Koudia Al Baida - Subordinated loan

Location:

Morocco

Project number:

53095

Business sector:

Energy

Notice type:

Private

Environmental category:

A

Approval date:

23 Mar 2022

Status:

Signed

PSD disclosed:

23 Dec 2021

Project Description

The provision of a senior debt financing of up to € 35 million, in addition to a subordinated loan of up to € 13.5 million, to finance the repowering of a 50MW wind farm located in the region of Tlat Taghramt near Tangier in northern Morocco. The Project will be the first repowering project in the region and will increase the wind farm capacity to 100 MW.

Project Objectives

The Project will further promote public-private partnerships in the Moroccan power sector and increase the share of renewables in the energy mix in line with the country's green energy transition agenda. The Project is expected to further reduce Morocco's reliance on costly hydrocarbon imports and will result in substantial emissions reduction of over 175,000 tonnes CO2 per year.

Transition Impact

ETI score: 80

The Project will contribute to the "Green" transition quality by developing 100 MW of renewable capacity, leading to CO2 savings of approximatively 175,000 tonnes CO2 per year. The project will be the first repowering project of a wind farm in Africa. This will have a strong demonstration effect on a number of projects that are reaching the end of their operational life in the region.

The Project will be in line with the Bank's Green Economy Transition (GET) approach.

Client Information

KOUDIA AL BAIDA SPV

"Koudia Al Baida Project SPV"

A special purpose vehicle to be established in Morocco for the sole purpose of owning, constructing and operating the Project. It will be ultimately 50 per cent owned by MASEN (the Moroccan Agency for Sustainable Energy) and 50 per cent owned by EDF Renewables.

MASEN is a public-owned company established in 2010 in charge of the implementation of the Moroccan renewable energy programme and that aims at reaching the national renewable energy strategy targets.

EDF Renewables is a large renewable energy developer and a subsidiary of the French utility EDF. EDF Renewables develops, builds and operates clean energy power plants in more than 20 countries.

EBRD Finance Summary

EUR 13,500,000.00

A senior secured debt financing of up to € 35 million, in addition to a subordinated loan of up to € 13.5 million with the remaining debt funding being provided by Societe Generale, Attijariwafa Bank, Banque Centrale Populaire and Bank of Africa.

Total Project Cost

EUR 130,000,000.00

Additionality

The additionality derives from the financing structure and instruments provided. The Bank offers an innovative financing structure on commercial terms not available from other banks.

Environmental and Social Summary

The project involves the development of a 100 MW wind power project and the construction of two high voltage power lines over a length of 10 km. It is developed mainly on land already occupied by an existing 50 MW wind farm that will be dismantled. The two high voltage power lines will follow an existing power line corridor. The project is categorized category A because it is located in area major migration flyway (the Strait of Gibraltar) with risks of collision and electrocution for birds. This risk is compounded through the proximity of existing wind farms.

The Project requires a comprehensive Environmental and Social Impact Assessment (ESIA) package and disclosure thereof for 60 days. The required ESIA is being developed by the Project Sponsors. Environmental and Social (E&S) due diligence with an independent consultant is ongoing; it includes a detailed review of the draft ESIA package (Environmental and Social Impact Assessment including Cumulative Impact Assessment, Stakeholder Engagement Plan, Environmental and Social Management Plan, Land Acquisition and Livelihood Restoration Framework), and development of a Supplementary Package including Environmental and Social Action Plan and Biodiversity Action Plan.

The PSD will be updated when the ongoing E&S due diligence is completed.

Technical Cooperation and Grant Financing

Provision of Technical Cooperation funds to partly cover costs for legal advisor, environmental and technical Lenders' due diligences required for the Project.

Company Contact Information

Adil Bouabdallah (MASEN) / Ahlam Ennouhi (EDF)
a.bouabdallah@masen.ma / Ahlam.Ennouhi@edf-re.ma

PSD last updated

27 Dec 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

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.

Specific requests for information can be made using the EBRD Enquiries form.

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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

Share this page: