Project detail - INFINITY BENBAN PARK SOLAR ENERGY S

INFINITY BENBAN PARK SOLAR ENERGY S

Status: Approved investment
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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

For the Project a special purpose vehicle has been incorporated in Egypt to develop, construct and operate a PV solar power plant (the “Project”) in the BenBan complex located in the Aswan province. The sponsors are Infinity Solar SAE and BPE Partners of Egypt and ib vogt GmbH of Germany.

What is our funding objective?

FMO will provide a B-loan under the EBRD umbrella. FMO’s funding will be used towards constructing a 50 MW PV solar power plant in BenBan complex. The Project is one of the two solar PV plants to be developed by the same sponsors for which FMO will provide a B-loan under the EBRD umbrella.

Why do we fund this investment?

The Project will be developed under the second round of the 1.8GW solar PV Feed-in-Tariff (“FiT”) scheme launched by Government of Egypt in October 2016. The scheme aims to support Egypt to diversify its energy sources by exploiting the country’s renewable energy potential. The FiT projects will also be among the first private renewable energy investments in Egypt, thus setting the precedent for future developments in the sector.

What is the Environmental and Social categorization rationale?

This transaction has been categorized as Category B+, in line with FMO environmental and social risk categorization. Due to the size for the scheme, with several solar projects to be developed at the same time, the environmental and social cumulative impacts are significant. Therefore, a Strategic Environmental and Social Impact Assessment has been developed for the entire Benban complex. Developers have, as next step, developed a specific Environmental and Social Impact Assessment for their respective plots, all within the framework of the Strategic Assessment. The major impacts are generated through Construction Phase (8-10 months). For this, mitigation plans have been developed. During the Operational Phase, impacts are negligible. The following Performance Standards (“PS”) are triggered by the transaction: PS1: Assessment and Management of Environmental and Social Risks and Impacts PS2: Labor and Working Conditions PS3: Resource Efficiency and Pollution Prevention PS4: Community Health, Safety and Security PS5: Land Acquisition and Involuntary Resettlement PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources PS 7 is not triggered because no impacts on local groups qualifying as Indigenous were identified. PS 8 is not triggered, as no cultural objects or places were identified.

Region
Africa
Country
Egypt
Sector
Energy
Publication date
7/4/2017
Effective date
10/23/2017
Total FMO financing
USD 18.23 MLN
Funding
FMO NV
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)
B+