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EURUS

Environmental & Social Review Summary

This Environmental and Social Review Summary is prepared and distributed 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 of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Project number 28434
Country
Mexico(IDA)
RegionLatin America and the Caribbean
SectorWind Power - Renewable Energy Generation
DepartmentReg Ind, Infra & Nat Res, CAF/CLA
Company nameEurus S.A.P.I. de C.V.
Environmental categoryA
StatusActive
Date ESRS disclosedDecember 18, 2009
Last Updated DateFebruary 9, 2012
Previous EventsInvested: June 28, 2010
Signed: June 2, 2010
Approved: February 25, 2010
View Summary of Proposed Investment (SPI), click here

OverviewCategory & Applicable StandardsKey Issues & MitigationCommunity EngagementsAvailability of Full Documentation

Overview of IFC's scope of review
Documents Reviewed:
-Environmental Impact Assessment (March 2006) - MIA Completed by Cemex.
-Estudio de Avifauna en Migración - Resultados de las Observaciones / Bird Migration Observation Study (October 2006 and December 2006-February 2007) – Completed by URS Mexico.
-Estudio Prospectivo de Flora Silvestre / Flora-Vegetation Study (May 2007) – Completed by URS Mexico.
-Estudio de Monitoreo de Aves Residentes de Verano / Resident Bird Study (September 2007)– Completed by URS Mexico.
-Estudio Prospectivo de Fauna de Vertebrados Terrestres / Vertebrates Study (June 2008)– Completed by URS Mexico
- Risk Assessment for Birds (December 2009) – Completed by West Inc.
-Plan de Manejo Social Integrado / Integrated Social Management Plan (November 2009) – Completed by Exponent.
-Estudio de Manejo Ambiental: Sistema de Manejo Ambiental y de Salud Ocupacional, Ruido y Drenaje / EHSMS, Noise and Drainage Management (November 2009) – Completed by Exponent . Site Visits: Visits to the project site, transmission line route, and neighboring wind farms conducted by IFC staff April 2009. Meetings and Discussions: La Venta community, Ejido leadership, Ejido Union Representatives, SENER (National Energy Authority), SEMARNAT (National Environmental Authority), ProNatura (BirdLife Partner), Ornithological Consultants, EIA Consultants and Eurus staff. Project appraisal has been coordinated closely with co-lending Inter-American Development Bank (IDB).
Project description
Eurus SAPI de CV (“Eurus” or the “Company”) is a special purpose vehicle incorporated in 2006 under Mexican law for the development, construction and operation of a 250.5 MW wind farm and associated transmission assets in the La Venta Ejido, Municipality of Juchitán de Zaragoza, State of Oaxaca, Mexico (the “Project”). The Project will utilize 167 1.5 MW AW70 Class I turbines manufactured by Acciona Windpower (“AWP”), and benefits from an exceptional wind resource with high average wind speeds matched by few locations in the world. The Project also includes associated control and transmission facilities and a 22 kilometer (km) 230 kV overhead transmission line from the Project site to the Juchitán II substation, to be built within the right of way of the existing Federal Electricity Commission (CFE) transmission line. Project construction is well advanced; to date, all 167 turbines had been erected, of which 110 (163 MW or 66%) have been connected to the grid and declared operational. The substation and related transmission assets are complete.

Eurus is 94% owned by Acciona Energía México S. de R.L. de CV (“AEM”), itself a wholly owned subsidiary of Acciona Energía S.A. of Spain (“AE” or the “Sponsor”). The Project is being developed under Mexico’s autoabastecimiento, or autogeneration, framework. As such, the remaining 6% shareholding in the Company is owned by Cemex México SA de CV (“Cemex México”), who is supplying itself with the Project’s output pursuant to a 20-year power purchase agreement (“PPA”) with the Company. Cemex México originally initiated development of the Project for a source of clean, low cost, fixed price energy, and selected AE to take over ownership and development of the Project in 2006.
The project is located in the La Venta Ejido (communally-owned land) on a plain approximately 40 km inland from the Pacific Coast in the municipality of Juchitán de Zaragoza, Oaxaca, in the Isthmus of Tehuantepec, approximately 3 km from the Sierra de Tolistoque. Total project footprint with affect less than 1% of total Ejido land. There are already two previous wind projects developed by other sponsors operating in La Venta’s lands: La Venta I (1.5 MW, CFE’s pilot project) and La Venta II (approximately 83.5 MW, financed by the World Bank). Another project, La Venta III (approximately 103 MW) is under development. Currently, there are approximately a total 14 wind projects in different stages of development by different companies in the Isthmus, including La Ventosa and La Mata 67.7 MW wind power Project developed by Eléctrica Del Valle de México, an affiliate of Électricité de France (“EDF”), which is also being considered for IFC investment under a different operation.