ENEL COLOMBIA FL

Promoter – Financial Intermediary

ENEL COLOMBIA SA ESP

Location

• Colombia

Description

The project will finance investments in sustainable electricity distribution and generation from renewable energy sources.

Objectives

The aim is to develop sustainable energy infrastructure supporting Colombia's decarbonisation pathways. As such, the project contributes to national climate mitigation objectives, as well as to security and reliability of energy supply, thus enhancing economic growth and quality of life. In line with the UN 2030 Agenda, the project addresses several strategic development goals (SDGs), in particular SDG 7 (affordable and clean energy) and SDG 13 (climate action), while mainstreaming job creation. The project therefore supports and contributes to people, planet, prosperity and partnerships dimensions of the European Consensus on Development.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

USD 300 million (EUR 281 million)

Total cost (Approximate amount)

USD 650 million (EUR 608 million)

Environmental aspects

The operation intends to generate environmental benefits by supporting sustainable energy infrastructure that help to mitigate climate change. Some of the projects and in particular the renewable energy projects to be financed by this operation are expected to require an Environmental Impact and Social Assessment (ESIA) under the relevant national legislation. However, if located within the EU, the renewable energy generation plants could fall under the Annex II of the Environmental Impact Assessment (EIA) Directive 2014/52/EU (amending Directive 2011/92/EU), requiring the competent authorities to determine whether an EIA is required. With regards to the electricity distribution allocations, the majority of the schemes currently proposed comprise of medium and low voltage assets. Therefore, if located in the EU, they would fall neither under Annex I nor under Annex II of the EIA Directive. High Voltage lines and/or substations may fall under Annex I or II of the EIA Directive. Subject to their characteristics and cumulative impact, an EIA may be required. Nonetheless, the Bank will assess the capacity and procedures of the Promoter to ensure the projects' compliance with national environmental, social and biodiversity regulations, as well as with the EIB's environmental and social standards and the principles of relevant EU Directives (i.e. Habitats Directive 92/43/EEC and Birds Directive 2009/147/EC).

Procurement

The promoter has to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement, specially discarding any type of local content or local preference requirement at sub-project (allocation) level.

Status

Signed - 10/10/2024