Brazil: BDMG Renewables and Asia Connectivity Facility (AIIB-000491)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
State of Minas Gerais
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Banco de Desenvolvimento de Minas Gerais S.A. (BDMG), Leonardo Leao, Head of Treasury, Funding and I
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Fund
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jan 17, 2022


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

OBJECTIVE

Supporting global public goods and trade and connectivity between Brazil and Asia.

DESCRIPTION

Non-sovereign backed multisector on-lending credit facility to be implemented by Brazil-based Banco de Desenvolvimento de Minas Gerais S.A. (BDMG) for subprojects primarily located in Minas Gerais, that involve either renewable energy and eligible infrastructure related sectors that link Brazil and Asia through enhanced trade and investment flows.

ENVIRONMENTAL AND SOCIAL INFORMATION

AIIB's Environmental and Social Policy (ESP) is applicable to this on-lending facility. The project has been placed in Category FI, and the BDMG's Environmental and Social Management System (ESMS), which is aligned with the ESP, will be used as the project's environmental and social (ES) instrument.

Sub-borrowers will use the funds to invest in subprojects that operate in renewable energy and other eligible infrastructure related sectors and may use proceeds to fund subprojects that link Brazil and Asia via enhanced trade and investment flows, across a range of sectors.

All Category A subprojects and higher risk Category B subprojects involving a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage or d) significant occupational health and safety risks, will be excluded from financing under this facility. Coal-related sub-loans including coal mining, coal transportation or coal-fired power plants, as well as infrastructure services exclusively dedicated to support any of these activities, and large dams will also be excluded.

BDMG will undertake an ES screening process for sub-borrowers, review sub-borrowers' compliance with the applicable ES regulatory requirements, and monitor ES performance over the loan period. Sub-borrowers are required to: (a) demonstrate the compliance of their activities with applicable ES regulatory requirements and maintain that status during the tenure of the sub-loan; (b) represent not having recently been administratively or judicially determined to be materially in breach of applicable ES regulations; (c) not be reported in mainstream social media as materially contravening good ES practices; and (d) maintain a subproject level grievance redress mechanism to address concerns of stakeholders. AIIB will retain the right to review ex post all subprojects financed under the facility. Public consultations and disclosure of ES safeguard documents at the subproject level will follow requirements of local and AIIB ES regulations.

BDMG has disclosed key elements of its ESMS and environmental indicators for its own operations on its
website
. BDMG addresses third-party views, enquiries or concerns through its
External Communication Mechanism (ECM)
. AIIB has also included these links on its website.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Banco de Desenvolvimento de Minas Gerais S.A. (BDMG)

Leonardo Leao

Head of Treasury, Funding and Investor Relations

leonardoleao@bdmg.mg.gov.br

How it works

How it works