AVAADA ENERGY PRIVATE LIMITED
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Avaada Energy Pvt Ltd (“Avaada” or the “Company”) is an Independent Power Producer of renewable energy projects (predominantly solar) based in India. FMO invested USD 25 million in early 2019 and is considering a top-up investment of USD 10 million to assist the Company in achieving 3 GW – 4 GW of operational capacity by March 2022.
What is our funding objective?
FMO’s funding will be used to develop, construct, and operate renewable energy projects so as to address the demand for clean energy present in the country.
Why do we fund this investment?
With this investment, FMO will support the penetration of renewable energy in the country’s energy mix and decrease dependence on fossil fuels. Economic growth is also supported with the development of renewable energy projects as jobs are created in often remote areas with an added benefit of obtaining reliable electricity. Avaada is committed towards delivering projects with high technical and E&S standards compliant with international regulations and to providing meaningful engagement with local communities.
What is the Environmental and Social categorization rationale?
FMO’s initial investment in the Company was assigned to E&S Risk Category A, and the categorization is maintained for the proposed top-up. The main E&S risks associated with the Company’s renewable energy projects relate to land acquisition/land-use change, labour conditions at contractor/sub-contractor level and water consumption for panel cleaning. An E&S management system (ESMS) and a dedicated E&S team are in place. As part of the proposed investment, both the management system and the implementation of it will be improved, and the environmental and social capacity in the Company will be further strengthened.
- Website customer/investment
- http://www.avaadaenergy.com
- Region
- Asia
- Country
- Nepal
- Sector
- Infrastructure, Manufacturing and Services
- Effective date
- 5/28/2015
- End date
- 1/15/2021
- Total FMO financing
- USD 3.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A