CEPM is owned 60% by CEPM Energy Ltd. and 40% by ENDESA of Spain. Mr. Rolando Bunster, owns 66 2/3% of CEPM Energy Ltd. through his holding company Basic Energy and his partner, Miguel Barletta, owns the remaining 33 1/3% of CEPM Energy Ltd. The sponsors of the Project are CEPM, CEPM Energy Ltd., its majority owner, Mr. Luis Roland Gonzales Bunster, and ENDESA of Spain.

Total project cost is estimated at $42.5 million, of which IFC is expected to fully guarantee up to a $12.5 million loan for the wind project and provide a senior loan of $10 million for a total exposure to IFC of $22.5 million.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	15.0
Loan	10.0
Equity

* These investment figures are indicative

Headquartered in Santo Domingo, CEPM owns and operates the power generation and distribution lines serving the Bavaro and Punta Cana area in the eastern part of the country and the power generation and distribution assets serving the Bayahibe area in the southeastern part of the country. CEPM’s assets include 18 power generating units of 56 MW of total installed capacity, two substations and 14 km. of 69 kV lines and about 200 km. of 12.5 kV and lower voltage lines. CEB’s assets include six power generating units of 13 MW of total installed capacity and 25 km. of medium voltage lines and 8 km. of low voltage lines.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental/ social information submitted by the project sponsor and a site visit by IFC staff.

IFC''s appraisal focused on the ongoing environmental and social performance of CEPM''s existing investments, as well as its capacity to ensure compliance with applicable host country regulatory requirements and World Bank Group environmental and social policies and guidelines for projects under development.
Location of environmental documents in locally affected community
The environmental documentation will be made available at the following locations: Consorcio Energético Punta Cana-Macao S.A. Edif. Ambar, 5ta. planta, Esquina Av. A. Lincoln y J.F. Kennedy Santo Domingo Consorcio Energético Punta Cana-Macao S.A. Carretera Arena Gorda Bávaro, prov. La Altagracia Compañia de Electricidad de Bayahibe Carretera Dominicus Bayahibe, prov. La Altagracia

IFC’s guarantee and senior loan will be used to help finance CEPM’s and CEB’s capital expansion plans, which include the wind project, two diesel engines, acquisition of hotel customers in Uvero Alto and the associated transmission lines for these subprojects. The wind power project will secure a clean source of energy. This is important for CEPM, as it serves resort areas where clean environments are critical. The company needs to invest in additional generation capacity in order to supply reliable electricity to its customers in both service areas. The company is additionally diversifying its generation assets by investing in wind turbines to produce some of its electricity with renewable energy and thus offsetting the use of fuel oil. IFC will also directly contribute to the development of an Environmental and Social Management System (ESMS), which will be used by the company as a management tool in meeting their social and environmental goals and obligations. This will be the first wind power investment in Dominican Republic and will additionally be financed by a private company. This is will be IFC’s first investment with Basic Energy, the majority owner of CEPM Energy Ltd. By supporting CEPM, IFC expects to encourage greater involvement and investment by Basic Energy and ENDESA in renewable energy and the Caribbean. .