PROJECT

Projects

Environmental & Social Review Summary

Project Number

36857

Company Name

ZINA SOLAIRE SA

Date ESRS Disclosed

Jan 30, 2024

Country

Burkina Faso

Region

Africa

Last Updated Date

Jan 30, 2024

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Aug 4, 2017
Signed : Dec 29, 2017
Invested : Apr 29, 2022

Sector

Solar - Renewable Energy Generation

Industry

Infrastructure

Department

Regional Industry - INF Africa

Project Description

 

Note: The original disclosure for this investment was done on September 20, 2016. Zina Solaire SA was then sponsored by Windiga Energy International Inc. (95% ownership) and the GoBF  (5% ownership), and Bouygues Energies & Services (“Bouygues”) was selected as the EPC and O&M Contractor, following a tender organized in 2015. However, the project was restructured, mainly due to the worsening security environment, with AMEA Power joining as the new Sponsor in 2020 while the EPC and O&M contracts were secured by Powerchina Huadong Engineering Corporation and its affiliate Sinohydro, respectively. Though the focus of IFC’s investment remained unchanged, the ESRS and ESAP have been updated to reflect the changes involved with the new ownership and the delay in the Project execution.

 

The project consists of the development, financing, construction, operation and maintenance of a greenfield 26.6 MWp solar photovoltaic power plant in Zina, Mouhoun region, in the South-West of Burkina Faso, 180 km west of Ouagadougou (the “Project”). The electricity generated from the project will be sold to Sonabel, the state-owned power utility, under a 25-year Power Purchase Agreement (“PPA”). The project will be connected to the national grid via a 7.8 kilometer transmission line. The 70 ha concession for the plant and 11 ha for the transmission line were granted by the Government of Burkina Faso (GoBF) under a 99-year lease agreement.

 

The project Company is Zina Solaire S.A., a special purpose vehicle incorporated in Burkina Faso (“Zina Solaire” or the “Company”). The Company will be 99.9% owned by AMEA Power (the “Sponsor”), a developer, owner and operator of renewable and thermal power projects across Africa, the Middle East and Asia, and 0.1% by the Government of Burkina Faso.

 

The plant and the transmission line will be built under an Engineering Procurement and Construction (EPC) contract. Powerchina Huadong Engineering Corporation Limited (Powerchina) will be the EPC Contractor for the Project, while its affiliate, Sinohydro Corporation, will be the O&M Contractor. The borrower, Zina Solaire, issued a Limited Notice to Proceed (LNTP) to Powerchina in August 2021. The construction has been started during the second quarter of 2022 and is expected to last 14 months.

 

The proposed IFC investment includes an IFC A loan of up to EUR 8.3 million and risk management products (interest and cross currency swaps). In addition, IFC intends to mobilize the remaining balance of the debt required for the Project, including a senior concessional loan of up to EUR 8.3 million from IFC as implementing entity of the IFC-Canada Climate Change Program (“IFC-CCCP”).

The nearest community to the site is Zina located approximately 1.5 km away with a population of 4,000 people. The access road crosses the following communities: Dangouna (approx. 2.7km from the solar plant site), Wona (also spelled Ouona, approx. 7km away), Somona (approx. 6.5km to the south), and Zina (about 4,000 people in total). Habitat is modified and land use is mostly agricultural. Currently on the site there are no structures and Zina Solaire intends to provide workers accommodations at a nearby mining site for about 10 workers. Powerchina will build additional temporary worker accommodations on site for about 100 people for the construction phase                                                

Overview of IFC's Scope of Review

  IFC’s review included an initial visit to the project site (transmission line and plant) in Zina, Burkina Faso from 15 to 19 July 2015. Meetings were held with the main stakeholders: local communities of Zina, Dangouna, Wona and Somona; representatives of the following ministries: Waters and Forests, National Office for Environmental Assessment, Energy and Hydraulics; and the Company Finance Manager and Engineer. IFC reviewed the following documentation: Environmental and Social Impact Assessment (ESIA, both 2011 and 2015 versions), Livelihood Restoration Plans for the transmission line and plant (2015, then updated in 2021), Financial Education Training Report (2021), Health, Safety, Security and Environmental Management Plan for the LNTP (2021), Security Management Plan (2021) and the draft EPC and O&M Contracts.

After AMEA took over the project in late 2019 and finalized appointment of the new EPC contractor in April 2021, updated environmental and social information was collected by IFC through a series of virtual discussions with the Company relevant personnel, including the Head of QHSE and the Project Development Director. Discussions related to resettlement and livelihood restoration took place in March and April 2021 and were supplemented by monthly Project update calls and email correspondence between July and December 2021. Key information reviewed included: AMEA’s corporate policies book which encompasses environmental, health and safety, social and quality policies, the ‘services contract terms and conditions’ between Zina solaire and the EPC Contractor, the HSE Management Plan for LNTP Works, the resettlement action plans (solar site and transmission line) with the associated livelihood restoration plans (LRP). No significant changes are expected in E&S risks and impacts and Company’s action plans for the project in its current configuration.                                                 

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
Zina Solaire PRME Ligne - Rev6.pdf
Zina Solaire PRME Centrale Zina - Rev6.pdf
Zina Solaire EIES-PGES Ligne - Rev6.pdf
Zina Solaire EIES-PGES Centrale Zina - Rev6.pdf