Project detail - Abydos (II) for Renewable Energy S.A.E.

Who is our prospective customer?

The Project is implemented by Abydos for Renewable Energy S.A.E, an Egypt-incorporated special purpose vehicle owned by AMEA Power (the “Sponsor”, AMEA). AMEA is a subsidiary of Al-Nowais Investments and ultimately approximately 88.5% owned by the Al-Nowais family (United Arab Emirates) and circa 11.5% by SoftBank (Japan).

What is our funding objective?

FMO will provide a loan for the development, financing, construction, operation, and maintenance of a 1000MW Solar PV power plant and 300MW/600MWh Battery Energy Storage System (“BESS”) in Aswan Governate, Egypt. The project will be governed under a 25-year Power Purchase Agreement with the Egypt Electricity Transmission Company, fully guaranteed by Egypt’s Ministry of Finance.

Why do we want to fund this investment?

The Project fits FMO’s mandate and strategy as it is 100% green and is led by the Sponsor AMEA Power having a strong renewable energy development track record with high developmental value, as it provides low cost, clean electricity and enables Egypt through the BESS to accommodate electricity supply during demand peak hours.

What is the Environmental and Social categorization rationale?

The Project has been categorized as A. The applicable IFC PS are PS 1,2,3, 4, and 6. PS5: Land Acquisition and Involuntary Resettlement is not applicable as land has been rented from NREA; there are no dwellings 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. PS7: Indigenous Peoples 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 issues related to occupational health and safety (OHS), working conditions at the project and in the supply chain, 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. Contextual human rights risks include restrictions on freedom of expression, trafficking, gender-based violence, and discrimination against LGBTQ individuals. The Environmental and Social Impact Assessment (ESIA) touches on these risks. ZTPC, the EPC contractor, requires close monitoring of OHS and labor aspects. The site has minimal vegetation, no significant biodiversity hotspots, and is not near protected areas. Lastly, the site has no significant flood risks.