Summary of Proposed Investment
Project Number
9137
Company Name
Solar Development Capital Limited
Date SPI Disclosed
May 22, 1998
Country
World Region
Industry
other
Status
Completed
Sector
Renewable Funds - Renewable Energy Generation
Department
Gbl Infrastructure & Natural Resources
Environmental Category
C - No Impact
Previous Events
Approved : May 20, 1999
Signed : Mar 16, 2001
Invested : May 2, 2001
Project Description
Summary Of Project Information (SPI)
| Project Name | Global-Solar Development Corporation |
| Region | Global |
| Sector |
Projected Board DateJune 25, 1998
Company NameN/A
Technical Partner and/or Major Shareholders
Founding investors: World Bank, IFC, several US charitable foundations
Project Cost Including Proposed IFC Investment
Target Capitalization: $50.0 M, IFC: $6.0 M
Location of Project and Description of Site
The Solar Development Corporation ("SDC") will target all IFC eligible countries. The jurisdiction(s) of the project Company(ies) will be determined after selection of the Manager.
Description of Company and Purpose of Project
SDC will provide finance and business advisory services with the objective of accelerating the use of solar photovoltaic (PV) systems -- which convert sunlight into electricity -- in off-grid applications in developing countries. SDC will consist of two functional units -- a finance vehicle and a technical assistance entity which will provide business advisory services (BAS). The financing vehicle of SDC will seek to make debt, equity, and quasi-equity investments in a wide array of PV- related businesses, including local assemblers / systems integrators, distributors, retailers, energy service companies (ESCos), and financial intermediaries such as banks, leasing companies, NGOs, and other non-bank financial intermediaries (“FIs”). The BAS entity will fund advisory services for potential investee companies well as fund more general PV awareness and capacity building services.
IFC is one of the founding investors in SDC and has played an integral role in the structuring and development of the SDC concept. As SDC will act much like a privately managed fund investing in private-sector companies, it is appropriate that IFC is involved with IBRD in this initiative. In addition, IFC will play a particularly important role in identifying and securing the manager for SDC. IFC will also apply for and manage the use of any GEF funds that are incorporated in the capitalization of the finance vehicle. In addition, IFC has, and will continue to, play a key role in the legal and financial structuring of SDC, so that it can accommodate a range of government, quasi-government, and private investors.
SDC is designed to have a substantial development impact. It is an explicitly developmental entity which aims to accelerate the growth of viable, private-sector business activity in the distribution, sales and financing of off-grid PV applications in developing countries. The objective is to increase the delivery of solar home systems (SHS) -- and thus bring environmentally clean electricity -- to rural households. Many of these households will be replacing less efficient, environmentally inferior technologies, and many will gain access to electricity for the first time.
Environmental Category and Issues
This is a Financial Intermediary (FI) category project according to IFC’s environmental review procedure. SDC will be required to undertake an environmental review of eligible borrower''s environmental performance and each sub-project''s compliance with the host country environmental, health and safety laws, regulations and standards as well as applicable World Bank policies and guidelines. In addition, IFC will assess SDC''s capability to carry out environmental reviews.
| Date SPI sent to InfoShop | May 22, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Sponsor / Cost / Location
Related ESRS/ERS
