The project objective is to promote innovative renewable energy technology globally by producing and deploying lightweight solar panels.
Along with the CITIC Capital Pan Eurasia Fund (the Fund), AIIB is proposing to make an equity co-investment in Sunman Energy Co., Ltd. (the Company or Sunman) which develops and sells lightweight, flexible solar modules. The Company developed its patented eArc technology, which applies a strengthened polymer composite to replace glass as the encapsulation material. Due to its lightness and flexibility, the eArc module addresses a much broader market, as about 40% of rooftops around the world, especially industrial and commercial ones, are too vulnerable to apply glass-based solar modules. The proceeds will be used to fund Sunman’s capex, working capital, R&D, and business development needs to capture the growing market opportunities.
The Company was founded by Dr Zhengrong Shi in 2014, a pioneering scientist and entrepreneur in the solar photovoltaic (PV) industry.
The total combined investment between the co-investment of USD5 million and AIIB’s contribution through the Fund as the limited partner will be USD10 million.
AIIB’s Environmental and Social Policy (ESP) including the Environmental and Social Standards (ESSs) and Environmental and Social Exclusion List (ESEL) apply to this Project. The Project has been identified as Category B by the Fund Manager, on the basis that it has a limited number of potentially adverse E&S impacts, they are not unprecedented and can be successfully managed using good practices in an operational setting. The Fund Manager has reviewed the Company’s Environmental and Social Management System (ESMS) which is enhanced and aligned to AIIB’s ESP requirements.
As part of the enhanced ESMS, all suppliers and contractors will be advised of the importance of implementation of appropriate management measures to identify and address issues related to environmental and social provisions, including labor and working conditions, and health and safety matters. Enhanced ESMS compliance is an essential part of the contract documents used in the Project. The Company will also apply its enhanced ESMS to its suppliers. Representations and warranties on labor and working conditions to be provided by contractors and suppliers to the Company will be incorporated into agreements and contracts.
The Fund Manager has disclosed the name, location, industry sector and other relevant identification information relating to the Project on the Fund Manager’s website in both Mandarin and English. The Project’s E&S information and an overview of Sunman’s ESMS is disclosed on the Company’s website.
Post investment, AIIB will rely on the Fund Manager to monitor the Company on the completion of the conditions subsequent and its E&S performance. AIIB requires submission of relevant E&S documentation and E&S performance monitoring reports from the Fund Manager in an agreed format and frequency. AIIB will conduct post-reviews of the implementation of the project as part of its regular supervision, comprising engagement with the Fund Manager, potential site visits and detailed review of the E&S documentation, when conditions allow.
The Fund Manager has established its External Communications Mechanism (ECM) on the Fund Manager’s website and the Company has enhanced its Grievance Redress Mechanism (GRM) to address concerns of relevant project stakeholders. The GRM and ECM will be made available to all stakeholders related to the investment including contracted workers and will provide information on AIIB’s Project-Affected People’s Mechanism (PPM).