Provision of a senior secured loan of up to USD 5,300,000 to Intro Sustainable Resources (the "Borrower") to finance a pipeline of projects that includes combined heat and power (CCHP/CHP) plants, renewable energy generation, electricity distribution, alternative energy applications and waste management projects in Egypt (the "Projects"), with the two most advanced Projects being two CCHP/CHP plants with a combined capacity of 15.5 MWac with private off-takers.
The Project will support the company's ambitions to expand its long-term low-carbon energy transition strategy and will support the expansion of private-to-private utility projects in Egypt.
ETI score: 73
The Transition Impact arises from the Green and Inclusive qualities:
Green - The Projects entail the financing of conversion from production of one type of energy to joint generation of electricity, heat, mechanical energy and cooling. The energy efficiency of combined processes will be substantially higher than individual processes carried out separately now and lead to reduction of GHG emissions. It is envisaged that 100% of use of proceeds will be GET.
Competitive - The Projects will be developed on a private-to-private basis, which will increase the role of private developers in an electricity market that to date is largely dominated and catered to by the public sector.
INTRO SUSTAINABLE RESOURCES
Intro Sustainable Resource was recently established in 2020 to develop alternative energy, energy efficiency, waste management, RDF, material recovery and recycling projects via two fully owned subsidiaries: (i) Intro Power & Utilities, and (ii) Intro Waste Management and Material Recovery. Intro Sustainable Resources is ultimately 100% owned by Intro Investments Holding Ltd.
EBRD Finance Summary
Total Project Cost
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 (2014 ESP). The Bank's use of proceeds in the two small scale gas fired combined heat, power and cooling plants, are expected to result in reduced greenhouse gas (GHG) emissions through onsite energy generation for two existing commercial food production facilities in Egypt in comparison to the use of electricity from the grid and existing on site energy generation (diesel and gas) which will be replaced. A future pipeline of projects, which includes renewable energy (RE), electricity distribution, alternative energy applications and waste management projects are further expected to reduce GHG emissions. These complement existing RE and waste projects that are operational. Despite the benefits of these projects, the development and operation thereof may be associated with various E&S impacts, although these have been assessed to be limited and readily managed through mitigation measures. An ESAP has been developed and will be agreed with the Company before Board.
E&S due diligence (ESDD) was conducted by a consultant and included a review of Company E&S management provisions and capacity, existing Company assets as well as potential E&S risks associated with individual projects, both defined and future projects. The ESDD also included the development of a procedure for the Company to guide the identification and assessment of impacts and the management, monitoring and reporting of future projects in line with EBRD's E&S requirements. Future projects are expected to be category B and will require sign off by EBRD.
While E&S provisions have been included in projects developed to date, the Company will be required to formalise its own E&S management system and cascade this down to individual projects. This will include the need for adequate E&S resources, contractor E&S requirements, management plans, procedures and monitoring provisions. The procedure developed as part of the ESDD will complement the management system. Further provisions will be required to consider and mitigate risks in supply chains, specifically potential forced labour risks in future solar PV projects. E&S impacts associated with the use of proceeds are assessed to be limited as these will take place within the boundaries of existing commercial sites and will have a limited footprint. Projects will be required to undergo appropriate E&S assessments and permitting.
HR provisions comply with national labour law and are generally aligned with PR2 requirements although the Company will need to develop a formal HR policy and grievance mechanism and apply such provisions to contractors.
The two plants will be required to meet the emission limits of the EU Medium Combustion Plant directive. Provisions will be put in place to manage potential issues associated with water use and waste generation. Further provisions are required to ensure potential H&S risks associated with the plants and future projects are suitably assessed and managed including risks to workers, off takers and communities. This will include fire and building safety and emergency preparedness and response planning. The ESDD included consideration of potential high levels risks at existing projects (ie a solar plant and a waste management plan), and existing and planned off takers, and the ESAP includes actions for the Company address such risks, and liaise with off takers where necessary. These include health and safety and waste management risks.
No land acquisition, biodiversity or cultural heritage issues have been identified for the two plants as they will be located at existing facilities. Future projects may be associated with such issues and these will need to be considered as part of the respective assessments.
A stakeholder engagement framework has been developed for the project as has a Non-Technical Summary (disclosed with the PSD). The framework will serve as the basis for project specific Stakeholder Engagement Plans (SEPs) to ensure information disclosure, stakeholder engagement and a grievance mechanism.
Technical Cooperation and Grant Financing
Company Contact Information
Omar El Maarry
2 Wadi El Nile st., Mohandiseen, Giza, Egypt
PSD last updated
23 Nov 2021
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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.
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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.
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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.