Project detail - Globeleq Aurora Sola One Limited

Who is our prospective customer?

Globeleq Aurora Sola One Limited (the “Project Company” or the “Borrower") is a special purpose vehicle (SPV) that will develop, own, and operate two co-located 20MWac solar PV plants (total contracted capacity: 40MWac) and a 4.5km 33kV overhead transmission line to Kafue town substation (the “Projects” or together the “Project”). The Project is located 50km from Lusaka and less than 5km from the town of Kafue in Lusaka Province, Zambia. The Projects are developed by Globeleq Africa Limited and Sola Assets (Pty) Ltd (previously, Aurora Power Solutions (Pty) Ltd), to whom the Projects were awarded in 2019 under the Zambia Solar PV GETFiT program supported by KfW, the German development bank.

What is our funding objective?

The objective of FMO’s financing is to fund the development, construction, and operation of the two co-located 20MWac solar PV plants in Zambia. The facility will likely consist of senior facilities totaling USD 24.5mln, of which USD 14.5mln will come from FMO-A and USD 10mln from Building Prospects. FMO is likely to finance the facilities in a club deal with another DFI. If FMO will be the only DFI funding the transaction, the ticket size is expected to be USD 46.3mln, of which USD 36.3mln from FMO-A and USD 10mln from Building Prospects.

Why do we want to fund this investment?

The project is part of the strategic GETFiT program, which supports Zambia in enhancing private sector involvement in the power sector. The Project contributes to a diversification of Zambia’s energy mix, which is largely (>85%) dependent on hydropower and vulnerable to climate change and extreme weather events. Zambia is classified as a Least Developed Country (LDC) by the UN, and it has gone through a challenging COVID and sovereign default period. FMO labels the investment as Green and Reducing Inequalities (RI).

What is the Environmental and Social categorization rationale?

This concerns an E&S B+ categorized investment, as the solar PV project comes with potential adverse environmental or social impacts that extend beyond site boundaries and might in part be irreversible, although they can be prevented and addressed through relevant mitigation measures. E&S characteristics of this investment include land acquisition and possible economic resettlement, as well as biodiversity impacts, together with health, safety and security issues during construction. The E&S context of the project will be taken into consideration through diligent siting, project design, local content planning and engagement with project-affected communities. The project shows exposure to IFC Performance Standards (PS) 1 (Assessment and Management), PS 2 (Labor Conditions), PS 3 (Resource Efficiency and Pollution), PS 4 (Community Health and Safety, and Security), as well as PS 5 (Land Acquisition) and PS 6 (Biodiversity). PS 7 (Indigenous Peoples) and PS 8 (Cultural Heritage) are deemed not applicable. Note that an Environmental & Social Action Plan will be part of the agreement.

More investments

Date	Total FMO financing
10/14/2024	USD 7.30 MLN
10/14/2024	USD 36.30 MLN