Project detail - CORDILLERA SOLAR I S.A.

CORDILLERA SOLAR I S.A.

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Who is our client

FMO’s client is Cordillera Solar I S.A., the project company for a green-field solar power plant. Estimated total project costs are USD 125 million. The project is being developed by Jinko Solar.

Funding objective

The objective of FMO’s financing is to fund the development, construction, and operations of an 80MWac/93.3MWp solar PV power plant, which will be located near Las Flores, Departmento de Iglesia, Province of San Juan in Argentina (the “Project”).

Why we fund this project

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 93.3 MWp solar PV power plant will provide clean and reliable energy while contributing to the country’s objective to increase the renewable energy generation portion to 20% by 2025.

Environmental and social rationale

This is a category B+ project with potential limited adverse social and environmental (E&S) risk and / or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures. While this project has been screened against all Performance Standards, FMO’s E&S 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 8 – Cultural Heritage – small artefacts were found in small portions of the transmission line. Mitigation measures including a chance finds procedure will be included to minimize the impact/footprint on the area . The following performance standards do not apply to this project: PS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources – Project is located in the Monte desert region with very poor, sandy or rocky soils. No endangered species of fauna and flora were encountered. PS5 - Land Acquisition and Involuntary Settlement – For the project site, land was leased from one landowner with a vast expansion of land in the vicinity. For the T-line the project negotiated with an additional landowner adequate compensation for the use of land. The land is void of any land use and any structure. PS7 - Indigenous Peoples - There is no record of presence of indigenous peoples in the direct or the indirect area of the project. This finding is based the Social study, site visit observations and interviews with social specialists and the Mayor of the community. FMO will periodically review the project’s ongoing compliance with the Performance Standards.

More investments

Date Total FMO financing
2/23/2018 USD 10.71 MLN
Region
Latin America & The Caribbean
Country
Argentina
Sector
Energy
Signing date
2/23/2018
Total FMO financing
USD 34.29 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+