Complete lifecycle financing
for renewable energy

Climate Investor One is an innovative approach to infrastructure financing designed to accelerate the delivery of renewable energy projects in emerging markets.

Climate Investor One combines three investment funds into one facility to finance renewable energy projects at specific stages of the project lifecycle. At an early project stage, Climate Investor One provides financial, technical, environmental, social development and structuring support through a Development Fund. Climate Investor One then reduces the complexity associated with multi-party negotiations by equity financing a large part of construction through a Construction Equity Fund. Once the project is operational, Climate Investor One mobilises long-term debt financing through a Refinancing Fund with the objective of optimising the financing over the operational life of the project.

CLIMATE FUND MANAGERS ANNOUNCES THE FIRST CLOSE OF CLIMATE INVESTOR ONE, AT USD 412 MILLION

CLIMATE FUND MANAGERS ANNOUNCES THE FIRST CLOSE OF CLIMATE INVESTOR ONE, AT USD 412 MILLION

The Hague, Tuesday 27 June 2017.

Climate Investor One (CIO) is the inaugural financing facility launched by Climate Fund Managers (CFM), of an intended series of climate finance initiatives designed to combat the detrimental effects of unmitigated climate change.

CIO will provide expertise, technology & financing to renewable energy projects in developing & emerging markets by mobilizing private sector financing at scale supported by catalytic public sector donor funding. CIO builds on the significant energy infrastructure expertise and track record of its sponsors: FMO, the Dutch development bank, and Phoenix InfraWorks, South African infrastructure development and fund management specialists, in association with Sanlam Investments Holdings.

CIO seeks to simplify the manner in which capital is deployed and reduces complexity by delivering an innovative “whole-of-life” solution that provides a single financing source for each of the respective development, construction and operational phases of a project’s lifecycle. To this end, CIO provides early-stage project development services & financing, equity financing through construction, and long-term debt once the project is operational. This approach will allow CIO to implement more projects to market, faster, delivering positive environmental and social impact sooner.

In the context of near universal political commitment to prevent rising global temperatures from exceeding 2°C above pre-industrial levels, the Directorate-General for International Cooperation (DGIS), Ministry of Foreign Affairs of the Netherlands), Atradius Dutch State Business, De Nederlandse Waterschapsbank N.V. (NWB Bank), Aegon Asset Management and FMO – all from the Netherlands – together with global partners from Norway (KLP), South Africa (Sanlam Investments Holdings) & the UK (Royal Borough of Windsor & Maidenhead Pension Fund), collectively form the cornerstone support for CIO. This closing highlights and re-affirms a broad public and private sector commitment to innovative climate change solutions and key overseas development & investment initiatives.

Targeting Africa, Asia and Latin America, CIO will focus on Solar, Wind and Run-of-River Hydro renewable energy projects.

 

Environmental and Social Management System

Environmental and Social Management System

Background

Climate Fund Managers (CFM) and Phoenix InfraWorks have combined to create the ‘investment facility’ Climate Investor One (CIO) which is an innovative approach to infrastructure financing designed to accelerate the delivery of renewable energy projects in emerging markets.

CFM was established on 30 October 2015 and is the fund manager of Climate Investor One and is a joint venture between FMO (Netherlands Development Finance Company) and Phoenix InfraWorks, both experienced in infrastructure investing, asset and fund management.  The CFM team provides strategic, commercial, operational and financial expertise into investment activities aimed at delivering superior risk adjusted returns for investors and creating value for communities.

Climate Investor One aims to help fast-track renewable energy projects (onshore wind, solar and run-of-river hydro) in developing countries, mobilizing an estimated $2bn in finance, and reducing 1.5mn tonnes of CO2 per annum.

The Environmental and Social Management System (ESMS)

CFM is committed to responsible investment, and has established a Responsible Investment Code, a Responsible Investment Policy (the “Policy”) and an Environmental and Social Management System (“ESMS”).

CFM’s Responsible Investment Code (the “RIC”) is applied to all CIO Funds. It is founded on the principles of ‘Do No Harm’ and ‘Do Good’ which guide all investment decisions and management activities. The ‘Do No Harm’ pillar of the RIC is focused on management of risks and continuous improvement with respect to the governance and management of environmental and social aspects of the projects and companies in which CIO makes an investment. The objective of the ‘Do Good’ pillar is to deliver an upside and positive impact on communities in the local area of influence to the development. Benefit sharing opportunities for a project could for example include: (i) project shareholding by local communities, (ii) extensive corporate social responsibility programmes funded by project revenues toward for example health, education and housing projects or (iii) direct project related benefits like electricity connections.

The RIC is underpinned by the Responsible Investment Policy which establishes CFM’s commitments for responsible investment in relation to E&S risk management and benefit creation. In support of this, an Environmental and Social Management System (“ESMS”) has been developed. The ESMS is designed to manage E&S risks associated with the projects in which the CIO Funds invests and is shared with all Project Companies and investors.  The benchmark for the management of E&S risks is the IFC Performance Standards, UN Declaration on Business and Human Rights and OECD Guidelines as well as country- specific environmental and social laws.

