PROJECT

Projects

Environmental & Social Review Summary

Project Number

32227

Company Name

PARQUES EOLICOS DEL CARIBE S.A.

Date ESRS Disclosed

Aug 17, 2012

Country

Dominican Republic

Region

Latin America and the Caribbean

Last Updated Date

Oct 17, 2018

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Sep 27, 2017
Signed : Dec 20, 2017
Invested : Oct 15, 2018

Sector

Wind Power - Renewable Energy Generation

Industry

Infrastructure

Department

CNGS7 - Gbl Infrastructure & Natural Resources/Infrastructure - LAC

Project Description

 The proposed transaction will finance the development, construction, operation and maintenance of a 50 MW greenfield wind power plant and related facilities. It entails an up to US$30 million A Loan, a client risk management product (i.e., interest rate swap) with a loan equivalent exposure of up to US$2 million, and a subordinated loan of up to US$17 million from the blended finance component from the Canada Climate Change Program (CCCP), which is a program financed by the Government of Canada and administered by IFC to support IFC's climate change mitigation projects. The total project cost is estimated at US$132.8 million. The project is being developed by Parques Eólicos del Caribe S.A (“PECASA” or the “Company”), a Special Purpose Vehicle (SPV), in the City of Guayubin (Montecristi Province), in northwestern Dominican Republic. Akuo Energy (“Akuo” or the “Sponsor”) owns 90.5% of PECASA.

The project is under construction and has a total capacity of 50MW, consisting of 25 Gamesa G114-2.1 MW, 80m hub height (“HH”) and 114m rotor diameter (“RD”) Wind Turbine Generators (“WTGs”). The WTGs will connect to a new substation also located in Guayubin that will increase the voltage from 34.5kV to 138kV. To facilitate the connection of the wind power plant, the Balance of Plant (“BoP”) Contractor will build a new 138kV 14km overhead line (OHL) that will tee into an existing 138kV OHL. Ownership of the new OHL and the substation will be transferred to the Grid Operator, Empresa de Transmisión Eléctrica Dominicana (“ETED”) upon commissioning. The project also involves the opening or improvement of 25 km of access roads. It is estimated that the construction period for the project will last 18 months. The nearest communities (El Copey and Los Limones) are located more than 2 km away from project’s boundaries.

Akuo has contracted the construction works under three main agreements: (i) with Akuo Energy including development services, construction management, and operations services; (ii) the Turbine Supply Agreement (“TSA”) with Gamesa covering the engineering, supply, delivery, installation, and commissioning of the WTGs, and (iii) the BoP for the civil and electrical works with Sociedad Española de Montajes Industriales S.A. (“SEMI”). Maintenance of the WTGs will also be contracted to Gamesa under an Operation and Maintenance (“O&M”) contract. The electricity generated by the project will be purchased by Corporación Dominicana de Empresas Eléctricas Estatales (“CDEEE”) acting as off-taker under a Power Purchase Agreement (“PPA”) with a 20 year duration starting at the Commercial Operations Date (COD).

Overview of IFC's Scope of Review

 IFC’s first disclosure of this project was in August 2012. The project was approved by the Board of the World Bank Group in January 2013. As the project was sold to another company, and  years have passed since the first evaluation, an update appraisal was undertaken consisting of a desk review of environmental, social, health and safety, and labor (ESHS) information provided by the company, including: an environmental and social impact assessment (ESIA); complementary assessments consisting of a bat study and avian monitoring surveys; ESHS management plans and procedures; environmental license; Environmental Compliance Reports - ICA (Informe de Cumplimiento Ambiental); as well as Akuo’s and PECASA’s policies and procedures that will be applied to the project.  In addition, in May 2017 IFC conducted a visit to the site where the wind farm will be constructed, visited the nearby communities Los Limones and El Copey, interviewed some of the land owners that will be affected by the project, traveled through the roads expected to be used for transportation of towers, blades and turbines, met with the Mayor and advisors of Villa Vasquez (where is the port and the main road from which the wind turbines will be transported until Guayubin), held technical meetings with Akuo’s and PECASA personnel and consultants in charge of deploying the project and managing ESHS issues, and met with the Director of Environmental Quality in the Ministry of Environment (MIMARENA).

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Client Documentation

File Name Actions
Inventario de murciélagos fase I parque eólico Guanillo.pdf
PECA_Environmental Impact Assessment.pdf
PECA_EstudioAvesDefinitivo.pdf
PECA_EstudioMurcielagos.pdf