Early Warning System

Regions

Europe and Central Asia

Geographic location where the impacts of the investment may be experienced.

Countries

Ukraine

Geographic location where the impacts of the investment may be experienced.

Specific Location

Boguslav

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

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

Approved

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

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

Jul 8, 2019

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

Scatec Solar ASA

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)

Fund

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 4.35 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 @ FMO website

Updated in EWS Jul 12, 2023

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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.

This project involves the development and construction of a 56MWp PV Solar plant in Ukraine by Scatec Solar ASA. Scatec Solar is a Norwegian company that specializes in solar projects in emerging markets. The funding objective of this project is to secure debt funding for the construction of the solar plant. FMO, a financial institution, intends to provide an up to EUR 19 million senior loan, while the remaining EUR 23 million senior debt will be syndicated. Scatec Solar will contribute the necessary equity for the project.

The reason for funding this investment is that it aligns with the Ukrainian government's goal of increasing renewable electricity generation to 15% by 2030. Currently, the country heavily relies on nuclear and thermal generation, so transitioning to renewable energy is crucial for energy security and environmental sustainability. The project is categorized as B+ in terms of environmental and social risk, and it complies with the International Finance Corporation's (IFC) Performance Standards. The project's construction phase may have temporary impacts like noise, dust, and traffic, but these are mitigated through dedicated plans and activities. The project also considers labor and working conditions, resource efficiency and pollution prevention, community health and safety, land acquisition and resettlement, and biodiversity conservation and management.

Investment Description

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

Netherlands Development Finance Company (FMO)

Scatec Solar ASA (“Scatec”) is a publicly-traded Norwegian developer, investor and constructor of PV solar projects in emerging markets. Currently, Scatec has 584 MW operational globally and over 1 GW in development. For the 54MWp PV solar project Bohuslavenergy LLC (“Boguslav”) in Ukraine, FMO intends to be the lead arranger.

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.

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
-	-	-	-	Bohuslavenergy LLC	Client	-
-	-	-	-	Scatec Solar ASA	Parent Company	-

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.

No project-specific contact information available at time of writing.

In case of questions, you should contact: disclosure@fmo.nl