Status: Approved investment
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The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Scatec Solar ASA (“Scatec”) is a publicly-traded Norwegian developer, investor and constructor of PV solar projects in emerging markets. Currently, Scatec has 584 MW operational globally and over 1 GW in development. For the 54MWp PV solar project Bohuslavenergy LLC (“Boguslav”) in Ukraine, FMO intends to be the lead arranger.

What is our funding objective?

The proposed debt funding will be dedicated to the development and construction of a 56MWp PV Solar plant in the Ukraine. FMO proposed investment in Boguslav is an up to EUR19m Senior loan, with syndication on a best effort basis of the remaining EUR 23 mln Senior debt. Scatec Solarwill provide the necessary equity contribution.

Why do we fund this investment?

The Boguslav investments by Scatec directly contribute to the realization of the policy of the Ukrainian government targeting 15% renewable electricity generation by 2030 (up from the current ~2%). This Project also complies with FMO’s Strategy with respect to energy security and energy transition, which is of particular importance for the Ukraine (being still heavily dependent upon nuclear and thermal generation).

What is the Environmental and Social categorization rationale?

The Project is a B+ risk category according to FMO (and in line with IFC’s Performance Standards), due to temporary impacts generated during Construction Phase (like noise, dust, traffic), and impacts on land, and biodiversity. The impacts are mitigated through dedicated mitigation plans and activities. For example: generation of dust is minimized by the Contractor’s management plan including dust suppression methods like water spraying and reduced vehicle speed; the use of land for the power plant is compensated by provision of new land or other agreed form of compensation to affected land users. The following IFC Performance Standards are triggered: PS 1 - Assessment and Management of Environmental and Social Risks and Impacts. Considered being applicable due to environmental and social impacts as a result of the Project. PS 2 - Labour and working conditions. Applicable due to labour involved in Project activities, mostly during the Construction Phase. PS 3 - Resource Efficiency and Pollution Prevention. Applicable due to Construction activities and/or Operational activities, as part of the Project; the selected solar panels meet the highest standards in terms of energy efficiency (for both manufacturing of panels, and power production). PS 4 - Community Health, Safety and Security. Applicable as local communities are impacted as a result of the Project: most of impact during Construction Phase. PS 5 - Land Acquisition and Involuntary Resettlement. The Project needs land to base the solar power plant on, and the connection to the national electricity network. Land users no longer have access (solar power plant), or reduced access (transmission line) to land. Replacement land or other form of agreed compensation will be made available. PS 6 - Biodiversity Conservation and Sustainable Management. The Project needs to clear vegetation (a limited amount of trees will be felled to get access to the site), and will reduce options for bird nesting, and animals living on the land. A plan for revegetation will be implemented. IFC’s PS 7 (Indigenous People) is not applicable: the Environmental and Social Assessment did not identify any impacts on local people qualifying as Vulnerable or Indigenous. IFC’s PS 8 – (Cultural Heritage) is not applicable: the Environmental and Social Assessment did not identify any relevant objects or sites as referred to under PS 8: a chance find procedure will however be developed.

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Date Total FMO financing
6/21/2022 EUR 0.05 MLN
7/8/2019 EUR 10.01 MLN
7/8/2019 EUR 4.35 MLN
Europe & Central Asia
Publication date
Effective date
Total FMO financing
EUR 10.15 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)