Project detail - Energia Turistica Enertur S.A.

Who is our prospective customer?

ENERTUR is a Special Purpose Vehicle organized under the laws of the Dominican Republic (DR) and owned by InterEnergy Renewables, SL, a subsidiary of InterEnergy Group Limited (“InterEnergy”), which has more than 35 years of track record in the energy sector. InterEnergy is a leading developer, owner, and operator of power generation, transmission, and distribution assets in Latina America and Caribbean. It has 2.2 GW of installed, available and in development capacity of thermal, wind and solar plants across operating assets in the Dominican Republic, Panama, Jamaica, Chile, Puerto Rico and Uruguay. InterEnergy owns 40% of one of the largest power plants in the DR and owns CEPM a vertically integrated electric utility in the country (with 335MW installed and available capacity) that provides power to 65% of DR's hotels, serving the tourist areas of Punta Cana, Bávaro and Bayahibe.

What is our funding objective?

The transaction will finance a 64MWac solar PV project plus a 30MW / 30MWh Battery Energy Storage System (BESS) in the municipality of San Pedro de Macoris in the DR.

Why do we want to fund this investment?

Total FMO financing of USD 20-30 mln will be used for 100% green power generation project and involves new technology (BESS); it will contribute to the development of new renewable energy projects, key for the country to reach its renewables target and to the development DR’s tourism sector, key for its economic growth.

What is the Environmental and Social categorization rationale?

This project is a B+ risk due to challenging human rights contexts in the project's area, which is inhabited by sugar cane plantation workers. While no significant direct impact is expected on these communities, the project team must consider the broader context of human rights and build a positive relationship with these communities. Also, the E&S categorization is a result of the risks associated with the implementation of a livelihood restoration plan (LRP), agreed between FMO and Inter-American Development Bank, and to be implemented by the Borrower. The LRP will benefit the 30 people (9 families) displaced by the project. In principle, this project falls under IFC PS1 to PS5. IFC PS6 to PS8 are not relevant, as there are no areas of biodiversity or cultural significance, and there are no indigenous people identified in the project area.