts were trained through two workshops in Tashkent, which endorsed the proposed design of the ISEI. Three experts were sent to the solar energy training in Spain, two to the technical site visits in Spain, and three to the technical visit in India from September to December 2011.

Additional outputs:  ISEI Establishment MOU-Signing Ceremony and solar exhibit (February 2012).

1 Administered by the Asian Development Bank.  Asia Solar Energy Forum (ASEF), April 2012 in Jodhpur, India – three participants (2 from ISEI).  Training on Grid Integration and Renewable Energy Technologies, five cities in Spain in October 2012 – three participants (2 from ISEI).  Technical visits for ISEI to Spain and Portugal in October 2012.  Draft ISEI Charter and ADB nomination of Country Director, Uzbekistan Resident Mission, to be ADB’s representative in the ISEI Advisory Board. Delivery of Inputs and Conduct of Activities The S-CDTA was adequately formulated and the terms of reference (TOR) for consultants suited the outputs. The TA provided timely and relevant inputs, and addressed GOU’s added requests, unforeseen at the design stage. The outcome statement may have been ambitious given the budget and time frame of TA implementation. Subsequent extensions, changes in the inputs, and expansion of the scope of the TA enabled the establishment of ISEI and further prepared it for operations. The project team was responsive, showed client orientation, fielded several review missions, and provided onsite advice during the study tours. Participants assessed the training programs as relevant, timely, and excellent. The technical visits were deemed invaluable.

S-CDTA implementation was envisioned for three months, with one international and one national solar energy research expert. The approved outputs were achieved in time, but a one-month extension was needed for the final workshop. At this workshop, GOU requested an RE Expert to assist in drafting an RE Law. Various agencies were involved in the preliminary drafting but there was no designated agency to approve the consultant’s TOR and the expert was not engaged. For this, the S-CDTA was extended for three months until March 2012, which enabled the signing of the establishment MOU for the ISEI at a ceremony on 16 February 2012. The MOU was signed by ADB President and the First Deputy Prime Minister and Minister of Finance of Uzbekistan. A further 8-months extension was requested to engage an and legal specialist to draft the charter and recommend the constitution and legal form of the ISEI to harmonize the proposed design with GOU laws. The aggregate 12 months of extensions did not have cost implications. Additional outputs were funded from TA savings. Evaluation of Outputs and Achievement of Outcome The TA outputs were achieved. The structure, design and plan for the ISEI, as recommended by the S- CDTA were adopted by GOU. A total of 12 experts participated in the overseas study tours, with the ISEI Director and Deputy Director participating in more than one event. The government provided and renovated a building to house the ISEI. The ISEI was established on 1 March 2013 through Presidential Decree of the Republic of Uzbekistan. The ISEI Advisory Board has since conducted two assemblies, and ISEI is functioning as designed. The draft charter, expected to be approved in November 2013, will enable ISEI to forge collaborations. The late establishment prevented ISEI from its achieving its target of engaging other Central Asian countries in its activities. ISEI Directors lead the Project Management Unit of the proposed Samarkand Solar Power Project, scheduled for approval in November 2013. Overall Assessment and Rating All experts engaged were rated satisfactory. ADB’s performance was highly satisfactory while the EA’s was satisfactory given the delayed policy/regulation, and institutional support. The outcome of establishing a regional solar institute was achieved. ISEI’s newly constructed PV certification laboratory and applied research and development center are expected to start operations in 2013, and the PV pilot and the PV test bed facility in 2014. Overall, the S-CDTA is rated as highly successful. Major Lessons Government approval procedures require considerable time and involve the highest levels including the Cabinet of Ministers. Delivery of outcomes/outputs/activities should take these into consideration. Recommendations and Follow-Up Actions In keeping with the intentions of the establishment MOU, ADB needs to continue its support to ISEI and solar in Uzbekistan. The next ASEF will be held in Tashkent in November 2013 and will showcase the solar initiatives of ISEI and Uzbekistan, bringing potential suppliers and financiers. Prepared by: Cindy Tiangco Designation: Energy Specialist In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.