ARC Power Rwanda (MIGA-15044)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Rwanda
Geographic location where the impacts of the investment may be experienced.
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
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 21, 2023
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
Triodos Groenfonds N.V., Triodos SICAV II, OIKOCREDIT, Arc Power Rwanda Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
  • Infrastructure
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)
$ 9.00 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)
$ 9.00 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
Primary Source

Original disclosure @ MIGA website

Updated in EWS Jul 1, 2024

Disclosed by Bank Nov 21, 2023

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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, on April, 8, 2024 MIGA issued guarantees to Triodos Groenfonds N.V. of The Netherlands; Triodos SICAV II of Luxembourg; and OIKOCREDIT, Ecumenical Development Cooperative Society U.A. of The Netherlands for their total US$9 million equity investments to ARC POWER RWANDA Limited of the Republic of Rwanda--against the risk of Breach of Contract for a period of up to 8 years each.

The Project includes: (i) the pre-financing, design, construction, commissioning, and short-term maintenance of medium (30 kV) and low voltage (0.5 kV) lines, transformers, and auxiliary components to interconnect approximately 150 villages in multiple locations around Rwanda to the national grid and where Rwanda Energy Group (REG), the public utility, will become the owner at construction completion; and (ii) the financing, design, construction, long-term ownership, operation, and maintenance of solar photovoltaic generation facilities that are located on the ground that will provide electricity directly to approximately 25 to 30 productive user customers, such as schools, health centers, local government offices, small and medium enterprises, commercial centers, and business parks.

The Project is aligned with the country's Least Cost Power Development Plan by significantly reducing the end-user tariffs since these end-user tariffs will be matched with the national grid tariff, which compares favorably to a typical captive solar mini-grid project with battery storage units in the country.

The project is expected to connect approximately 30,000 new customers to the Rwanda national grid, equating to around 118,000 people. The Project will be the first interconnected grid network project in the country that has solar generation units installed in the village networks, directly servicing the villages' productive users and households. By providing the stable source of energy to the village productive users, this ARC Power project will contribute to increase their productivities. The project is also promoting the clean cooking solutions to the village people by distributing electric pressured cookers as well as cookbooks that elaborate about how to cook Rwandan food by using the electric pressured cookers. This will contribute to reduce the greenhouse gas emissions by replacing wood and charcoal burning and will also has a significant positive impact on indoor-air pollution.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
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 on the companies' websites:

ARC Power Limited designs, develops and installs both off-grid and grid-tied AC power generation sytems ( ARCs) and distribution networks that provide 24 hour electricity.

Triodos Groenfonds is the oldest green investment fund in the Netherlands and enables investors to invest in green projects. The fund invests primarily in loans to green projects that are recognised as such by the Dutch government.

Triodos SICAV II is structured as an umbrella fund, which may provide investors access to a variety of sub-funds. As at 30 June 2022, Triodos SICAV II has the following sub-funds:
• Triodos Microfinance Fund;
• Triodos Emerging Markets Renewable Energy Fund; and
• Triodos Renewables Europe Fund (in liquidation).

Oikocredit is a social impact investor and worldwide cooperative. We have over four decades of experience in promoting sustainable development through investments. We focus our investments on financial inclusion, agriculture and renewable energy.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - ARC 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.

Client - ARC Power Limited:

Charlie Wilkinson - Chief Operation Officer
Email: charlie.wilkinson@arcpower.com
Address: RN 5, Nyabivumu Village, Ntamata, Bugesera, Rwanda

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

How it works

How it works