Nordic Solar

Debt : December 2023

BIO has granted a USD 8.8 M loan to Nordic Solar for the construction of a 14MW solar PV plant in Nicaragua.

Amount

$ 8,800,000.00

Type of investment

Debt

Development impacts

Private sector consolidation/innovation
Access to basic services & goods
Fight against climate change and preservation of natural resources
Promotion of ESG best practices

Beneficiary locations

Latin America and Caribbean: Nicaragua

Investment field

Infrastructure

Activity

DD.35.113 Production of electricity: solar

Organisation

Nordic Solar

Domicile

Nicaragua

More investments in

Nordic Solar

Subsidy $ 100,000.00 (2023)

Nordic Solar is a Special Purpose Vehicle (SPV) set up for the San Isidro solar project to be built in Malpaisillo (department Leon) around 100 km north of the capital Managua, Nicaragua, with a capacity of 14MWac. The project has been under development since early 2020, completion is expected end 2024.

BIO has been involved in the project from the outset and mobilised EDFI Management Company (ElectriFI) as co-investor.

Development impacts

Private sector consolidation/innovation
Market structuring effects:
The power plant will improve availability of electricity
The project has an attractive feed-in tariff
This project helps increase the reliability of the permanent electricity supply, especially during the dry season when hydropower is providing less electricity
Access to basic services & goods
This project contributes to improved supply of clean, sustainable and affordable electricity

This project will produce > 33GWh of clean energy annually - equivalent to the electricity used by 56,000 people
Fight against climate change and preservation of natural resources
This project will produce >33GWh of clean energy annually and avoid 20,000 tonnes of CO_{2 eq}
Promotion of ESG best practices
BIO ensures compliance with social standards of IFC PS with the support of the E&S consultant
- investigating that land acquisition and compensation occurred according to DFI's standards
- implementing a community engagement plan

BIO ensures compliance with environmental standards of IFC PS with the support of the E&S consultant
- Conducting updated baseline study
- Establishing a hazardous waste plan

E&S Impact

Nordic Solar has agreed to

improve their existing Environmental Management System and risk assessment by emphasizing the social and occupational risks.
develop a hazardous and non-hazardous waste management plan.
develop an updated biodiversity baseline study and submit the reforestation plan.

Situation at the time of investment

Nordic Solar has

implemented an ESMS specific for the project and has acquired all necessary permits and performed the required preliminary studies and ESIA for the solar project.
an E&S team in place with adequate capacity and experience
identified the surrounding communities and is engaging them before the construction through social specialists.
hired contractors to comply with high OHS standards.

Risk Category: B+