AFRICA RENEWABLE ENERGY FUND II LP (FMO-58844)

Regions
  • Africa
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
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
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
Jun 14, 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
Berkeley Energy
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)
$ 9.70 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.
Currency conversion note:
Bank reported EUR 8.00 MLN
Converted using 2021-06-14 exchange rate.
Project Cost (USD)
$ 9.70 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 May 10, 2022

Disclosed by Bank Nov 11, 2020

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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.

The Africa Renewable Energy Fund II ("AREF II") is a private equity fund investing in clean energy generating assets across Sub-Saharan Africa (excluding South Africa). The fund is managed by Berkeley Energy (the "Fund Manager") and is expected to reach first close in 2020, having development finance institutions including FMO as anchor investors. AREF II is the follow-on fund of the Africa Renewable Energy Fund ("AREF"), in which FMO invested in 2014.

FMO's investment in the Africa Renewable Energy Fund II will come from two government funds, Access to Energy Fund ("AEF") and Building Prospects Fund ("BPF"). The funding objective is to deploy capital towards investments that deliver social and environmental benefits as well as financial returns. The AREF II investment mandate is focused on renewable energy generation in Africa, and as such the fund will play an important role in the support to the transition to clean energy as well as increasing access to energy in underserved and challenging markets. The Fund Manager has a unique blend of team skills, experience and networks allowing for a compelling proposition.

By investing in the Africa Renewable Energy Fund II, FMO seeks to address the market need for energy in Africa in a sustainable and responsible manner, by increasing the production of clean energy. FMO will play an anchor investor role in AREF II. A successful final closing of the fund means that more risk capital is available for renewable energy and clean technologies in Africa, which is fully in line with FMO's investment strategy. Also, most of AREF II target countries are included in the United Nation's list of Least Developed Countries ("LDC"). Supporting investments in LDCs is one of the core strategies of FMO, AEF and BPF. Finally, by investing in the fund FMO demonstrates continued support towards Berkeley Energy as one of FMO's key fund managers.

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

ACCESS TO INFORMATION

As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: disclosure@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