Deal Screening and Categorisation

CFM ensures that environmental and social impacts and risk of all projects are fully integrated within its own operational processes. In accordance with the ‘Do No Harm’ pillar, a formal assessment of E&S impacts and potential risks associated with each Project and for each Fund is undertaken and measures required for risk control are then identified. All projects are required to comply with all applicable legal requirements as well as all relevant IFC Performance Standards.  At the Deal Screen stage of an investment, a rapid assessment of risks is undertaken to confirm that the proposed Project does not trigger immediate concerns, taking into account CFM’s Exclusion List, an External Factors Review of publicly available information, and a high-level desk-based screening of potential environmental and social red flag (material) issues of an investment. The results of the deal screen risk assessment allow the investment to be categorised on the basis of potential E&S risk and this will determine the type and scale of further assessment that will be required.

Environmental and Social Management

The CIO Funds and all projects in which they invest are required to comply with the IFC Performance Standards and any other relevant international good international industry practices (GIIP) as well as with all applicable legal requirements. All projects must be managed in accordance with an ESMS and a Stakeholder Engagement Plan that is aligned to the requirements of CFM, and with operational procedures and controls to manage those activities with the potential to cause E&S impacts to the environment, health and safety, and communities. CFM requires all construction equity and refinancing fund projects to establish an emergency preparedness and response plan which will be implemented at the start of construction and tested on a periodic basis. The needs of all relevant interested parties must be taken into account (e.g. emergency services, communities, neighbours) as part of this process. Effective community engagement is central to the successful management of risks and impacts on communities affected by the Project, as well as central to achieving enhanced community benefits.

Monitoring and Review

An important aspect of CFM’s risk management process is the ongoing monitoring and review of each investment. Depending on which Fund that an investment is drawing from (Development, Construction Equity or Refinancing), different monitoring requirements will be applied. Monitoring is commensurate with the risk categorisation, with physical visits to the location(s) of higher risk projects during construction. All project companies drawing from the Construction Equity Fund and Refinancing Fund are also required to monitor the performance of any contractors employed at the project site(s) and to participate in a Management Review held by CFM on a periodic basis during the lifecycle of the Fund to review overall E&S performance.

E&S Performance Reporting

Each year CFM will submit an annual E&S Performance Report to investors. This report will consolidate E&S information for projects within all three funds.

CFM requires all projects to report E&S performance on an annual basis in an Annual Report. The benchmark for performance is the ongoing compliance against the applicable E&S Requirements using defined key performance indicators (KPIs) for health, safety, environment and social aspects. Projects drawing from the Construction Equity Fund are also required to report quarterly on interim performance. All projects are also required to report any accidents and incidents that may occur.

Upload Date: 6 March 2017

For further information or clarifications, please contact Nicky Crawford - Environmental & Social Manager via: info@climatefundmangers.com

 

Système de Gestion Environnementale et Sociale

Système de Gestion Environnementale et Sociale

Contexte

Climate Fund Managers (CFM) et Phoenix InfraWorks ont contribué à créer la «Facilité d’investissement» Climate Investor One (CIO) qui représente une approche innovante au financement d’ infrastructures, conçue pour accélérer la mise en œuvre des projets d’énergie renouvelable dans les pays émergents.

CFM a été créée le 30 octobre 2015 et est le gestionnaire de fonds de Climate Investor One. Il s’agit d’une joint venture entre FMO (Société de financement du développement hollandaise) et Phoenix InfraWorks, tous deux expérimentés dans l’investissement en infrastructures, et la gestion d’actifs et de fonds. L’équipe de CFM fournit une expertise stratégique, commerciale, opérationnelle et financière dans les activités d’investissement visant à garantir des rendements supérieurs ajustés au risque pour les investisseurs et créer de la valeur pour les communautés.

Climate Investor One vise à aider les projets d’énergie renouvelable à développement accéléré (fast track) (projets éoliens terrestres, solaires et centrales hydroélectriques au fil de l'eau) dans les pays en développement, à mobiliser approximativement $2 millions et à réduire 1,5 millions de tonnes de CO2 par an.

Le Système de Gestion Environnemental et Social (SGES)

CFM s’engage à investir de façon responsable et a établi un Code d’Investissement Responsable, une Politique d’Investissement Responsable (la « Politique ») et un Système de Gestion Environnementale et Sociale (« SGES ») (sigles en anglais ESMS).

Le Code d’Investissement Responsable de CFM (le « CIR ») (sigles en anglais 

RIC)  s’applique à tous les fonds de la CIO. Les principes de « Ne pas Nuire » et « Faire le Bien » sur lesquels il est basé, guident toutes les décisions d’investissement et les activités de gestion. Le pilier « Ne Pas Nuire » du CIR est axé sur la gestion des risques et l’amélioration continue de la gouvernance et la gestion des aspects environnementaux et sociaux des projets et des entreprises dans lesquelles le CIO investie. Le pilier « Faire le Bien » vise à apporter des bénéfices et avoir un impact positif sur les communautés de la zone d’influence du projet. Les opportunités de partage des avantages du projet pourraient inclure par exemple: (i) la participation des collectivités locales dans l’actionnariat du projet, (ii) la mise en œuvre de programmes de responsabilité sociale financés par les revenus des projets (par exemple, pour la santé, l’éducation et les moyens de subsistance) ou (iii) les bénéfices directement liés au projet (par exemple, les connexions électriques).

