Kairouan Solar Plant (IFC-43011)

Countries
  • Tunisia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Kairouan Governorate, Sbikha, 15km north of Kairouan, 500m northeast of the Sbikha Industrial Zone
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
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."
Voting Date
Dec 22, 2022
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
AMEA Power Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 37.00 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)
$ 20.00 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)
$ 100.00 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 @ IFC website

Updated in EWS Nov 5, 2024

Disclosed by Bank Oct 26, 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.

According to bank provided information, the proposed investment seeks to support a 100MW solar photovoltaic (“PV”) project in Tunisia under a 20-year Power Purchase Agreement with the Société Tunisienne de l'Electricité et du Gaz (Tunisian Company of Electricity and Gas – “STEG”) (the “Project”)

The project was awarded in 2019 following a competitive tender to a consortium led by AMEA Power Ltd (“AMEA” or the “Company”). AMEA is an Emirati based renewable energy company. The Project Company, a special purpose vehicle, Kairouan Solar Plant Sarl. (“KSP”) is in the process of being set-up. IFC (the “Lender”) will provide up to US$20 million from its own account and up to $17 million from IFC as implementing entity of the Clean Technology Fund; additional funds will be provided by African Development Bank (together with IFC and AfDB, the “Lenders”).  The project is still in the design stage and is expected to be completed within 16 months after groundbreaking under a turnkey, fixed price Engineering Procurement and Construction (“EPC”) contract.  The EPC contractor is yet to be selected while construction activities are expected to commence in Q1 2023. 

The plant is anticipated to be operational for 20 years and then handed over to the Government of Tunisia. The proposed project site is located in the Kairouan Governorate in the delegation of Sbikha, around 110km south of Tunis, 15km north of Kairouan and about 500m northeast of the Sbikha Industrial zone.  The proposed plant will be built on a 2km2 plot owned by the Government and leased to the company.  The site is uninhabited and is part of the larger Metbasta desert rangeland area.  The closest identified residential areas are the villages of Al Metbasta and Al Bshashma, located approximately 2.2km to the south and 4km to the northeast respectively.   

The plant will consist of a utility grade grid-connected PV array power system, carried on a horizontal single-axis beam tracker, consisting of approximately 220 thousand, bifacial crystalline PV panels with anti-reflective coating.  Preliminary design indicates that the plant will include string inverters stations, converting direct current from the panels to alternating current, and a substation, converting to appropriate voltage for connection directly to the national grid with no storage batteries required.  Connection to the grid will be through an 8km, high voltage 225 kilovolt OverHead Transmission Line (“OHTL”) constructed and operated by the Société Tunisienne de l'Electricité et du Gaz (Tunisian Company of Electricity and Gas – “STEG”). The plant will also include ancillary structures like office and data control building, warehouses and workshops, and internal roads; the plant will be completely fenced.  Access to the site is via the existing regional road 171 running north-south about along the site east boundary. The project is expected to employ approximately 450 (peak) workers during the construction stage, of which 100 would be skilled and 350 unskilled, during the construction phase. During the Operation and Maintenance (“O&M”) phase, to be carried out by a specialized contractor under KSP supervision, 45 workers, 10 skilled and 35 unskilled, are expected to be involved on site working in shifts. The E&S policies and procedures at the level of the Project Company will reflect those of AMEA.

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

The total Project cost is estimated at approximately $100 million, to be leveraged on up to 75/25 debt to equity basis. IFC’s proposed investment includes an up to $20 million A Loan from its own account and up to $17 million from IFC as implementing entity of the Clean Technology Fund. IFC is also expected to provide an interest rate swap to partially hedge the senior debt.

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 concession for the Project was awarded in 2019 following a competitive tender to a consortium coordinated and led on an operational day-to-day basis by AMEA Power (“AMEA”). AMEA was founded in 2016 and is headquartered in Dubai, UAE. The company develops, finances, builds, owns, and operates renewable energy plants in Africa, Middle east, and Asia. The Project Company, a special purpose vehicle, Kairouan Solar Plant Sarl. (“KSP”) has been set-up.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Societe Tunisienne de l'Electricite et du Gaz Buyer Energy contracts with AMEA Power Limited 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.

AMEA Power
Vito Saluto
Head of ESG
+971 4 310 7000
notices@ameapower.com 
Marina Plaza Offices, Level 33, Dubai Marina, PO Box 37669 Dubai, United Arab Emirates
www.ameapower.com 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries 

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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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