Envision’s Wind Projects-Argentina

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 IDB Invest investment, please contact the client or IDB Invest using the contact information provided above. As a last resort, affected communities have access to the IDB Invest 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: 
Expected Consideration Date by the Board: 
Date Posted: 
(i) Garcia del Rio Wind Project Special Purpose Company; (ii) Vientos del Secano Wind Project Special Purpose Company and (iii) Los Meandros Wind Project Special Purpose Company.
Sponsoring Entity: 
Envision Energy
Financing Requested: 
Up to US$40 million
Environmental and Social Category: 
Scope Objective: 

IDB Invest is considering providing a loan to Envision Energy (“Envision”) to support the construction, operation and maintenance of three windfarms in Argentina for a total installed capacity of approximately 135 MW, and its associated transmission lines, related civil engineering works, access roads, substations, and control stations (the “Project”).

The financing will consist of a loan of up to US$40 million from the IDB Group, a loan of up to US$20 million from the Chinese Co-financing Fund for Latin America and the Caribbean; and a loan from other co-lenders, of up to US$180 million of total financing (the "Senior Lenders").

Environmental Review: 

According to the IDB Invest’s Environmental and Social Sustainability Policy, the Project was classified as a Category B (medium risk), since its potential environmental and social adverse risks and impacts are few, generally site specific, largely reversible and readily addressed through mitigation measures.

The IFC Performance Standards triggered by this operation are the following:

• Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts
• Performance Standard 2: Labor and Working Conditions
• Performance Standard 3: Resource Efficiency and Pollution Prevention
• Performance Standard 4: Community Health, Safety and Security
• Performance Standard 7: Indigenous Peoples

The Project prepared three Environmental Impact Assessments (EIA’s), one for each windfarm, that were submitted to the corresponding environmental authorities for each province: (i) “Organismo Provincial para el Desarrollo Sostenible de la Provincia de Buenos Aires” for Parque Eólico García del Río (approved on November 15, 2011) and for Parque Eólico Vientos del Secano (approved on November 4, 2015) and; (ii) “Secretaría de Estado de Ambiente y Desarrollo Sostenible” for Parque Eólico Los Meandros in the Province of Neuquén (approved in May 12, 2014). In August 2018, Envision presented an addendum for each EIA, taking in consideration modifications in the equipment selected and in windfarms’ layouts.

The energy generated by the Project will be sold to the Compañía Administradora del Mercado Mayorista Eléctrico (CAMMESA) under a 20-year power purchase agreement (PPA) with coverage provided by the Fondo para el Desarrollo de Energías Renovables (“FODER”) Trust, a trust set up by the Ministerio de Energía y Minería, with a partial credit guarantee from the World Bank (WB). This guaranty from the WB requires the compliance with the Performance Standards of the International Financial Corporation (IFC).

The Environmental and Social Due Diligence (ESDD) site visit was carried out between January 22nd and 25th, 2018, with the participation of representatives and consultants of the owner company (Envision Energy), the independent engineering and environmental and social consultants for IDB Invest (Mott MacDonald), technical, environmental and social consultants for the sponsor company and the IDB Invest project team. Several meetings were held with local authorities and stakeholders for each of the windfarms, in the cities of Bahía Blanca, Neuquén, and some local communities. After the visit, periodic meetings have been held remotely with representatives and consultants of the company and IDB Invest’s environmental and social consultants.

The present ESRS is based on the information gathered during the site visit and subsequently provided by the company. An Environmental and Social Due Diligence Report was prepared by Mott McDonald, dated April 2018 and subsequently updated.

Contact Information: 

Client contact name: Nina Chen
Title: M&A Specialist, Latin America
Phone number: +86 135 6430 3217
Email address: consultas@envision-energy.com

Environmental and Social Action Plan: