VIENTOS DE NECOCHEA S.A.
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
The Project and our client is Vientos de Necochea S.A. (“Malaspina”), a Special Purpose Vehicle created to develop, construct and operate a 37.95MW wind power park in the Province of Buenos Aires, Argentina. The Sponsor and developer of the Project is Genneia, Argentina’s largest wind power developer.
What is our funding objective?
The expected Total Project Costs are expected to be around USD 84.2m. The objective of FMO’s and EKF’s USD 51mln Senior Loan is to fund the development and construction of the Necochea project.
Why do we fund this investment?
As part of the RenovAr program, Necochea 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 sitespecific, 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 IFC 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 FMO will continue to evaluate the possibility of the following performance standards being triggered: • PS8 - Cultural Heritage – The project area was identified as an area with potential for anthropological findings. Hence, there is a chance find procedure in place and all workers involved in earth works are receiving training. The following performance standards are not triggered: • PS5 - Land Acquisition and Involuntary Resettlement, since there is no physical or economic displacement caused by the project; • 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.
More investments
| Date | Total FMO financing |
|---|---|
| 8/2/2019 | USD 12.75 MLN |
| 8/2/2019 | USD 18.79 MLN |
- Region
- Latin America & The Caribbean
- Country
- Argentina
- Sector
- Energy
- Publication date
- 6/4/2019
- Effective date
- 8/2/2019
- Total FMO financing
- USD 19.46 MLN
- Funding
- FMO NV
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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) - B+