ZIZ Energie Ltd.
Status: Approved investmentWhy disclosure?
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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
ZIZ is a vertically integrated private power company operating in Chad since 2006. The Company sells electrical equipment, performs EPC services (urban and rural electrification in particular) and operates as an off-grid utility. ZIZ develops, finances, builds and operates metro-grids (hybrid plant + electric urban network for cities of more than 25,000 inhabitants), which are currently being rolled out in 5 secondary cities in Chad.
What is our funding objective?
FMO is invested EUR 4m alongside the lead-investor Energy Access Ventures Fund, who also invest EUR 4m. The Funding objective is to provide the company with the necessary capital to develop its pipeline of metro-grid projects, street lighting and C&I.
Why do we fund this investment?
The project has a high developmental impact. ZIZ provides clean, affordable power in Chad (a least developed country and highly vulnerable to climate change), thereby positively affecting access to electricity, reducing the cost of electricity, displacing polluting diesel-powered electricity generation and thereby reducing CO2 emissions and creating local employment.
What is the Environmental and Social categorization rationale?
FMO?s initial investment was assigned to E&S Risk Category B+, and the categorization is maintained for the top-up investment. The main E&S risks and impacts associated with the Company?s business activities relate to labour conditions, land acquisition/land-use change, security and stakeholder engagement. The transaction will be managed in accordance with IFC Performance Standards 1, 2, 3, 4, 5 and 6. Performance Standard 7 is not triggered as there are no anticipated impacts on indigenous peoples. Performance Standard 8 is also not considered triggered beyond the development of a chance find procedure. A dedicated E&S team and an E&S Management System are in place. As part of the investment, an international consultant has been engaged to build capacity and strengthen E&S practices on the ground.
More investments
| Date | Total FMO financing |
|---|---|
| 11/27/2020 | EUR 0.50 MLN |
- Website customer/investment
- https://www.ziz-energie.com/
- Region
- Africa
- Country
- Chad
- Sector
- Energy
- Publication date
- 6/4/2021
- Effective date
- 8/4/2021
- Total FMO financing
- EUR 2.50 MLN
- Funding
- AEF-I
-
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+