Suez Wind Energy BOO Wind Power Plant 1.1. GW

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of senior debt financing on a project finance basis of up to USD 200m (the 'Loan') in favour of Suez Wind Energy S.A.E., a special purpose vehicle ('SPV') incorporated in Egypt for the purpose of constructing and operating a 1.1 GW wind farm in the Gulf of Suez region, Egypt (the 'Project')

Project ID 55457

Status Signed

Location

Egypt

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

Ahmed Rizk
arizk@acwapower.com
+201144100344
www.acwapower.com
SODIC EDNC, Building 5, 5th Settlement, New Cairo, Egypt, Arab Republic of Egypt

Project ID 55457

Status Signed

Location

Egypt

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

11 Dec 2024

Disclosure date

10 Oct 2024

Project Description

Project Objectives

The Project will support the Egyptian government in achieving its renewable energy targets and will be among the projects delivered under the 10 GW renewable energy capacity objective of the Energy Pillar of the Nexus for Water, Food, Energy ('NWFE'). By providing clean energy at one of the most competitive wind tariffs in the region and beyond, this Project will advance Egypt's renewable energy transition while harnessing the exceptional wind resources in the Gulf of Suez. Additionally, the Project is expected to enhance the environmental characteristics of Egypt's power sector by reducing emissions of local pollutants and CO2, as well as lowering water consumption.

Transition Impact

ETI score: 60

The Project will contribute to the Green transition impact quality as it will introduce additional renewable energy generation to Egypt's energy mix and assist the transition to a low-carbon economy in a country with high level of reliance on thermal power generation. The Project is expected to deliver sizeable environmental benefits, including expected annual CO2 emission savings of 2.2 million tonnes.

Client Information

SUEZ WIND ENERGY

Suez Wind Energy incorporated in Egypt will develop and implement the project. The Borrower will be established and owned by a consortium of sponsors that includes ACWA Power ('ACWA') and HAU Energy (together, the 'Sponsors').ACWA Power is an experienced international developer of power generation, desalinated water and renewable hydrogen production projects.HAU Energy is a newly established RE equity platform that will be ultimately owned by Meridiam (45%), Hassan Allam Utilities ('HAU', 30%) and EBRD (25%).

EBRD Finance Summary

USD 200,000,000.00

Total Project Cost

USD 1,062,800,000.00

Additionality

Financing structure: the EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g., a longer grace period than the market average. Such financing is necessary to structure the Project. EBRD offers a tenor, which is longer than available to the client in the market on reasonable terms and conditions.Risk mitigation:EBRD's involvement in the Project is additional due to the Bank's experience and track record with similar projects in Egypt and other countries of operation ('CoOs') which provides comfort to clients and investors, financial or strategic, by mitigating non-financial risks, such as country, regulatory, project, economic cycle or political risks.

