India: FPL Open Access Solar Project (AIIB-000653)

Countries
  • India
Geographic location where the impacts of the investment may be experienced.
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
B
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."
Voting Date
Oct 7, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Fourth Partner Energy Private Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 15.30 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)
$ 15.30 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)
$ 14,561.68 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.
Currency conversion note:
Bank reported 1200,000,000
Converted using 2022-10-10 exchange rate.
Bank Documents
Corporate Actor Documents
Primary Source

Original disclosure @ AIIB website

Updated in EWS May 10, 2023

Disclosed by Bank Oct 7, 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.

According to AIIB website, the proposed project involves construction and operation of a 50 MW, photovoltaic solar power plant located at Pulavanvayal village of Kalayarkoiltaluk in Sivagangai district in the state of Tamil Nadu. The Project will be developed under group captive regulations of open access policy in the Electricity Act 2003 that allows it to directly sell electricity to a diversified set of C&I off-takers. The objective of the project is to support the development of solar generation in India under open access group captive model.

The Project will be co-financed with the Asian Development Bank (ADB) as lead co-financier, and its environmental and social (ES) risks and impacts have been assessed in accordance with the ADB’s Safeguard Policy Statement (SPS), 2009. To ensure a harmonized approach to addressing ES risks and impacts of the Project, and as permitted under AIIB’s Environmental and Social Policy (ESP), ADB’s SPS will apply to the Project in lieu of AIIB’s ESP. 

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

The Project involves AIIB providing senior, secured, redeemable non-convertible debentures (NCD) up to INR1,200 million. The Project is being co-financed with the ADB who will provide the remaining portion of the required debt.

Each special purpose vehicle (SPV) will sign separate debenture deeds with the following amounts:

• FPEL Mitra Private Limited: INR448 million

  • FP Suntastic Private Limited: INR253 million

  • FP Orion Private Limited: INR499 million

Fourth Partner Energy Private Limited is the Sponsor and will own up to 74% in each of the SPVs. The remaining shareholding will be held by C&I offtakers, as per the regulatory requirement for projects under group captive regulations of open access policy in the Electricity Act 2003.


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.

AIIB

Seung Myun Lee
Senior Investment Operations Specialist
sean.lee@aiib.org

 Sponsor

Jignasa Jani Visaria
Head- Renewable Capital (Risk Management & Project Finance) jignasa@fourthpartner.com

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

How it works

How it works