Le CIR s’appuie sur la Politique d’Investissement Responsable qui établit des engagements de CFM envers l’investissement responsable en ce qui concerne la gestion des risques environnementaux et sociaux et la création d’un bénéfice. À l’appui de cela, un SGES a été développé. Le SGES est conçu pour gérer les risques environnementaux et sociaux associés aux projets dans lesquels les fonds du CIO investis et est partagé avec toutes les sociétés et investisseurs. Les références pour la gestion des risques environnementaux et sociaux sont les normes de performance de la Société Financière Internationale (IFC), les Principes directeurs relatifs aux entreprises et aux droits de l'Homme  des Nations Unies et les lignes directrices de l’OCDE ainsi que les lois environnementales et sociales spécifique à chaque pays.

Evaluation initiale (Deal Screening) et classification des accords

CFM s’assure que les impacts et les risques environnementaux et sociaux de tous les projets sont intégrés dans leur propres processus opérationnels. Selon le pilier « Ne pas nuire », une évaluation formelle des impacts et des risques environnementaux et sociaux potentiels liés à chaque projet et pour chaque fond est réalisée et des mesures  nécessaires pour la maîtrise des risques sont ensuite identifiées. Tous les projets sont tenus de se conformer à toutes les exigences légales applicables ainsi qu’aux normes de performance de la IFC. Dans la phase d’évaluation initiale (Deal Screening) d’un investissement, une évaluation rapide des risques est effectuée afin de confirmer que le projet proposé ne suscite pas des préoccupations immédiates. Elle considère la Liste d’Exclusion du CFM, une Révision des Facteurs Externes (External Factors Review) de la base d'informations accessibles au public, et une évaluation de bureau de haut niveau des potentiels problèmes environnementaux et sociaux (matériels) associés à un investissement. Les résultats de l’évaluation préliminaire des risques permettent de classer l’investissement en fonction du risque environnemental et social potentiel et ceci déterminera le type et l’échelle des évaluations supplémentaires qui seront nécessaires.

Gestion environnementale et sociale

Les fonds et tous les projets dans lesquels CIO investit sont tenus de se conformer aux normes de performance de la IFC et tous autres bonnes pratiques industrielles internationales pertinentes (good international industry practices, soit GIIP) ainsi que toutes les exigences légales applicables. Tous les projets doivent être gérés selon un SGES et un Plan de Participation des parties prenantes conforme aux exigences du CFM et selon les contrôles et les procédures opérationnelles de gestion des activités qui risquent de causer des impacts environnementaux et sociaux sur l’environnement, la santé et la sécurité et les communautés. CFM exige que tous les projets des fonds d’investissement et de refinancement établissent un plan de préparation et de réponse aux situations d'urgence qui sera mis en œuvre au début de la construction et testés périodiquement. Les besoins de toutes les parties prenantes (par exemple, services d'urgence, collectivités, voisins) doivent être pris en considération dans le cadre de ce processus. Une implication communautaire efficace est essentielle pour la bonne gestion des risques et des impacts sur les communautés touchées par le projet, ainsi que pour obtenir des avantages additionnels pour la communauté.

Suivi et examen

Un aspect important du processus de gestion des risques de CFM est le suivi et l’évaluation continue de chaque investissement. Les exigences du suivi dépendent du fond auquel appartient chaque investissement (développement, construction ou refinancement). Le suivi est proportionnel à la catégorisation du risque, et aux visites à(aux) emplacement(s) des projets à risques plus élevés pendant la phase de construction. Les sociétés de projets appartenant au Fond d’Investissement de Construction (Construction Equity Fund)  et au Fond de Refinancement (Refinancing Fund) sont également tenues de surveiller les performances des entrepreneurs engagés sur le(s) emplacement(s) du projet et de participer à l’examen de la gestion réalisé par CFM périodiquement durant le cycle de vie du Fond pour la revue des performances globales environnementales et sociales.

Rapports de performance environnementale et sociale

Chaque année, CFM présentera aux investisseurs un rapport annuel de performance environnementale et sociale. Ce rapport permettra de consolider l’information environnementale et sociale des projets faisant partis des trois fonds.

CFM exige que tous les projets présentent annuellement leur performance environnementale et sociale dans un rapport annuel. Le benchmark en matière de performance se base sur la conformité continue avec les exigences environnementales et sociales applicables à travers de l’utilisation d’indicateurs clés de performance (KPI) pour la santé, sécurité, environnement et aspects sociaux. Les projets du Fond d’Investissement de Construction (Construction Equity Fund) sont également tenus d’informer trimestriellement sur leur rendement intérimaire. Tous les projets sont également tenus de déclarer les accidents et les incidents qui pourraient survenir.

Upload Date: 6th March 2017

For further information or clarifications, please contact Nicky Crawford - Environmental & Social Manager via: info@climatefundmangers.com

Sistema de Gestión Ambiental y Social

Sistema de Gestión Ambiental y Social

Antecedentes

Climate Fund Managers (CFM) y Phoenix InfraWorks se han unido para crear el “mecanismo de inversión” Climate Investor One (CIO), que consiste en un enfoque innovador en la financiación de infraestructuras diseñado para acelerar la ejecución de proyectos de energías renovables en los mercados emergentes.

CFM fue fundado el 30 de octubre de 2015 y es el gestor de fondos de Climate Investor One. Se trata de una empresa conjunta entre FMO (Compañía de Financiación para el Desarrollo de los Países Bajos) y Phoenix InfraWorks, ambas con experiencia en infraestructura, inversión y gestión de activos y de fondos. El equipo de CFM proporciona experiencia a nivel estratégico, comercial, operacional y financiero en actividades de inversión destinadas a ofrecer una rentabilidad superior ajustada al riesgo para los inversores y crear valor para las comunidades.