Environmental and Social Summary

Categorised A (2019 ESP). The Project involves the development of a 1.1 GW Wind Power Project ('WPP') over two plots of land in the Gulf of Suez ('GoS') in Egypt.The GoS is located on a globally important bird migration flyway at the Rift Valley in the Red Sea, where concentrations of 13 migratory bird species pass through the area during the spring and autumn each year -and this may present a significant collision risk to various migrating bird species. This risk is compounded through existing as well as planned WPPs in the wider area as well as associated overhead transmission lines.The southern plot is located within the Gebel El Zeit Important Bird Area ('IBA') which has also been designated as Critical Habitat ('CH') as per EBRD's E&S Policy ('ESP'). The IBA is 100 km long and extends from north of Ras Ghareb and south to the bay of Ghubbet El Gemsa. It is an important corridor for migrating birds. Gebel El Zeit serves as a vital stepping-stone for birds that make the crossing between the western coast of the Gulf of Suez and south Sinai in spring. The ESP sets out strict requirements for the development of projects in CH, including the need for net gain of those biodiversity features that trigger CH designation, in this case various species of migrating birds. The northern plot is located outside of the IBA and is not CH, nevertheless bird migration over the plot is significant and the Project will need to ensure no net loss of biodiversity.Environmental and Social Impact Assessments ('ESIAs') have been conducted for both plots and supplemented with various studies and reports to meet ESP requirements including a Non-Technical Summary; Stakeholder Engagement Plan ('SEP'); Critical Habitat Assessments ('CHA'); Cumulative Effects Assessment ('CEA'); a Project Strategic Environmental and Social Assessment and Cumulative Impact Assessment ('SESA-CIA') focusing on the IBA; E&S Management documents; Biodiversity Management Plans; and a Biodiversity Action Plan ('BAP'), which sets out how the project will achieve the Bank's no net loss and net gain requirements. The ESIA documentation was reviewed by an independent lenders E&S consultant and the Bank and was disclosed on 10 October 2024. Environmental permits have already been issued for the Project. The Bank also has agreed with the Project a draft E&S Action Plan ('ESAP') to structure the Project in line with the ESP. This ESAP will be finalised prior to consideration of the Project by EBRD's Board.The ESIAs for the two plots have been developed in line with EBRD's ESP requirements and consider all relevant impacts and risks, with an emphasis on migrating birds. Two years of bird surveys have informed an assessment of impacts to birds supported by collision risk modelling and consideration of implementation of a regional Active Turbine Management Programme ('ATMP'), which involves radar assisted turbine shut down on demand and which applies to all wind power projects in the GoS and will apply to the Project. The Bank's experience of ATMP implementation in the GoS has proven to be highly effective at avoiding and reducing bird collision. The ESIA shows that impacts can be effectively mitigated but this would require robust implementation of the ATMP, particularly in the southern plot which experiences high numbers of birds flying through the WPP at collision height. This is likely to result in increased shut down during the migration seasons compared to other locations in the GoS.Three WPPs already exist in the IBA in an area that was determined through a government supported study in 2007 as less sensitive compared to other locations in the IBA and where WPPs can be developed (the green zone). The 2007 study sought to inform WPP development in the 656 km2 NREA Concessionary Area which falls within the boundaries of the IBA. The southern plot is located adjacent to these existing WPPs within the orange zone (where further study is required) but outside of an area of the IBA where, as per the same study, WPPs may not be installed due to migratory bird sensitivities (the red area). The red zone makes up 60% of the concession area. The CHA has determined the southern plot to be CH due to its location in an IBA and the number of migrating birds. A BAP has been developed to deliver a net gain in biodiversity, this after implementation of the ATMP to avoid and reduce collisions. The BAP includes offset and conservation actions in Egypt (e.g., retrofitting overhead transmission lines ('OHTLs') with bird diverters) and outside of Egypt. The CEA sets mortality thresholds for migratory birds which will inform the extent of offsets required. The BAP also considers the northern plot where no net loss is required. Bird mortality will be determined through a robust post construction fatality monitoring programme as part of the ATMP. One part of the mitigation approach for the southern plot includes removal of a dump site, which attracts birds and places them at increased collision risk. The northern plot includes a flood management dam which fills with water every couple of years and attracts various birds, including white stork. A 2 km buffer zone has been set around the dam to reduce bird collision risk. In terms of terrestrial biodiversity, the Egyptian Dabb lizard is present on both plots and will be subject to no net loss requirements.To better understand the sensitivity of the IBA for migrating birds versus the Project's southern plot and to consider cumulative impacts and additional mitigation measures, the Project has commissioned a SESA-CIA. This study draws on recent bird survey data (2024) gathered throughout the GoS to inform a future regional SESA-CIA. The study is in the process of being completed but initial indications are that bird migration and overall sensitivity increases in the south of the IBA and broadly aligns with the 2007 red zone. Despite this, the southern plot still experiences significant bird migration at collision height, as well as roosting/resting, and will be subject to extensive mitigation with residuals impacts offset to protect and enhance bird populations and meet ESP requirements. This Project Summary Document ('PSD') will be updated once the SESA-CIA is completed.The southern plot is located near to an inhabited area, Wadi Dara, and as such various assessments into noise, shadow flicker and visual impacts have been undertaken. This have indicated limited impacts on receptors. The northern plot is distant to any inhabited areas. The GoS is subject to flood risk which may be exacerbated by climate change and therefore a flood risk assessment has been conducted as part of the ESIA process and mitigants integrated into the design. As part of the ESIA disclosure a public meeting will be held which will build on previous consultation undertaken for permitting.Each WPP will require an overhead transmission line to connect them to the national grid. Due to network capacity constraints these OHTLs (both 500 and 220 kV) are extensive and extend into the IBA. Efforts have been made to relocate OHTLs outside the IBA but routes are determined by the Egyptian authorities and generally align with existing OHTLs. These OHTLs have been subject to an assessment of impacts with emphasis on bird collision risk. Various available data have informed the identification of higher risk areas. Bird diverters will be installed on all OHTLs with enhanced diverters in high-risk areas. The northern plot includes an OHTL which initially ran near to the flood risk dam. This has been moved to outside the 2 km buffer zone. OHTLs will be installed adjacent to existing OHTLs with towers staggered where possible to increase their visibility. Bird collisions will be monitored through the ATMP with regular carcass surveys. No net loss and net gain requirements apply and forms part of the BAP.The Project has selected Envision turbines and is currently undertaking supply chain due diligence. This PSD will be updated once this is completed.The Project will be monitored by an independent expert team during construction and during the first two years operation. EBRD's E&S staff will also undertake routine site visits.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

