OBJECTIVE

To support electricity generation from solar energy resources.

DESCRIPTION

The Project involves financing of a 250 MW solar project being developed by a special purpose vehicle, Ayana Ananthapuramu Solar Private Limited (“AASPL” or the “Company” or the “Borrower”). The Project was awarded through a competitive bid, at a tariff of INR 2.73 /kWh (US¢ 3.58/kWh). AASPL signed a 25-year Power Purchase Agreement (“PPA”) with National Thermal Power Corporation (“NTPC”) in July 2018. In turn, NTPC signed a 25-year Power Sale Agreement (“PSA”) with AP Discom(s) to sell the electricity generated by the Project to AP Discom(s). As per the PPA, NTPC has the sole obligation to make the payment to AASPL for the power offtake in accordance with the terms of the PPA. Power will be evacuated through the existing, operational 400/220 kV NP Kunta sub-station of PGCIL, which is located at a distance of 3 kms from the solar park in which the Project is being constructed.

ENVIRONMENTAL AND SOCIAL INFORMATION

Environment and Social Policy and Categorization. AIIB’s Environmental and Social Policy (ESP) including the Environmental and Social Standards (ESSs) and Environmental and Social Exclusion List apply to this Project. The Project has been categorized as Category B. The ES risks of this Project are considered to be Moderate. ESS1: Environmental and Social Assessment and Management applies.

Instruments. An Environmental and Social Impact Assessment (ESIA) in accordance with the AIIB’s ESP has been prepared by AASPL. The ESIA has been updated to reflect the latest project information available. A Due Diligence Report (DDR) including an Environmental and Social Action Plan (ESAP) has been prepared for the ongoing construction works.

Stakeholder Consultation and Information Disclosure. Consultations have been conducted during the preparation of the ESIA. AASPL will continue their communications with the Project-affected People (PAPs) and other stakeholders during project implementation by sharing Project information. The Telugu translation of the Executive Summaries of the ESIA and DDR and the full ESIA and DDR reports in English have been disclosed at the Project site in July and disclosed on the client’s website. The English version of the ESIA and DDR have been disclosed on AIIB’s website on July 30, 2020.

Project-level and Worker Grievance Redress Mechanisms (GRMs). AASPL has established a Project-level Grievance Redress Mechanism (GRM). A separate GRM is in place for workers to address workplace concerns. It has been assessed that these GRMs have been prepared in accordance with the requirements of AIIB’s ESP. During the ongoing public consultations, information on the GRM will be disseminated to PAPs.