51381 - Project Itzamna

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Environmental & Social Review Summary

Project Number

51381

Company Name

ENERGUATE

Date ESRS Disclosed

Sep 30, 2025

Country

Guatemala

Region

Latin America and the Caribbean

Last Updated Date

Oct 1, 2025

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Aug 8, 2025
Signed : Sep 11, 2025
Invested : Sep 25, 2025

Sector

Distribution Business

Industry

Infrastructure

Department

Regional Industry INF LAC & EUR

Project Description

Energuate (the “company”), comprising Distribuidora de Electricidad del Oriente S.A. (DEORSA) and Distribuidora de Electricidad del Occidente S.A. (DEOCSA), is Guatemala’s largest privately-owned power distributor. It installs and operates low and medium-voltage lines from substations to rural, urban and peri-urban households within 200 meters of its network, contingent on municipal right-of-way access and safety compliance.
Energuate, serves 297 of Guatemala’s 340 municipalities across 21 of 22 departments, Energuate's coverage spans approximately 101,914 km²—94% of the country's territory—and reaches about 12 million people (73% of the population). It currently serves 2.5 million, mainly rural customers. Energuate supports the Government of Guatemala’s Rural Electrification Program by extending last-mile electricity access to marginalized communities.
The proposed investment entails an up to 10-year senior unsecured A/B Loan for up to US$[500-700] million to Energuate, out of which IFC will provide up to US$100 million from its own account. The B Loan will be mobilized through a public bond issuance (hence, the loan is referred to as “A/B Bond”). IFC’s own account (A Loan) will fund Energuate’s CapEx plan focused on low- and medium-voltage lines interconnection of new users, network improvements and maintenance, efficiency support of Guatemala’s grid by lowering energy losses, and GHG emissions reduction. Like the previous project, IFC proceeds will not be used for any investment-related activities within Alliance for Zero Extinction (AZE) and UNESCO World Heritage biodiversity sites (either natural sites or combined natural/cultural sites).

Overview of IFC's Scope of Review

IFC’s E&S Due Diligence (ESDD) took into consideration the 2023 appraisal and findings of last supervision for project #45818 and incorporated findings from document reviews and meetings held between February and June 2025. During the supervision visits, IFC engaged with management, operational teams, contractors, union representatives, and community members. The ESDD assessed the effectiveness of the company’s E&S Management System (ESMS) focusing on , risk and impact identification processes, including the application of the eligibility criteria for use of IFC proceeds ensuring exclusion of AZE and UNESCO World Heritage biodiversity sites, as well as inclusion of vulnerable groups including Indigenous Peoples (IP), labor and occupational health and safety (OHS), contractor oversight, community safety, risks related to sexual exploitation, abuse, and harassment (SEA/SH), biodiversity, cultural heritage protection and stakeholder engagement.

E & S Project Categorization and Applicable Standard

While all Performance Standards are applicable to this investment, IFC’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards

PS 1 - Assessment and Management of Environmental and Social Risks and Impacts
PS 2 - Labor and Working Conditions
PS 3 - Resource Efficiency and Pollution Prevention
PS 4 - Community Health, Safety and Security
PS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources
PS 7 - Indigenous Peoples

This is a Category B project given the size, scale and limited number of inherent E&S risks and impacts associated with low- and medium-voltage power distribution activities, which are site specific and temporary in nature and can be avoided or mitigated by adhering to recognized measures, design criteria and guidelines. Operating in a high-contextual risk environment, Energuate must adapt its management practices to ensure effective prevention and mitigation of potential impacts on the environment and communities.

Environmental and Social Mitigation Measures

Stakeholder Engagement

Energuate’s stakeholder engagement process is aligned with PS1 requirements. The company has completed stakeholder mapping that identifies different audiences and environments, the identification process has been developed in an inclusive manner identifying the valid representatives of each community to be involved in the process of community dialogue.

Energuate implements a detailed Customer Relations (CR) program, to manage customers and community relationships and concerns on the ground, through extensive and ongoing engagement. The CR team has 100 qualified professionals, many from the local communities, and speak local Mayan languages. The team also collaborates with officials at all levels of government and is locally stationed in one of the 10 regions served by the company.

A small percentage of Energuate’s customer base requires specialized interventions in conflict and dispute resolution that allow the company to restore its operations and maintenance activities, through peaceful and respectful means. This intervention is managed in coordination with the municipal and federal authorities, with participation from GoG’s human rights agencies. The GoG’s framework to restore peaceful and good faith relationships with conflict communities is called the ‘Road to Peace’ and aligns with IFC PS1, PS4 and PS7 requirements.

Grievance Mechanism for Affected Communities
Energuate has a grievance procedure and implements it as per IFC PS1 requirements, to manage claims, complaints, and requests related to commercial activities, accessible to all users in several languages and through various mediums (e.g., phone, email, customer offices, CR team, etc.), including all E&S concerns. All complaints are logged, directed to the responsible commercial and CR team liaison, and prioritized based on the significance and severity of the issue, given priority to safety and E&S concerns. As per ESAP#1, Energuate will update their Grievance Mechanism to be equipped with adequate provisions to address GBV/SEAH grievances with a survivor-centered approach. The updated GM will be managed by trained personnel and will be communicated to communities.

Ongoing Reporting to Affected Communities
Energuate proactively engages with stakeholders through various means, to keep these informed of service updates or issues, as well as line work (e.g., construction), agreements reached with communities served by the company, active corporate social responsibility programs relating to its reforestation activities or community outreach and development.

Broad Community Support

Environmental & Social Action Plan

S.no	Description	Anticipated Completion Date	Status
1	Energuate will conduct a feasibility study on “raptor friendly” pole/line design modifications and other circumstances and/or limitations which may be feasible to be implemented by Energuate in the future. The study will investigate the regulatory, technical and financial feasibility of implementation design options on primary voltage. The study will also consider priority areas in which to implement modifications in the future. Note: this action emanated from the previous transaction and duplicate din this ESAP.	09/30/2025	Completed
2	Energuate will integrate a survivor centered approach in the update of their Free Harassment policy, Workers Grievance Mechanism (WGM) and Community Grievance Mechanism (CGM). Together with its contractors, it will develop a plan to systematically communciate to direct and indirect to workers the updated WGM and promote its use. The updated CGM will be managed by trained personnel and will be communicated to communities	12/31/2025	Completed

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Similar Projects

Projects

Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

Local Access of Project Documentation

Broad Community Support

IFC's Determination of BCS

Environmental & Social Action Plan

Environmental & Social Action Plan

Press-Release

Related SII

Similar Projects

Information on E&S Complaints and Grievance Mechanisms

Disclaimer