PARQUES EOLICOS DEL CARIBE S.A.
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FMO’s client and developer of the Project is Parques Eolicos del Caribe S.A., a Dominican Republic subsidiary of Akuo Energy that is solely set up to build and operate the Pecasa project. Estimated total project costs are USD 125m. FMO provides USD 12m senior and USD 6m subordinated loan.
What is our funding objective?
The objective of FMO’s financing is to fund the construction and operation of a 50MW greenfield wind energy power plant in the Montecristi region in Dominican Republic.
Why do we fund this investment?
FMO funds this project as it provides an additional source of clean, renewable energy to the Dominican Republic, a country which is heavily reliant on fossil fuel imports and dominated by thermal power plants.
What is the Environmental and Social categorization rationale?
The transaction has been categorized as Category B+, in line with FMO environmental and social risk categorization and mainly due to environmental, social and occupational health and safety (ESHS) impacts and risks typically associated with the construction and operation of wind farms such as (i) clearing of soil and vegetation during excavation and construction, (ii) traffic safety and nuisance noise and dust, and (iii) health & safety risks for construction workers. During operations, the impacts and risks include: (iv) potential bird and bats mortality, (v) turbine noise, (vi) health & safety risks to O&M workers, and (vii) visual impact. All these risks and impacts were considered to be of limited magnitude and significance upon implementation of adequate mitigation measures. The Performance Standards (“PS”) triggered are PS 1 to 4 as pertaining to construction. PS5 to 8 were not triggered.
More investments
| Date | Total FMO financing |
|---|---|
| 12/20/2017 | USD 6.00 MLN |
- Website customer/investment
- http://www.akuoenergy.com
- Region
- Latin America & The Caribbean
- Country
- Dominican Republic
- Sector
- Energy
- Publication date
- 9/26/2017
- Effective date
- 12/20/2017
- Total FMO financing
- USD 12.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+