Tabreed District Cooling Company (IFC-44700)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
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
Dec 16, 2021
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
DISTRICT COOLING COMPANY
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 25.00 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)
$ 25.00 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.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS May 6, 2022

Disclosed by Bank Jun 8, 2021

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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 IFC documents, the proposed investment is an equity investment of US$25 million by IFC for a 25% stake in a District Cooling Company (DCC or the Company), proposed to be set up in Singapore along with the National Central Cooling Company PJSC (Tabreed or Sponsor). Tabreed will hold 75% stake in the Company. The DCC will enter into long term concession agreements with major real estate developers to deploy district cooling (DC) technology in commercial, industrial, and retail establishments in India and other markets in Asia to deploy around 90,000 refrigeration tons (RT) of cooling capacity in the next 3-4 years.

The project facilities will be constructed or operated either within premises of existing facilities or larger developments or on relatively small parcels of land (less than one acre for a DC plant capacity of 15000 RT) or within the RoW of existing roads. The key risks and impacts will therefore be limited, few in number, site specific, and largely reversible. Any adverse impact can be minimized, avoided or mitigated by adhering to generally recognized international industry performance standards, guidelines, or design project criteria.

Accordingly, the key E&S issues related to the project and reviewed at appraisal are: capacity of DCC to build the facilities in accordance with IFC PSs; emissions to air, water and land during construction and operation; labor working and living conditions; community health, safety and security; life and fire safety; management of water, wastewater, solid  and hazardous wastes, and refrigerants; emergency preparedness and response; and stakeholder engagement.

 

 

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

This investment will signal WBG's strong support for the adoption of DC technology in emerging markets, thus creating visibility and an enabling environment for further future investments in the sector. Through the proposed investment, IFC will provide patient capital, not readily available in the domestic market, to support this pioneering project. IFC may act a lead arranger to mobilise debt from other development finance institutions and commercial banks. In addition, IFC is providing targeted advisory support to map out and develop viable business models that will incentivize developers to adopt this technology. IFC will help the Company to mitigate environment and social (E&S) risks through the adoption of IFC Performance Standards and enhance corporate governance structures and processes in line with international best practices.

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.

 The Sponsor, Tabreed is amongst the world’s largest district cooling utilities, providing cooling service to government and private developers in UAE and Gulf Cooperation Council. Rated ‘Baa3’ and ‘BBB’ by Moody’s and Fitch Ratings, Tabreed is backed by well-established entities with ENGIE SA and Mubadala Investment Company holding 40% and 42% equity stake in the company respectively. It is listed on the Dubai Stock Exchange with a market cap of US$2.19 billion as on 15th May 2021.

 


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.

Tabreed India Private Limited
Mr. Sudheer Perla
Director

sperla@tabreed.ae
5th Floor, Building No. 10A, DLF Cyber City, DLF Phase-II Gurugram Gurgaon HR 122002 IN


ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFCÕs Access to Information Policy Advisor, who reports directly to IFCÕs Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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