Amunet Wind IPP

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Note: This constitutes an update to the Environment and Social Review Summary (ESRS) following disclosure of the original document in August 2022. The main reason for the update is to include the findings of the labor and working conditions audit undertaken to the wind turbine supplier, which are now incorporated into this updated version of the ESRS.The Amunet Wind Power Project (the “Project”) consists of the construction, operation and maintenance of a 500.5 megawatt (MW) installed capacity wind farm located approximately 9 km northwest of Ras Ghareb city in the wind-rich Gulf of Suez region in Egypt’s Red Sea Governorate. The Project site is located within a broader area of 284 km2 allocated by the New and Renewable Energy Authority (“NREA”) for the purpose of generating electricity from wind energy projects. The Project is being developed by Amunet Wind Power Company (“AWPC” or the “Project Company”), a special purpose vehicle incorporated in Egypt by a 60:40 Joint Venture between AMEA Power Ltd.(“AMEA”) and Sumitomo Corporation (“Sumitomo”). IFC is considering an A loan of up to $75 million and a client risk management product in form of interest rate swaps with a loan equivalent exposure of c. $20 million to finance the Project.The Project will be an independent power producer (“IPP”), generating an average of c. 2,300 GWh annually for sale to the Egyptian Electricity Transmission Company (“EETC”) under a 25-year power purchase agreement (“PPA”) fully guaranteed by the Ministry of Finance (“MoF”). The construction of the Project is anticipated to commence in March 2023 and will require approximately 30 months to complete. The proposed Project is planned to comprise 77 Wind Turbine Generators (“WTGs”), each with an installed capacity of 6.5 MW and a tip height of 180 meters. Within the Project wind farm site boundary of 69.4 km2 , a 33kV/220kV subordinate substation will be constructed by the Project. From this subordinate substation, a 220kV Over Head Transmission Line (“OHTL”) will run to the southeast to connect with an existing 220kV substation which is connected to the National Electricity Grid. The total length of the 220kV OHTL is approximately 2 kilometers and is expected to be a maximum of 20 transmission towers of 50 meters in height. The detailed design, route, construction, and maintenance during operation lies with the EETC. The 22kV OHTL is considered as an associated facility to the Project. As part of the Project, it is anticipated that 3 cement batching plants will be established by the EPC and/or sub-contractors. Additional infrastructure will include underground medium voltage transmission cables (33kV) connecting the WTGs with the subordinate substation, a fiber-optic communications network to connect to a Supervisory Control and Data Acquisition (“SCADA”) System, onsite building infrastructure required for the daily operation of the Project including administrative buildings, a control room, a workshop, a storage warehouse, and a road network to assist the installation of the turbines during construction and during operation and maintenance (“O&M”).The Project site consists of mostly desert ground with sparse vegetation. No human habitation,grazing, or agriculture is observed on, or adjacent to the site. The general area has been designated for petroleum exploration and development activities, and the northern part of the Project site still has old, obsolete, and closed oil wells that are no longer in use. The Project site is under governmental ownership, which has been approved by the Council of Ministers for wind farm projects development.NREA is the current landowner, and the Project Company will enter into a Usufruct Agreement for the use of the land. The nearest community settlement is the Ras Ghareb city, 9 km to the southeast.The Project site avoids impacts on physical or economic displacement or from shadow flicker or operational noise-related nuisance, due to its distance from any settlements. The Project is located within the Red Sea/Rift Valley flyway, a globally important migration corridor for Migratory Soaring Birds (“MSBs”) and overlaps, in its south-eastern corner by less than 1 square kilometers (km2), with the Gebel El Zeit Important Bird Area (“IBA”). The IBA is designated to protect a strategic location within the flyway where birds are funneled along the Gulf of Suez during their spring and autumn, often landing in large numbers and flying at low altitudes. The overlap area does not have any features that would attract birds (e.g., waterbodies) and is not used as a stopover/resting site and is distant from the main areas where birds concentrate within the IBA.The Project will be constructed under a turnkey Engineering, Procurement, and Construction (“EPC”) contract, executed by a consortium of Huadong Power China Engineering Corporation Ltd., Power China International Group Limited and HDEC Middle East Co DMCC (together “Huadong Power China Consortium”), all subsidiaries of the Power Construction Corporation of China. The WTGs’ will be supplied, under the EPC contract, by Envision Energy (“Envision”) from its industrial park located in Jiangyin in the province of Jiangsu. Envision will also enter into a 25-year long-term service agreement with the Project Company during the O&M phase for the turbines.