IFC’s appraisal considered the environmental and social management planning process and documentation for the Project and gaps, if any, between these and IFC’s requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and (if applicable) in an agreed Environmental and Social Action Plan (ESAP). Through implementation of these measures, the Project is expected to be designed and operated in accordance with Performance Standards objectives.
PS1: Assessment and Management of Environmental and Social Risks and Impacts:
Environmental and Social Management System and Policy
Scatec’s Environmental Policy Statement dictates that all power plants managed by the company are required to maintain an ESMS in accordance with ISO 14001:2015. Scatec’s corporate ESMS establishes a framework for identifying and managing E&S risks at both the company and project levels in line with applicable regulations and IFC’s requirements. The corporate ESMS applies to Scatec, its subsidiaries, and joint ventures where Scatec holds a majority ownership interest including this Project. The ESMS describes the management of E&S aspects across the full project lifecycle, from initial project assessment through planning, construction, operation, and closure/decommissioning. Its requirements are equally applicable to EPC contractors and subcontractors.
The Project Company (Shadwan) has not yet established a project-level ESMS. Under ESAP #1, the Project will develop and maintain a project-specific ESMS for both construction and operation. The ESMS will be based on Scatec’s corporate ESMS and will operationalize applicable policies at the project level. It will be aligned with IFC requirements, good international industry practice (GIIP), and local E&S regulations, and will be commensurate with the Project’s E&S risks and impacts. The ESMS will be translated into the local language, as needed, and communicated to contractors, workers, and affected communities. It will also include ESMPs, communication, training, monitoring, audit requirements, and a legal and permit register (ESAP #2). The permit register will support the identification, acquisition, and tracking of all applicable E&S permits throughout the Project lifecycle and will be regularly updated.
Identification of Risks and Impacts and Management Programs
Identification of the Project's E&S risks and impacts have been assessed through the ESIA for the Shadwan wind farm and the OHTL ESIA in accordance with national legislation and IFC Performance Standard requirements. An environmental approval for the Project was obtained from the Egyptian Environmental Affairs Agency (EEAA). The identified key risks and impacts for the wind farm are related to biodiversity, labor influx and worker accommodation, community health and safety, traffic and transport, water supply, waste and wastewater management, security, and cumulative impacts. Key E&S risks and impacts identified for the OHTL include avifauna collision risk, biodiversity disturbance, flash flood exposure, construction-related dust/noise and traffic, worker and community health and safety, Electro Magnetic Field (EMF) exposure, and potential interface risks with existing infrastructure and utilities. The ESIA also includes a Non-Technical Summary (NTS), a Stakeholder Engagement Plan (SEP), a CHA in accordance with PS6, a CEA to identify priority Valued Environmental Components (VECs), a BAP and a BMP.
In addition to the Construction Environmental and Social Management Plan (C-ESMP) and the Operation ESMP (O-ESMP) included in the ESIA and which the Project’s EPC, contractors and subcontractors are required to implement, Scatec EPC has also prepared a separate C-ESMP for the Shadwan wind power project, which provides the framework for E&S management during the construction phase. The C-ESMP includes provisions related to resource efficiency, waste and wastewater management, air quality and noise management, hazardous materials management, environmental monitoring and reporting, labor management, grievance management, and contractor management. It also requires contractors, where applicable, to develop project-specific E&S management plans to manage risks associated with their activities. The C-ESMP was developed in accordance with applicable Egyptian regulations and relevant international standards, including the IFC PSs and the WBG EHS Guidelines. An O-ESMP will also be developed implemented and cascaded by the Project company to the O&M contractor prior to operation.
