Salima Solar (MIGA-aed3d71aac)

Countries
  • Malawi
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
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 17, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
JCM Salima UK Limited
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 58.82 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Mar 6, 2019

Disclosed by Bank Mar 4, 2019


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Project Description

A consortium jointly led by JCM Power Corp. of Canada (JCM) and InfraCo Africa Limited, UK (InfraCo) has been selected by Electrical Supply Corporation of Malawi Limited (ESCOM), the state-owned electricity utility of Malawi by way of competitive tender to develop, construct and operate a 60 MW solar PV project in Salima district, Malawi.

The Project Site is situated in the central region of Malawi, approximately 30 km from Salima District Boma, in Traditional Authorities (TA) Kalonga. The project falls under Senior Group Village Headman (SGVH) Kanzimbe, Group Village Headman (GVH) Waya, GVH Mayambo and GVH Sadzu.

The plant infrastructure will sit on 168-hectare (ha) land plot, and will include transformers, associated cabling, access roads, a maintenance area, storage, temporary hostels and offices. The Project will be fed directly into the national grid via a 4 km 132 kilovolt (kV) transmission line constructed for the project by the roject Enterprise, which will require a 57-ha wayleave land from the site to the Nanjoka substation. In total, 225ha of land (including the right of way) will be used by the Project.

The plant will be located on existing farmlands and there are few residential areas near the Project and transmission line wayleave. The Project will build temporary accommodations for approximately 30-40 staff during the construction phase. The labor force will be engaged from the local communities which means they will reside in their residences. Site clearing began in December 2018. Due to the heavy rainy season in Malawi, civil works were noticeably slower during January-March. However, civil works, fencing and updated site clearance will commence in March 2019. Construction is anticipated to be completed by October 2019. Once construction is complete, there will be no accommodations on site, however there will be a building dedicated to O&M, which will include storage space, offices, conference rooms and a kitchen.

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)
Private Actors

The Project Enterprise (PE) JCM Matswani Solar Corp Ltd. is owned by 2 shareholders, jointly referred to as Sponsors: 1) JCM Salima UK Limited, a UK-based SPV ultimately owned by JCM and Financierings-Maatschappij voor Ontwikkelingslanden (FMO); 2) InfraCo Africa Limited, UK (InfraCo).

JCM is a Canadian private equity firm established in 2010 by a conglomerate of individuals, funds, and investment firms, with the aim of investing in clean power. JCM develops and operates renewable energy projects in emerging markets. Its recent experience includes projects in Cameroon, Nigeria, Chad and other countries in the African Continent. InfraCo is a private investment company, established in 2004 and funded by the governments of Austria, the Netherlands, Switzerland and the UK. Past projects have mobilized over US$2bn of investment in infrastructure sectors in Sub-Saharan Africa (SSA). The past projects financed by InfraCo include solar plants in Guinea, Zambia, Nigeria and Tanzania.

SUMEC, has been selected as Engineering, Procurement and Construction (EPC) and Operations and Maintenance (O&M) contractor to build, operate and maintain the Project. SUMEC will also be responsible for construction of the 132-kV transmission line. Once constructed, the line will be handed over to ESCOM.

Contact Information

Contact Person: Mr. Jonas Sani
Company Name: JCM Power Corp.
Address: Plot 608, Area 12, Lilongwe, Malawi
Email:jsani@jcmpower.ca
Phone: +265 99 9415 049

ACCOUNTABILITY MECHANISM OF 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/