Project detail - BAYNOUNA SOLAR ENERGY COMPANY PSC

BAYNOUNA SOLAR ENERGY COMPANY PSC

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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.

Funding objective

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.

Region
Asia
Country
Jordan
Sector
Energy
Signing date
12/14/2017
Total FMO financing
USD 31.00 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+