E&S Organizational Capacity and Competency
The Project has established an E&S organizational structure for the construction phase. The Project C-ESMP assigns E&S responsibilities to key Project on-site personnel including a Health, Safety, Security and Environment (HSSE) Manager, supported by an HSSE Officer, Social Specialist and Community Liaison Officer (CLO). Biodiversity oversight responsibilities are subcontracted to the Regional Center for Renewable Energy and Energy Efficiency (RCREEE) and SafeSoar, including support for bird monitoring, shutdown protocols, and biodiversity management commitments. The Contractors and the future Project O&M contractor are required to appoint qualified HSSE personnel and appropriate environmental and social specialists commensurate with the scale and duration of the Project. To strengthen the current HSE personnel, the Project shall complete the recruitment and deployment of a qualified Community Liaison Officer (CLO) and Labor Compliance Officer (LCO) to support stakeholder engagement and labor management activities to support the adequate implementation of the C-ESMP (ESAP#3)
EHS Training
Scatec’s corporate management system includes E&S training and competence requirements. For Shadwan, project-specific E&S training programs will be developed and implemented by Scatec EPC and Contractors to ensure that workers, supervisors, and managers understand their responsibilities under the ESMS and ESMPs. Training will cover key topics including OHS, labor and working conditions, community engagement, code of conduct, emergency preparedness, and relevant environmental management measures, and will form an integral part of ESMS implementation (ESAP#1).
Emergency Preparedness and Response
The ESIA identifies a range of emergency situations that may occur during the construction and operation phases and requires the development of project-specific Emergency Preparedness and Response Plans (EPRPs) for both phases. The EPRPs are required to establish emergency communication and management processes, notification and response procedures, emergency control measures for incidents including fire, accidents, spills, traffic accidents and natural disasters, as well as measures to address Project-specific risks associated with the remoteness of the site, medical emergencies, sand and dust storms, and extreme hot and cold weather conditions. The EPRPs are further required to define emergency equipment and assembly arrangements, training requirements, monitoring and reporting requirements, and roles and responsibilities for personnel involved in implementation. The EPC Contractor and Project Operator are required to provide emergency response training as part of the Project training program.
Project-specific EPRPs for construction and operation are yet to be finalized, and as per ESAP # 4, the Project is required to prepare and implement construction and operation-phase EPRPs in accordance with IFC PS1, covering defined emergency scenarios, roles and responsibilities, communication and evacuation procedures, emergency equipment and medical response, contractor and external emergency service coordination, staff training, and periodic drills with corrective actions tracked to closure.
E&S Monitoring and Reporting
The ESIA and associated supporting studies establish a baseline for monitoring E&S performance during the construction and operation phases of the Project. Monitoring requirements are identified within the C-ESMP and supporting management plans for key environmental and social aspects, including biodiversity, stakeholder engagement, occupational health and safety, community health and safety, waste management, water resources, air quality and noise. The C-ESMP further establishes requirements for performance monitoring and evaluation through environmental and labor inspections, internal and external audits, contractor audits, corrective action tracking and maintenance of Project records. The C-ESMP also requires the EPC Contractor to monitor implementation of the ESMS by Contractors. In addition, the Biodiversity Conservation Programme included within the C-ESMP establishes monitoring and reporting requirements for biodiversity management, including compliance inspections, documentation of wildlife incidents, monitoring of bird migration and shutdown programs, and review of monitoring data to support adaptive management. The Project has commenced monitoring activities, such as daily HSE inspections, tracking water consumption, waste and wastewater disposal.
Supply Chain
Scatec has established a three-stage supplier due diligence and management framework comprising legal due diligence at registration, desktop assessment of supplier management systems, and final audits and detailed due diligence prior to contract award, followed by ongoing monitoring of supplier compliance with environmental, social, quality, and human rights requirements.
For the project, these corporate requirements will be applied through project specific contractor and supply chain management arrangements to be implemented by the project company and Scatec EPC. These arrangements will assist that E&S risks associated with contractors, subcontractors, and suppliers are identified, managed, and monitored in line with the project’s ESMS (ESAP#5).
PS2: Labor and Working Condition:
Early works construction works commenced in June 2026 and are expected to continue for approximately 31 months. The Project is expected to generate approximately 2,000 employment opportunities during peak construction, including approximately 300 skilled and 1,700 semi-skilled and unskilled positions, whereas the workforce will be reduced significantly during operation to 100 workers for a period of 25 years.
Human Resources Policies and Procedures
Scatec has a Global Human Resources Policy which establishes the Company's framework for the effective management of project personnel, while committing to compliance with applicable local labor legislation. The policy further provides guidance on recruitment, diversity, equity, inclusion and belonging, equal opportunity, business conduct, work-life balance and flexibility, remuneration, learning and development, and personal data and privacy. It also strictly prohibits the employment of persons under 18 years of age. For the Project, these corporate requirements will be operationalized through project-specific HR Policy and procedures to be developed and implemented by the Project company. The policies and procedures will clearly describe employment terms, working hours, wages, overtime, benefits, disciplinary procedures, and termination processes and will be reflected in written contracts signed with the employees. (ESAP#6).
