Project detail - Electronic J.R.C., S.R.L.

Who is our customer

Electronic J.R.C. S.R.L. (“Borrower”) is an existing client of FMO and developer of the Project. The Borrower is a subsidiary of Monte Plata Solar Holding, S.L. and CCEF ANSA Renewable Energies Holdings Limited, that is set up to develop, construct, finance and operate the Monte Plata project. The estimated total project costs of Phase II are USD 48mln. FMO is providing USD 15mln senior loan.

What is our funding objective?

The objective of FMO’s financing is to fund the construction and operation of the 30MW expansion from the already operational (30MW) solar power plant in Monteplata region in the Dominican Republic.

Why do we fund this investment?

FMO will fund this project as it provides additional sources of clean, renewable energy to the Dominican Republic, a country which is heavily reliant on fossil fuels, dominated by thermal power plants, and with a clear agenda to rebalance the energy mix to integrate more renewable energy. “Monte Plata Phase I” was the first utility-scale project of renewable energy in Dominican Republic. It was financed by FMO as strong supporter of the energy transition in the island and the new financing revalidates FMO’s commitment and mission in a market where long-term Project Finance is scarce.

What is the Environmental and Social categorization rationale?

This is a category B+ project with potential limited adverse social and environmental (E&S) risk and / or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures. Phase I of the project is now in operations and Phase II, purpose of the funding, will go through construction activities with associated negative impacts such as land clearing, occupational health and safety, and traffic disruptions. Nevertheless, FMO has been involved since early works and FMO’s E&S due diligence indicated that the investment will be managed in a manner consistent with the following IFC Performance Standards: PS 1 – Assessment and Management of Environmental and Social Risks and Impacts (covering construction, operations and decommissioning next to community relations); PS 2 – Labor and Working Conditions (taking into account construction and operational staff); PS 3 – Resource Efficiency and Pollution Prevention (overall low risks); PS 4 – Community Health, Safety and Security (mainly traffic and road safety during construction); PS 5 – Land acquisition, involuntary resettlement and economic displacement (minimal economic displacement only); PS 6 – Biodiversity (relocation of protected plant species, reforestation, limited impact on ecosystem services); PS 8 – Cultural Heritage (low risk, so far none identified). Performance Standard 7 (Indigenous Peoples) is deemed to be not triggered as the project area does not include indigenous peoples.

More investments

Date	Total FMO financing
12/19/2017	USD 19.00 MLN