As stated in the project disclosure page, FMO's loan of EUR 11.2 million (from the FMO Building Prospects Fund) catalyzes an additional EUR 6 million concessional finance from the AfDB/SEFA. This financing enables the development, construction, operation, and maintenance of an 18MWp solar farm in Souri, near Dedougou, with a total project cost of EUR 20.7 million. This investment has a 100% Green and Reducing Inequalities labels.

This is a greenfield renewable energy development in a low-income sub-Saharan country. Dedougou provides clean, reliable electricity to a country with one of the lowest electrification rates in West Africa, at a lower cost than current thermal power stations or imported electricity. The FMO Building Prospects Fund investment is highly additional, as there are no commercial banks in Burkina Faso capable of providing financing with the tenor and terms required to make the project viable. This project is among the first true energy IPPs in an emerging economy with limited access to electricity.

As stated by the FMO, the applicable E&S Category is B+. All of IFC's Performance Standards (PSs) are triggered except PS7, as there are no indigenous groups affected by the project. The key E&S focus areas include marginal economic displacement, security personnel, community engagement, benefit sharing and minimizing impacts on biodiversity, including some levels of biodiversity restoration. While local communities and authorities are supportive of the project, proactive management of the project-community relationship and avoiding project-induced intra-community tensions are key areas on which the company will continue to focus its efforts. This is particularly relevant given the fragile security context in Burkina Faso, where minor issues can escalate fast. A project-specific environmental and social management system with plans and procedures addressing all relevant areas, including the above, will be implemented by the project company and cascaded down to contractors and subcontractors.

As stated on the project disclosure page, FMO is investing in Dedougou Solaire SARL, an SPV (Special Purpose Vehicle) established under the laws of Burkina Faso, with a total debt of EUR 11.2 million, and catalyzing an additional EUR 6 million concessional finance from the Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank (AfDB). The sponsors are MIHIA Holding S.A.S. (70% shareholding) and Syscom Network SA (30% shareholding). MIHIA Holding was established in 2021 as an investment platform and is a joint venture between Qair International (51%) and STOA (49%).

As stated on STOA's website, in 2021, STOA teamed up with Qair Group, an independent producer of renewable energy based in France, to launch the “Make It Happen in Africa” (MIHIA) investment platform. Our goal is to support clean and affordable energy projects in Africa.

No project contacts provided at the time of disclosure.

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