Oman: Manah-1 Solar PV Independent Power Plant

OBJECTIVE

To increase electricity generation from clean renewable energy resources in the Sultanate of Oman.

DESCRIPTION

The Project involves the development, design, engineering, construction, operation, and maintenance of a 500 MWac Manah solar I photovoltaic power plant in the Ad Dakhiliyah region of the Sultanate of Oman.

The Project is being developed by EDF Renouvelables and Korea Western Power Company Ltd., through a special purpose vehicle, which has entered into a 20-year Power Purchase Agreement commencing from the scheduled commercial operations date (SCOD) with Oman Water and Power Procurement Company SAOC (OPWP) in March 2023. Post the PPA expiry, the Project Company will be eligible to sell the electricity under the spot market regime in Oman.

ENVIRONMENTAL AND SOCIAL INFORMATION

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 categorized as Category B, on the basis that the Environmental and Social (E&S) risks and impacts are localized, temporary and can be mitigated through an Environmental and Social Management Plan (ESMP) assessed and managed in compliance with ESS1.

Environmental Aspect. OPWP (Buyer), has obtained the Environment Authority (EA)’s no objection to establish this project. EA directed preparation of an Environment and Social Impact Assessment (ESIA). Potential environmental impacts are largely related to construction activities and are in the areas of water, soil, air quality, community and Occupational Health and Safety (OHS), as well as solid and electronic waste generated from operational maintenance of the solar PVs during the operations phase. The Project is located in a region that may involve a few threatened species on the IUCN Red List. The Bank will engage with the Borrower to address potential project-induced risks, if any, to biodiversity in the project area and require the Borrower to conduct additional specialized studies, including biodiversity baseline survey and a biodiversity management plan if needed.

Social Aspect. The Project will be developed on 775 ha of identified vacant land, which will be granted by the Ministry of Housing and Urban Planning to the Borrower for 25 years. The Project may also have associated facilities like ancillary roads and transmission lines which will be assessed during due diligence. According to the approved urban maps (site plan) by the Ministry of Housing and Urban Planning (Grantor) the site use is classified as ‘commercial use - solar power plant.’ The site is vacant land as per the initial assessment. The Bank will further validate the site conditions through the ESIA and field visits.

Gender Aspects. A gender screening will be carried out to facilitate and promote gender inclusion in the Project and in the Borrower’s operations. This may include the incorporation of measures to promote women’s empowerment in its business activities, including the Project’s operating and maintenance activities. Labor influx during project construction may exacerbate risks related to gender-based violence (GBV), sexual exploitation and abuse (SEA) and sexual harassment (SH). A Gender Action Plan (GAP) will be developed to address the gender inclusion aspects of the Project.

Occupational Health and Safety, Labor and Employment Conditions. The ESIA will cover the OHS aspects of the Project. The ESMP will include measures to mitigate potential health, safety, environmental and social impacts in all Project activities that pose a risk to employees and may also have the potential for disruption of site works. In addition, all suppliers and contractors will be advised of the importance of implementing appropriate management measures to identify and address issues related to the E&S provisions of the ESMP, including labor and working conditions and health and safety matters.

Stakeholder Engagement, Information Disclosure and Monitoring. A Stakeholder Engagement Plan (SEP) will be agreed with the Borrower. The E&S documentation in English and summaries in Arabic will be disclosed timely by the Borrower and AIIB on their respective websites and will be made available in hard copies in the Project areas by the Borrower. The Bank will discuss with the borrower in detail on the E&S monitoring and reporting arrangement during project appraisal.

Grievance Redress Mechanisms: The Borrower will be required to develop and implement two project level grievance redress mechanisms (GRMs), one for Project affected people (PAPs), and one for project contracted workers’ concerns, complaints, and grievances. Communities and individuals who believe that they are adversely affected by the Project will be able to submit complaints and concerns to the Project-level GRMs. The GRM contacts including community liaison officers as well as at the corporate level will be disclosed to local communities in a timely and appropriate manner in Arabic and English so that project contracted workers and affected communities including PAPs can register complaints. The information of established GRMs and AIIB’s Project-affected People’s Mechanism (PPM) in Arabic will be disclosed timely on the Borrower’s website.