VIENTOS LOS HERCULES S.A.Status: Approved investment
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Who is our customer
FMO’s client is Vientos Los Hercules S.A., the project company for a green-field wind power plant. Estimated total project costs are USD 236 million. The project is being developed by EREN Renewable Energy S.A. (“EREN”) and local developer Eolia Renovables S.A. (“Eoliasur”).
What is our funding objective?
The objective of FMO’s financing is to fund the development, construction, and operations of a 97.2MW wind power plant, which will be located 35km west of Pico Truncado city in Argentina (the “Project”).
Why do we fund this investment?
FMO potentially funds this project as a development bank that wants to be part of the innovative renewable energy programme that Argentina is implementing. The Argentinian energy matrix consists largely (87%) out of fossil fuels and this 97 MW wind farm will provide clean and reliable energy while contributing to the country’s objective to increase the renewable energy generation portion to 20% by 2025.
What is the Environmental and Social categorization rationale?
The Project is categorized as B+ reflecting working and labour conditions and health and safety risks to employees. The wind farm only has a limited E&S footprint in a largely unpopulated area. The main E&S risks result from the unclear biodiversity status of the project site. There is some potential presence of the protected bird Cauquen Colorado (Chloephaga rubidiceps), an endangered species in Argentina. Additional bird surveys during the migratory seasons will be conducted, mitigation measures might be needed. FMO’s E&S DD indicates that the Project will have impacts consistent with the following IFC PSs: PS 1 - Assessment and Management of Environmental and Social Risks and Impacts PS 2 - Labour and working conditions PS 3 - Resource Efficiency and Pollution Prevention PS 4 - Community Health, Safety and Security PS 6 - Biodiversity Conservation and Sustainable Management The following PS are not seen by FMO as applicable to this project: PS5 - Land Acquisition and Involuntary Resettlement - Not applicable - the project will not lead to physical or economic displacement; all transactions have been done on “willing lessor – willing lesee” basis PS7 - Indigenous Peoples – the project will not impact communities of indigenous people nor their lands and resources PS8 - Cultural Heritage - the project is not expected to have impacts on cultural heritage. A chance finds procedure will be developed and implemented.
|Total FMO financing
|USD 9.59 MLN
- Latin America & The Caribbean
- Publication date
- Effective date
- Total FMO financing
- USD 9.59 MLN
- 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)