Project detail - Abydos Solar Power Company S.A.E.

Who is our prospective customer?

The Project is implemented by Abydos Solar Power Company S.A.E, an Egypt-incorporated special purpose vehicle owned by AMEA Power. AMEA Power (the “Sponsor”) is a subsidiary of Al-Nowais Investments, ultimately owned by the Al-Nowais family in the United Arab Emirates.

What is our funding objective?

FMO intends to expand its commitment to the 500MW Solar PV power plant with a loan to be used for the development, financing, construction, operation, and maintenance of a 150MW/300MWh Battery Energy Storage System (“BESS”) within the perimeter of the Solar PV power plant in Aswan Governate, Egypt. The Project will be governed under a 25-year Power Purchase Agreement with the Egypt Electricity Transmission Company, fully guaranteed by Egypt’s Ministry of Finance.

Why do we want to fund this investment?

The Project fits FMO’s mandate and strategy as it is labelled green and is led by Sponsor AMEA Power, which has a strong renewable energy track record. It also has a high developmental value, as it enables Egypt to accommodate the increasing share of low-cost renewable energy.

What is the Environmental and Social categorization rationale?

The Project has been categorized as B+, in line with the categorization for the Solar PV power plant. The applicable IFC Performance Standards (PS) are PS 1, 2, 3 and 4. PS5: Land Acquisition and Involuntary Resettlement is not applicable as the Battery Energy Storage System will be constructed within the perimeter of the 500MW Solar PV project, which uses land rented from the New and Renewable Energy Authority (NREA). PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources is not applicable as the site and nearby areas are not in modified, critical and/or natural habitat and/or host any endangered flora and/or fauna species or depend on ecosystem services that include the use of living natural resources; PS7: Indigenous People is not applicable as there are no indigenous peoples in the project area; and PS8: Cultural Heritage is not applicable as the project is not located in an area of known historical or cultural significance and does not impact any known cultural heritage. However, the project has developed a ‘Chance Finds Procedure’ in case of the identification of cultural/archaeological resources are identified in the area during construction and/or maintenance activities. The project extension (installing and operating of a Battery Energy Storage System) does not come with any major changes to the already identified environmental and social risks and opportunities (hence Cat B+, IFC PS 1-4 are applicable). The key differences are with a slightly longer (up to 6 months) Construction period (same Contractor) with further risks and opportunities for local communities (like jobs and training, community benefit sharing but also ongoing risks on health and safety, traffic), and modifications to the project environmental and social management system (ESMS). No additional land is required. The key risks include worker health and safety, working conditions, waste management, contractor management, community benefit sharing, and community health, safety, and security. The risks are significantly lower during the operational phase with a limited number of staff on-site required and limited remaining impacts on local communities.

More investments

Date	Total FMO financing
11/30/2022	USD 36.00 MLN