Translated version of this PSD: Arabic
A senior corporate loan of up to USD 20 million to BUTEC Utility Services ("BUS" or "Borrower"), a private electricity distribution services company incorporated in Lebanon. The EBRD loan will be used to finance part of the 2018-2021 capital investment programme to be undertaken by the company as per its contract with Electricite du Liban (EdL), the Lebanese state-owned utility company (the "Project").
With this Project, the Bank will support one of the rare private players in the Lebanese electricity sector, the distribution service provider ("DSP") model being the country's first attempt to involve the private sector in the electricity sector.
Furthermore, the Bank's proceeds will partly finance the Company's investments towards (i) smartmeters deployment with the goal of installing smart meters with all of the Company's consumers (520k) and (ii) upgrade of the distribution network. This is expected to reduce technical and commercial losses from their current level of 25% to 10-13%.
The Project will improve the Resilience of the Lebanese electricity sector through improving the reliability and efficiency of the distribution grid. The network upgrades and roll-out of smart meters are expected to reduce non-technical losses, improve load shedding management, and increase collection rates. In addition, the Project will improve the economic Inclusion of women in the Lebanese energy sector and close gender gaps in this traditionally very male dominated sector by strengthening Equal Opportunities in the Company's HR policies.
BUTEC UTILITY SERVICES
BUS is a privately owned company established in 2012, specializing in utility services and environmental projects. The company is 90%-owned by BUTEC Group and 10%-owned by El Sewedy Electrometer, an Egyptian metering company.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B (2014 ESP). The impacts of this project are expected to be localised and can be readily managed. The adoption of smart meters can lead to reductions in electricity consumption, with associated reductions in emissions of CO2 and other pollutants. Environmental and social due diligence will include an assessment of the policies and procedures of the client, including those related to contractor management, electrical safety and stakeholder engagement. It will also include a review of the company's HR policies and practices and procedures for notifying customers and for resolving grievances. Due diligence will be carried out in-house, starting with a questionnaire and, if necessary, follow-up meetings with the company.
Company Contact Information
+961 1 512 333
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