The project sponsor is SunPower. The company is a NASDAQ-listed public company with a widely held ownership consisting mainly of institutional investors.

The total project cost is estimated at $475 million. IFC is considering a financing package of up to $75 million in the company.

75.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	75.0
Equity

* These investment figures are indicative

The project is located in an industrial park in Batangas, Philippines.

The project will have the following positive developmental impacts:

- Reduction of CO2 Emissions: This investment will support the production of solar cells, which will provide renewable energy. Assuming a module life of 25 years, the project will directly avoid an estimated 90-100 million tons of CO2 emissions, assuming the electrical energy they produce is instead produced through conventional fossil fuel generated electricity.

- Development of the solar industry: This project will increase the availability of high-performance and cost-effective solar cells, which is expected to accelerate the solar PV industry’s goal to reach grid parity, such that solar energy is an economically viable energy source without government subsidy.

- Job creation and other economic benefits: This facility will employ a total of approximately 2,900 skilled jobs in the Philippines and contribute to local economic growth.

IFC’s presence in the project will (i) help the company attract other long-term financiers, especially from local financial institutions, and (ii) signal to the market that renewable energy is an important industry to finance in emerging markets.

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. Key environmental, health and safety, human resources and social issues that were reviewed included the following: Environmental and social management system; Quality and sustainability of water resources; Emissions to the environment – air, water and subsurface; Solid and hazardous materials management, including transportation; Life and fire safety; Community and occupational health and safety; Energy use and efficiency; and Community engagement. Performance Standards that are applicable for this investment include:

- PS 1: Social and Environmental Assessment and Management System
- PS 2: Labor and Working Conditions
- PS 3: Pollution Prevention and Abatement

The identified environmental, social and healthy and safety issues which require ameliorative measures are summarized in a Environmental and Social Action Plan (ESAP) that SunPower will implement as part of IFC’s Loan Agreement. Upon successful implementation of the agreed mitigation measures, the proposed Project is expected to comply with host country laws and regulations, IFC Performance Standards and applicable World Bank/IFC guidelines. Additionally, SunPower’s solar cell technology provides a significant positive impact on global climate change and its operations create jobs and opportunities for local communities, with no adverse social impacts.