Climate Investor One tiene como objetivos ayudar a proyectos de energías renovables de ejecución rápida (proyectos eólicos terrestres, solares e hidroélectricos de filo de agua) en países en desarrollo, movilizar aproximadamente $2 millones en financiación y reducir 1.5 millones de toneladas de CO2 al año.

Sistema de Gestión Ambiental y Social (SGAS)

CFM tiene el compromiso de invertir de forma responsable y ha establecido un Código de Inversión Responsable, una Política de Inversión Responsable (la "Política") y un Sistema de Gestión Ambiental y Social ("SGAS") (siglas en inglés ESMS).

El Código de Inversión Responsable de CFM (el "CIR") (siglas en inglés RIC) es aplicable a todos los fondos de CIO. Los principios de “No Hacer Ningún Daño” y “Hacer el Bien” en los que se basa guían todas las decisiones de inversión y las actividades de gestión de CIO. El pilar “No Hacer Ningún Daño” de la CIR se centra en la gestión de riesgos y la mejora continua con respecto a la gobernanza y la gestión de aspectos ambientales y sociales de los proyectos y empresas en las que CIO invierte. El objetivo del pilar “Hacer el Bien” es ofrecer un beneficio y tener un impacto positivo en las comunidades de la zona de influencia del proyecto. Entre las oportunidades de beneficio mutuo que un proyecto podría aportar están: (i) que las comunidades locales formen parte del accionariado del proyecto, (ii) que los ingresos del proyecto financien programas de responsabilidad social corporativa (ej. relacionados con la salud, la educación y la vivienda) o (iii) beneficios directos del proyecto (por ejemploconexiones eléctricas).

El CIR se sustenta en la Política de Inversión Responsable. Esta política establece los compromisos de CFM en materia de inversión responsable para la gestión de riesgos ambientales y sociales y la creación de valor. En consonancia con lo anterior, se ha desarrollado un SGAS compartido por todas las empresas del proyecto y los inversores. El SGAS está diseñado para gestionar los riesgos ambientales y sociales asociados con los proyectos en los que los fondos de CIO invierten y es compartido con todas las empresas  e inversionistas. Las referencias para la gestión de los riesgos ambientales y sociales son las normas de desempeño de la Corporación Financiera Internacional (IFC), los Principios Rectores sobre las Empresas y los Derechos Humanos de las Naciones Unidas y las Directrices de la OCDE, así como las leyes ambientales y sociales específicas de cada país.

Evaluación inicial (Deal Screening) y clasificación de los acuerdos

CFM garantiza que los impactos ambientales y sociales y el riesgo de todos los proyectos están totalmente integrados dentro de sus propios procesos operativos. De acuerdo con el pilar “No hacer ningún daño”, se lleva a cabo una evaluación formal de los potenciales impactos y riesgos ambientales y sociales asociados con cada proyecto y para cada fondo y luego se identifican las medidas necesarias para el control de estos riesgos. Todos los proyectos están obligados a cumplir con todos los requisitos legales aplicables, así como con las normas de desempeño de la IFC. En la etapa de evaluación inicial (Deal Screening) de un acuerdo de inversión, se realiza una evaluación rápida de los riesgos para confirmar que el proyecto propuesto no suscita preocupaciones inmediatamente. Se tiene en cuenta la Lista de Exclusión de CFM, y se realiza una Revisión de Factores Externos (External Factors Review) en base a información pública disponible, y una evaluación de alto nivel de gabinete sobre los asuntos problemáticos a nivel ambiental y social (materiales) de una inversión. Los resultados de la evaluación preliminar del riesgo permiten clasificar la inversión en base sus riesgos ambientales y sociales. Esto determinará el tipo y la magnitud de las evaluaciones ulteriores que serán necesarias.

Gestión Ambiental y Social

Los fondos y todos los proyectos en los que CIO invierte están obligados a cumplir con las normas de desempeño de la IFC y cualquier otras buenas prácticas internacionales de la industria (good international industry practices, GIIP) así como con todos los requisitos legales aplicables. Todos los proyectos deben gestionarse conforme a un SGAS y un Plan de Participación de las partes interesadas alineado con los requerimientos del CFM; así como procedimientos operacionales y de control para gestionar las actividades que podrían causar impactos ambientales y sociales sobre el medio ambiente, salud y seguridad y las comunidades. CFM requiere que todos los proyectos de los fondos de capital y refinanciación establezcan un Plan de preparación y respuesta ante situaciones de emergencia que será implementado en el inicio de la construcción y evaluado de forma periódica. Como parte de este proceso deben tenerse en cuenta las necesidades de todas las partes interesadas relevantes (por ejemplo, servicios de urgencias, comunidades, vecinos). La participación eficaz de la comunidad es crucial para el éxito de la gestión de riesgos e impactos sobre las comunidades afectadas por el proyecto, así como para que la comunidad logre beneficios adicionales.

