Tozeur and Sidi Bouzid Solar Plants (MIGA-15039)

Regions
  • Middle East and North Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Tunisia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Sidi Bouzid, Tozeur
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
Proposed
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
Jul 3, 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
Scatec ASA (Norway), AEOLUS SAS (France)
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)
$ 56.99 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.
Currency conversion note:
Bank reported 52.25
Converted using 2024-06-03 exchange rate.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ MIGA website

Updated in EWS Jul 2, 2024

Disclosed by Bank Jun 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, as part of the Government of Tunisia (GoT) commitment to reduce greenhouse gas emissions under the Paris Agreement and its updated Nationally Determined Contributions, and to meet electricity demand growth, while reducing the fiscal burden of importing gas, the GoT has an ambitious plan to increase the renewable energy share to 35% of the overall country’s energy mix by 2030.

In 2019, Scatec ASA (Scatec) was awarded through an international competitive bid two projects to build, own, finance and operate: (i) Sidi Bouzid 50 MW grid-connected solar Photovoltaic (PV) power plant in Sidi Bouzid governorate, 260 km south of Tunis, Tunisia, and (ii) Tozeur 50MW grid-connected solar PV power plant, in Tozeur governorate, 450 km south of Tunis. On June 22, 2021, Scatec signed the key Project Agreements including (i) a Concession Agreement (CA) with Ministry of Industry, Energy and Mines (on behalf of the government of Tunisia); and (ii) a Power Purchase Agreement (PPA) with Société Tunisienne de l’Electricité et du Gaz (STEG) as an offtaker. The PV sites will be connected to STEG’s 225 kV transmission network via double circuit overhead transmission lines (OHTL) of 5.5 km for Sidi Bouzid and 1.4 km for Tozeur. The Project includes the two PV plants and the OHTL.

Scatec invited AEOLUS SAS of France to participate in the Project with a 49% share in Scatec Sidi Bouzid Mezzouna PV Power and Scatec Tozeur PV Power. The Project is expected to be financed by EBRD and Proparco. The PEs were incorporated in February 2024 in Tunisia and the financial close is expected to be reached by August 2024. 

The Proposed MIGA Guarantee will cover the equity, shareholder loan, and/or quasi-equity investments of the Guarantee Holders in the Projects with an amount up to €52.25 million against the risks of Transfer Restriction and Currency Inconvertibility, War and Civil Disturbance, Expropriation, and Breach of Contract for a period up to 20 years.

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.

As stated by Bloomberg, Scatec ASA operates as an energy company. The Company develops, builds, owns, operates and maintains solar, hydro, and wind power plants that generate clean and reliable electricity. Scatec serves customers worldwide.

Eurus Energy Holdings Corporation operates renewable energy project development businesses. The Company conducts wind farm construction, solar plant construction, power generation, and other businesses. Eurus Energy Holdings provides its services throughout Japan.
 
Toyota Tsusho Corporation, a member of the Toyota Group, is a trading company. The Company markets automobiles, trucks, steel products, industrial machinery, chemical products, and energy in both domestic and overseas markets. Toyota Tsusho primarily exports cars to Southeast Asia, China, the Middle East, and Latin America.

As stated on the company's website, Eurus Energy Holdings Corporation and CFAO SAS, wholly owned subsidiaries of Toyota Tsusho Corporation, established in March 2024 in France AEOLUS SAS, a joint venture to promote renewable energy business in Africa.
The new joint venture is owned 50% respectively by Eurus Energy and CFAO.

As stated by Bloomberg, CFAO distributes automobiles. The Company offers light and heavy vehicles, trucks, and motorcycles, as well as tires, spare parts, and handling equipment. CFAO serves customers worldwide.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
CFAO SAS Client Industry and Trade contracts with Eurus Energy Holdings Corp Client Energy
Eurus Energy Holdings Corp Client Energy contracts with Scatec ASA Client Energy
Scatec ASA Client Energy contracts with Societe Tunisienne de l'Electricite et du Gaz Buyer Energy
Toyota Group Parent Company Industry and Trade owns Toyota Tsusho Corp Parent Company Industry and Trade
Toyota Tsusho Corp Parent Company Industry and Trade owns CFAO SAS Client Industry and Trade
Toyota Tsusho Corp Parent Company Industry and Trade owns Eurus Energy Holdings Corp Client Energy
Toyota Tsusho Corp Parent Company Industry and Trade contracts with Scatec ASA 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.

Client - Scatec ASA:

Maha Ben Hmidane - Director, Scatec Tunisia
Email: maha.ben.hmidane@scatec.com
Address: 24 rue Lac Tanganyika, Les Berges du Lac 1, 1053 Tunis, Tunisia

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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