The Project Company is Selebi Phikwe Solar Pty Ltd, a Special Purpose Vehicle (“SPV”) incorporated in Botswana. Scatec ASA indirectly owns 100% of the SPV’s shares and will act as the EPC, O&M and Asset Manager in the Project delivery through its vertically integrated business model. To serve this purpose a separate, wholly owned subsidiary has been incorporated in Botswana as Scatec Operations Botswana Pty Ltd. A sell down of 40% of shares in the Project Company to local Batswana investors is envisioned within 5 years after Commercial Operation Date (“COD”) on a best-effort basis.

Scatec, listed on the Oslo stock exchange, is a leading global renewable power producer, delivering affordable and clean energy. Scatec develops, builds, owns, and operates solar, wind and hydro power plants and battery energy storage solutions. With over 767 employees, Scatec has 3.4GW of operational assets and 1.3 GW under construction spread across 21 countries.

The Project cost is estimated at USD 60 million (including VAT). IFC intends to provide an A loan of up to USD 24 million equivalent, to be split between USD and Pula-linked financing. In addition, IFC is also mobilizing up to BWP 300 million from the South African bank Rand Merchant Bank (“RMB”). The balance is covered by equity from Scatec.

The Project is located close to Selebi Phikwe town and will interconnect to the 220kV transmission line between Selebi Phikwe and Phokoje substation. The Phokoje substation is situated on Southern African Power Pool (“SAPP”) north-south 400kV transmission backbone providing the project a very stable point of interconnection as well as a strategic location in respect of the SAPP. The Project will cover an area of 121ha and will have an installed peak capacity of 60MW, making use of single axis trackers and bifacial solar panels.

 This section is applicable to projects in the extractives sector.

This is a Category B project as per the IFC's Policy on Environment and Social Sustainability (2012).  The proposed project will have limited adverse E&S impacts that are few, site specific, largely reversible and readily addressed through existing mitigation measures.

Key E&S risks and impacts during the installation of solar equipment (construction) include, occupational health and safety (OHS) incidents, traffic management across communities along long haul routes from Durban to Selebi Phikwe, hazardous waste management, PV cells supply chain and community health and safety risks such as gender-based violence.