Project detail - Nefer Minya for Renewables Energy S.A.E

Who is our prospective customer?

The Project is implemented by Nefer Minya for Renewable Energy S.A.E., an Egypt-incorporated special purpose vehicle owned by HAU Energy and Infinity Power (the “Sponsors”).

What is our funding objective?

FMO will provide a USD 100 million senior 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 Minya 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?

FMO’s investment aims to support activities that contribute to climate mitigation, contributing to SDG 13, in line with FMO’ s methodology to determine the green finance attribution. The project provides low cost electricity, and enables Egypt through the BESS to accommodate electricity supply during demand peak hours. The Sponsors have a strong track record of renewable energy developments with high developmental value.

What is the Environmental and Social categorization rationale?

The Project has been categorized as A. The applicable IFC Performance Standards(PS) are PS 1,2,3, 4 and 6. PS5: Land Acquisition and Involuntary Resettlement is not applicable as land has been rented from the New and Renewable Energy Authority; 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 worker health and safety, 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 individuals. The Environmental and Social Impact Assessment (ESIA) touches on these risks. The engineering, procurement and construction (EPC) contractor, requires close monitoring for operational health and safety and labour aspects. The site has minimal vegetation, no significant biodiversity hotspots, and is not near protected areas. The site has no significant flood risks.