Project detail - Industrial Pesquera Santa Priscila S.A.

Who is our prospective customer?

Industrial Pesquera Santa Priscila S.A. (IPSP) is Ecuador's largest shrimp producer, exporter, and a global leader in integrated sustainable aquaculture. Founded in 1976, IPSP integrates a value chain, from hatchery to processing and exports to major markets worldwide. The company is committed to innovation and environmental stewardship, including initiatives to reduce its carbon footprint.

What is our funding objective?

FMO will join an IDB Invest-led syndicated loan to finance the electrification of shrimp farms through a dual approach: connecting to the national grid and adding renewable self-generation systems. This will replace fossil energy consumption and support IPSP's energy security and sustainability goals.

Why do we want to fund this investment?

The project reduces greenhouse gas emissions, enhances energy efficiency, and strengthens operational resilience. It aligns with IPSP's climate commitments, Ecuador's decarbonization goals, and the UN Sustainable Development Goals (SDGs). This transaction is expected to qualify for a 100% Green Label and directly supports FMO's strategic objectives to accelerate the energy transition and promote sustainable private sector development. By fostering cleaner production in aquaculture, the project contributes to inclusive economic growth and climate action.

What is the Environmental and Social categorization rationale?

The Project has been classified in Category B+ (B for IBD) because it may generate, among others, the following impacts: (i) use, consumption, or depletion of water resources (fresh, salt, or brackish water); (ii) removal or pruning of vegetation (mainly within the right-of-way of the transmission line and some access roads to the tower or pole sites); (iii) habitat alteration; (iv) dust generation from excavation, earthmoving, and vehicle traffic; (v) emission of polluting gases due to vehicle and machinery traffic; (vi) increased noise levels from the use of heavy machinery during construction; (vii) wastewater production; (viii) possible soil contamination from spills of fuels, oils, or solvents. (ix) generation of domestic and industrial solid waste (excavation material, rubble, paper, wood, metal scraps, etc.) and hazardous waste (generated by the maintenance of construction machinery and equipment, etc.); (x) increased risks to the health and safety of workers and the community; (xi) use of other resources, mainly fuels and energy; and (xii) generation of expectations regarding employment opportunities that activities primarily associated with the construction of the Project may provide. The Performance Standards (PS) applicable to the Project are as follows: PS1: Assessment and management of environmental and social risks and impacts; PS2: Labor and working conditions; PS3: Resource efficiency and pollution prevention; PS4: Community health and safety; PS6: Biodiversity conservation and sustainable management of living natural resources. PS5: Land Acquisition and Involuntary Resettlement may be triggered if voluntary negotiations for right-of-way compensation are not successful. In such cases, PS5 will apply, and the IDB Environmental and Social Action Plan (ESAP) includes measures to prevent and mitigate potential impacts. PS7: Indigenous Peoples and PS8: Cultural Heritage are not applicable, as the Project does not affect Indigenous Peoples and no cultural heritage sites have been identified.