LA MATA (SOLARPACK) (FMO-61471)

Regions
  • Latin America and Caribbean
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.
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
Solarpack Corporación Tecnológica S.A.U.
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)
$ 5.50 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 Sep 5, 2022

Disclosed by Bank Sep 1, 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.

WHO IS OUR PROSPECTIVE CLIENT?

Solarpack Corporacion Tecnologica S.A.U. ("Solarpack" or "the Client"), is a multinational IPP developer with presence in Europe, North American, Latin America, Asia and Africa. Its purpose is to accelerate the transition to clean and affordable energy for all. To this end, they generate 'products and services' in the field of clean energy. Solarpack was founded in 2005 as one of the first pure solar PV developers and independent power producers in Spain. Solarpack has developed about 1,151 MW and built 894 MW of PV plants, and operates 916 MW of installed capacity in 6 countries, 3 of which FMO has focus on (Peru, Colombia and India) .

WHAT IS THE FUNDING OBJECTIVE?

The facilities will be used for the construction of two PV solar plants (each a "Project") with a total installed capacity of 252 MWp, La Mata (108.3 MWp) located in the Municipality of La Gloria, Cesar and La Union (144.5 MWp) located in Monteria, Cordoba, including associated facilities like transmission lines and related civil works, including access roads, substations, or other works needed to supply the energy produced. Total project costs are approximately COP 785 billion (USD ~180mln). These projects will provide a significant increase of the renewable energy capacity of Colombia, a country in which renewable sources accounts only for 1% of the total energy generation.

WHY DO WE WANT TO FUND THIS PROJECT?

This transaction fits well within FMO energy strategy of promoting clean energy, as the loan will be used for 100% green power generation projects. Also, our additionality comes from providing long term (local currency) financing with appropriate tenors for renewable energy projects, that are scarce in the country.

ENVIRONMENTAL AND SOCIAL RATIONALE

FMO E&S category for this transaction is B+, reflecting contextual risks and risks related to supply chain, occupational and community health and safety, waste management, potential biodiversity and cultural heritage impacts. The following IFC Performance Standards are applicable for this investment: IFC 1-4, 6 and 8. The following IFC PS are not considered applicable. - IFC PS5: neither the Environmental and Social Assessment nor IDB's DD identified any impacts triggering PS5 - IFC PS7: neither the Environmental and Social Assessment nor IDB's DD identified any people qualifying as Indigenous being impacted by the project.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Solarpack Corporación Tecnológica S.A.U. Client Energy

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.

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