The Project is being developed by Gauss Energía (“Gauss”), an independent private Mexican energy consultancy/developer with a strong track record in the Mexican energy sector. Aura Solar will be 100% owned by Corporacion Aura Solar, (“CAS”), which is in turn owned by a number of well reputed Mexican investors. The Project will be constructed under an EPC contract with an experienced engineering firm in the PV solar power space across Europe and Latin America. PV panels will be supplied by a leading global manufacturer of PV panels.

IFC is considering providing a combination of A/C loans for up to US $25 million (in Mexican Peso equivalent) to support the construction of the Project. Total Project cost will total approximately US $100 million.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	25.0
Equity

* These investment figures are indicative

The Project will be constructed in a 100 ha land plot, 100% owned by the Project and located within 10km of the city of La Paz, in the State of Baja California Sur.

The Project will contribute an additional 30 MW towards Mexico''s stated target of achieving at least 35% penetration of renewable energy and other "clean" power generation sources in its energy matrix by 2025. Given its location in Baja California Sur (BCS) and the State''s current energy matrix, the Project will substitute the carbon-intensive HFO and diesel -fired power generation delivered to approx 160,0000 inhabitants with a clean, renewable energy source, and will displace approx. 60,000 tons of CO2 emissions annually.

By reducing the reliance on imports of fossil fuels to BCS, the Project is also expected to significantly reduce environmental risks associated with transporting such fossil fuels through environmentally sensitive areas, such as the Sea of Cortez . In addition, the Project is estimated to generate approx. 150-200 direct-employment positions during its construction period.

By providing and mobilizing a project-finance debt package for the Project, IFC will have an important demonstration effect & will signal that the Small Producer model is bankable. The client recognizes that IFC is uniquely positioned to understand & appraise the regulatory & quasi-merchant pricing risks associated with the Small Producer framework in Mexico.

IFC will support funding mobilization from Mexican development bank NAFIN to further engage in the financing of the first utility-scale PV solar project. As such, IFC will lead and arrange the full debt financing package for this transaction.

Gauss Energía has also sought IFC''s involvement in the Project to benefit from IFC''s global expertise and in order to extend IFC''s "stamp of approval" to the Project given the "first to market" characteristics of the transaction.

The project has been categorized as B given the expected limited adverse environmental and social (E&S) impacts resulting from construction and operation of the PV solar park and associated transmission line. Project location has been selected by the Company taking into consideration E&S issues and minimizing potential risks and impacts. The E&S issues associated to this project are those typical to similar PV solar parks, including, but not limited to: water use; short term impacts from construction and traffic increase; health and safety during construction and operation; and community engagement. No physical or economic displacement is generated, and there are no impacts on Indigenous Peoples lands or resources.

Since it is a clean renewable energy generation project with low adverse impacts the overall environmental impact of the project is expected to be positive given its contribution to the reduction of approximately 60,000 tons of CO2 equivalent per annum.

Risks to the health and safety of surrounding communities (PS4: Community, Health, Safety and Security) are limited and mostly related to the construction phase and can be avoided or mitigated through basic ESHS practices. The land acquisition for the site of the PV solar park was the result of a “willing buyer/willing seller” market transactions and the land easement acquisition for the transmission line (T-line), which could entail easement imposition if negotiations fails, will not generate physical or economic displacement; the project site has been used for agriculture for the last 30 years and no forests will be affected, additionally the project’s Environmental and Social Impact Assessment (ESIA) processes did not identify any significant risks or impacts on biodiversity; and the project is not located in or near Indigenous Peoples lands, hence PS5: Land Acquisition and Involuntary Resettlement; PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; and PS7: Indigenous Peoples were not the focus of this review. In relation to PS8: Cultural Heritage, no risks associated to cultural heritage were identified at the site and the project has in place a Chance Find Procedure as per local requirements.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.