BAYNOUNA SOLAR ENERGY COMPANY PSC (FMO-52334)

Countries
  • Jordan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Netherlands Development Finance Company (FMO)
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."
Borrower
Baynouna Solar Energy Company
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)
$ 35.00 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)
$ 55.70 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 @ FMO website

Updated in EWS Apr 9, 2018

Disclosed by Bank Nov 4, 2017

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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.

WHO IS OUR PROSPECTIVE CLIENT?

Baynouna Solar Energy Company PSC ("Project") will be our client, a company registered under the laws of Jordan. The proposed Project is currently 100% owned by Masdar, a global renewable energy company established in 2006 by the government of Abu Dhabi, through its investment holding company Mubadala.

WHAT IS THE FUNDING OBJECTIVE?

Our funding will be used to develop, construct and operate a 200MWac PV solar project in Jordan. The proposed Project will be the largest PV solar project in the country to date providing significant economies of scale. Power offtake will be under a 20-year PPA by the National Electricity Power Company.

WHY DO WE WANT TO FUND THIS PROJECT?

The proposed Project fits FMO's mandate and strategy as it is 100% green and is led by Sponsor Masdar with a strong renewable energy track record and has high developmental value, as it provides cheap, clean electricity in a country that suffered in the past from structural power deficits. The proposed Project contributes to the following SDG's: 7 Affordable and Clean Energy, 8 Decent Work and Economic Growth, 9 Industry, Innovation and Infrastructure, 11 Sustainable Cities and Communities and 13 Climate Action.

ENVIRONMENTAL AND SOCIAL RATIONALE

The proposed Project has been categorized as B+. The proposed investment will have impacts which must be managed in a manner consistent with the following Performance Standards: PS1 - Assessment and Management of Environmental and Social Risks and Impacts PS2 - Labor and Working Conditions PS3 - Resource Efficiency and Pollution Prevention If FMO's investment proceeds, FMO periodically reviews the project's ongoing compliance with the Performance Standards. Issues related to PS4 - Community Health, Safety and Security; PS5 - Land Acquisition and Involuntary Resettlement; PS6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources; PS7 - Indigenous Peoples; PS8 - Cultural Heritage, are not expected with this proposed investment for the following reasons: * PS4: (i) there are no communities on or nearby the project site; (ii) based on low assessed security risk (the area is vacant and located near Amman, in the general vicinity of a large security training facility), security management will be low-profile. * PS5: land is being leased from the Government and no land issue was raised when concerned stakeholders were contacted. * PS6: the area is covered in very sparse vegetation of the Desert ecosystem, and surveys have not identified any features or species that would trigger PS6. * PS7: no Indigenous Peoples have been identified in the project area. * PS8: not applicable based on the results of the Archaeological Survey Report carried out by the Jordanian Department of Antiques as part of the project ESIA.

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.

South Africa
+27 11 507 2500
joburg-office@fmo.nl

 

ACCOUNTABILITY MECHANISM OF FMO

Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism.

How it works

How it works