Sidi Bouzid - Equity Bridge Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of an Equity Bridge Loan ("EBL") to fund Scatec's equity commitment in the construction and operation of a 50 MW solar PV plant located in the area of Sidi Bouzid, in Tunisia (the "Project").

Project ID 55252

Status Disbursing

Location

Tunisia

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Vegard Skonseng Bjerketvedt
vegard.skonseng.bjerketvedt@scatec.com
+4741686470
http://www.scatec.com
Askekroken 11, 0277 Oslo, Norway

Project ID 55252

Status Disbursing

Location

Tunisia

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

03 Dec 2024

Disclosure date

10 Dec 2024

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Project Objectives

The Project will promote private sector participation in the Tunisian power sector. By adding 50 MW of green generation capacity to the Tunisian power system - currently dominated by gas-fired power plants (94.7% of installed capacity), the Project will reduce reliance on thermal power generation and increase the share of renewable energy in the energy mix in line with the nationally declared targets.

Transition Impact

ETI score:80

roject will contribute to the "Green" transition quality by adding 50 MW of new renewable capacity to the Tunisian electricity generation sector currently dominated by thermal power plants, thus contributing to a reduction in CO2 emissions.

The Project will also support the "Competitive" quality by funding a renewable project developed by a private developer in the power generation sector, which remains majority-owned by state-owned STEG.

Client Information

SIDI BOUZID HOLDCO BV

Sidi Bouzid Holdco B.V. is a limited liability company incorporated in the Netherlands, established to hold the ownership of a solar PV power plant in the area of Sidi Bouzid,Tunisia,with an installed capacity of 50MW. The Borrower is ultimately owned by Scatec(51%) and Aeolus SAS(49%), part of the Japanese conglomerate Toyota Tsusho Group.

EBRD Finance Summary

EUR 10,000,000.00

Total Project Cost

EUR 10,000,000.00

Additionality

Financing structure: the EBL is needed to ensure the Project viability in view of tight economics and, allow Scatec to free up capital to scale up its renewable portfolio including in the Bank's COOs.

Innovative financing structures and/or instruments: EBLs are not readily available from international and local banks.

Risk mitigation: Scatec will benefit from EBRD's support in view of the Bank's active policy engagement in the Tunisia power sector as well as the Bank's experience and track record in the renewables sector across the COOs.

Policy, sector, Institutional or regulatory change: The Bank's additionality is underpinned by extensive policy dialogue in developing the renewable energy regulatory framework in Tunisia and supporting the restructuring of the energy sector over the past 8 years.

Environmental and Social Summary

Category B (2019 ESP). Construction of the Project is not associated with significant adverse environment and social impacts. The environmental and social due diligence (ESDD) was carried out for the Project by an independent consultant; it included the review of an information package supplied by the client, visits of the site, and a review of the E&S Scoping Studies conducted previously for the PV site and the transmission line. The environmental and social (E&S) risks and impacts associated with construction and operation of the solar 50 MW PV plant and associated transmission line (2.5km) is site specific, readily identified and will be managed by the implementation of an Environmental and Social Action Plan (ESAP) and monitoring.

The Project will be designed, built and operated by companies that are majority owned by Scatec ASA. The transmission line will be designed and built under STEG's control, and operated by STEG. The ESAP requires Scatec to i) assign an E&S manager in Tunisia before the start of the construction, ii) include E&S clauses in the construction contracts, iii) develop an E&S management system aligned with ISO14001 standards for the operation phase. The construction of the Project already started in September 2024 and (i) & (ii) have been already met. The Project do not require an environmental permit under the Tunisian legislation.

Up to 300 construction personnel will be employed during the peak period of the construction works on the site. The recruitment of local workforce will be implemented through a transparent mechanism agreed with the local population representatives and the employment bureau, as confirmed in the ESAP. The Scatec Global HR policy, aligned with PR2, will apply to the Tunisian company and cascaded to project's workers as appropriate. Worker grievance mechanisms will be developed by Scatec during the construction phase. Scatec has prepared specific Health, Safety and Environment Management Plans (HSEMP) before the start of construction. Scatec has experience building and operating such PV plants in compliance with international standards and ISO 14001 / ISO 45001 standards. Scatec has comprehensive procedures in place to assess forced labour risks in its solar supply chain, and the specific supply chain of the Project has been cleared according to the Bank management approach.

There is no domestic water network at the PV site; the main source of water will be from cisterns/ tankers brought to sites. The ESAP recommends waterless solution for solar panel cleaning. This is in progress and Scatec confirms a robot solution performing dry cleaning has been landed on for cleaning.

Scatec requires PV panels' suppliers to meet the key objectives of the EU Directive on Waste Electrical and Electronic Equipment (WEEE) in terms of collection, treatment, recovery and environmentally sound disposal. This requirement is reflected in the scope of work defined in the Sub EPC contractors. The CO2 emissions avoided are estimated to be approx. 54,000 tCO2 eq for the Project. The LARF prepared for the Project confirmed no housing or economical activities on the sites and no livelihood restoration measures is needed.

The Project does not encroach on protected or internationally recognized areas, and the Project is not affecting critical habitats (the main type of habitat is sandy-clayish desert). Reptiles (snakes, lizards, geckos...), out of whom many species are classified as "rare and endangered" under the Tunisian legislation, are present on both sites. Fences around the PV site will also be designed so that they allow reptiles passage. The Project will, together with the existing adjacent STEG PV plant, cause a cumulative reduction of pathways; this will be addressed by using mesh wire fence at Scatec PV site that allows ecological continuity for reptiles.

The Project's site is not located next or close to a cultural or historic site that might be visually impacted. Scatec is required to prepare a change find procedure prior to the construction. Overall, necessary measures have been put in place in the ESAP agreed with the client under the Project and its implementation and E&S performance has been constantly monitored by an external advisor and all on track after signing the Project. Scatec is committed to develop Community Development Initiatives in the Project area, based on a needs assessment. A Stakeholder Engagement Plan (SEP) has been developed during ESDD; it will be disclosed by Scatec. The Bank will monitor closely the implementation of the ESAP, through review of annual Environmental and Social Reports (AESR), periodic independent reporting of the Lender Advisor, as well as communications with the Company and site visits, as necessary.

Technical Cooperation and Grant Financing

None

Company Contact Information

Vegard Skonseng Bjerketvedt
vegard.skonseng.bjerketvedt@scatec.com
+4741686470
http://www.scatec.com
Askekroken 11, 0277 Oslo, Norway

PSD Last Updated

10 Dec 2024

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Sidi Bouzid - Equity Bridge Loan

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)