Project detail - TRANSMISION DE ELECTRICIDAD, S. A.

Who is our customer

Transmisión de Electricidad S.A. (TRESA) is a special purpose company incorporated in Guatemala for the development of the Las Cumbres de Agua Blanca wind farm. TRESA is owned by Grupo Terra, one of Central America's most experienced players in energy and infrastructure. Grupo Terra invited FMO to be the mandated lead arranger for this wind farm project.

What is our funding objective?

The objective of FMO’s financing is to fund the construction and operation of a 31.5MW wind farm in Guatemala (the “Project”).

Why do we fund this investment?

The project has high developmental impact as it will provide renewable energy capacity to a country with a high participation on fossil fuel-based energy and coal. The project will provide clean energy to the Guatemalan grid which currently contains very little non-conventional renewable energy. The Project will contribute to a more diversified and stable supply of electricity (and reduce fossil fuel dependency) at a sustainable price and provide economic growth through job creation and other multiplier effects.

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 operation 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 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 all land owners and 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 impacted by the project; and PS8: Cultural Heritage, since no archaeological, anthropological or sacred sites are present in the project area.