Seguimiento y revisión

Un aspecto importante del proceso de gestión de riesgo del CFM es el seguimiento y la revisión continua de cada inversión. Los requisitos de seguimiento dependen del fondo al que pertenece cada inversión (desarrollo, equidad en la construcción o refinanciación). El seguimiento es proporcional a la clasificación del riesgo y a la(s) visita(s) realizadas al proyecto o a los proyectos de mayor riesgo durante la fase de construcción. Las empresas del Fondo de Capital de la Construcción (Construction Equity Fund) y Fondo de Refinanciación (Refinancing Fund) también son necesarias para supervisar el rendimiento de cualquier contratista que trabaja en el emplazamiento del proyecto y para participar en la revisión del desempeño ambiental y social realizada por CFM de forma periódica durante el ciclo de vida del Fondo.

Información de desempeño ambiental y social

Cada año CFM presenta un informe anual de desempeño ambiental y social a los inversionistas. Este informe incluye la información consolidada en materia ambiental y social para proyectos que forman parte de los tres fondos.

CFM requiere que todos los proyectos presenten un informe anual con su desempeño ambiental y social. El benchmark del desempeño se basa en el complimiento continuo con los requisitos aplicables en materia ambiental y social utilizando los indicadores clave de desempeño (KPI) establecidos en materia de salud, seguridad, medio ambiente y aspectos sociales. Los proyectos del Fondo de Capital de la Construcción (Construction Equity Fund) también requieren realizar informes provisionales trimestrales de desempeño. Todos los proyectos están también obligados a informar sobre cualquier accidente e incidente que pueda ocurrir.

Upload Date: 6th March 2017

For further information or clarifications, please contact Nicky Crawford - Environmental & Social Manager via: info@climatefundmangers.com

Climate Investor One recognised in The Economist's 'Power Up' Report

Climate Investor One recognised in The Economist's 'Power Up' Report

In a recent edition of The Economist’s Power Up: Delivering renewable energy in Africa¸  Climate Investor One was mentioned as a credible and necessary solution to Africa’s energy crisis. Underpinning the lack of power capacity and connectivity, Africa’s energy situation is largely characterized by a lack of available and readily deployable finance.

”’One-stop-shops’, such as developed by Climate Fund Managers (Climate Investor One) …is one way the private sector is responding. From the developer’s point of view, ‘one-stop-shops’ reduce transaction costs by providing easier access to partners, technical experts and investors, while investors benefit from lower risk profiles thanks to the portfolio diversification these facilities provide”, the article highlights.

When asked on the commitment of African governments to address the situation, CEO of Climate Fund Managers (Climate Investor One) Andrew Johnstone noted, referencing South Africa’s REIPPP (Renewable Energy Independent Power Producer Programme) as a leading example that, “The PPP (Public Private Partnerships) Unit of the [South African] National Treasury was a massive stamp of approval and halo effect from day one, because its head and the department had a strong track record of delivering infrastructure projects.”

Mr Johnstone also commented in favour of the new federal government in Nigeria, postulating a PPP structure to replicate the scale and success of that in South Africa. “If you look at Lagos State over the last five years, that’s a jurisdiction that has done PPP’s and they know how project finance works. Some of these PPP’s are good, some are bad, but if they can supersize that at federal level then you’ve got the same sort of dynamic that the National Treasury did for the Department of Energy in South African” says Johnstone.  

Through its innovative blended finance structure, Climate Investor One seeks to be one such financing facility working in the framework of African PPP’s (as well as Asian & Latin American) to enable African-led projects to reach bankability faster and with reduced cost.

For more information on Power Up: Delivering renewable energy in Africa, please follow: https://www.eiuperspectives.economist.com/sites/default/files/Power%20Up.pdf    

CFM sign development agreement with Singapore based developer, Sindicatum Renewable Energy Company

CFM sign development agreement with Singapore based developer, Sindicatum Renewable Energy Company

Climate Fund Managers, the fund manager to Climate Investor One (“CIO”) is pleased to announce the signing of a development agreement with Sindicatum Renewable Energy Company, a Singapore based developer, owner and operator of  renewable energy projects.  Together, Sindicatum and Climate Investor One will develop a 25MWp fixed ground-mounted Solar PV renewable energy project in the Philippines.  The project, located approximately 100km north of Manila is part of the Clark Green City; a redevelopment of the former Clark United States Air Force Base. The Sindicatum and CIO project is the first phase of what is expected to become a 100MWp solar farm under development by Sindicatum. 

The Philippines currently experiences some of the highest electricity costs in Asia due to its heavy dependence on fuel oils, making the project an important addition to efforts to decrease financial burden on Filipino citizens while enhancing their health.  The project will serve around 50,000 people and avoid greenhouse gas emissions of approximately 17,000 tCO­2 per annum, and contribute to the government of the Philippines’ renewable energy targets of 50% of total installed capacity by 2030.

About the signing, CEO Andrew Johnstone said, “This transaction is CIO’s first commitment to Asia and we are very pleased to be in association with Sindicatum with this step.  The project evidences CIO’s objective of delivering a positive climate outcome over the long term whist improving people’s lives in the short term. CIO is positioned to mobilise more capital into this region in the near future and we look forward to a lasting and rewarding relationship with Sindicatum.”

Robert Driscoll, President of Sindicatum, said, “We are delighted with our partnership with CIO who bring an innovative approach to infrastructure financing designed to accelerate the delivery of renewable energy projects in emerging markets. This project is another step forward in our commitment to fighting climate change through building Asia’s renewable energy infrastructure; to backing the Philippines’ clean energy development, especially solar and wind power; and to enhancing the well-being of the Filipino people.”

About Climate Investor One.

