Project detail - MONTECRISTI SOLAR F.V., S.A.S.

Who is our customer

Our client is Montecristi Solar FV S.A.S., the project company for a green-field photovoltaic solar plant (58MWp). Total project costs are USD 87.7 million. The project has been developed by F&S Solar Concept GmbH.

What is our funding objective?

FMO provides USD 20.75mln for the development, construction and operation of a 58MW green-field photovoltaic solar power plant in the province of Monte Cristi in the Dominican Republic.

Why do we fund this investment?

FMO funds this project as it provides an additional source of clean, renewable energy in Dominican Republic, a country that is dominated by fossil fuel (oil/HFO) powered plants. FMO provides a long tenor that is not readily available in the local market.

What is the Environmental and Social categorization rationale?

The transaction is designated as Category A on environmental and social aspects. While all Performance Standards are applicable to this investment, FMO’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards: 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 PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources The E&S categorisation is due to the presence of natural and modified habitat on the site, impacts on which will be mitigated and managed in a manner commensurate with its environmental sensitivity, through acceptable and widely applied measures. Social impacts of the project are deemed limited and can be avoided or mitigated by adhering to generally recognized mitigation measures as well as sensitive design controls. Potential impacts from construction activities besides being mitigable, are likely to be limited to project site, short term, and likely to have limited impact on environmentally sensitive areas. The project will take historical land use, if any, into account in its dealings with local communities going forward. IFC PS 7 and PS 8 are considered not relevant to this transaction as: There are no indigenous peoples residing in the project area. No significant cultural heritage features have been found to date within the site. A Chance Find Procedure will be applied during construction and operations.