Complexo Eólico Serra da Babilônia

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Project Number: 
11994-02
Expected Consideration Date by the Board: 
11/21/2017
Date Posted: 
08/21/2017
Company: 
Copacabana Geração de Energia em Participações S.A
Sponsoring Entity: 
Rio Energy Fundo de Investimento em Participações Multiestratégia
Financing Requested: 
Up to R$200,000,000
Sector: 
Energy
Environmental and Social Category: 
B
Location: 
Bahia
Country: 
Scope Objective: 

The Inter-American Investment Corporation and the Inter-American Development Bank are considering providing a credit guarantee to secure payment obligations under the project debentures in an amount of approximately R$200 million. The project consists of the design, construction, operation and maintenance of the wind cluster of “Eólica Serra da Babilônia”, which consists of eight (8) adjacent wind farms totaling 223.25 MW of capacity in the state of Bahia, located in the Northeast of Brazil and the construction of a 75km transmission line (the “Project”). The Project is being developed by eight (8) Special Purpose Enterprises created under Brazilian law for the specific purpose of the development of the Project, under the control of Copacabana Geração de Energia em Participações S.A. The sponsor of the Project is Rio Energy Fundo de Investimento em Participações Multiestratégia and was awarded a 20-year inflation indexed Power Purchase Agreement by the Câmara de Comercialização de Energia Elétrica.

The Project is expected to achieve the following development results: (i) increase installed capacity of non-conventional renewable energy with the addition of 223.25 MW of wind power to the current wind installed capacity of 11,7  GW, which contributes to the Government of Brazil’s objectives of diversifying its energy matrix, adding an additional source of renewable energy and reducing vulnerability to changes in hydrology; (ii) generate approximately 870 GWh of clean wind energy and contribute to the avoidance of  approximately 763,801  tons of carbon emissions per year; and (iii) increase private sector participation and competition in the electricity market through the support of an independent private developer.

Environmental Review: 

According to the IIC’s Environmental and Social Sustainability Policy this project has been preliminarily categorized as a ‘B’ transaction because it could produce certain impacts that may be avoided or mitigated by following generally recognized performance standards, guidelines, or design criteria. While all Performance Standards (PS) apply, the following are likely to be more relevant to this transaction: (i) PS1: Assessment & Management of Environmental & Social Risks and Impacts; (ii) PS2: Labor and Working Conditions; (iii) PS3: Resource Efficiency and Pollution Prevention; (iv) PS4: Community Health, Safety, and Security; (v) PS6: Biodiversity Conservation & Sustainable Management of Living Natural Resources; and (vi) PS8: Cultural Heritage. Key impacts and risks during construction shall be evaluated during the Environmental and Social Due Diligence.

The environmental and social information related to this transaction will be available in accordance with IIC’s Disclosure of Information Policy requirements on IIC’s website at http://www.iic.org/en/projects/project-disclosures