Climate Investor One is an innovative approach to infrastructure financing designed to accelerate the delivery of renewable energy projects in emerging markets. Born out of The Global Innovation Lab for Climate Finance - a global initiative that supports the identification and piloting of cutting edge climate finance instruments – Climate Investor One aims to help fast-track renewable energy projects in developing countries, mobilizing an estimated $1bn in finance, and reducing 1.5 million tonnes of CO­2 per annum. Climate Investor One combines three investment funds into one facility to finance renewable energy projects at specific stages of the project lifecycle. At an early project stage, Climate Investor One provides financial, technical, environmental, social development and structuring support through a Development Fund. Climate Investor One then reduces the complexity associated with multi-party negotiations by equity financing a large part of construction through a Construction Equity Fund. Once the project is operational, Climate Investor One mobilises long-term debt financing through a Refinancing Fund with the objective of optimising the financing over the operational life of the project.

About Sindicatum.

Sindicatum Renewable Energy Company Pte. Ltd (Singapore) (“SREC”) is a growth-oriented infrastructure company that owns, operates, develops and acquires contracted clean power generation facilities in the high-growth emerging markets of South and Southeast Asia.  We focus on developing and operating distributed generation facilities that can best provide long-term stable earnings and cash flows by meeting the needs of our utility and commercial customers who typically purchase power from us under long-term power purchase agreements.  We currently own, operate and are developing solar, wind, bagasse co-generation and waste-to-energy projects in the Philippines, Thailand, Indonesia and India with a total net capacity of approximately 1,000 MW.  The proven power generation technologies we employ and our management team’s demonstrated expertise operating these types of facilities support the stability of our earnings and cash flows.  Our projects are located in India, Indonesia, the Philippines and Thailand, which are all markets that are projected to experience fundamental energy demand growth and strong expansion of clean power generation capacity without overreliance on government subsidies.

Development and cooperation agreement signed with french developers, cden

Development and cooperation agreement signed with french developers, cden

In what has been a full and constructive first half of 2016, Climate Fund Managers (CFM), the fund manager to Climate Investor One (CIO) is pleased to announce the signing of a Development and Cooperation Agreement (DCA) with French developers Compagnie Des Energies Nouvelles (CDEN). The DCA forms the basis of a partnership between CIO and CDEN for the development of a combined 15MW Solar PV & 2 MW Pumped Storage Hydro (PSH) facility in Rwanda.

The facility will be located in the Rwamagana district and construction will take place in two stages, with a Stage 2 expansion ramping the facility up to 45 MW PV & 6 MW PSH approximately 24 months after Stage 1.  

About the signing, CEO Andrew Johnstone said, “this is a landmark occasion for CIO, demonstrating the attractiveness of CIO's unique funding model, being a full-lifecycle funding solution, combined with an innovative project architecture, delivering climate and development driven benefits to Rwanda.

The project is set to provide grid-connected electricity to approximately 950,000 Rwandans and abate global GHG emissions (CO2) by approximately 16,000 tonnes per annum.

CFM Sign Partnership for Hydro and Solar Project in Zambia

CFM Sign Partnership for Hydro and Solar Project in Zambia

FOUR-WAY PARTNERSHIP SIGNED FOR ALL-EQUITY HYDRO AND SOLAR PROJECT IN ZAMBIA

International project developer eleQtra Limited, Zambian hydropower expert Mr Katai Kachasa, newly-established development facility Climate Investor One and the long-standing multilateral development institution Africa Finance Corporation (AFC) have signed a four-way agreement for the development and construction of a combined 75MW hydropower facility and 20MW solar PV facility in Zambia, to be financed on an all equity basis. 

At a ceremony at the annual Africa Energy Forum in London, the partners signed a Memorandum of Understanding that sets out the schedule for the development and construction of the Mwambwa Hydro and Solar Project near Chinsali in the north of the country.  This is expected to require an investment of approximately $250 million, which will be funded on an all-equity basis with a re-financing after commercial operation. This innovative financing structure is expected to expedite the development timeline and provide an optimal financing solution for the project. This should lead to an expedited development schedule which will enable Zambia’s citizens to benefit from increased electricity generating capacity that the project will provide with the shortest possible delay.

The Mwambwa project comes at a time when Zambia faces major power shortages, and also has ambitious plans for enhancing generation capacity, increasing electrification rates and harnessing export opportunities to its neighbours in both the Southern Africa and East Africa Power Pools.   This project’s location in the Muchinga Province in the north of Zambia is close to the Tanzanian border, where a transmission interconnector is under development. This means that the project will be well-placed to serve both local and regional needs, and help with stabilisation of the Zambian national grid, since the region is currently served primarily by generation sources in the south of the country.

The project was launched by eleQtra Limited and Katai Kachasa, who have worked together on other hydro power projects in Zambia. Initial early stage studies for the Mwambwa project have already been undertaken to identify its key features and establish its viability to a prefeasibility level.  Together eleQtra and Mr Kachasa have agreed the terms for a Development and Cooperation Agreement with Climate Investor One for the development of the Mwambwa project through to financial close and construction. Should the next phase of studies demonstrate the project to be feasible, then in accordance with the MOU the Africa Finance Corporation will also participate in the development of the project.  While Climate Investor One is new to the market, eleQtra and AFC have previously had successful partnerships for the development and financing of the 28MW Cabeolica wind farm in operation in Cape Verde and the flagship 350MW Cenpower combined cycle gas plant in Ghana which is under construction. 

