45543 - Nuru DRC

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Summary of Investment Information

Project Number

45543

Company Name

CONGO ENERGY SOLUTIONS LIMITED

Date SPI Disclosed

Mar 16, 2023

Country

Congo, Democratic Republic of

Region

Africa

Projected Board Date

Apr 28, 2023

Environmental Category

B - Limited

Status

Active

Last Updated Date

Jul 14, 2023

Department

Regional Industry - INF Africa

Industry

Infrastructure

Previous Events

Approved : Jun 29, 2023
Signed : Jun 30, 2023
Invested : Jul 12, 2023

Sector

Rural Electrification

Additional Project Attributes

Blended Finance

Project Description

Congo Energy Solutions Limited (“CESL”, “Nuru”, or the “Company”) is leading a project to develop, build and operate three solar hybrid mini-grid projects in the Democratic Republic of Congo (DRC). Each mini-grid will combine solar photovoltaic panels, battery energy storage systems, and diesel generators to provide up to 15MW of generation capacity in Bunia (8MW), Goma (5MW) and Kindu (2MW), the capital cities of DRC’s Ituri, North Kivu and Maniema provinces, respectively (the “Project”). The mini-grids will operate independently (i.e., they will not rely on electric power supply from the main electricity grid).

The Project is expected to provide more affordable and reliable electricity to 28,000 households and businesses that currently have expensive, unreliable, unsustainable, or no access to electricity. Potential commercial and industrial off-takers include telecom tower operators, water pumping stations and substations, agri-processing and milling companies, national banks, and water bottling factories. In addition to IFC's own account investment, the Project is expected to be supported by the Finland-IFC Blended Finance for Climate Program, as described in the Blended Finance Section.

Associated Advisory Engagement

IFC Advisory has worked with Nuru since 2019 in three areas: (i) developing a financial model to drive Nuru's strategy and fundraising efforts; (ii) supporting Nuru's growth strategy by conceptualizing, developing, and financing the feasibility studies for two pipeline projects in the DRC towns of Watsa Durba and Mbuji-Mayi; and (iii) identifying potential strategic partners across various areas of the value chain to support Nuru's scale-up.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	5.0

Development Impact

The Project is expected to increase access to electricity for residential, commercial and industrial (C&I) and small and medium-sized enterprise (SME) customers, by adding up to 15MW of solar hybrid mini-grids across three provincial capitals. DRC is an FCS country with one of the lowest electrification rates in the world of 19.1%, with only one percent electrification in rural areas. The mini-grids are expected to displace diesel gensets by offering reliable, more affordable and greener electricity supply, resulting in lower GHG emissions. At a market level, the Project is expected to catalyze further development of private mini-grids in the DRC and the SSA region by demonstrating the commercial viability of the business model and helping build investor confidence in DRC’s new regulatory and institutional framework. The Project is being developed in parallel to the recently-launched Scaling Mini-Grids (SMG) initiative in the DRC, the first country-level SMG project in Sub-Saharan Africa (SSA). As such, it has the potential to generate relevant learnings for future projects in the sector, contributing to its growth.

IFC’s additionality stems from the provision of own account preferred equity in the context of a nascent sector in the Democratic Republic of Congo (DRC). As a shareholder, IFC expects to help the company scale up its business model, potentially playing a critical role in the development of the power sector in the DRC. IFC is expected to leverage its global knowledge and experience in the mini-grids sector, and its engagement with the DRC government on developing sector regulation. IFC’s non-financial additionality also encompasses support to comply with the adoption of rigorous E&S standards.

E&S Category Rationale / Risks and Mitigation

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because the project is expected to have limited environmental and social impacts which are expected to be site-specific and can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design.

The key E&S issues associated with the project include: (a) development and implementation of E&S management systems including adequate E&S screening of any proposed projects in line with IFC PSs; (b) company's capacity and systems to manage construction and operations in line with IFC PSs and World Bank Group (WBG) Environment, Health and Safety (EHS) Guidelines; (c) assurance of fair, safe and healthy labor and working conditions for all employees and contractors; (d) construction phase E&S impacts related to occupational health and safety (OHS), contractor E&S management, community safety and waste management; (e) operation phase impacts related to water supply, OHS and waste management especially of broken solar panels; (e) supply chain requirements for sourcing of panels; (f) economic displacement and livelihood restoration; and (g) stakeholder engagement and community grievance mechanism.

Contacts

For Inquiries About the Project, Contact

Congo Energy Solutions Limited
Jonathan Shaw
Chief Executive Officer
+254 799 873036
j.shaw@nuru.cd
25 Avenue du Lac, Kyeshero, Goma, Nord Kivu, RDC
https://nuru.cd/

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Local Access of Project Documentation

Addresses of each of the 3 sites:

Goma 2 – Bulengo, Q / lac Vert, Cellule de Bulengo, Avenue de l’éruption, Commune de Goma, Ville Goma, Nord-Kivu, R.D. Congo;
Kindu – Avenue Kaskito, Bloc Lwama, Quartier Lwama, Commune Kasuku, ville de Kindu, Province de Maniema, R.D. Congo;
Bunia – Mont Bedu, village Kasongo, Groupement Bedo Ezekere, territoire de Djugu, province de l’Ituri, R.D Congo.

Address of the corporate office: 2nd Floor, The Axis, 26 Cybercity, 72201, Ebène, Mauritius

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. 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 SII 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 SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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.

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