SPREF - Global Energy (TAQA PV)

Location:

Egypt

Project number:

51038

Business sector:

Energy

Notice type:

Private

Approval date:

17 Dec 2019

Status:

Approved

PSD disclosed:

18 Dec 2019

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Construction and operation of a 6MWp ground-mounted solar PV power plant located at a dairy farm owned by Dina Farms SAE (Dina Farms) in the Beheira governorate (the project).

The project will sell 100% of its electrical output to Dina Farms under a 25-year Power Purchase Agreement between Dina Farms and TAQA PV for Solar Energy SAE (TAQA PV).

Project Objectives

The project supports the efforts to scale up renewable energy penetration in Egypt's energy mix and liberalisation of the electricity sector by expanding the private-to private renewable energy segment.

Transition Impact

ETI score: 80

Green: The project involves a solar PV plant of 6 MWp capacity and is expected to result in annual CO2 savings of 3,684 tonnes per year.

Competitive: The project will be developed and operated under private ownership and is one of the first larger scale private-to-private renewable projects involving direct electricity supply from a privately owned generator to the private offtaker.

Client Information

GLOBAL ENERGY SAE

Global for Energy SAE (Global Energy) is an established private Egyptian electricity generation and distribution company owned by TAQA Arabia SAE (TAQA Arabia). TAQA PV for Solar Energy SAE (TAQA PV) is a project company also owned by TAQA Arabia for the purpose of developing TAQA Arabia's private-to-private renewable energy business.

EBRD Finance Summary

USD 4,500,000.00

Total Project Cost

USD 5,000,000.00

Additionality

Financing structure - USD financing from commercial banks is limited in Egypt and EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions.

Environmental and Social Summary

Categorised B (ESP 2014). An independent Environmental and Social Due Diligence (ESDD) has confirmed that the environmental and social issues associated with the construction of the 5MW solar power plant are site specific and readily mitigated. ESDD confirmed that the Company has the capacity to implement the Bank's Performance Requirements (PRs) and that the technology is in line with good international practice. The site is not located close to any areas associated with environmental or social sensitivities. An Environmental and Social Action Plan (ESAP) has been developed to structure the project to meet the Bank's PRs. The Project is in line with the GET approach, with a GET share of 100%.

The Project is not located near to sensitive receptors or protected areas and will have a minimal impact on biodiversity and natural resources use. An Environmental and Social Impact Assessment is currently being developed to meet the local Egyptian requirements.  Global Energy has a documented integrated management system meeting the requirements of ISO 14001 (environmental management system) and OHSAS 18001 (health and safety management system). ESDD included a high-level review of the off-taker's Environmental and Social performance, and confirmed that Dina Farms is in check with national law and there have been no E&S red flags reported. A stakeholder engagement plan will be prepared and implemented to ensure internal and external stakeholders have been identified, relevant information is adequately shared with them and their concerns taken into consideration during Project implementation.

The ESAP has been developed and agreed with the Client to further align the Project with EBRD's ESP. Items in the ESAP include: enhancing the current EHSS Management plans, developing a contractor and supplier management plan, developing and implementing an accommodation plan in line with EBRD's requirements, updating the grievance mechanism procedures, prioritising local employment, developing an SEP, etc.

The Bank will monitor the E&S performance of the Project and the implementation of the ESAP regularly. A Non Technical Summary (NTS) is available for the Project and can be downloaded below.

Technical Cooperation and Grant Financing

The EBRD loan is accompanied by concessional funding of up to USD 500,000, provided by the Green Environment Facility and secured under the SPREF framework.

Company Contact Information

Global Energy
info@taqa.com.eg
+20 2796 1494 / 2795 4671
+2 2796 2821
www.taqa.com.eg

PSD last updated

18 Dec 2019

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.

Project Complaint Mechanism (PCM)

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 accountability mechanism.

The accountability mechanism 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 our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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