This four-way partnership will bring the experience, local knowledge and funding required to develop and construct the Mwambwa Hydro and Solar Project, and all parties look forward to working together to bring the project to fruition. 

eleQtra director Richard Parry said:

“eleQtra are delighted to be working together with Mr Kachasa and Climate Investor One on what we believe to be the first combined hydro and solar PV project in Zambia, and we look forward to African Finance Corporation joining the partnership for the next phase of the development in order to bring the project into operation in the shortest possible time through these innovative financing structures.”

Katai Kachasa said:

The signing of this agreement is a significant milestone in addressing the energy deficit that Zambia faces. I look forward to working closely with these eminent agreement partners in an accelerated implementation of these projects, whose power generation will go a long way in facilitating development in Zambia and the region. It is only through the realisation of projects such as these ones that we will meaningfully deliver development to our people and ultimately eradicate poverty."

Climate Investor One CEO Andrew Johnstone said:

“We’re very proud to be associated with eleQtra and AFC on this initiative, with AFC’s eminent position as an African financial institution, and also this reflects an evolution of eleQtra’s business model as a well-established and progressive developer in the market. Climate Investor One, as an innovative financing solution, sits well with these two partners and bodes very well for a very successful project.”

Andrew Alli, CEO of AFC, also commented on the announcement:

“A lack of basic infrastructure in Africa is leading to dire power shortages. Bridging this power divide is crucial to the development of many other sectors, including transportation and heavy industries, and ultimately to driving economic growth on the continent.

“The future of Africa’s energy lies in its abundance of natural resources and its ability to make the most of both renewable and non-renewable sources. The Mwambwa hydro and Chinsali solar project in Zambia will significantly benefit the local population and add valuable clean electricity to Zambia’s grid. As the first of its kind to be built in the country, it will provide the model for future developments to follow.”

Notes

About eleQtra:

eleQtra is a leading player in the development, investment, management and operation of private infrastructure in emerging economies with a particular expertise in power generation. eleQtra has a solid track record of delivering greenfield infrastructure projects in multiple sectors in Sub-Saharan Africa and managing them through the full development cycle. Completed projects include the award-winning ‘Cabeolica’ wind farm in Cape Verde, the first large scale PPP for wind power production in Sub-Saharan Africa which became fully operational in 2011, and the ‘Cenpower’ gas plant in Ghana which completed its $900m project financing in 2014 and was awarded the ‘PFI African Power Deal Of The Year’.  For more information visit www.eleQtra.com.

About Katai Kachasa:

Katai E Kachasa was the founding CEO of Lunsemfwa Hydro Power Company Limited (LHPC), the first private power producer in Zambia, a role from which he has recently stood down. He was named in 2014 as one of the “ESI Africa 50 most influential figures in Southern Africa power”. Before starting up LHPC in 2002, Mr Kachasa had a 26-year career in the Zambian copper mining industry where he worked in operating divisions and corporate centres of ZCCM Limited. He was for several years the Manager (Engineering) for Mufulira Division, an integrated division comprising mining operation through to refining. Following the privatization of the Zambian mining industry in 2000, Katai worked as the Consulting Electrical Engineer for Mopani Copper Mines PLC until 2002. Mr Kachasa holds a Bachelor of Electrical Engineering degree from the University of Zambia. 

About AFC:

AFC, an   international   investment  grade   multilateral   finance   institution, was established in 2007 with an equity capital base of US$1 billion, to be the catalyst for private sector infrastructure investment across Africa.  With a current balance sheet size of approximately US$3.2 billion, AFC is now the second highest investment grade rated multilateral financial institution in Africa with an A3/P2 (Stable outlook) rating from Moody’s Investors Service. In May 2015, AFC successfully concluded a debut US$750 million Eurobond issue which was 7 times oversubscribed and attracted investors from Asia, Europe and the USA. AFC’s investment approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth. AFC invests in high quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. For more information visit www.africafc.org.

CIO Participates in Green Infrastructure Investment Coalition

CIO Participates in Green Infrastructure Investment Coalition

Climate Investor One (CIO), the innovative first-of-its-kind climate finance initiative of Climate Fund Managers (CFM) has become a participant to the multi-trillion-dollar Green Infrastructure Investment Coalition (GIIC). GIIC aims to bring together investors, governments, green infrastructure developers and development banks to help increase the flow of capital to green infrastructure investments around the world and shape the capital market instruments that ensure these flows.

Climate Investor One, a unique three-fund renewable energy investment facility offering attractive returns to investors at a reduced-risk profile is one such instrument that the GIIC can point towards in paving the way for innovative climate finance solutions.

With the world at a critical juncture between the very real effects of climate change, and the increasing need to provide vital energy infrastructure to the most power deficient regions of the world, the need for innovative and sustainable solutions are more prevalent than ever. 

Power Africa commits to Climate Investor One

Power Africa commits to Climate Investor One

In advance of Earth Day on April 22, Dutch development bank FMO signed an agreement with Power Africa to spur investment in renewable energy projects across sub-Saharan Africa. Through the United States Agency for International Development (USAID), Power Africa will commit US$5 million in support of Climate Investor One (CIO), which finances and helps fast-track wind, solar and hydro power projects in sub-Saharan Africa.

