PROJECT

Projects

Summary of Collaboration or Co-Development Project

Project Number

608336

Sponsor

Regie de Production et de Distribution d'Eau et d'Electricite,Virunga Power Holdings Ltd.

Date SCCP Disclosed

Jun 13, 2024

Country

Burundi

Region

Africa

Last Updated Date

Jun 18, 2024

Industry

Infrastructure

Sector

Palm Oil Plantations

Department

Regional Industry - INF Africa

Project Description

Virunga Power Holdings Limited (“Virunga”) and International Finance Corporation (“IFC”) entered into an agreement under which IFC will support the development of a new greenfield distribution utility in Burundi. Virunga is the developer of the project, and IFC will fund up to US$ 1 million of early-stage development activities and provide technical assistance, subject to ongoing compliance with IFC Performance Standards. The new utility, Weza Power, will be a private-sector electricity distribution company operating at a national level in Burundi under the framework of a Public-Private Partnership. Access to electricity in Burundi is among the lowest in Sub Saharan Africa, and the country has one of the lowest GDP per capita in the world. Weza Power will bring clean, affordable, and reliable power, helping Burundi reach its universal access to energy goal. Through this collaboration, IFC will work closely with Virunga, finance feasibility studies, support Environmental and Social ("E&S”) activities, review bankability considerations, and carry out due diligence activities on other workstreams.

E & S Information

Under this Upstream phase, IFC financing will contribute to among others, E&S studies (including ESMF, ESIA, RAP/LRP, BMP) to be led by the client and supported by IFC for the distribution extension sub-projects. These E&S studies will need to comply with IFC Performance Standards as well as WBG EHS Guidelines (general and Sector specific). The distribution extension sub-projects will be financed under a subsequent Upstream phase as a pilot (not under this Collaboration agreement). Based on the current information, some of the key E&S risks to be considered in the E&S studies to be developed include impacts on biodiversity (bird or primate electrocution), land acquisition (physical or economic displacement), community health and safety risks (during construction and operation) and indigenous people (IPs) (Batwa community). The other key E&S issues associated with this project will be: (a) Virunga’s E&S management systems, a newly developed ESMS for Weza Power, and staffing to manage construction and operations in line with IFC PSs (b) fair, safe and healthy working conditions for employees and contract workers in line with PS2 and applicable legal requirements (c) contractor and sub-contractor management systems for construction and operation phase especially focusing on occupational, health and safety (d) emergency preparedness and response (e) community impacts due to construction, traffic, security and operations and (f) stakeholder engagement.