The Project Company is Ngonye Power Company Limited., a special purpose vehicle incorporated in Zambia. The Company is 80% owned by Enel Green Power Africa S.r.l (“EGP”), and 20% by IDC.

Enel Green Power, the main sponsor of the project, is the renewable energy division of multinational energy company Enel and generates electricity from renewable sources (solar, wind, hydroelectric, geothermal or biomass). Enel Green Power develops and operates renewable power plants in Europe, Americas, Africa, Asia and Oceania for a total managed capacity of around 39 GW.

IDC is an investment company wholly-owned by the Zambian government. Incorporated in 2014, IDC has a mandate to play a catalytic role in expanding and supporting Zambia’s industrialization to promote job creation and domestic wealth formation across key economic sectors. IDC plays its role through evaluation, pricing and lowering investment risk across sectors by serving as co-investor alongside private investors.

The Project cost is estimated at up to US$45 million (including transaction costs), and the proposed IFC investment is up to US$26 million comprising of an A-Loan of up to US$13 million and a concessional senior loan of the same amount from IFC acting as Implementing Entity of the IFC-Canada Climate Change Program (“IFC-CCCP”). European Investment Bank (“EIB”) will provide the balance of debt through a Parallel Senior Loan of up to US$13 million.

The power plant will be located in the Lusaka South Multi-Facility Economic Zone in the Kafue District of Lusaka Province in Zambia. The Project site is approximately 18 km to the southeast of Zambia’s capital, Lusaka, and is adjacent to the 54MWp solar PV project sponsored by Neoen International, First Solar and IDC (IS #38685).

  This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability. The proposed investment is expected to have limited environmental and social impacts, which are site-specific, temporary and none is expected to be significant. Those impacts can be avoided or mitigated by adhering to applicable performance standards, procedures, guidelines and design criteria as described in the following sections. This categorization is consistent with categorization of other similar projects within this sub-sector. 

The main environmental, social, occupational health and safety risks identified for this project relate to the management of solid and liquid wastes; dust during construction, the capacity of Enel to manage their social, environmental and safety performance and engage with project stakeholders; assurance of fair, safe and healthy working conditions for all workers during construction and operations; and management of community health and safety.