Release date: 20 November 2017
Promoter – Financial Intermediary
ARCH EMERGING MARKETS PARTNERS LTD,ARCH EMERGING MARKETS LTDLocation
Description
The project consists of an equity fund focused on medium-sized renewable energy projects (10-60 MW) in Africa.
Objectives
The fund's investments in renewable energy projects (solar, onshore wind, biomass, small-scale hydro and potentially geothermal technologies) will support the EIB's climate action priority.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
USD 35 million (EUR 8 million)
Total cost (Approximate amount)
USD 250 million (EUR 60 million)
Environmental aspects
Given the technical characteristics of the potential investments contemplated by the fund, some of them will require a full environmental and social impact assessment (ESIA). The fund has developed a fully-fledged environmental and social management system (ESMS), and will be required to integrate it into the fund's procedures. The assessment of the environmental and social (E&S) impact and risks will be part of the standard due diligence process that the fund will carry out for every project. The Bank will be consulted both for the final drafting of the fund's E&S documentation and procedures, as well as for the incorporation of E&S obligations into the fund's legal documentation. The capacity of the fund manager to assess and monitor E&S impact and risks of the individual investments and to implement the necessary requirements/mitigation in compliance with national law and in line with the principles of relevant EU environmental legislation, as well as the Bank's E&S standards, will be further assessed during the appraisal.
Procurement
The Bank will require the fund to ensure that all investments will be done in accordance with the principles and provisions of the Bank's procurement core requirements, as per the Equity Risk Guidelines. This includes ensuring that procured works, goods and services are of appropriate quality, acquired at economic prices and in a timely manner and not the result of a discrimination of suppliers based on their nationality or of a preference given to works, goods or services originating in the beneficiary country. EIB-eligible investments will need to follow the appropriate procedures, in accordance with the Bank's Guide to Procurement, in particular with regard to the granting/obtaining of concessions (or other contractual arrangements), notably in terms of international publicity, traceability and the non-discrimination of bidders. The fund is currently developing a Procurement Policy, and will be required to integrate it into the fund's procedures. The assessment of the procurement procedures and risks will be part of the standard due diligence process that the fund will carry out for every project. The Bank will be consulted both for the final drafting of the fund's Procurement documentation and procedures, as well as for the incorporation of Procurement obligations into the fund's legal documentation.
Status
Signed - 7/12/2018
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).