Project detail - CENTRAL EOLICA PAMPA DE MALASPINA S

Who is our customer

The Project and our client is Central Eolica Pampa de Malaspina S.A. (“Malaspina”), a Special Purpose Vehicle created to develop, construct and operate a 50.4MW wind power park in the Province of Chubut, Argentina. The Sponsor and developer of the Project is Total EREN (France), a Global Independent Power Producer specialized in Renewable Energy.

What is our funding objective?

The expected Total Project Costs are expected to be around USD138m. The objective of FMO’s and ICCF’s ~USD 40mln Senior Loan is to fund the development and construction of the Malaspina project.

Why do we fund this investment?

Malaspina will help to alleviate Argentina’s dependence on fossil fuels and support Argentina’s goal of reaching 20% of electricity produced from RenovAr projects by 2025. By decreasing the reliance on imported fuel and increasing electricity capacity at lower average cost of generation, the project is also expected to contribute to the economic growth of Argentina. FMO together with ICCF will potentially fund this project as there is no commercial long-term funding available.

What is the Environmental and Social categorization rationale?

This is a category B+ project with potential limited adverse social and environmental (E&S) risk and / or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures. While this project has been screened against all Performance Standards, FMO’s E&S due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the construction activities thus triggering the following Performance Standards: • PS 1 - Assessment and Management of Environmental and Social Risks and Impacts • PS 2 - Labour and Working Conditions • PS 3 - Resource Efficiency and Pollution Prevention • PS 4 - Community Health, Safety and Security The following performance standards are not triggered: PS5: Land Acquisition and Involuntary Resettlement, since there is no right to expropriation and an agreement was made with one single land owner with no economic displacement; PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources, since there are no protected/important species, habitats or ecosystem services impacted; PS7: Indigenous Peoples, since there are no indigenous people in the project’s area of influence; and PS8: Cultural Heritage, since no archaeological, anthropological or sacred sites are present in the project area.