Navojoa Solar PV

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: 
12402-01
Expected Consideration Date by the Board: 
10/30/2018
Date Posted: 
07/31/2018
Company: 
Kenergreen S.A.P.I. de C.V.
Sponsoring Entity: 
X-Elio Energy, S.L.
Financing Requested: 
USD 30,000,000
Sector: 
Energy
Environmental and Social Category: 
B
Location: 
Sonora
Country: 
Scope Objective: 

The Navojoa solar project consists of the design, construction, commissioning, operation, and maintenance of a 200MW solar PV plant in the State of Sonora, Mexico that will connect into the Mexican Comisión Federal de Electricidad (“CFE”) national grid system; and all associated transmission and interconnection facilities which includes a 3.3km transmission line (TL). The financial plan is expected to be completed with co-loans from the China Co-Financing Fund for Latin America and the Caribbean (“China Fund”), and other development and commercial banks.

The Project was awarded a long-term Power Purchase Agreement (“PPA”) in the 3rd Mexican Power Auction in November 2017. The Project will contribute to the Government of Mexico’s (“GoM”) objectives of diversifying its electricity matrix, by delivering clean, PV solar energy and supporting the push to create a wholesale electricity market, while reducing the country’s dependency on thermal energy, as Mexico’s goal is for clean energy sources to provide 50% of the nation’s electricity generation mix by 2050.

Environmental Review: 

The project is located at the South of the state of Sonora, in the municipality of Navajoa, Km 5 of Navojoa - Álamos road, in the San Jose property. (North Latitude: 27 ° 2'57.81 "' and West Longitude: 109 ° 20'48.86"'). The plant covers an area of approximately 656.99 hectares and a perimeter of 19.8 km.


Based on available information, the Project has been preliminarily classified as Category B (Medium Risk) operation according to the IDB INVEST’s Environmental and Social Sustainability Policy, this Category will be confirmed after the ESDD process. 
The Sponsor developed: i) An EIA for the Project: “Manifestación de Impacto Ambiental, Modalidad Particular, Navojoa Solar, 199.99 MW Navojoa, Sonora, August 2017 (MIA) based on which SEMARNAT (Secretaria de Medio Ambiente y Recursos Naturales) issued an Enviromental Permit for the project on January 22th, 2018; and ii) Evaluacion de Impacto Social Navojoa Solar, 199.99 MW Navojoa, Sonora, September 2017 (EVIS) submitted to the SECRETARIA DE ENERGIA (SENER) on October 2017.
Project’s main impacts and risks are related to: i) community relationship (e.g. jobs expectations); ii) contractor E&S management; iii) worker and community health and safety (including increased vehicular traffic during construction); and iv) biodiversity. These impacts and risk are considered to be largely reversible and readily addressed through well-known mitigation measures detailed in the corresponding the environmental programs that conform the Basic Environmental Plan.  Moreover, the Project’s areas of influence do not intersect any protected nor cultural heritage areas; no resettlement will be necessary, and no indigenous communities will be affected.  The Performance Standards (PS) triggered by the Project are: i) PS1: Assessment and Management of Environmental and Social Risks and Impacts; ii) PS2: Labor and Working Conditions; iii) PS3: Resource Efficiency and Pollution Prevention; iv) PS4: Community Health, Safety, and Security; and iv) PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources.
BID Invest will carry out a complete environmental and social due diligence (ESDD) that will include the review of documents, site visits and meetings / interviews with key stakeholders. The ESDD will also have the participation of specialized external experts, through an independent environmental and social consulting firm. During the ESDD, the BID Invest and the consulting firm will evaluate the main risks of the Project, assess the environmental and social management gaps with respect to its E&S Sustainability Policy and propose mitigation measures in the form of an environmental and social action plan (PAAS), and an Environmental Monitoring Report (at least annually during the term of the investment), to be agreed with the client. In addition, an environmental and social executive summary (ESRS) will be prepared and posted on the IDB Invest website once the due diligence visit is made.

Contact Information: 

For inquiries about the Project, contact:  
Client Contact name: Carlos Egido Ramos
Title: Country Manager Mexico
Phone number: +52 55 4976 0988
email address: carlos.egido@x-elio.com

For inquiries and comments to IDB Invest, contact:  IDB Invest’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 the IDB Invest using the contact information provided above. As a last resort, project 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