SPKR2 and SPLO1 will each be 56% owned by SPC and 44% owned by Thai Fa Power Company Limited, established in 2010 mainly focusing on investing in Solar Farm projects. SPC was established in 1996 to engage in the development of grid-connected solar power projects. Ms. Khunchornyakong, President of SPC, has more than 30 years of solar industry experience with Arco Solar, BP Solar, and Solartron which she established and took public. SPC is a wholly owned subsidiary of Steel Intertech Public Company Limited, a listed company on the Stock Exchange of Thailand.

The Projects cost is estimated at $42 million which is being financed with 70% debt ($29.4 million), and 30% equity ($12.6 million). The proposed IFC financing is an investment of up to $12.2 million equivalent in Thai Baht for IFC’s own account. IFC is also considering supporting these Projects with financing from the Clean Technology Fund (a fund under the World Bank administered Climate Investment Funds).

11.91 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	11.91
Equity

* These investment figures are indicative

The SPKR2 Project site is situated in Don Chomphu sub-district of the Non Sung district located in the Nakhonratchasima province in Thailand. The total site area available for this Project is approximately 22 hectares and is suitable for a PV installation with high solar irradiation and easy access to transmission lines. The site has access to a main road. The SPLO1 Project site is situated in Nong Ya Plong sub-district of the Wang Saphung district located in the Loei province in Thailand. The total site area available for this Project is approximately 14.7 hectares and is suitable for a PV installation with high solar irradiation and easy access to transmission lines. The site has access to a main road.

The Projects will have high development impact on the Thai solar market by supporting a small but professional Thai developer with the development of their further solar farm licenses creating a replicable model for the Sponsor and a demonstration effect for local and regional solar IPP developers. The Project will: a) promote private sector investment in the PV sector which is at an early stage of development in Thailand; b) support less carbon-intense economic development by substituting expansion of thermal power with zero-emission renewable energy and 4,785 CO2 tons avoided per year per project; and c) create direct and indirect employment opportunities in rural area of Thailand.

IFC additionality involves: (a) providing long-tenor local currency financing; (b) potential access to concessionary financing; and (c) ensuring the incorporation of best practice environmental and social performance standards, in line with IFC's Performance Standards as well as corporate governance standards.

This is a Category B project 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 key aspects of relevance to the Projects include social, environmental, health and safety management systems; the identification and mitigation of social and environmental impacts on account of Projects; site selection and land acquisition; community consultation and engagement; labor working conditions during construction and operation; pollution prevention and abatement during construction and operation; and community health, safety and security.
Potential impacts in construction besides being mitigable are likely to be limited to project site; short term; and will likely not have any impact on environmentally sensitive areas. Further, it is possible to readily design and implement engineering and management measures to mitigate adverse impacts during construction and operations.
A summary discussion on the social and environmental aspects of relevance to the Project including the company’s plans to address these impacts has been provided in the Environmental and Social Review Summary (ESRS) prepared by IFC.