Dedougou Solaire S.A.R.L.
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. 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 prospective customer?
FMO is investing in Dédougou Solaire SARL (“Dédougou”), an SPV (Special Purpose Vehicle) established under the laws of Burkina Faso with a total debt of EUR 10.9 million, catalyzing another EUR 6 million from the African Development Bank/Sustainable Energy Fund for Africa (AfDB/SEFA). The Sponsors are MIHIA Holding S.A.S (70% shareholding) and Syscom Network SA (30% shareholding). MIHIA Holding was established in 2021 as an investment platform, and is a joint venture between Qair International (“Qair”) (51%) and STOA (49%).
What is our funding objective?
FMO’s loan of EUR 10.9 million (FMO Building Prospects Fund) will catalyze another EUR 6 million from the AfDB/SEFA. This financing will allow for the development, construction, operation and maintenance of an 18MWp solar farm at Souri near Dedougou, with a total project cost of EUR 20.4 million.
Why do we want to fund this investment?
This is a greenfield renewable energy development in a low-income sub-Saharan country. Dedougou will provide clean, reliable electricity to a country that has one of the lowest electrification rates in West Africa at a lower price than current thermal power stations or imports of electricity. The FMO-Building Prospects Fund investment is highly additional as there are no commercial banks in Burkina Faso that can provide financing over the tenor and terms required to make the projects work. This project is among the first true energy IPPs in an emerging economy with relatively poor access to electricity.
What is the Environmental and Social categorization rationale?
The applicable E&S Category is B+. All of IFC’s Performance Standards (PSs) are triggered except PS7, as there are no indigenous groups affected by the project. The key E&S focus areas include marginal economic displacement, security personnel, community engagement, benefit sharing and minimizing impacts on biodiversity, including some levels of biodiversity restoration. While local communities and authorities are supportive of the project, proactive management of the project-community relationship and avoiding project-induced intra-community tensions are key areas on which the company will continue to focus its efforts. This is particularly relevant given the fragile security context in Burkina Faso, where minor issues can escalate fast. A project-specific environmental and social management system with plans and procedures addressing all relevant areas, including the above, will be implemented by the project company and cascaded down to contractors and subcontractors.
More investments
| Date | Total FMO financing |
|---|---|
| 11/14/2020 | EUR 8.40 MLN |
- Website customer/investment
- http://www.qair.energy
- Region
- Africa
- Country
- Burkina Faso
- Sector
- Energy
- Publication date
- 6/11/2024
- Deadline for feedback
- 8/10/2024
- Total FMO financing
- EUR 2.50 MLN
- Funding
- Building Prospects
-
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+
- Translation
- https://www.fmo.nl/dedougou-solaire-s.a.r.l.