BAYNOUNA SOLAR ENERGY COMPANY PSC
Who is our client
Baynouna Solar Energy Company PSC (“Project”) is our client, a company registered under the laws of Jordan. The Project is currently 100% owned by Masdar, a global renewable energy company established in 2006 by the government of Abu Dhabi, through its investment holding company Mubadala.
Our funding will be used to develop, construct and operate a 200MWac PV solar project in Jordan. The Project will be the largest PV solar project in the country to date providing significant economies of scale. Power offtake will be under a 20-year PPA by the National Electricity Power Company.
Why we fund this project
The Project fits FMO’s mandate and strategy as it is 100% green and is led by Sponsor Masdar with a strong renewable energy track record and has high developmental value, as it provides cheap, clean electricity in a country that suffered in the past from structural power deficits. The Project contributes to the following SDG’s: 7 Affordable and Clean Energy, 8 Decent Work and Economic Growth, 9 Industry, Innovation and Infrastructure, 11 Sustainable Cities and Communities and 13 Climate Action.
Environmental and social rationale
The Project has been categorized as B+. The investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS1 – Assessment and Management of Environmental and Social Risks and Impacts PS2 – Labor and Working Conditions PS3 – Resource Efficiency and Pollution Prevention FMO periodically reviews the Project’s ongoing compliance with the Performance Standards. Issues related to PS4 – Community Health, Safety and Security; PS5 – Land Acquisition and Involuntary Resettlement; PS6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources; PS7 – Indigenous Peoples; PS8 – Cultural Heritage, are not expected with this investment for the following reasons: • PS4: (i) there are no communities on or nearby the project site; (ii) based on low assessed security risk (the area is vacant and located near Amman, in the general vicinity of a large security training facility), security management will be low-profile. • PS5: land is being leased from the Government and no land issue was raised when concerned stakeholders were contacted. • PS6: the area is covered in very sparse vegetation of the Desert ecosystem, and surveys have not identified any features or species that would trigger PS6. • PS7: no Indigenous Peoples have been identified in the project area. • PS8: not applicable based on the results of the Archaeological Survey Report carried out by the Jordanian Department of Antiques as part of the project ESIA.
- Signing date
- Total FMO financing
- USD 31.00 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)