Solar Rooftop 4All

For inquiries and comments to IIC, contact:
IIC’s Communications Group
E-mail: divulgacionpublica@iadb.org

For project inquiries, including environmental and social questions related to an IIC investment, please contact the client or the IIC using the contact information provided above. In addition, project affected communities have access to the IIC Independent Consultation and Investigation Mechanism.
Tel:+1 (202) 623-3952
Fax: +1 (202) 312-4057
Address: 1300 New York Ave. NW Washington, DC. USA. 20577
E-mail: mecanismo@iadb.org or MICI@iadb.org

Project Number: 
12224-01
Expected Consideration Date by the Board: 
12/12/2017
Date Posted: 
11/02/2017
Company: 
A special purpose vehicle to be incorporated under Mexican law (the “Warehousing Trust”)
Financing Requested: 
MXN$1 billion
Sector: 
Financial Services
Country: 
Scope Objective: 

The objective of the Project is to provide a financing mechanism for a pool of small scale photovoltaic (PV) solar projects in Mexico. Multiple Mexican solar developers will originate, sell, operate, maintain, and service the PV solar projects on residential, industrial, and commercial properties in Mexico (the “PV systems” or “sub projects”). This transaction will enable the financing of the purchase of the PV systems.
The IIC Project financing will be provided in two steps: (i) an Accumulation Stage, in which the IDB and IIC will provide a senior revolving loan, which is expected to include a revolving B loan, to the Warehousing Trust with the aim of purchasing and accumulating credit rights arising from the purchased PV systems (the “Warehousing Loan”); and (ii) a Mobilization Stage, in which the IIC will provide one or more PCGs to support the securitization of these credit rights in local capital markets. The PCGs are expected to support the issuance of up to three Securitization Cycles: one issuance every 24 months.
The Project may receive financial support from the Clean Technology Fund (“CTF”) in the form of a PCG to support the Warehousing Loan during the Accumulation Stage.

Environmental Review: 

1. Overview of Scope of IIC E&S Review. The environmental and social review of the proposed transaction was carried out based on interviews with two of the proposed developers for the projects.

2. Environmental and Social Categorization and Rationale. This operation is classified as an FI-2 under the IIC’s Sustainability Policy. Based upon the nature of this transaction (i.e. a partnership to finance the installation of small-scale solar rooftop facilities), there are likely to be minimal to moderate indirect environmental, social, or health and safety (ESHS) and labor impacts and risks.  The average solar installation size is expected to be 100KWp at an average investment cost of US$85,000.  No individual project can exceed 3% of the total loan amount or 500 KW in capacity.

3. Environmental and Social Risks and Impacts. Sub-project environmental and social risks will relate to occupational health and safety, and labor-related issues commonly associated with small-scale construction. Each participating developer will be required to manage these risks through the development and implementation of an Environmental and Social Management System (ESMS) in accordance with IFC Performance Standard 1. This ESMS will detail good practice standards specific to health, physical hazards, equipment safety, and safety planning and training, risks most commonly associated with rooftop solar installation.   

4. Mitigation Measures. In accordance with the IIC Sustainability Policy, each developer will implement an IFC Performance Standard 1 compliant ESMS. Given that five developers are estimated to participate in the Facility, a consultant will be hired to develop a template ESMS that will be applied across the developers to ensure consistency. Technical Cooperation (TC) funds have been identified for this cost. The ESMS will include at a minimum (i) the development of an Environmental and Social Policy that clearly states the requirements and standards that apply in sub-project investments; (ii) internal capacity within Mexico to manage related ESHS sub-project risks; (iii) a due diligence process to identify and categorize E&S risks; (iv) an external communications and grievance mechanism; and (v) emergency preparedness procedures.

Contact Information: 

For inquiries about the Project, please contact:  

For project inquiries, including environmental and social questions related to an IIC investment, please contact the client or the IIC using the contact information provided above. In addition, affected communities have access to the IIC Independent Consultation and Investigation Mechanism.
Tel: +1 (202) 623-3952
Fax: +1 (202) 312-4057
Address: 1300 New York Avenue NW Washington, D.C., USA 20577
Email Address: mecanismo@iadb.org or MICI@iadb.org