DENHAM INTERNATIONAL POWER FUND

The project consists of an equity participation in a fund investing in energy and renewable energy generation projects in Africa, southeast Asia and Latin America.

The fund aims to invest across five to eight investment platforms by backing experienced power project developers/management teams with deep knowledge of local markets.

Given the technical characteristics of the potential investments (large greenfield power-generation projects) contemplated by the fund, most of them will require a full environmental and social impact assessment (ESIA). The fund is currently developing 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 and standards of relevant EU environmental legislation, as well as the bank's E&S standards, will be further assessed during appraisal.

The bank will require the fund to ensure that implementation of the projects they invest in has been and will be done in accordance with the bank's Guide to Procurement (in line with the bank's Equity Risk Guidelines). Of particular relevance will be to ensure that for EIB-eligible investment, appropriate procedures have been followed with regard to the granting/obtaining of concessions (or other contractual arrangements) in line with EIB procurement standards, notably in terms of international publicity, traceability and non-discrimination of bidders.