SPREF - Yellow Door Energy Jordan

Location:

Jordan

Project number:

51215

Business sector:

Energy

Notice type:

Private

Environmental category:

B

Approval date:

28 Jan 2020

Status:

Signed

PSD disclosed:

19 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

Development, construction and operation of a portfolio of solar photovoltaic (PV) plants in Jordan totalling 48MW, which will supply 100% of the electricity generated to five private consumers: Umniah telecom, Carrefour and Safeway supermarkets, Taj Mall retail and Classic Fashion manufacturer.

The project is being developed under the Wheeling Regulations in Jordan, which allow consumers to establish and lease or own renewable energy plants and, if necessary, connect them to the transmission or distribution system at remote locations for the purpose of generating power for their own consumption.

The project is developed under the EBRD SEMED Private Renewable Energy Framework (SPREF), a USD 250 million framework designed to finance private developers of renewable energy providing electricity to private consumers in SEMED countries.

Project Objectives

Historically, Jordan has been overwhelmingly reliant on hydrocarbon imports to meet its energy needs. Over the last decade, Jordan has successfully developed its renewable energy sector, particularly solar, in order to remove the dependence on imported hydrocarbons and reduce their environmental impact. The Project will add renewable energy capacity to the grid, providing clean, reliable electricity at a stable price and reducing dependence on volatile, polluting imported hydrocarbons.

Transition Impact

ETI score: 80

The facility's transition impact stems from the following two transition qualities:

Green: The rroject will increase renewable energy production and result in significant CO2 emission savings per year.

Competitive: The project is developed and operated by the private sector with private off-takers. It is one of the first private-to-private renewable projects involving supply directly to the private sector under Jordan's Wheeling Regulations.

Client Information

YELLOW DOOR ENERGY LIMITED JORDAN

The Borrower, incorporated in Jordan, is fully owned by Yellow Door Energy Limited ADGM, a renewable energy developer and operator incorporated in the United Arab Emirates focusing on energy efficiency and small-to medium scale solar photovoltaic projects.

Environmental and Social Summary

Categorised B (ESP 2014). The construction and operation of the PV plants at the seven selected sites are expected to be associated with limited environmental and social impacts which can be readily mitigated. Independent E&S Due Diligence (ESDD) has confirmed that the Project's E&S impacts are site specific, that the Company has the capacity to implement the Bank's Performance Requirements (PRs), and the technology is in line with good international practice. None of the sites selected for the construction of the PV plants are located in areas associated with high E&S sensitivities. Additionally, a high-level review of the Offtakers' E&S performance has not identified any E&S red-flags.

 

An E&S Action Plan (ESAP) has been developed to further align the Project with EBRD's E&S Policy. A Non-Technical Summary (NTS) and a Stakeholder Engagement Plan (SEP) have been developed in both English and Arabic. The English version of the NTS and SEP can be downloaded below. The Project is in line with the GET approach, with a GET share of 100%.

 

Independent ESDD included a documentation review, meetings with the Borrower and visits to the seven sites in the Mafraq, Zarqa, Balqa and Amman governorates. ESDD showed the following: YDE has arrangements in place at the corporate level to implement Environmental, Health and Safety and Social (EHSS) requirements in line with international standards. E&S Impact Assessments of the PV plants have been undertaken by YDE in line with national legislation, and a subsequent array of E&S Management Plans (ESMP) have been developed.

 

All sites are developed on vacant lands, with no associated physical or economic resettlement. No cultural heritage sites are located close to any of the plants.

None of the plants are considered to be located in biodiversity sensitive areas, except for the Taj Mall/ Safeway plots where an additional site walkover is recommended to confirm the pertinence of the mitigation measures identified in the current ESMP. 

 

The ESAP has been developed and agreed with the Borrower to further align the Project with EBRD's ESP. Items in the ESAP include, inter alia: enhancing the current EHSS Management plans, developing a contractor and supplier management plan, development of a local employment plan, updating HR policies, and implementing the Stakeholder Engagement Plan.

 

The Bank will monitor the E&S performance of the Project on a regular basis.

 

Technical Cooperation and Grant Financing

TC funds for project preparation provided by the Neighbourhood Investment Facility have been made available to cover part of the cost of the due diligence.

Company Contact Information

Jeremy Crane
contact@yellowdoorenergy.com
+962 655 416 55
+962 6 5537246
www.yellowdoorenergy.com
Suite 302, Prime Centre 13, Tla'a Al-Ali, Zuhar Street, Amman, Jordan

PSD last updated

27 Jan 2020

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.

 

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