Capella Solar PV Project (IIC-12232-01)

Regions
  • Latin America and Caribbean
Where the impacts of the investment may be experienced.
Countries
  • El Salvador
Where the impacts of the investment may be experienced.
Specific Location
Municipalities of Puerto del Triunfo, Jiquilisco, and Ozatlán in the department of Usulután
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
  • IDB Invest
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 31, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Capella Solar S.A. de C.V.
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 144.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IIC website

Updated in EWS Sep 20, 2018

Disclosed by Bank Jun 29, 2018


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Project Description

According to IIC wesbite, this project consists of the construction, operation and maintenance of two photovoltaic (PV) power plants (Albireo 1 and 2) with a combined installed capacity of 140 MWp (100MWac), including an 8.7-kilometer transmission line and other interconnection facilities, located in the municipalities of Puerto del Triunfo, Jiquilisco and Ozatlan, in the Department of Usulutan, El Salvador.

The project will provide significant and tangible benefits to El Salvador as (i) it will significantly increase the share of solar energy within El Salvador’s generation matrix; (ii) based on the auction price, the Project will contribute to reduce the electricity bills as the current PPA price is significantly below the current market average; and (iii) by investing 3% of the Project’s revenue in local social development programs, the Project will support local communities.

People Affected By This Project

According to the Inter-American Investment Corporation, the Project will provide significant and tangible benefits to El Salvador in the following ways:

(i) it will significantly increase the share of solar energy within El Salvador's generation matrix

(ii) based on the auction price, the Project will contribute to reduce the electricity bills as the current PPA price is significantly below the current market average

(iii) by investing 3% of the Project's revenue in local social development programs, the Project will support local communities.

The Inter-American Investment Corporation says that the potential environmental and social risks and impacts are limited to the project site, largely reversible, and can be mitigated via measures that are readily available and feasible to implement in the context of the operation.  Risks and impacts related to this project are typical of the construction, operation and maintenance of a large photovoltaic (PV) plant.  These include, but are not limited to the following: generation of dust and road-safety risks from vehicle and equipment traffic; risks to health and safety of construction workers; and generation of significant quantities of solid waste (particularly when the project is ultimately decommissioned).  The project is subject to additional risks, mostly related to worker and community security, from the strong presence of criminal gangs in the project region.

Investment Description
  • IDB Invest

The project is being developed by Neoen S.A.S. a French independent power producer. The estimated total cost of the project is around US$144 million. It is anticipated that the financing will be structured through three Senior Loans from Inter-American Development Bank Invest, the Dutch Development Bank (FMO) and Proparco of around US$30 million each. The rest of the financing will be funded with equity from the Neoen SAS.

Private Actors
Contact Information

Project Contact: Paolo Cartagena
Director, Capella Solar
Telephone No.: +503 2263-1292
Email Address: paolo.cartagena@neoen.com

ACCOUNTABILITY MECHANISM OF IIC

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).