Bir El Haffey
- Solar PV
- Business model
EDFI ElectriFI’s debt investment unlocked belgian DFI’s BIO debt financing, allowing the first project financing for a renewable energy independent pover producer in Tunisia. It will pave the way for other, similar projects to be financed on a no- or limited-recourse basis.
Contract signature date: September 2020
Total ElectriFI financing: EUR 1.93m
Environmental and Social Category: B+
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Brief description of the project: The project consists in a 10 MWp photovoltaic power plant in Central Tunisia, in the Governate of Sidi Bouzid.
Funding objective: Funding objective is to bring debt alongside a co-lender to ensure that the project company has together with the equity provided by the sponsors the financial resources to build the plant and connect it to the national grid.
Why ElectriFi wants to fund this project: This project will be one of the first photovoltaic independent power producer in Tunisia. It will pave the way for other similar projects to be financed on a no or limited recourse basis. It will also add the equivalent of 24,500 new implied connections, while saving about 9,900 tons of CO2 per year. The project is also expected to create 80 new jobs during construction and 5 to 10 new jobs during operations.
Environmental & social rationale:
The E&S risk category of the transaction has been classified as B+.
The main E&S impacts and risks relate mainly to labour conditions and safety during construction. The transaction will be managed in accordance with IFC Performance Standard 1,2,3, 4, 5 and 6. Performance Standard 7 is not triggered because there are no impacts on indigenous peoples. Performance Standard 8 is not triggered beyond the standard chance find procedure requirement. The current ESIA will be updated in accordance with IFC Performance Standards. Detailed environmental and social development plans are being developed and additional EHS management staffing will be mobilised.