Ahmed Rizk
arizk@acwapower.com
+201144100344
www.acwapower.com
SODIC EDNC, Building 5, 5th Settlement, New Cairo, Egypt, Arab Republic of Egypt

PSD Last Updated

08 Nov 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.

Project ID 55457

Status Signed

Location

Egypt

Disclosure date

10 Oct 2024

Project description

The EBRD is considering providing a loan for the construction, commissioning and operation of a 1.1 GW MW wind power project (WPP) in Egypt. The WPP will be developed over two plots in the Gulf of Suez – the northern plot (1) and the southern plot (2).

ESIA disclosure package

Suez Wind Energy BOO Wind Power Plant 1.1. GW – SWE North (1):

Non-Technical Summary (NTS)
Stakeholder Engagement Plan
Environmental and Social Impact Assessment (ESIA) including assessment of OHTL.
Critical Habitat Analysis
Environmental and Social Management System Manual
Biodiversity Management Plan
Flood study
Bat Addendum Report

Download zip file of northern plot ESIA package in English

Download zip file of northern plot ESIA package in Arabic

Suez Wind Energy BOO Wind Power Plant 1.1. GW – SWE South (2):

Non-Technical Summary (NTS)
Stakeholder Engagement Plan
Environmental and Social Impact Assessment (ESIA) including assessment of OHTL
Critical Habitat Analysis
Environmental and Social Management System Manual
Biodiversity Management Plan
Flood study
Bat Addendum Report

Download zip file of southern plot ESIA package in English

Download zip file of southern plot ESIA package in Arabic

Additional:

Draft Environmental and Social Action Plan (ESAP)
Cumulative Effects Analysis for Plot 1 and Plot 2
Biodiversity Action Plan for Plot 1 and Plot 2
Scope of work: Project Strategic Environmental and Social Assessment and Cumulative Impact Assessment
Bird Migration Study for Suez Wind Energy ACWA Power BOO Wind Power Plant 1.1 GW during Spring and Autumn seasons, 2022
Spring Bird Migration Study Suez Wind Energy BOO Wind Power Plant 1.1. GW – SWE Plots 1 & 2, 2023
Autumn Bird Migration Study Suez Wind Energy BOO Wind Power Plant 1.1. GW – SWE Plots 1 & 2, 2023

Download zip file of additional documents

Final Migration of Soaring Birds at Gebel El Zeit IBA and WPPs (Project SESACIA)

Biodiversity Action Plan

Final ACWA 1.1 GW Environmental and Social Action Plan

Full ESIA availability

Full ESIA documentation is available locally at:

Ras Ghareb Local Governmental Unit

Ras Ghareb City Council Offices

Al-Mina Street, 11432 Ras Ghareb – Red Sea, Egypt

Tel: 01001318480 or 01201958777

And

SWE Project office: SODIC EDNC, gate 9, building 5, third floor, 5th settlement new Cairo, Egypt, New Cairo, Arab Republic of Egypt

And

EBRD Resident Office in Cairo

EGID Building, First Floor, Block 72, off Ninety Axis, 5th Settlement, New Cairo, Cairo, Egypt

And

https://acwapower.com/en/projects/suez-wind-energy-11-gw/

Enquiries

Environmental or social enquiries:

Contact Name: Ahmed Rizk

Email: arizk@acwapower.com

Web: https://acwapower.com/en/projects/suez-wind-energy-11-gw/

General enquiries:

Contact Name: Walid Habib

Email: whabib@acwapower.com

Web: https://acwapower.com/en/projects/suez-wind-energy-11-gw/

This document was prepared at an early stage of project development, before consideration by the EBRD Board of Directors. Details of a project may change following disclosure.

Environmental and Social Impact Assessments and ESIA summaries are produced by project sponsors, and the EBRD makes them available without any comment or implied endorsement. Any views expressed or statements made in the Environmental and Social Impact Assessment or the ESIA Summary do not necessarily reflect the views or opinions of the EBRD.

Last updated 25 June 2014

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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Suez Wind Energy BOO Wind Power Plant 1.1. GW

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)

Project description

ESIA disclosure package

Full ESIA availability

Enquiries