The project sponsor is Energy International (“EI” or the “Company”), a company specialized in the power sector in Latin America. EI was created in 1998 as a sales division selling power modules, but also focusing on operations, maintenance, engineering and construction of thermal plants.  EI has a fleet of power modules and turbines of nearly 300 MW. EI’s business units include: leasing of power modules and turbines, sale of turn-key medium speed engines, provision of EPC and O&M services, and investments in power projects in the LAC region. EI owns beneficially 100% of the shares of Termo Rubiales.

The total project cost is estimated at about $68.5 million. The proposed IFC investment is a $16.5 million loan.

16.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	16.50
Equity

* These investment figures are indicative

The project is located in the Llanos Basin, 465 km from Bogotá in the Meta Department.

IFC is investing in Termo Rubiales to support the development of Meta Petroleum, a promising player of the oil industry in Colombia that has embarked in an ambitious plan to increase the production of the Rubiales field. The investment in Termo Rubiales would be directly supportive of Government policies to increase local production and private investment in the oil sector.

IFC is supporting an existing player in the power sector focused on developing a portfolio of energy assets. IFC has long history of investing in energy projects throughout the world and thus can share its global expertise and experience to help the sponsor develop its local and regional portfolio of assets. IFC’s participation will also promote sustainability by ensuring that the development of the Project meets international social, environmental, health and work safety standards.

IFC’s role in this transaction is very significant. Commercial banking market will not be able to provide the tenor and amortization schedule that the Project requires, making it necessary that a multilateral institution like IFC to absorb and mobilize an important part of the financing.

Termo Rubiales 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 a document review, including the project’s technical, environmental and social reports and records; interviews with key personnel of the company; and a field visit to assess on-site the operation of the Environmental Health and Safety (EHS) and Social Management System at the facilities in Rubiales oilfield in the Puerto Gaitan area (Llanos Orientales, Colombia).

The following management elements were assessed:

Adequacy of the existing Environmental, Health, Safety and Social Management System to satisfy IFC’s Performance Standards requirements;
- The client’s assessment of potential EHS & Social impacts related to its projects;
- Labor issues and Human Resources policy;
- Health and Safety performance;
- Noise control;
- Air emissions;
- Wastewater and effluent management;
- Solid waste management;
- Emergency Response Plans;
- Community and Indigenous Peoples engagement;
- Potential land use, consultation and compensation management;
- Management of armed military security forces;
- Community health and safety (road safety for truck fleet)

The company has plans to address these impacts and ensure that the project will, upon implementation of the specific agreed measures, comply with the environmental and social requirements - the Colombian laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the company is summarized in the Environmental and Social Review Summary (ESRS) and in the Action Plan agreed with the client.