Moser Baer PV

Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number	25017
Company name	Moser Baer Photovolatic Ltd.
Country	India
Sector	Industrial & Consumer Products
Environmental category	B
Department	Global Manufacturing & Services
Status	Active

Date SPI disclosed	November 27, 2006
Projected board date	December 28, 2006
Previous Events	Invested: December 17, 2007 Signed: May 7, 2007 Approved: March 14, 2007

View Environmental & Social Review Summary (ESRS), click here

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

Moser Baer Photo Voltaic Limited (MBPV), a recently incorporated entity, is setting up an export oriented solar photovoltaic (PV) cell and module manufacturing facility with an installed capacity of 80 MW.

Anticipated development impact of the project

The project will create about 600 additional jobs, a majority of which require technical skills. Other development impacts include:

- promoting electrification in off-grid applications; and
- facilitating reduction of emission of greenhouse gases (GHG).

In Moser Baer’s target markets, renewable generating capacity of 80 MW (the generating capacity of one year’s output from the project) will avoid GHG emissions in the order of 65,000 tons of carbon dioxide per annum.

IFC's expected development contribution

IFC’s willingness to provide long term financing to MBPV at its current nascent stage will support its financial risk profile in the market. Further, the financial sustainability of the project and the proposed IFC investment will also have a strong catalytic effect for financing of projects in the PV electricity sector in India and possibly in other emerging markets.

Environmental and social issues - Category B

This is a Category B project according to IFC’s Procedure for Environmental and Social Review Procedure because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environment, health and safety and social aspect of the project were analyzed:

- corporate environmental, social, and health and safety management systems;
- national and local government permitting requirements;
- labor and working conditions including occupational health and safety in construction and operation;
- site location and acquisition; source of power and energy, including fuel storage if applicable;
- air emissions during construction and operation;
- ambient air quality and noise impacts on nearby receptors during construction and operation;
- source and volumes of water consumed including efforts to minimize water use;
- recycling and treatment of process effluent and domestic waste water;
- hazardous materials management;
- minimization, recycling and disposal of solid and hazardous wastes;
- fire and life safety and emergency response; community engagement, health, safety and security;
- corporate social responsibility efforts, including HIV/AIDS awareness.

Full details of IFC’s environmental and social assessment may be found in the Environmental and Social Review Summary (ESRS) for the project.

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