FRV INDIA SOLAR PARK-II PRIVATE LIM
Who is our client
FMO’s proposed clients are FRV Andhra Pradesh Solar Farm - I Private Limited and FRV India Solar Park - II Private Limited (jointly “FRV India”), both companies incorporated in India. FRV India will develop, construct and operate two 50 MegaWatt (“MW) solar photovoltaic (“PV”) plants in the southern Indian state of Andhra Pradesh (“Project”).
FMO proposes to subscribe to separate 18-year Non-Convertible Debentures issued by FRV India. The objective of FMO’s financing is to fund the development and construction of two 50MW solar PV plants.
Why we fund this project
FMO potentially funds this project as it provides an additional source of clean, renewable energy to India. India currently has a demand for electricity that exceeds its reliable generation capacity, resulting in frequent power outages. Furthermore, much of India’s current power is supplied by (imported) coal.
Environmental and social rationale
This project is considered a Category B+ project according to FMO’s Sustainability Policy. The rationale for the B+ is that while the E&S impacts associated with the project and its footprint are considered limited, generally site-specific and can be readily addressed through the implementation of standard good international industry practices, the potential cumulative impacts resulting from the Anathapuramu Ultra Mega Solar Park itself, and how these will be mitigated (by other developers) are generally unknown. The company will manage its environmental and social performance in accordance with applicable local laws and regulations and international standards, including IFC’s Performance Standards on Social and Environmental Sustainability, and the relevant EHS guidelines. While all Performance Standards are applicable to this investment, FMO’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: 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 PS 5 - Land Acquisition and Involuntary Resettlement PS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources PS 7 - Indigenous Peoples Based on currently available information provided by APSPCL, cultural heritage is not expected to be adversely impacted as the designated project area does not contain any archaeological sites, nor any structures that have paleontological, historical, cultural, artistic or religious values. There are no unique natural features (either tangible or intangible) present in the project area which could be impacted by the project and its activities. Hence, PS8 (Cultural Heritage) is not applicable to the project. The project will however implement a Chance Find Procedure and train its staff with respect to the same.
- Signing date
- Total FMO financing
- INR 930.00 MLN
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)