Kom Ombo

Location:

Egypt

Project number:

51664

Business sector:

Energy

Notice type:

Private

Environmental category:

B

Approval date:

02 Dec 2020

Status:

Signed

PSD disclosed:

28 Aug 2020

Project Description

Provision of a senior debt financing of up to USD 40 million, in addition to an equity bridge loan of up to USD 14 million, to finance the construction and development of a 200 MW solar PV project located in Kom Ombo, Egypt. The Project will be one of the largest privately developed utility scale solar plants in Egypt and will support the country in increasing its renewable energy capacity.

Project Objectives

The Project will further promote private sector participation in the Egyptian power sector and increase the share of renewable energy in the energy mix in line with the nationally declared targets. The Project is expected to further improve the environmental characteristics of Egypt's power sector by reducing emissions of local pollutants and CO2, as well as water consumption.

Transition Impact

ETI score: 80

The Project will contribute to the "Green" transition quality by adding 200 MW of new renewable capacity to the national electricity grid leading to a reduction in CO2 emissions. The Project will also help in demonstrating a new business model for the provision of solar energy through a public tendering process to achieve a competitive tariff and promote the growth of solar energy as an affordable alternative to conventional energy sources.

Client Information

ACWA POWER KOM OMBO FOR ENERGY

"ACWA Power Kom Ombo for Energy" is a special purpose vehicle incorporated in Egypt for the sole purpose of constructing and operating the Project. It is directly owned by "ACWA Power Kom Ombo Project Holding Company Ltd", a holding company based in the United Arab Emirates. Ultimate shareholder is the International Company for Water & Power Projects ("ACWA Power").

EBRD Finance Summary

USD 54,000,000.00

Senior debt financing of up to USD 40 million co-financed with other parties, in addition to an equity bridge loan of up to USD 14 million to the Company.

Total Project Cost

USD 155,400,000.00

Additionality

Financing Structure: EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period than the market average, restricted foreign currency financing etc. Such financing is necessary to structure the project. EBRD offers a tenor, which is above the market average and is necessary to structure the Project,and for the tariff to be economically viable

Risk mitigation: EBRD provides comfort to clients and investors by mitigating non-financial risks, such as country, regulatory, project, economic cycle, or political risks.

Environmental and Social Summary

Categorised B (ESP 2019). The construction and operation of a greenfield 200MW PV plant in the desert area of the Aswan governorate will result in environmental and social (E&S) benefits related to the low carbon transition of Egypt's electricity generation and the creation of employment opportunities. E&S due diligence has been undertaken by external consultants and a visit to the site has been made by ESD staff in 2019, which confirmed that the E&S risks associated with the Project are site specific and readily identifiable, and can be managed through the implementation of a targeted action plan. The E&S Action Plan (ESAP) has been developed and agreed with the Client. A Non-Technical Summary and Stakeholder Engagement Plan have been prepared and are disclosed in both English and Arabic on EBRD's and the Sponsor's websites. The Project is consistent with the GET approach, with a GET share of 100%.  The Project is located in a vacant arid land 60km north of Aswan city, adjacent to a 26MW PV plant developed by the New and Renewable Energy Authority (NREA). The Kom Ombo plant is located approximately 17km north of the Benban solar complex. An E&S Impact Assessment (ESIA) has been completed according to international standards, and included a high-level assessment of the overhead line; considered as an associated facility of the Project. None of the E&S impacts were identified as significant or major and none require immediate attention or additional measures. The majority of the impacts are of minor to negligible significance and are considered typical during the construction and operation of a PV power plant. Land acquisition for the project is not associated with any physical or economic displacement. A comprehensive Stakeholder Engagement Plan (SEP) has been developed for the project. Due to the Covid-19 pandemic, traditional public meetings have not been feasible; therefore, the ESIA consultant adopted an amended public disclosure approach. This entailed distribution of videos describing the project through social media, and obtaining comments through WhatsApp, email and written submissions. The video and supporting documentation were presented in Arabic and are considered a comprehensive and appropriate summary of the ESIA.  The Sponsor has an Environmental and Social Management System (ESMS) in place, currently being further refined to include Project and lenders' specific requirements. An ESAP has been developed to capture the required actions to reach full compliance of the ESMS, which include:

       -  Finalise all project construction E&S management plans and sub-plans to lender standards prior to onsite works commencing, to include:

               o   Licenced water sources and providers

               o   Licenced waste (hazardous and non-hazardous) and wastewater service providers and final disposal options, including for hazardous waste

               o   Broken solar panels disposal/recycling options

       -  Develop a project-specific human resources (HR) policy

       -  Develop a gender-based violence and anti-sexual harassment policy

       -  Develop a labour compliance management plan

       -  Develop a local content plan

       -  Develop a worker accommodation plan

The Project will be monitored by lenders' external advisors on a regular basis throughout the construction and operation phases.

Technical Cooperation and Grant Financing

None

Company Contact Information

Pascal Martese
pmartese@acwapower.com
+971 4 24 80 826
+971 4 38 59 625
www.acwapower.com
41st Floor, The One Tower, Sheikh Zayed Road P.O. Box 30582, Dubai United Arab Emirates

PSD last updated

28 Aug 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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