Project detail - AMEA Aysha Wind One PLC

Who is our prospective customer?

AMEA AYSHA WIND ONE PLC (the “Project Company” or the “Borrower") is an Ethiopian-incorporated special purpose vehicle (SPV) that will develop, own, and operate a 300.2MW wind power plant located in the Sitti Zone, Somali Region, Ethiopia, under the terms of a 25-year Power Purchase Agreement with Ethiopian Electric Power (EEP), supported by an Implementation Agreement entered into with the Government of the Federal Democratic Republic of Ethiopia, represented by the Ministry of Finance. The Project Company is owned by AMEA Power (the Sponsor), a subsidiary of Al Nowais Investments, ultimately owned by the Al Nowais family in the United Arab Emirates, with 11.5% owned by Softbank Group Corporation.

What is our funding objective?

FMO has committed USD 65 million as a B-loan participant behind IFC in AMEA AYSHA WIND ONE PLC. Total Project cost is estimated at up to USD 507 million. IFC will provide up to USD 65 million in senior debt financing from its own account and the remaining debt of up to USD 313 million will be provided by AfDB, the co-mandated lead arranger, and a mix of B- (including FMO) and parallel lenders.

Why do we want to fund this investment?

The project contributes to a diversification of Ethiopia’s energy mix, which is largely dependent on hydropower and vulnerable to climate change and extreme weather events. 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. FMO’s investment furthermore aims to support activities that contribute to financial flows to LDCs contributing to SDG 10.

What is the Environmental and Social categorization rationale?

This concerns an E&S A categorized investment due to potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible, or unprecedented, and that require comprehensive assessment, stakeholder engagement, and robust management measures. All IFC Performance Standards are applicable to this investment. The key potential E&S risks and impacts associated with the project during construction are: (a) loss of collective customary land, access to grazing land, and livelihood impacts of pastoralists communities; (b) habitat disturbance during site preparation and infrastructure development; (c) a sizable workforce, giving rise to risks and impacts related to labor influx, worker accommodation, occupational H&S, pollution and contractor management; and (d) risks associated with traffic and transport along the Djibouti–Aysha corridor. The potential E&S risks and impacts during operation will include: (a) impacts on birds and bats associated with WTG operation; (b) noise and shadow flicker impacts on the community members who seasonally use the cultural heritage sites within the Project area. Both phases will involve other risks and impacts e.g. (a) community health and safety, security arrangements, and emergency preparedness; and (b) adequate self-sufficiency in waste management and emergency response provisions. Please find an overview of the relevant environmental and social mitigation measures for each Performance Standard included in IFC's Environmental and Social Review Summary (ESRS).