Project detail - AYURA SAS

Who is our prospective customer?

Solenium, a Colombian company founded in 2017 by local entrepreneurs, will act as a shareholder and the EPC contractor for the project. The company was established to contribute to a sustainable future by developing innovative technologies for the energy sector. Ayura, a family office with extensive experience in the flower, agriculture, and cattle industries, and more recently in solar energy, will join Solenium as a shareholder.

What is our funding objective?

Through a USD 30 mln loan, FMO will finance the development, construction, and operation of 40 mini-solar PV farms (“mini-farms” or “projects”) located across Colombia. Each farm will have an installed capacity of 1 MW (1.32 MWp), totaling 40 MW (52.8 MWp). The total project cost is estimated at around USD 40 mln. The projects are independent of one another and will be strategically located in various regions of the country, with a focus on areas with the highest solar radiation.

Why do we want to fund this investment?

This transaction will support the expansion of renewable energy projects in Colombia, aligning closely with FMO’s energy sector strategy. By reducing reliance on conventional power plants, these projects enhance energy sustainability. Their proximity to consumption points minimizes dependence on distant thermoelectric or hydroelectric sources, reducing transmission losses and saving transportation time. Moreover, distributed generation benefits end-users by improving service quality and ensuring a safer, more reliable electricity supply. FMO's additionality is evident in addressing Colombia's scarcity of long-term debt financing options, thereby mobilizing sustainable energy development.

What is the Environmental and Social categorization rationale?

The preliminary E&S risk category is B+, primarily due to the risk of the client unknowingly acquiring land under reclamation by vulnerable communities affected by violent land grabbing in Colombia. The ongoing internal conflict in the country also contributes to this classification. Solenium has established social, environmental, and security screening processes to avoid high-risk areas and to review land rights. However, the lack of a fully developed Environmental, Social, Health, and Safety (ESHS) management system and the ESHS team’s capacity to coordinate across projects will need to be strengthened. Additionally, mechanisms to manage risks associated with worker influx and to address grievances may need improvement. Solenium is working on tailored screening measures for sensitive biodiversity areas, economic displacement, and Indigenous Peoples' lands to ensure compliance with International Finance Corporation (IFC) Performance Standards (PS). Performance Standard 3 on Resource Efficiency and Pollution Prevention is not a concern due to the small scale of the mini solar projects.