PROJECT

Projects

Environmental & Social Review Summary

Project Number

43011

Company Name

KAIROUAN SOLAR PLANT S.A.R.L

Date ESRS Disclosed

Oct 26, 2022

Country

Tunisia

Region

Africa

Last Updated Date

Jun 2, 2024

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Dec 22, 2022
Signed : Sep 26, 2023
Invested : May 30, 2024

Sector

Solar - Renewable Energy Generation

Industry

Infrastructure

Department

Regional Industry - INF Africa

Project Description

The proposed investment seeks to support a 100MW solar photovoltaic (“PV”) project in Tunisia (the “Project”) which was awarded in 2019 following a competitive tender to a consortium coordinated and led on an operational day-to-day basis by AMEA Power Ltd (“AMEA” or the “Company”). AMEA is an Emirati based renewable energy company founded in 2016 and headquartered in Dubai. The Project Company, a special purpose vehicle, Kairouan Solar Plant Sarl. (“KSP”) has been set-up.   IFC (the “Lender”) will provide up to US$20 million from its own account and up to $17 million from IFC as implementing entity of the Clean Technology Fund; additional funds will be provided by African Development Bank (together with IFC and AfDB, the “Lenders”).  The project is still in the design stage and is expected to be completed within 16 months after groundbreaking under a turnkey, fixed price Engineering Procurement and Construction (“EPC”) contract.  The EPC contractor is yet to be selected while construction activities are expected to commence in Q1 2023.  The plant is anticipated to be operational for 20 years and then handed over to the Government of Tunisia

 

The proposed project site is located in the Kairouan Governorate in the delegation of Sbikha, around 110km south of Tunis, 15km north of Kairouan and about 500m northeast of the Sbikha Industrial zone.  The proposed plant will be built on a 2km2 plot owned by the Government and leased to the company.  The site is uninhabited and is part of the larger Metbasta desert rangeland area.  The closest identified residential areas are the villages of Al Metbasta and Al Bshashma, located approximately 2.2km to the south and 4km to the northeast respectively. 

 

The plant will consist of a utility grade grid-connected PV array power system, carried on a horizontal single-axis beam tracker, consisting of approximately 220 thousand, bifacial crystalline PV panels with anti-reflective coating.  Preliminary design indicates that the plant will include string inverters stations, converting direct current from the panels to alternating current, and a substation, converting to appropriate voltage for connection directly to the national grid with no storage batteries required.  Connection to the grid will be through an 8km, high voltage 225 kilovolt OverHead Transmission Line (“OHTL”) constructed and operated by the Société Tunisienne de l'Electricité et du Gaz (Tunisian Company of Electricity and Gas – “STEG”).  The plant will also include ancillary structures like office and data control building, warehouses and workshops, and internal roads; the plant will be completely fenced.  Access to the site is via the existing regional road 171 running north-south about along the site east boundary.

 

The project is expected to employ approximately 450 (peak) workers during the construction stage, of which 100 would be skilled and 350 unskilled, during the construction phase. During the Operation and Maintenance (“O&M”) phase, to be carried out by a specialized contractor under KSP supervision, 45 workers, 10 skilled and 35 unskilled, are expected to be involved on site working in shifts. The E&S policies and procedures at the level of the Project Company will reflect those of AMEA.

Overview of IFC's Scope of Review

As a result of the travel restrictions arising from the COVID-19 pandemic, appraisal of the company and the project was conducted through a desktop review of relevant documentation, the company’s responses to a series of Environmental, Social, Health, and Security (“ESHS”) questionnaires, calls with the client, and an Environmental Social Due Diligence Report developed by the Lender’s Technical Advisor.  The due diligence report was based on available project documentation, the project Environmental and Social Impact Assessment (“ESIA”), and a two- days site visit.  The site visit was conducted, on the Lenders’ behalf, from August 31 to September 1, 2021, by the Lenders’ Technical Advisor team, which included three local specialists, to verify site conditions and meet key project stakeholders (e. g. representatives of the surrounding communities of El Alem, El Dallousi, and Al Metbasta, Governor of Kairouan and chamber of commerce, several national agencies including those for waste, agriculture, environmental protection, STEG north district, etc.).  The company’s ESIA consultant, along with company representatives, also participated in the visit and provided updates related to the ESIA and the project development.  IFC’s appraisal focused on the company’s capacity to manage ESHS risks and compliance with the Tunisian regulatory requirements and IFC’s Performance Standards (“PSs”) and World Bank Group’s Environmental, Health, and Safety (“EHS”) Guidelines.  Specific items reviewed included: (i) the company’s and KSP’s capacity to manage project ESHS risks; (ii) Human Resources (“HR”) policies and procedures especially related to working conditions and terms of employment; (iii) construction related Occupational Health and Safety (“OHS”) for its staff, contractors and any primary labor supply chain issues associated with migrant and/or seasonal workers (i.e. forced and child labor); (iv) water resource availability; (v) community health and safety and security; (vi) early engagement with surrounding communities and other stakeholders; (vii) no-net loss of natural habitat; and (viii) loss of ecosystem services (e.g. reduced grazing area) opportunity for some stakeholders.

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
Annexes.pdf
Kairouan Solar Power ESIA.pdf