CEN EBL (IFC-49149)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Mozambique
Geographic location where the impacts of the investment may be experienced.
Specific Location
Namaacha
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
Jul 18, 2024
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
Globeleq Africa Holdings Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • 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)
$ 60.00 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)
$ 60.00 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)
$ 267.00 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 Jun 26, 2024

Disclosed by Bank May 3, 2024


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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.

As stated on the project disclosure page, the proposed IFC investment consists of an equity bridge loan (EBL) for up to US$60 million with a tenor of up to 5 years to Globeleq Africa Holdings Limited (GAHL), the holding platform of Globeleq (GQ). 
The proceeds of IFC’s EBL will solely support the development of Namaacha, described below. This will be the country’s first wind IPP project. It consists of the development, financing, construction, operation, and maintenance of a 120MW Wind Energy Farm (WEF) located in Namaacha, 57km west of Maputo in Mozambique.

The Project will sell electricity under a 25-year Power Purchase Agreement (PPA) to EDM, the state-owned buyer and offtaker. EDM will export CEN’s output to the Southern African Power Pool (SAPP) until existing generation in Mozambique can no longer meet domestic demand (expected in 2031).
The Project will consist of 20 Wind Turbine Generators (WTG) each with a unit capacity of 6MW with a 120m hub height. CEN will evacuate power by way of the Transmission Connection Equipment (TCE) consisting of:
(i) a new 33.5km transmission line (T-Line) with two single circuit 66kV parallel overhead lines to be connected to the Boane substation;
(ii) a 27MVar STATCOM system for voltage stabilization in case of complete WEF tripping; and
(iii) an upgrade to the Boane substation’s 66kV busbar.

The TCE is considered a Project component and will be financed by the Project, but the Boane substation is considered an Associated Facility as per IFC Performance Standards (PSs).
Additional infrastructure will include underground medium voltage transmission cables (33kV) connecting the WTGs with the subordinate substation, a fiber-optic communications network to connect to a Supervisory Control and Data Acquisition (SCADA) system, onsite building infrastructure required for the daily operation of the Project including administrative buildings, a control room, a workshop, a storage warehouse, and a road network to assist the installation of the WTGs during construction and operations.
The two parallel 66 kV T-Lines (spaced 20m apart) will be installed on c. 169 monopole towers within a 70m corridor for the first 29km and then on a single line within a 50m corridor on an existing EDM servitude corridor. In the last 310 meters before reaching the Boane substation, the transmission line will be buried with underground cables, to avoid physical displacement of peri-urban dwellings.         

The Project is located on a greenfield site in Namaacha, approximately 57km west of Maputo in Mozambique, near the borders of South Africa and Eswatini.                          

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

As stated by the IFC, the Project’s total cost is estimated at US$267 million, out of which (a) US$230 million for the wind farm to be funded on a debt to equity split of 75:25 and (b) US$37 million for the TCE to be funded with grant and concessional debt funding. Globeleq intends to fund up to US$60 million of its equity contribution through an EBL to the Project. IFC’s proposed investment consists of an EBL on IFC’s own account of up to US$60 million for a tenor of up to 5 years to Globeleq’s holding platform (Globeleq African Holdings Limited).

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.

As stated by the IFC, Globeleq, Source Energia, and EDM are expected to own 66.5%, 28.5%, and 5% of the Special Purpose Vehicle (SPV) Central Eléctrica da Namaacha (CEN), which was registered in May-2020.

Founded in 2002 and headquartered in the UK, Globeleq (GQ) is a leading power generation project developer focusing on Africa. GQ is owned 70 % by BII and 30% by Norfund, which are DFIs owned by the UK and Norwegian governments, respectively. GQ operates 1.8GW of power generation in Africa across different technologies (solar PV, wind, gas-HFO fired).

Founded in 2018, Source Energia is a small private energy developer focused on large and small scale on-grid and off-grid projects in Mozambique.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Globeleq Africa Holdings Limited Client Energy
British International Investment Plc Parent Company Finance owns Globeleq Inc Parent Company Energy
Globeleq Africa Holdings Limited Client Energy contracts with Electricidade de Moçambique Buyer Energy
Globeleq Africa Holdings Limited Client Energy contracts with Electricidade de Moçambique Investor Energy
Globeleq Africa Holdings Limited Client Energy contracts with Source Energia Investor Energy
Globeleq Inc Parent Company Energy owns Globeleq Africa Holdings Limited Client Energy
KLP Norfund Investments Investor Finance invests in Globeleq Inc Parent Company 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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Globeleq Africa Limited:

Vincent Mulder - Business Development Director
Phone: +44 203 823 5522
Email: Vincent.Mulder@globeleq.com
Address: 6th Floor, 67 Lombard Street London, EC3V 9LJ, United Kingdom
Website: www.globeleq.com

Local Access to Project Documentation:

Electricidade de Moçambique
Address: E.P., Av. Zedaquias Manganhela n.267, Predio JAT IV- 4 Andar, Maputo, Moçambique  

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

How it works

How it works