GENNEIA S.A. (FMO-61738)

Regions
  • Latin America and Caribbean
Geographic location where the impacts of the investment may be experienced.
Countries
  • Argentina
Geographic location where the impacts of the investment may be experienced.
Specific Location
Province of San Juan and Province of Buenos Aires
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
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
Genneia S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • 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)
$ 40.00 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)
$ 40.00 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.
Project Cost (USD)
$ 40.00 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.
Primary Source

Original disclosure @ FMO website

Updated in EWS Aug 13, 2023

Disclosed by Bank Nov 4, 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.

Genneia S.A. (FMO existing client) is an Argentinian-based renewable energy generation company that holds approximately 20% of the country's installed renewable energy capacity as of December 2021, making Genneia a leader in the renewable energy sector in Argentina. The company is involved in the entire cycle of power generation: from prospection and development to the construction and operation of renewable and conventional power plants. Genneia is a pioneer in promoting renewable energy in Argentina.

The transaction is a corporate loan, and the proceeds will be used to finance part of the construction cost of TOCOTA III, a 60 MW PV solar project in the province of San Juan and La ELBITA I&II, a 140 MW wind project in the province of Buenos Aires.

This transaction will be used to support Genneia’s expansion of renewable energy projects (specifically TOCOTA III and LA ELBITA) which is aligned with FMO’s energy sector strategy. FMO’s additionality is apparent with the availability of long-term debt financing (10 years) which is scarce in Argentina.

Environmental and social rationale

FMO’s preliminary E&S Category for this transaction is B+ given the main risks of these wind (bird and bats) and solar (probability of pre-Hispanic archeological findings) projects, general risks associated with land acquisition and occupational health and safety, and their specific locations (scarcely populated, low ecological value areas, no protected areas close to the project site). FMO’s environmental and social due diligence indicates that the investment will have impact which must be managed in a manner consistent with the following IFC Performance Standards in particular: PS 1 – Assessment and Management of Environmental and Social Risks and Impacts, PS 2 – Labor and working conditions, PS 3 – Resource Efficiency and Pollution Prevention, PS 4 – Community Health, Safety and Security PS 5 – Land Acquisition and Involuntary Resettlement, and PS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources. PS 8 – Cultural Heritage may be triggered for the Tocota III project. Based on FMO’s in-country experience and knowledge, IFC PS 7 – Indigenous Peoples is not applicable. Plans and mitigants have been put in place or are part of the Environmental and Social Action Plan (ESAP) to mitigate construction and operation risks.

 

 

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

The description of investment type was not available at the time of the snapshot.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Genneia Undisclosed 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

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How it works