Frontier Energy II Delta K/S
Status: Approved investmentWhy disclosure?
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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
Planet Solar Energy (SL) Ltd. is a company incorporated in Sierra Leone set up to develop five solar PV power plants across 4 distinct sites across Sierra Leone. FMO will invest, in a transaction led by Frontier Energy, a fund manager focused exclusively on investments in renewable energy projects in West and East Africa.
What is our funding objective?
The objective of FMO’s financing is to fund the development, construction, and operation of 50MW of solar PV plants in Sierra Leone.
Why do we fund this investment?
The project has a high development impact, as it will provide much needed renewable energy capacity to a country with low electrification rates and low energy production capacity. The project will provide economic growth through job creation, increased access to energy and other multipliers.
What is the Environmental and Social categorization rationale?
The prospective investment is categorized as E&S risk Category A. The projects will be constructed on leased lands held under customary tenure, involving economic resettlement and some limited physical resettlement, livelihood restoration planning and execution, management of environmental and social risks, and the promotion of benefits brought to the affected communities. The following IFC Performance Standards are triggered: PS1: Assessment and Management of Environmental and Social Risks and Impacts PS2: Labor and Working Conditions PS3: Resource Efficiency and Pollution Prevention PS4: Community Health, Safety and Security PS5: Land Acquisition and Involuntary Resettlement and PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources. PS7 (Indigenous Peoples) is not triggered, as the project will not impact indigenous peoples as defined in PS7; PS8 (Cultural Heritage) may be triggered to a limited extent. Our prospective investment will include active engagement and support on environmental and social aspects. Actions will be formalized in an environmental and social action plan, the implementation of which will be monitored throughout the lifecycle of this prospective investment.
- Region
- Africa
- Country
- Sierra Leone
- Sector
- Energy
- Publication date
- 8/3/2022
- Effective date
- 10/26/2023
- Total FMO financing
- USD 9.90 MLN
- Funding
- AEF-I
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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) - A