Tulu Moye Geothermal Project (MIGA-b98c91df88)

Countries
  • Ethiopia
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
A
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
Nov 1, 2018
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
Tulu Moye SAS
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)
$ 52.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 52.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Feb 26, 2019

Disclosed by Bank Sep 5, 2018


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Project Description

MIGA has been approached by Meridiam on behalf of Tulu Moye SAS ("TM SAS") to cover TM SAS's equity investment and shareholder loans toTulu MoyeGeothermal Operations Plc ("TMGO"). TM SAS isa company established by Meridiam and Reykjavik Geothermal ("RG") to finance the development of the Tulu Moye Geothermal Project ("the Project"). The Project is being developed by TMGO, a locally incorporated special purpose vehicle ("SPV"). It involves the design, construction, operation and maintenance of a 520 MW steam and brine geothermal power plant. The Project will be implemented in four phases with a first phase of 50 MW capacity, followed by 3 phases of 100 MW, 100 MW and 270 MW, respectively, developed over a period of 8 years. It is currently planned that the first 50 MW is expected to be operational by 2021 and the full 520 MW be online by 2026. The proposed MIGA guarantee will cover the exploration phase of phase 1 only; however, as the purpose of the exploration is to lead to development, this ESRS considers the full development of 520 MW. The Project is currently at the early stages of development of phase 1 (i.e. the potential for geothermal resources has been identified through surface exploration; the first two well pad sites have been identified and a tentative plant site has been proposed). The exact locations of wells, well pads, pipelines and the power plant will be determined in the detailed engineering design phase of the Project, following exploration drilling.

In addition to the power plant, the Project will include exploration and production drilling, establishment of well pads, access roads, water supply, quarries and a collection pipeline system. The Project will also require construction of a transmission line to connect the Project with the national grid, whichwill be considered an associatedfacility of the Project. The design and route alignment of the transmission line have yet to be determined. It is currently proposed that exploration drilling will require the establishment of 2 well pads (each 7,200 m2) on average 3 wells per well pad. Well pad sites will include storage facilities for water, mud, fuel and chemicals, pipes, and, accommodation and offices. Wells are expected to be between 1,500 m and 3,500 m deep. Lined ponds will be developed at each well pad to collect drilling fluids and geothermal brine. If an exploration well is sufficiently productive, it will become a production well. It is estimated that 14 - 16 wells will be required to generate 100 MW of energy, and therefore, eventually 70 - 80 production wells will be required to supply the 520 MW plant. Assuming 3 wells per well pad, it is estimated that 23 - 26 well pads will be required for the 520 MW plant. It is estimated that the exploration phase (2 wells pads, separator plant and cooling tower) will require approximately 2.5 ha (25,000 m2) of land - approximately 1.5 ha for well pads and 1 ha for the separator plant and cooling tower. Additional land will also be required for access roads. Approximately 14 ha will be required for the 100 MW plant and ancillary facilities (i.e. lay-down area, offices, accommodation).

 

 

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)
Contact Information

Aynalem Getachew

Addis Ababa, Ethiopia

a.getachew@tmgeothermal.com

Kedir Temam

Iteya,k.temama@tmgeothermal.com

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/