51055-001: Sembcorp Green Infra Wind Project | Asian Development Bank

India: Sembcorp Green Infra Wind Project

Nonsovereign (Private) Project | 51055-001 Status: Proposed

The Project involves development and construction of a portfolio of 400MW of wind power projects across various states in India (90 MW in Gujarat, 310 MW in other states). The projects will be housed in Green Infra Wind Energy Ltd (GIWEL), which is a subsidiary of SGIL and has 203MW of operating wind power capacity. The transaction will be structured as corporate finance to GIWEL, with elements of project finance like security over project assets, charge over project cash flow etc built in. The company will use these funds, along with equity infusion by Sembcorp and local commercial debt to fund the construction of the above projects.

Project Details

Project Officer
Choudhary, Mayank Private Sector Operations Department Request for information
Country
  • India
Sector
  • Energy
 
Project Name Sembcorp Green Infra Wind Project
Project Number 51055-001
Borrower/Company Green Infra Renewable Energy Limited
Country India
Location
Type or Modality of Assistance
Loan Ordinary capital resources USD 75.10 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Renewable energy generation - wind

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Choudhary, Mayank
Project Sponsor(s) SembCorp
Sembcorp Green Infra Limited (SGIL)
Description The Project involves development and construction of a portfolio of 400MW of wind power projects across various states in India (90 MW in Gujarat, 310 MW in other states). The projects will be housed in Green Infra Wind Energy Ltd (GIWEL), which is a subsidiary of SGIL and has 203MW of operating wind power capacity. The transaction will be structured as corporate finance to GIWEL, with elements of project finance like security over project assets, charge over project cash flow etc built in. The company will use these funds, along with equity infusion by Sembcorp and local commercial debt to fund the construction of the above projects.
Objectives and Scope The project represents the very first time that ADB is supporting a competitively bid out wind power project in India. It was awarded through the country's first ever wind auction at a price which now makes wind energy competitive vis-a-vis other sources of power in India. The objective behind the auction is to help non-windy states in meeting their non-solar renewable purchase obligation (RPO) at a competitive price. ADB's assistance in the form of a long-term loan will significantly improve project financials. This, in turn, will have a major demonstration effect in affirming the commercial viability of competitively bid out wind projects
Linkage to Country/Regional Strategy The relevant country partnership strategy of India (2013-17) is based on four development pillars: (i) inclusive growth and balanced development, (ii) resource efficiency and environmental sustainability, (iii) regional cooperation and public goods, and (iv) an environment conducive to private sector development. The project particularly supports pillars (ii) and (iv). The project is consistent with ADB Energy Policy which prioritizes the support for the renewable energy development. In September 2015, ADB announced that it would double its annual commitment for climate financings to $6 billion by 2020, including $4 billion annually for mitigation. Of this $6 billion, $3 billion would be targeted towards the development of clean energy projects, including solar, wind, renewable energy transmission, and other renewable technologies.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The siting of the turbines has/will be done away from sensitive environment and social receptors (like residential houses, forest, community resources etc) to avoid impacts associated with shadow flicker, noise, blade throw and other safety risks.
Involuntary Resettlement Land required for the project and its various components is being directly purchased through negotiated settlements with individual land owners on a willing seller- buyer arrangement. Land negotiations and the final agreement is documented. Involuntary resettlement issues are, hence, not envisaged for this project.
Indigenous Peoples The project and its activities will not result in impacts on indigenous peoples. The project is not located in an IP area. The initial screening process of the company for identifying potential WTG locations avoids Scheduled tribe/ IP lands. No lands owned, used, occupied, or claimed as ancestral domain by Scheduled Tribes is being used for the development of the project. Hence Indigenous Peoples (IPs) issues and impacts are not expected on account of company's operations
Stakeholder Communication, Participation, and Consultation Based on the site visits and consultations with stakeholders including land owners, village representatives, and land aggregators, the IEE (undertaken by independent consultant) has assessed that a) the land purchase process is voluntary (based on negotiated settlements); b) the rates of compensation/purchase are higher than the existing market value of land in that area; c) there are no outstanding issues related to land compensation; and d) other impacts on the adjoining communities, such as any access restrictions to agricultural fields, are being managed by providing alternative access prior to the occurrence of impacts.
Timetable for assistance design, processing and implementation
Concept Clearance 02 Mar 2017
Credit Committee Meeting 21 Aug 2017
Approval -
Last PDS Update 22 Aug 2017

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