Alcazar Energy Partners

Location:

Regional

Project number:

49749

Business sector:

Power and energy

Notice type:

Private

Environmental category:

A

Target board date:

20 Jun 2018

Status:

Concept Reviewed

PSD disclosed:

06 Mar 2018

Project Description


An equity investment of up to USD 100 million of newly issued ordinary shares of Alcazar Energy Partners, an independent developer and power producer focused on renewable energy generation in the META region (Broader Middle East, Turkey and Africa). The EBRD financing will be part of a larger package of up to USD 250 million that will be used to finance the development, construction and acquisition of renewable energy projects, in particular onshore wind and solar PV projects, in Egypt, Jordan, Turkey and other countries in the META region.

Project Objectives

Current energy shortage across the META region drives the need to invest in energy and more specifically in the renewable energy sector. Governments need to reduce dependency on fossil fuels and have committed to ambitious renewable energy targets. Renewable energy is becoming at par or cheaper than conventional power, and benefits from supportive regulatory environments.

Furthermore, investment in the renewable energy has a strong social and economic impact, creating energy independence, security of supply, and reducing the region's carbon footprint. These favourable dynamics are reflected in a rapid growth in the renewable energy sector, primarily driven by the private sector. This development aligns well with the Bank's mandate, in particular the Green Economy Transition Approach. The Bank has played an important role in catalysing these developments through policy dialogue, TC and finance, primarily limited recourse debt. However the potential size, and rapid growth, of the sector require a growing number of strong developers to deliver equity finance, innovation and operational resources. The Bank accordingly has a role to play in funding equity commitments and supporting relatively new companies building their presence in the sector with its expertise.

Transition Impact

The proposed equity investment will promote transition to low-carbon economies by participating in the development of onshore wind and solar PV projects in Egypt, Jordan, Turkey and other countries in the META region. It is expected that EBRD's investment will finance the development of solar photovoltaic projects and onshore wind farms. The project will also contribute to increasing the share of privately owned generation capacity in Egypt, Jordan Turkey and other countries in the META region.

Client Information

ALCAZAR ENERGY

Established in 2014, Alcazar Energy Partners is an independent developer and electricity producer currently operating in the SEMED region and Turkey. The company is headquartered in Dubai, UAE.

EBRD Finance Summary

USD 100,000,000.00

Equity investment of up to USD 100,000,000 to acquire newly issued ordinary shares of the company.

Total Project Cost

USD 250,000,000.00

Up to USD 250,000,000

Environmental and Social Summary

Categorised A (2014 ESP). Alcazar's portfolio of projects includes wind power projects that are likely to be associated with significant environmental and social risks, due to their proximity of the Rift Valley migratory bird flyway that crosses Lebanon, Jordan and Egypt. Those risks are also typically compounded by the cumulative effects of other windfarms in the area, which calls for additional studies and further analysis of impacts.

The proceeds of the equity investment will partly be used for the construction of Shobak windfarm (DTMID: 49222), an EBRD-financed Category A Project that underwent an external due diligence and the disclosure package was in the public domain since September 17th 2017.

The Company's E&S performance at the corporate level, as well as at the sub-projects level, will need to comply with EBRD's E&S Policy, inclusive of the disclosure requirements of any A-level subprojects.

A GET assessment will also be undertaken as part of the due diligence.

Alcazar is an existing Client of the Bank, and has so far demonstrated good environmental and social management performance, as well as a strong commitment to maintaining good industry practice across the projects they are involved in. IFC being a shareholder, the Company is bound to their Environmental and Social Performance Standards and Alcazar is monitored regularly by the IFC's environmental department.

Considering the high risk profile of Alcazar's projects, an independent consultant will be retained to undertake a high-level corporate due diligence of the Company, as well as identify the typical risks and the management and mitigation measures with regards to the current and projected portfolio.

Based on the ESDD a corporate Environmental and Social Action Plan will be agreed with Alcazar to structure their existing and future projects in line with the Bank's E&S requirements including procedure for assessment and disclosure of any future new A level Projects.

Technical Cooperation

None.

Company Contact Information

Mr. Markus von Haniel - Head of Investments & Project Finance
+971 (0) 4 35 28 167
www.alcazarenergy.com
Suite 802-803, South Tower, Emirates Financial Towers, DIFC, P.O. Box 507122, Dubai, UAE

Business opportunities

For business opportunities or procurement, contact the client company.

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Public Information Policy (PIP)

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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.