Infinity Energy S.A.E.

Location:

Egypt

Project number:

50558

Business sector:

Energy

Notice type:

Private

Environmental category:

B

Approval date:

27 Nov 2019

Status:

Signed

PSD disclosed:

14 Oct 2019

Translated version of this PSD: Arabic

Project Description

An equity investment in Infinity Energy SAE of up to USD 60 million to finance the development, construction and operation of renewable energy projects and associated ancillary business including electricity distribution and electro vehicle charging stations in Egypt and across SEMED countries.

Project Objectives

The project is in line with the efforts undertaken by the EBRD to scale up renewable energy penetration in Egypt's energy mix, and promote the liberalisation of the electricity sector by
supporting the private-to-private (merchant) renewable energy segment.

Transition Impact

The project will contribute to the "Green" transition quality by supporting the development of renewable energy capacity, the diversification of Egypt's energy mix and the reduction of greenhouse
gas emissions. The project will target the "Competitive" quality by fostering private ownership in the power generation sector in Egypt.

Client Information

Infinity Energy SAE: The company was established in 2014 as part of the Mansour Group to engage in renewable energy development in Egypt and across the region. 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

USD 60,000,000.00

Total Project Cost

USD 203,000,000.00

Environmental and Social Summary

Categorised B under the 2014 ESP. Through the equity investment the Bank will be exposed to all Environmental and Social (E&S) risks associated with the Company's current operations and future developments which are likely to include Category A projects.  Independent E&S Due Diligence (ESDD) has been undertaken and included preparation of a procedure for the Company to guide their identification, management, monitoring and reporting procedures for the future pipeline of projects. A high-level E&S review of the potential off-takers of the pipeline of future projects has been undertaken and no red flags have been identified.

Should the Company intend to develop Category A projects, these will need to be undertaken in accordance with the PRs including the preparation and disclosure of an international standard ESIA. This has been included in the Environmental and Social Action Plan (ESAP) agreed with the Client.

ESDD confirmed Infinity's current project's overall compliance with national legislation and EBRD's PRs. While detailed E&S Management Systems (ESMS) and plans are in place for the current operations, Infinity will need to expand those and develop an overarching corporate-level ESMS and subsequent procedures in line with international standards.  ESDD has also identified the need for additional strengthening of the corporate level ESHS organisational capacity.

The pipeline of projects considered by Infinity are either solar PV plants or onshore wind power projects.

- The main risks associated with the onshore wind potential projects in Gulf of Suez are related to collision risk and impact on migratory birds. A Strategic E&S Assessment was completed in 2018 on behalf of NREA which provides recommendations and conditions to implement E&S measures to manage and mitigate impacts.

- The E&S risks associated with the solar projects are limited in extent and nature. Nevertheless, the allocated plots are in some cases part of a wider solar complex where cumulative impacts such as traffic management, waste management, labour sourcing, etc need to be managed at a wider level.

For any of the renewable projects being considered, Infinity Solar is required to comply with national laws, follow the requirements of any strategic assessments undertaken, and comply with EBRD's PRs and disclose the ESIAs of Category A projects.  In addition, EBRD may, from time to time, hire an independent consultant to undertake a gap assessment of the future project ESIAs undertaken for selected complex high risk projects.

These requirements have been included in the ESAP. The project will be monitored closely by ESD.

Technical Cooperation

None.

Company Contact Information

Mohamed Shehata
mshehata@eg-infinity.com
02 252 82240
http://www.infinitysolar.com/

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.

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