Project detail - PAIX INDIGO B.V.

PAIX INDIGO B.V.

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Who is our client

PAIX Indigo B.V. is our client, which is a dedicated entity within PAIX to establish a data center operation in Abidjan, Ivory Coast.

Funding objective

The development capital will be used to co-fund the feasibility study including the ESIA which is required to determine the feasibility of setting up the local data centre and confirms the assumptions made in the business plan.

Why we fund this project

We fund the project as data centres contribute to the local economic development by making more data available and as such reducing the unit costs. The current COVID crisis shows that for response purposes, the availability of reliable data is crucial for ehealth solutions for instance

Environmental and social rationale

Preliminary E&S categorization is C. When PAIX ends up buying the building, converting and operating this into a data center, the categorisation will be B+. The feasibility study and the minor modifications to the building in itself have minimal or no adverse environmental or social risks and/or impacts. IFC PS 1-3 and potentially 4 and 5 will be triggered in the event the building is bought and converted in, and operated as a data center. The location of the data centre and nature of the conversion works of the existing building which is in a residential area will have no impact on biodiversity, indigenous people or cultural heritage. Forward looking the main risks identified and to be addressed in the ESIA in our view are: i) data privacy. The client acceptance policy is required with compliance with data privacy taken into consideration and methods to intervene in case of non-adherence. It is understood that PAIX will develop a client acceptance policy based reputational risk/track record screening. The ESIA will need to assess whether a privacy law in Ivory Coast is applicable and provide an opinion on the enforcement of it and whether there have been instances government demanded personal data for purposes that may have violated human rights. ii) Building. The ESIA to confirm that the building and the land is acquired by the previous owners without any material legacy issues and that no resettlement was needed and a fair price for the property was paid to the extent feasible. iii) energy consumption. ESIA will need to confirm that alternative renewable energy sources are and will not be available. iv) human resources. The ESIA will need to confirm PAIX will/has develop(ed) a human resource policy in line with local labour law and must include living wages assessment, wage levels in line with the industry benchmark, non-discrimination, right of freedom of association, right of collective bargaining for direct workers and indirect workers (for the construction works in the building) and operational health and safety (based on the safety impacts found such as exposure to high temperatures in the centres. v) IFC PS 4 is not likely to be triggered, but ESIA to elaborate if and to what extent health and safety of communities will be impacted and mitigated.

Website client
http://www.paix.io
Region
Africa
Country
Côte d'Ivoire
Sector
Infrastructure, Manufacturing and Services
Signing date
11/26/2020
Total FMO financing
EUR 0.30 MLN
Fund
Project Development Fund
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)