CIO targets medium-size renewable energy projects of between 25 MW and 75 MW, and shares Power Africa’s goal to add 30,000 megawatts (MW) of new power generation capacity and 60 million new business and household connections across sub-Saharan Africa.

“Power Africa’s support of the Climate Investor One is indicative of our continued investment in renewable energy technologies throughout sub-Saharan Africa,” said Power Africa Coordinator Andrew Herscowitz. “From wind parks in Kenya, to solar arrays in Rwanda, and geothermal generation in Ethiopia, Power Africa and our partners are putting the continent’s vast renewable resources to work. This agreement with CIO will not only help deliver new access to reliable, affordable, and sustainable electricity, it will help our African government partners boost economic development and tackle climate change at the same time.”

High energy demand and the challenges presented by climate change have advanced renewable energy solutions in sub-Saharan Africa. Many countries have established or are strengthening supportive policy and regulatory frameworks for private investment of renewable energy infrastructure activities. CIO combines three innovative investment funds into one: a Development Fund to reduce development times and improve bankability of projects; a Construction Equity Fund to provide a single source of equity finance to fund construction and progress projects to an operational stage; and a Refinancing Fund to provide long-term and low risk debt during operations. The three funds together allow CIO to help early-stage climate mitigation projects achieve bankability while providing an end-to-end public-private financing solution.

Linda Broekhuizen said “We are proud of our cooperation with Power Africa to accelerate and simplify the financing of renewable energy projects in Africa. CIO is an innovative climate financing structure that fits very well in our work to empowering entrepreneurs in a sustainably responsible manner”.

USAID’s funding of US$5 million will go directly toward renewable energy projects financed by CIO in sub-Saharan Africa. To date, the Dutch Government have also expressed interest in contributing to donor funding.

Andrew Johnstone, CEO of Phoenix InfraWorks, and co-founder of the CIO concept said “Basic infrastructure is a necessary foundation stone of any healthy, vibrant society, and climate change is an unavoidable truth.  Climate Investor One brings together the need to address climate change on a global basis with the provision of power in geographies where development is most needed.  With the collaboration of Governments and the private sector Climate Investor One points the way to mobilizing sustainable capital in a manner which affects people lives positively. We are excited about the potential that the combination of Power Africa and Climate Investor One offers to the power deficient regions of Africa."

Power Africa’s support of the CIO follows a recent MOU with the Government of Canada, and agreements with the Governments of Norway and the United Kingdom signed at COP 21 in Paris.

 

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Outcomes at Paris UN Climate Talks

Outcomes at Paris UN Climate Talks

The Three Outcomes That Matter at The Paris UN Climate Talks.

Climate Investor One noted as one of the key practical initiatives that mobilize the large upfront expenditures required with clean energy projects in emerging markets.   

 

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USAID partners with Climate Investor One

USAID partners with Climate Investor One

Climate Fund Managers, the Fund Manager to Climate Investor One is pleased to announce a new association with USAID through their Power Africa programme.

USAID is the lead U.S. Government agency working to end extreme global poverty and enable resilient, democratic societies to realize their potential.

In support of Climate Investor One, USAID has pledged a sum of USD five million to the fund which will invest in renewable energy projects in emerging markets.

Andrew Johnstone, CEO of Climate Fund Managers, made the following statement:

“We are very proud of our new association with USAID through their Power Africa programme. Climate Investor One’s focus on the early stage development of renewable energy projects, and its inclusion of a number of African countries in its target area of operations aligns strongly with the objectives of Power Africa. We are excited about the potential that the combination of Power Africa and Climate Investor One offers to these power deficient regions."

 

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CFM Sign First Term Sheet

CFM Sign First Term Sheet

During the Making Solar Bankable conference of 18-19 February 2016 in Amsterdam, Climate Investor One witnessed the signing of its first term sheet – a significant operational milestone in what has already been an exciting start to 2016 for Climate Fund Managers, the fund manager of Climate Investor One.

The deal signed by Hugues-Antoine Guinoiseau of French developers Compagnie Des Energies Nouvelles (CDEN) (middle) was observed by Ronald Goldberg of the Dutch Ministry for Foreign Trade and Development Cooperation (left) and is set to provide a Solar PV – Pumped Storage Hydro (PSH) facility in Rwanda. The project which is due to begin construction in the first quarter of 2017 will be developed in two stages. Stage 1 will see the construction of a 15MW Solar PV + 2 MW PSH facility, which will then be expanded to 45 MW PV + 6 MW PSH approximately 24 months after Stage 1 COD.

Climate Fund Managers CEO Andrew Johnstone (right) was elated with the development and stated, “We are very pleased with this partnership with CDEN, and the signing of the deal in Rwanda reflects Climate Investor One’s status of being open for business”.

Climate Investor One will continue to help fast-track renewable energy projects in emerging markets, mobilizing an estimated USD two billion for climate finance, and reducing an annual 1.5 million tCO2 globally.

Prize winning
initiative

Prize winning
initiative

Global Innovation Lab for Climate Finance

Climate Investor One, formerly known as the Climate Development & Finance Facility (CDFF), is a prize winning initiative from the Global Innovation Lab for Climate Finance.

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Dutch Funding

Dutch Funding

Minister Ploumen contributing €50 million to fund

Minister Lilianne Ploumen of Development Cooperation and Foreign Trade contributing €50 million into Climate Investor One.

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People will always need power, come boom or bust.

-Warren Buffett-
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