Kube Energy Baidoa (MIGA-14793)

Countries
  • Somalia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Baidoa/South West State
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
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
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
Nov 30, 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
Kube Energy
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)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 5.67 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
Media Documents
Primary Source

Original disclosure @ MIGA website

Updated in EWS Feb 19, 2023

Disclosed by Bank May 16, 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.

From the MIGA's website:

On January 12, 2023, MIGA entered a contract issuing a guarantee of US$5.67 million to Kube Energy of Mauritius for its equity investment in the Kube Energy Somalia LLC solar PV hybrid power plant project in the Federal Republic of Somalia. The guarantee is issued for up to 15 years against the risks of expropriation and war and civil disturbance. This is MIGA's first project in Somalia (a new MIGA member country in March 2020).
Located in the 'green zone' in Baidoa, Somalia, the Project will provide 24/7 electricity to the United Nations Support Office in Somalia (UNSOS) through a power purchase agreement, the first of its kind in Somalia. The Project will replace existing diesel generators, significantly reducing green-house gas emissions and the cost of electricity while increasing reliability of electricity supply within the green zone.
The Project's positive development impact will be driven by significant GHG emissions savings, as the solar power produced will displace diesel generators, which are highly pollutive. The Project will enable UNSOS to transition its operations in Baidoa to approximately 80 percent renewable energy, supporting the UN's efforts to reduce their energy footprint by transitioning field operations from diesel to renewable sources of power.

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

From the MIGA's website:

Kube Energy is a Norwegian renewable energy services company established in 2015 which provides access to renewable energy in remote and fragile areas. The company currently operates four solar power plants supplying the United Nation entities in South Sudan and Kenya and is developing projects is other countries in Sub-Saharan Africa (Central African Republic, Democratic Republic of the Congo, and Mali). Kube Energy partnered with CrossBoundary Energy Holdings for the financing and further development and implementation of the Project, including CBE’s provision of the environmental and social risk management framework. CBE was launched in 2015 and is Sub-Saharan Africa’s first investment platform for commercial and industrial solar. It provides solar electricity to African enterprises, through fully financed Power Purchase Agreements or leasing solutions.

Construction of the Project is anticipated to take about ten months. Kube Energy will utilize a multi-contract approach for the Project’s engineering and design, construction, and equipment procurement. Soventix GmbH (Germany) is responsible for the engineering, design, construction and commissioning of the Project including the management of the local contractor. D-Hybrid Power Systems GmbH is responsible for supplying the battery energy storage system and the thermal generation facilities, and will provide remote assistance to Soventix GmBH for the installation on site. A local company will serve as the local construction contractor to supply construction materials, labor, etc. and will support Soventix.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - CrossBoundary Energy Holdings Contractor Energy
- - - - Kube Energy 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.

Kube Energy Somalia's Contact Information:

Kristen Petillon - Chief of Business Development/Project Manager
Address: Geneva, Switzerland
Email: baidoa@kubeenergy.com
Phone: +41798511116

Kube Energy:

Website: www.kubeenergy.com
HQ Address: 21 Gaustadalléen, Oslo, 0349, Norway
Email:

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

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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How it works