Quick Facts

Countries:
Where the impacts of the investment may be experienced.
  • Mexico
Banks:
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
  • Inter-American Investment Corporation (IIC)
Status: NO LONGER POSTED
Bank Risk Rating: U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Board Decision Date: 2017-12-12
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower or Client: A special purpose vehicle to be incorporated under Mexican law (the "Warehousing Trust")
The holder of the loan, grant, or other investment.
Sectors:
The service or industry focus of the investment. A project can have several sectors.
  • Finance

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Primary Source

Original disclosure @ IIC website
Updated in EWS: 2018-01-16
Disclosure Date: 2017-11-02
Solar Rooftop 4All
IIC-12224-01

Project Description
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.
Investment Description
Contact Information
Contact information not provided at the time of disclosure. ACCOUNTABILITY MECHANISM OF IIC The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).