The Project is also governed by Scatec's Code of Conduct, which establishes mandatory requirements for directors, managers, employees, contractors, consultants and business partners. The Code promotes compliance with applicable laws and regulations, ethical business conduct, reporting of concerns, protection of human rights, respect in the workplace, health, safety, security and environmental responsibilities, and engagement with local communities.
Given the large construction workforce required and the intend to prioritize local recruitment, the Project shall develop, adopt and implement a Project-specific Local Recruitment and Procurement Procedure that prioritizes employment opportunities for qualified individuals from local communities. The procedure shall establish transparent, fair, and non-discriminatory recruitment processes and promote equal employment opportunities for all candidates, including women, while maximizing local procurement benefits where possible (ESAP#6).
Working Conditions and Terms of Employment
Scatec has developed the EPC- Employer's Business Principles – Labor Requirements which establishes minimum labor requirements for Contractors and subcontractors. The document addresses key labor and working conditions topics, including terms and conditions of employment, recruitment, working hours, wages and payroll, accommodation, equal opportunity and non-discrimination, training, worker grievance mechanisms, and compliance with applicable national labor legislation and lender requirements. Workers confirmed that they work in compliance with prescribed Egyptian working hours, understand the basics of the grievance mechanism, had signed contracts, were receiving their wages in a timely manner and were provided access to welfare facilities, transportation and accommodation free of charge. Workers also confirmed that their induction included information on the Project’s code of conduct.
Worker Accommodation
All project workers are currently accommodated in Ras Ghareb city with a worker’s camp to be established by the substation contractor in the substation area. The camp will measure 28 m x 100 m and have a total of 28 rooms, with an expected carrying capacity of 200. Details of room design, i.e., bed spacing, storage, etc., are still pending. The ESIA requires Scatec EPC to develop a Worker Influx and Accommodation Plan as part of the C-ESMP. The Project C-ESMP further identifies potential environmental, worker welfare and community impacts associated with worker accommodation and establishes management measures relating to accommodation standards, hygiene and sanitation, worker welfare, accommodation location, community interactions and inspections. The C-ESMP also establishes monitoring requirements, including regular inspections of worker accommodation, where applicable, to verify compliance with national requirements and the IFC/EBRD Workers’ Accommodation Guidance Note.
The Project has identified accommodation-related risks and impacts of non-local worker influx into the Ras Ghareb community to include: i) increased pressure on local resources, infrastructure and social services; ii) increased social pathologies such as drug and alcohol abuse; iii) GBVH; and iv) increased incidence of communicable diseases. As per ESAP #7, the Project will require that Scatec EPC assesses and mitigates the risks and impacts in relation to worker accommodation, accommodation suitability, and life and fire safety. and established requirements for management of worker accommodation where applicable.
Workers’ Organizations
Scatec’s Global Human Resources Policy and Code of Conduct recognize employees’ rights to freedom of association and collective bargaining, including the right to join trade unions, form workers’ organizations, and enter into collective agreements. The C-ESMP reinforces this commitment through compliance with relevant ILO conventions, including Conventions No. 87 and No. 98, and commits the Project to providing fair and safe working conditions while respecting freedom of association.
Non-Discrimination and Equal Opportunity
Scatec’s Diversity, Equity, Inclusion and Belonging (DEIB) Policy demonstrates a corporate commitment to diversity, inclusion, equal opportunity, and human rights across all levels of the organization, including a zero-tolerance approach to workplace sexual harassment. The policy also requires recruitment targets to promote gender balance and the inclusion of persons with disabilities or special needs. These commitments are reinforced through Scatec EPC’s labor requirements, which mandate equal opportunity and prohibit discrimination, harassment, bullying, and victimization on a wide range of protected grounds. In addition, the EPC Contract requires the contractor and subcontractors to maximize female workforce participation where practicable.
Grievance Mechanism
Scatec requires the establishment and implementation of a Project-specific worker grievance mechanism during both construction and operation. The mechanism provides multiple grievance channels, allows anonymous submissions, includes procedures for managing Gender Based Violence, Harassment, Sexual Harassment, and Sexual Exploitation & Abuse (GBVH/SH/SEA) complaints, and defines clear processes for grievance receipt, registration, investigation, response, monitoring, escalation, and close-out. Responsibilities for grievance management are assigned to designated Project personnel, and contractors are required to establish their own grievance mechanisms while allowing access to the Project mechanism.
