Project detail - INFINITY BENBAN PARK SOLAR ENERGY S

INFINITY BENBAN PARK SOLAR ENERGY S

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Who is our client

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.

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 we fund this project

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.

Environmental and social 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
Signing date
10/23/2017
Total FMO financing
USD 18.23 MLN
Fund
FMO
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+