Project detail - ABYDOS SOLAR POWER COMPANY S.A.E.

Who is our customer

The Project is implemented by Abydos Solar Power Company S.A.E, an Egypt-incorporated special purpose vehicle owned by AMEA Power. AMEA Power (the “Sponsor”) is a subsidiary of Al-Nowais Investments, ultimately owned by the Al-Nowais family in the United Arab Emirates.

What is our funding objective?

FMO provides a B-loan under the IFC umbrella to be used for the development, financing, construction, operation and maintenance of a 500MW solar PV power plant in Aswan Governate, Egypt, under the terms of a 25-year Power Purchase Agreement with the Egypt Electricity Transmission Company, fully guaranteed by Egypt’s Ministry of Finance.

Why do we fund this investment?

The Project fits FMO’s mandate and strategy as it is 100% green and is led by Sponsor AMEA Power with a strong renewable energy track record and has high developmental value, as it provides relatively cheap, clean electricity to Egypt.

What is the Environmental and Social categorization rationale?

The Project has been categorized as B+. E&S risks are typical of a solar power plant and most are prominent during the construction phase. The applicable IFC PS are PS 1, 2 3, and 4. PS5: Land Acquisition and Involuntary Resettlement is not applicable as land has been rented from NREA; there are no dwelling on or near the proposed project site, and the plot has never been used for agriculture and/or grazing by any community member of the nearby villages; PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources is not applicable as the site and nearby areas are not in modified, critical and/or natural habitat and/or host any endangered flora and/or fauna species or depend on ecosystem services that include the use of living natural resources; PS7: Indigenous People is not applicable as there are no indigenous peoples in the project area; and PS8: Cultural Heritage is not applicable as the project is not located in an area of known historical or cultural significance and does not impact any known cultural heritage. However, the project has developed a ‘Chance Finds Procedure’ in case of the identification of cultural/archaeological resources in the area during construction and/or maintenance activities. The key risks include worker health and safety, working conditions, waste management, contractor management, community benefit sharing and community health, safety and security. The risks are significantly lower during the operational phase with a limited number of staff on-site required and limited remaining impacts on local communities.