The Project has established a worker grievance framework that is aligned with IFC PS2 requirements. The mechanism includes multiple reporting channels, defined roles and responsibilities, and procedures for timely grievance management and resolution. Effective implementation by Scatec EPC and the O&M Contractor will be required throughout construction and operations.
Child and Forced Labor
Scatec’s Group HR Policy prohibits the employment of anyone under 18 years of age and the use of products produced through child labor and requires business partners to adhere to the same ethical and human rights standards. Scatec’s Code of Conduct and Human Rights Policy also prohibit forced labor and commit the company to operating in line with the UN Guiding Principles on Business and Human Rights (UNGPs), the UN Global Compact (UNGC), and the Organization for Economic Co-operation and Development (OECD) Guidelines for Responsible Business Conduct.
Occupational Health and Safety (OHS)
For the project, OHS risks are expected to be significant due to the scale of construction activities, remote location, heavy lifting, working at heights, traffic and transportation movements, and the establishment of worker accommodation facilities. The Project will rely on contractors and subcontractors, particularly during the construction phase. Scatec’s EPC contract establishes OHS requirements covering performance monitoring, compliance evaluations, incident investigation, corrective actions, record keeping, and workplace inspections. The Project will develop phase-specific Occupational Health and Safety Plans (OHSPs) (ESAP #7) that will include defined roles and responsibilities, risk assessments, job safety analyses, permit-to-work systems, working at heights, lifting, and Lock Out Tag Out (LOTO) procedures, among others. Evidence of OHS implementation was observed during early works construction works, including permits to work, risk assessments, method statements, PPE use, inspected and tagged equipment, flagmen, and barricaded excavation areas.
Workers Engaged by Third Parties
Scatec has established labor requirements for Scatec EPC, which dictates compliance with national labor legislation, lender requirements, IFC PS2, and Project-specific E&S standards. The requirements address key labor topics, including recruitment, equal opportunity, working hours, worker accommodation, training, and grievance management. The Project will develop and implement a labor compliance monitoring process to verify that contractors and subcontractors manage the construction workforce in accordance with Scatec and IFC PS2 requirements as per ESAP #8 and maintain labor records, including employment contracts, wages, overtime, working hours, social security contributions, training, accommodation, and worker grievances. The process will include periodic record reviews, worker interviews, bi-annual contractor labor audits and weekly inspections, responsible personnel, and corrective action tracking to closure.
PS3: Resource Efficiency and Pollution Prevention:
Resource Efficiency (Water Consumption)
Water demand during construction is estimated at approximately 190 m³/day, comprising potable water for a workforce of up to 2,000 personnel and non-potable water for dust suppression, equipment cleaning, and construction activities. During operations, potable water demand is expected to be approximately 5 m³/day for a workforce of around 100 personnel. As no existing or planned water supply infrastructure is available in the Project area, water will be supplied by tanker from Ras Ghareb and stored on site. The Project has coordinated with the Ras Ghareb Water and Wastewater Company (RSWWC) to secure water supply arrangements. Based on the proposed supply arrangements and projected demand, the ESIA and consultation with RSWWC, conclude that impacts on local water resources are not expected to be significant.
Scatec’s C-ESMP includes measures for water resource management, monitoring, and conservation during construction. The C-ESMP requires monitoring, recording, and reporting of water consumption by the Project, contractors, and subcontractors, supported by water metering where feasible. The C-ESMP also includes measures such as leak detection and repair, optimization of water use for dust suppression, consideration of water reuse and recycling, and restrictions on groundwater abstraction unless relevant approvals and assessments have been completed. In addition, the C-ESMP requires due diligence on water suppliers and verification of relevant permits and licenses. The EPC and the Contractors are required to develop a Water Management Plan for the construction and operation phases (ESAP#9), which will include procedures for onsite management of water supply, minimization of water consumption, among others. During the Project’s operation phase, water needs are estimated to be negligible.
