An equity commitment of up to USD 101.5 million (including USD 12.0 equity investment from the Equity Participation Fund "EPF") mainly to finance the acquisition, development, construction and operation of a pipeline of solar and wind projects in the region, and the roll-out of electric vehicle charging points in Egypt.
The project is aimed to scale up renewable energy penetration and electric vehicle charging points in Egypt and the region.
The project will contribute to the "Inclusive" quality by promoting accredited work-based learning programs in the renewable energy sector aiming to increase access to skills and employment opportunities for youth and women. The project will target the "Green" quality by taking part in the development of at least 278 MW of renewable energy capacity in Egypt. The Bank's investment in these new projects will help reduce CO2e emissions by 10,960 tCO2 per annum.
INFINITY ENERGY SAE
Infinity Energy SAE: The company was established in 2014 to engage mainly in renewable energy development in Egypt and across the region, and is currently owned by the Mansour family (56%), Nayer Fouad (24%) and the Bank (20%). The company has a portfolio of operational solar photovoltaic power plants in Egypt with a combined capacity of 184 MWac implemented under the Feed-in-Tariff ("FiT") programme.
EBRD Finance Summary
An equity commitment of USD 89.5m from EBRD.
The Bank's additionality mainly derives from: (i) closing the funding gap given the lack of adequate local equity markets particularly for renewable energy players, and (ii) supporting the enhancement of inclusion and environmental standards.
Environmental and Social Summary
The project has been Categorised B in line with EBRD's 2019 Environmental & Social Policy. The equity investment will expose the Bank to further Environmental and Social (E&S) risks through expansion of the Company's operations as well as future developments. As a condition of equity, all such operations and developments will need to align with the Bank's E&S requirements. Should the use of equity proceeds be used to finance wind power projects, or any category A project, such project will need to undergo an ESIA including the disclosure thereof and approval sought from the Board of Directors. This requirement is captured in the current subscription agreement with the Company and will be maintained for this transaction. The project is considered Paris aligned for climate mitigation as it features in the joint MDB "aligned list" for renewable energy generation and no further assessment is required.
Under current exposure, the Company has demonstrated good overall E&S management procedures and systems, with adequate resources both at the Corporate and site levels. The Company is implementing the previously-agreed ESAPs in a timely manner and is regularly reporting to EBRD on its E&S performance. A third party consultant was engaged by the Company to undertake an acquisition audit of the acquisition target's portfolio of operational on-shore wind power plants. This included an E&S assessment against EBRD's and other IFI's standards. This assessment was undertaken through the review of E&S documentation, site visits, and meetings with relevant personnel.
The report shows that there are no significant or material E&S concerns or risks associated with the various sites. All permits are in place, and ESIAs are undertaken according to national and international standards. A systematic procedure is in place to identify and evaluate impacts and ensures the integration of the E&S mitigation measures in the design and implementation of projects. The report confirms that the mitigation measures are effective in addressing the identified impacts and fulfil the requisite international E&S requirements in this regard. Nevertheless, some operational gaps were identified relating to strengthening the grievance management, erosion control and monitoring procedures. EBRD will work with the Company to ensure those identified gaps are appropriately addressed. EBRD is also working with the Company in enhancing its supply chain management procedures in light of the current forced labour issues associated with the solar and wind industries and will need to follow EBRD's Management approach for Solar Supply Chain Risk Management. Those measures have been included in an updated ESAP, which implementation will be monitored closely by the EBRD.
Technical Cooperation and Grant Financing
Company Contact Information
02 252 82240
PSD last updated
13 Nov 2022
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The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.