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.
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."
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 126.50 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.
Loan Amount (USD)
$ 126.50 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.
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 CUSTOMER?
The Project is implemented by Abydos for Renewable Energy S.A.E, an Egypt-incorporated special purpose vehicle owned by AMEA Power (the "Sponsor", AMEA). AMEA is a subsidiary of Al-Nowais Investments and ultimately approximately 88.5% owned by the Al-Nowais family (United Arab Emirates) and circa 11.5% by SoftBank (Japan).
WHAT IS OUR FUNDING OBJECTIVE?
FMO will provide a loan for the development, financing, construction, operation, and maintenance of a 1000MW Solar PV power plant and 300MW/600MWh Battery Energy Storage System ("BESS") in Aswan Governate, Egypt. The project will be governed under a 25-year Power Purchase Agreement with the Egypt Electricity Transmission Company, fully guaranteed by Egypt's Ministry of Finance.
WHY DO WE FUND THIS INVESTMENT?
The Project fits FMO's mandate and strategy as it is 100% green and is led by the Sponsor AMEA Power having a strong renewable energy development track record with high developmental value, as it provides low cost, clean electricity and enables Egypt through the BESS to accommodate electricity supply during demand peak hours.
WHAT IS THE ENVIRONMENTAL AND SOCIAL CATEGORIZATION RATIONALE?
The Project has been categorized as A. The applicable IFC PS are PS 1,2,3, 4, and 6. PS5: Land Acquisition and Involuntary Resettlement is not applicable as land has been rented from NREA; there are no dwellings on or near the proposed project site, and the plot has never been used for agriculture and/or grazing by any community member of the nearby villages. PS7: Indigenous Peoples is not applicable as there are no indigenous peoples in the project area; and PS8: Cultural Heritage is not applicable as the project is not located in an area of known historical or cultural significance and does not impact any known cultural heritage. However, the project has developed a 'Chance Finds Procedure' in case of the identification of cultural/archaeological resources in the area during construction and/or maintenance activities. The key risks include issues related to occupational health and safety (OHS), working conditions at the project and in the supply chain, waste management, contractor management, community benefit sharing, and community health, safety, and security. The risks are significantly lower during the operational phase with a limited number of staff on-site required and limited remaining impacts on local communities. Contextual human rights risks include restrictions on freedom of expression, trafficking, gender-based violence, and discrimination against LGBTQ individuals. The Environmental and Social Impact Assessment (ESIA) touches on these risks. ZTPC, the EPC contractor, requires close monitoring of OHS and labor aspects. The site has minimal vegetation, no significant biodiversity hotspots, and is not near protected areas. Lastly, the site has no significant flood risks.
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