Resource Efficiency (Energy Consumption)
The Project will generate electricity using a renewable energy resource and is not expected to consume significant energy during operations, apart from limited energy requirements associated with maintenance activities and ancillary facilities. During construction, electricity will be sourced from existing utility networks where feasible. Where utility connections are unavailable, power will be supplied through temporary diesel generators, as is presently the case.
Scatec’s C-ESMP establishes requirements for energy monitoring, reporting, and conservation during construction. The C-ESMP requires the recording and reporting of electricity consumption, fuel use from stationary and mobile sources, and Project and contractor energy consumption through monthly reporting processes. It also requires installation of energy meters where applicable and maintenance of fuel consumption records to support GHG emissions quantification. Energy conservation measures include efficient vehicle operation, regular maintenance of vehicles and equipment, procurement of energy-efficient appliances, minimizing unnecessary use of air conditioning, and switching off equipment when not in use. The C-ESMP further requires training of site personnel on energy conservation measures.
Greenhouse Gases (GHG)
The project is estimated to generate renewable electricity with significant climate benefits by displacing fossil-fuel-based generation from the national grid. It is expected to displace approximately 1.2 million metric tonnes of CO2 annually. GHG emissions associated with the construction phase are expected to arise primarily from fuel consumption by construction equipment, generators, and transport vehicles. Scatec EPC will monitor fuel use and GHG emissions during construction and operation. Overall, the estimates indicate that the project’s GHG emissions will remain below the threshold of 25,000 tCO2, while contributing positively to avoided emissions at the system level.
Air Quality and Noise
Construction-related impacts, including dust, exhaust emissions, noise, and vibration from site preparation, earthworks, traffic, and construction equipment, were assessed as temporary and not significant due to the absence of nearby sensitive receptors and the distance to the nearest communities (22 km to Ras Ghareb City and 10 km to Wadi Dara Village).
For the operational phase, a preliminary noise assessment undertaken in accordance with the IFC EHS Guidelines for Wind Energy concluded that Project-related noise levels are not expected to exceed the applicable 35 dB(A) limit at identified noise-sensitive receptors under the isolated assessment. Predicted cumulative exceedances were attributed to other existing and planned wind farms located closer to the receptors rather than to the Project. Accordingly, the ESIA concluded that a detailed wind farm noise study was not required.
The C-ESMP includes measures to manage air quality and noise impacts, including dust suppression, equipment and vehicle maintenance, noise control measures, and monitoring. The C-ESMP also identifies potential emission sources from construction activities, vehicles, generators, and establishes requirements for emission control, monitoring, and reporting. The Project is required to finalize and implement an Air Quality Management Plan and a Noise Management Plan for construction and include procedures to mitigate air and noise emissions during operation in accordance with IFC PS requirements (ESAP# 10)
Waste and Wastewater Management
As per the ESIA, construction waste is estimated at approximately 1.25 to 2.5 t/day, while municipal waste is expected to peak at approximately 2,500 kg/day during construction and decrease to approximately 125 kg/day during operations. Wastewater generated during construction and operation will include blackwater, greywater, and construction-related effluents. Construction-phase wastewater generation is estimated at approximately 93,000 m³, while operational wastewater volumes are expected to be limited. Wastewater will be temporarily stored in enclosed holding tanks and transported by licensed contractors to the Ras Ghareb Wastewater Treatment Plant for treatment and disposal. Hazardous waste, including spent oils, lubricants, paint containers, and solvents, are expected to be generated in limited quantities and will be managed by licensed contractors for disposal at authorized facilities.
Scatec EPC and the contractors shall develop, adopt, and implement a Project-specific Pollution Prevention and Management Plan (PPMP), incorporating waste management, wastewater management, hazardous materials management, and spill prevention and response measures. The PPMP shall define requirements for waste minimization, segregation, storage, transportation, recycling, treatment, and disposal; hazardous materials handling and storage; wastewater collection, treatment, monitoring, and disposal; spill prevention, preparedness, and response; management of contaminated materials; incident reporting and investigation; inspection and monitoring programs; worker training; and contractor responsibilities. The PPMP shall be aligned with applicable national requirements, the IFC Performance Standards, and relevant WBG EHS Guidelines (ESAP# 11). The Project will require that Scatec EPC secure an agreement with the identified treatment, recycling and/or disposal facilities after undertaking a due diligence assessment through adequate assessment of their valid environmental approvals, to demonstrate the respective selected facilities are in alignment with PS3, WBG applicable EHS Guidelines, and national requirements, and implement a chain of custody mechanism.
