BRAZILIAN RENEWABLE PORTFOLIO (NEOENERGIA FL II) (EIB-20210594)

Countries
  • Brazil
Geographic location where the impacts of the investment may be experienced.
Specific Location
States of Paraiba, Piauí and Bahia
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
  • European Investment Bank (EIB)
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
U
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
NEOENERGIA SA
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 Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 173.00 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)
$ 349.00 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 @ EIB website

Updated in EWS May 12, 2022

Disclosed by Bank May 2, 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.

DESCRIPTION

The project consists of two clusters of onshore wind farms between 14 and 49 MW each. The first wind cluster is located in the Brazilian State of Paraiba in the northeast of the country, and is composed of eight sub-projects for a total installed capacity of 232 MW. The second wind cluster is located in the Brazilian States of Piaui and Bahia in the northeast of the country, and is composed of four sub-projects for a total installed capacity of 192 MW. The aggregate installed capacity is of 424 MW. The operation consists of an allocation under Framework Loan Neoenergia Green Renewable Energy Generation FL (2021-0506).

ENVIRONMENT

If the plants were located within the EU, they would fall under Annex II of the Environmental Impact Assessment (EIA) Directive (2014/52/EU amending the 2011/92/EU), requiring the competent authorities to determine whether an EIA is required. A number of gaps were identified with respect to compliance with EIB's Environmental and Social Standards for projects subject to a comprehensive environmental and social assessment. All such gaps are being addressed by the Promoter. The Promoter's capability to implement the projects in compliance with the EIB's Environmental and Social Standards is deemed acceptable.

OBJECTIVE

The project is expected to contribute to the External Lending Mandate 2014-2020 and Climate Action and Environmental Facility objectives including climate change mitigation. The operation is well aligned with the United Nations Sustainable Development Goals 7 (Affordable and Clean Energy) and 13 (Climate Action) and, by mainstreaming job creation, empowerment of woman entrepreneurship and gender equality (as per the Promoter's mother company's current policies and future plans), addresses goal 5 (Gender Equality). The operation will also contribute to the EIB's priority objectives for energy sector lending related to renewable energy sources, in line with the EIB's Energy Lending Criteria and its Climate Action objectives, and in particular with the Green Deal Team Europe-Brazil Initiative (in particular the Sub-Initiative on Sustainable and Smart Cities).

PROCUREMENT

It is required from the Promoter to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement. The EIB will not finance plants for which the procurement process is impacted by local content requirements non-compliant with the above mentioned Guide to Procurement.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

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

Private Actor Relationship
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.


Contact Information
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