Lekela EG Wind 1 (IFC-40137)

Countries
  • Egypt
Geographic location where the impacts of the investment may be experienced.
Specific Location
Gulf of Suez area
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
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
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
Jan 10, 2019
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
Lekela Egypt Wind Power BOO S.A.E.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Infrastructure
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)
$ 25.00 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)
$ 325.00 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.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Feb 13, 2019

Disclosed by Bank Oct 22, 2018

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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 project consists of the construction, operation and maintenance of a 250 MW wind farm in Egypt's Gulf of Suez area. The Project will be an Independent Power Producer, generating an average of 1120 GWh annually for sale to the Egyptian Electricity Transmission Company (EETC) under a 20-year Power Purchase Agreement. Turbine supplier Senvion will be the Engineering, Procurement and Construction and the equipment Operations and Maintenance contractor. Construction is expected to begin in March 2019 and operations two years later.

The Project is located in the Gulf of Suez area of Egypt approximately 30km North-West of Ras Ghareb on the Red Sea. The site is largely uncultivated and uninhabited. Land is owned by the New and Renewable Energy Authority who will sign with the Project Company an Usufruct Agreement.  

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

The total Project cost is estimated at US$ 325 million, of which IFC's investment is expected to consist of an A loan of c. US$ 25 million and the mobilization provided under IFC’s Managed Co-Lending Portfolio Program of c. US$ 57 million. EBRD and OPIC are expected to provide the remainder of the debt financing required.  

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Project will be developed by Lekela Egypt Wind Power BOO S.A.E., a special purpose vehicle incorporated in Egypt and owned by Lekela Power B.V. which in turn is owned by Actis Sky B.V. (60%) and Mainstream Renewable Power Africa Holdings (40%).

Lekela Power B.V was established in 2015 by its shareholders as a pan-African renewable energy generation platform focused on the development, construction and operation of economically sustainable renewable energy businesses in Africa. Lekela’s portfolio currently includes around 1.3 GW of projects in various stages of development in South Africa, Senegal, Egypt and Ghana.

Lekela is majority-owned by shareholders, 60% owned by Actis, a leading growth markets energy investor and 40% by a consortium led by Mainstream Renewable Power which includes investors such as the IFC and the Rockefeller Brothers Fund.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Actis LLP Investor -
- - - - Egyptian Electricity Transmission Company Buyer -
- - - - Lekela Power B.V. Parent Company -
- - - - Mainstream Renewable Power Africa Holdings Limited Investor -
- - - - Senvion S.A. Contractor -

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.

Lekela Advisors Ltd 
Chad Canfield 
Project Finance 
+44 (0)203 146 3522 
Chad.Canfield@lekela.com 
36 Harbour Exchange Square, London, E14 9GE, United Kingdom 
www.lekela.com  

Local Access for Project Information

Contact Person: Chad Canfield
Company: Lekela Advisors Ltd.
Address: 36 Harbour Exchange Square, London, E14 9GE, United Kingdom
Email: Chad.Canfield@lekela.com
Phone: +44 (0)2031463522

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works