PS4: Community Health, Safety and Security:
Workforce Influx
Workforce influx during construction is a key E&S risk and requires the Project to develop a Worker Influx Plan as per ESAP #12. Potential impacts include increased demand on local infrastructure and services, community health and safety risks, labor and working conditions issues, communicable diseases, and worker-community interactions during the construction phase. This plan will include an assessment of worker influx risks and impacts at a cumulative level, given other development projects within the project area.
Infrastructure and Equipment Design and Safety
Potential impacts on existing infrastructure and utilities during the design, construction, and operation phases, including transportation networks, civil and military aviation, electricity transmission infrastructure, petroleum infrastructure, telecommunications infrastructure, and wastewater and waste management services were assessed in the ESIA. Risks were identified associated with the siting, design, and construction of Project infrastructure that could affect third-party assets and services. To manage these risks the Project shall maintain coordination with relevant authorities, obtaining required approvals and non-objection letters, consultation with infrastructure owners, and incorporating identified constraints and authority requirements into the Project design are required.
The ESIA also considers flood-related risks and requires avoidance of construction in higher-risk flood areas and maintenance of prescribed setbacks from dam infrastructure. A dedicated flood vulnerability assessment concluded that the Project is generally at low risk of flooding, subject to implementation of proposed mitigation measures and development of a Flood Management Plan. The Project shall update the Flood Risk Assessment to evaluate residual flood risks, including the potential failure or overtopping of flood protection and road crossing existent preventive structures, and develop and implement a Flood Management Plan (ESAP #13). The plans shall define procedures for flood monitoring, material storage, siting of temporary facilities, emergency preparedness and evacuation, and the inspection, maintenance, and continued functionality of road crossings and other flood mitigation infrastructure throughout construction and operations.
Community Exposure to Disease
The ESIA identifies workforce influx during construction as a potential risk for the transmission of communicable diseases, including vector-borne, water-borne, and sexually transmitted infections, and notes potential pressure on local services and worker-community interactions. Baseline information indicates that the Red Sea Governorate is free from endemic diseases and diseases associated with water and air quality, although common communicable illnesses and limited access to specialized healthcare services are present in parts of the Governorate. To manage these risks, and as per ESAP # 13 and ESAP #7, the Scatec EPC needs to implement a Worker Influx Plan and an Occupational Health and Safety Plan (OHSP), including medical examinations, hygiene measures, disease awareness programs, and a worker Code of Conduct.
Traffic and Road Safety
The ESIA assesses traffic and transportation impacts associated with the movement of personnel, construction materials, heavy equipment, and oversized wind turbine components during construction. Access to the Project site will be via the Hurghada-Cairo Highway and an approximately 20 km internal access road. Potential impacts identified include increased traffic volumes, temporary congestion, road safety risks, disturbance to other road users, and traffic management requirements related to oversized loads. Although the ESIA concludes that these impacts will be temporary, localized, and not significant, provided the identified controls are implemented, the assessment is based on limited baseline traffic information.
The Project will update the Traffic Impact Assessment to incorporate detailed baseline traffic data and a comprehensive assessment of the transportation routes between Ras Ghareb, the relevant port facilities and the Project site. Prior to the transportation of Project components, the Project will prepare, adopt and implement a Traffic and Transport Plan, which will be developed in coordination with the relevant authorities in respect of transportation routes, required approvals and load requirements (ESAP#14). The Project shall maintain records of training, vehicle inspections and maintenance, traffic incidents, and corrective actions throughout construction and operations.
Security Arrangements
The ESIA identifies potential security-related risks during both construction and operation, including inappropriate interactions between security personnel and workers or local communities, excessive use of force, poor management of security incidents, and unauthorized access to Project facilities. The Scatec EPC will develop and implement a Security Management Plan (SMP) aligned with IFC PS4 and the Voluntary Principles on Security and Human Rights. The SMP will be supported by a Security Risk Assessment identifying site-specific security risks and mitigation measures, and will include procedures for the recruitment, screening, training, supervision and monitoring of security personnel, access controls, physical barriers around key infrastructure, warning signage, use-of-force protocols, incident management and reporting, and procedures for managing interactions with workers and local communities, including grievance escalation mechanisms (ESAP #15).
PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources:
The Project is situated in the Red Sea Coastal Desert ecoregion. The area is characterized by flat or gently sloping compacted gravel desert cut by shallow drainage channels (wadis). Vegetation is sparse and restricted to the wadis. The project is situated within the Rift Valley / Red Sea flyway, a globally important migration corridor for Migratory Soaring Birds (MSBs), particularly storks and raptors.
The Project is considered Critical Habitat because globally important numbers of MSBs are constrained to fly at low altitudes in this area. The project is within Critical Habitat for two MSB species: Steppe Eagle (IUCN Red List – Endangered); White Stork (IUCN Red List – Least Concern). The Project will apply the PS6 net gain requirement to these Critical Habitat features.
The Project screened species most at risk from project-related activities using bird flight activity data collected over two migration seasons: spring and autumn 2025. The assessment identified eight bird populations with a moderate or high potential for turbine collision mortality and classified them as priority biodiversity values. These comprise the two Critical Habitat species and six additional species: Black Kite, European Honey-buzzard, Eurasian Buzzard, Booted Eagle, Levant Sparrowhawk, and Great White Pelican, all listed as Least Concern on the IUCN Red List. These six additional bird species will be subject to IFC Natural Habitat no net loss requirements. Baseline bat studies indicated a potentially low risk to bats; however, three priority bat species—Desert Pipistrelle, Greater Mouse-tailed Bat, and Ruppel’s Pipistrelle, all listed as Least Concern—together with Egyptian Spiny-tailed Lizard (IUCN Red List – Vulnerable), were also identified as priority biodiversity values and will be subject to IFC Natural Habitat no net loss requirements.
To manage the multiple biodiversity risks and interrelated mitigation measures, Scatec will appoint a dedicated Biodiversity resources who will be responsible for the overall management and reporting of all mitigation and monitoring activities relating to the project (ESAP #3).
Scatec will appoint a nationally recognized biodiversity consultancy to conduct breeding-season surveys for Sooty Falcon between July and October 2027 and Golden Eagle between January and May 2027. Evidence of breeding will require the breeding bird protection protocol detailed within the Biodiversity Management Plan (BMP) to be implemented. Surveys will be repeated and breeding site protection measures implemented in subsequent years during the construction and operations phase. The consultancy will also conduct pre-clearance surveys and implement a relocation plan for Spiny-tailed Lizard following good practice developed for this species in the Gulf of Suez. (ESAP# 16)
Scatec will implement an operational bird-risk management program that includes MSB monitoring and radar-assisted turbine shutdown under the Adaptive Turbine Management Plan (ATMP). The program will be delivered in coordination with the wind-wildlife expert, RCREEE. The Project will procure the bird flight diverters (BFDs) and demonstrate engagement efforts with EETC for the BFDs’ installation along the entire associated OHTL, with specifications approved by RCREE and lenders. BFD adequacy will be verified and ensured before each migration season. These measures will be maintained throughout operation. The project will align operational phase monitoring and mitigation with the outcomes of the Gulf of Suez Renewable Energy Strategic Environmental Assessment and Cumulative Impact Assessment where applicable (SESA-CIA) (ESAP #17).
Scatec will contract a suitably qualified wind-wildlife consultancy through RCREEE to finalize, implement, and manage a Post Construction Fatality Monitoring (PCFM) program covering all turbines and the full length of the associated overhead transmission line (OHTL). The program will align with IFC, EBRD, and KfW 2023 guidance and will continue throughout the Project’s operational life (ESAP #18).
Scatec will implement an adaptive management framework as part of the BMP informed by biologically derived fatality thresholds for priority bird species, and define protocols for all onsite operational monitoring and mitigation. The BMP will also include a semi-annual template for centralized reporting on bird monitoring, mitigation, and adaptive management (ESAP #19).
Scatec will contract a qualified expert with international experience on offsets to develop an Offset Feasibility Study, prepare a Biodiversity Offset Management and Implementation Plan (BOMIP). Scatec will select from the list of viable offsets that it agrees to finance, which together will achieve net gain and no net loss goals for the operational life of the wind farm. IFC will approve the offsets and their associated budgets. The offset expert will be retained to oversee the early implementation of agreed offsets. (ESAP #20).
