Project detail - ZIZ ENERGIE LTD.

ZIZ ENERGIE LTD.

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Who is our client

ZIZ is a vertically integrated provider of off-grid energy operating in Chad. The Company sells electrical equipment, performs EPC services and operates mini-grids in 5 cities in the country. ZIZ develops, finances, builds and operates metro-grids (hybrid plant + electric urban network for cities of more than 25,000 inhabitants). ZIZ currently operates in 5 secondary cities in Chad where it plans to hybridise its existing diesel- power plants with solar and battery storage capacity.

Funding objective

FMO is investing EUR 500,000 alongside the lead-investor Energy Access Ventures Fund, who will provide EUR 1.5mln. The Funding objective is to provide the necessary capital to successfully complete the development stage of adding solar and battery storage capacity to the company’s existing mini-grids.

Why we fund this project

The project has a high developmental impact. ZIZ provides clean, affordable power in Chad (a least developed country) thereby positively affecting access to electricity, reducing the cost of it, displacing polluting diesel-powered electricity generation, reducing CO2 emissions and creating local employment.

Environmental and social rationale

E&S Risk Categorization at this stage of the investment process is considered B+, as the client is building experience with international E&S practices in a challenging country context. Managing issues related to labour and working conditions, land acquisition and stakeholder engagement practices will be essential for the successful implementation of the company’s E&S programs. The transaction will be managed in accordance with IFC Performance Standards (PS) 1, 2, 3, 4, 5 and 6. PS 7 is not triggered as there are no anticipated impacts on indigenous peoples. PS 8 is also not considered triggered beyond the development of a chance find procedure. A formal Environmental and Social Management System, including relevant Environmental and Social Management Plans will be developed with the support of a consultant to manage the risks associated with this scale of investment.

Website client
https://www.ziz-energie.com/
Region
Africa
Country
Chad
Sector
Energy
Signing date
11/27/2020
Total FMO financing
EUR 0.50 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+