Project detail - BOSFORO LTDA DE C.V.

Who is our customer

Bosforo Ltda de CV is a special purpose vehicle incorporated in El Salvador.

What is our funding objective?

Bosforo Ltda de CV will use FMO’s funding to develop, construct, and operate 10 small PV Solar plants in three phases with a combined capacity of 100 MW in several locations in El Salvador (“the Project” or “Bósforo”).

Why do we fund this investment?

The project will provide clean energy to the El Salvadorian grid which currently contains very little renewable energy. The Project will contribute to a more diversified and stable supply of electricity (and reduce fossil fuel dependency) at a sustainable price and provide economic growth through job creation and other multiplier effects.

What is the Environmental and Social categorization rationale?

The project has been categorized as B+; “with potential limited adverse environmental or social risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. Bósforo follows the typical E&S impacts of Solar Plants with the main impacts deriving more from the large land take required than the actual setting up of the PV panels. The land acquisition process undertaken by Bósforo follows a very strict process that includes a preliminary site selection, which allows for many of the potential risks associated to be mitigated. Based on the aforementioned, this Project is expected to have impacts on IFC PS 1 to 4 and PS 6. IFC PS 5 (Resettlement) was not triggered as this followed a willing buyer willing seller approach where the company had no option to expropriate. PS 7 (Indegenous People) is also not triggered as none of the projected areas have indigenous people in the nearby communities nor are they considered indigenous areas. Lastly, PS 8 (Cultural Heritage) is also not applicable as there are no culturally protected areas/sacred sites/graveyards close to the proposed sites.