Project detail - New Energy Africa Kolda S.A.

Who is our customer

AXIAN Group is a pan-African group that operates in 15 countries and specializes in five industries with high growth potential: telecoms, energy, financial services, real estate, and open innovation. AXIAN Group is an engaged partner in the socio-economic growth of the countries where it operates. With over 7,500 employees, the group systematically ensures that its products and services have a positive and sustainable impact on the day-to-day lives of millions of Africans. AXIAN Group is a signatory of the United Nations’ Global Compact initiative and committed to the integration of its 10 Principles into its policies and operations.

What is our funding objective?

The objective of FMO’s (up to) EUR 30 million Senior Loan is to finance the development, construction, and operation of a 60 MW solar photovoltaic (“PV”) plant and 20 MW / 72 MWh Battery Energy Storage System (“BESS”). The total financing package is expected to be EUR 83 million, with the remaining senior debt coming from international Lenders. Total Project Cost will amount to around EUR 105 million. The project will be located near Kolda, approximately 350km southeast of the capital city Dakar.

Why do we fund this investment?

NEA Kolda will be FMO’s second battery storage project in West Africa and as a result will supply clean power and grid stability services to the Senegalese grid, contributing to the country’s goals of universal electrification by 2025 and 40% electricity supply from renewable sources by 2030. The project is expected to avoid the emissions of 50,000 tons of CO2 / annually. The battery will stabilize the frequency of the grid and reduce power outages. NEA Kolda will support Senegal’s green energy ambitions and provide the much-needed power supply to expand the grid in the Casamance region of the country.

What is the Environmental and Social categorization rationale?

E&S categorization is B+ due to economical resettlement as well as biodiversity impact related to the Project. Potential risks relate to: (i) construction phase and the associated risks including, but not limited to occupational health and safety (OHS), influx, traffic, Gender Based Violence and Harassment (GBVH), etc. (ii) economic and physical displacement and the need for an adequate Resettlement Action Plan as well as a Livelihood Restoration Plan; (iii) maintenance of Broad Community Support; impacts on biodiversity; supply chain; and security given the project’s location in an area that has been known to have some instability in the past. Axian Energy has developed a robust Environmental and Social Management System (ESMS) at corporate level. The Company has established and documented a Health, Safety, Environment and Social (HSES) Policy. The Company has developed and documented an ESMS Manual template, which will be adapted specifically for the project. Relevant IFC Performance Standards (PS): 1-6. IFC PS 7 on Indigenous People is not considered to be applicable, assessment confirmed by the external consultant during due diligence. There is a Chance Find Procedure being implemented to identify potential triggers of PS8 on Cultural Heritage.