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| SunPower |
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| 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 | 27807 |
| Company name | SunPower Corporation |
| Country | Philippines |
| Sector | Industrial & Consumer Products |
| Environmental category | B |
| Department | Global Manufacturing & Services |
| Status | Pending Approval |
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| Date SPI disclosed | March 13, 2009 |
| Projected board date | April 13, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
SunPower Corporation (“SunPower” or the “Company”) is a global player in the solar industry. The company was founded in 1985 by Dr. Richard Swanson and his students while he was professor of electrical engineering at Stanford University. In 2008, SunPower generated revenue of $1.43 billion.
SunPower is in the process of completing its second solar cell fabrication facility in the Philippines (the “Project”). The project will result in the completion of twelve solar cell manufacturing lines with an aggregate nameplate capacity of 466 MW. |
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| Project sponsor and major shareholders of project company |
| The project sponsor is SunPower. The company is a NASDAQ-listed public company with a widely held ownership consisting mainly of institutional investors. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $475 million. IFC is considering a financing package of up to $75 million in the company. |
| Location of project and description of site |
| The project is located in an industrial park in Batangas, Philippines. |
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| Anticipated development impact of the project |
The project will have the following positive developmental impacts:
- Reduction of CO2 Emissions: This investment will support the production of solar cells, which will provide renewable energy. Assuming a module life of 25 years, the project will directly avoid an estimated 90-100 million tons of CO2 emissions, assuming the electrical energy they produce is instead produced through conventional fossil fuel generated electricity.
- Development of the solar industry: This project will increase the availability of high-performance and cost-effective solar cells, which is expected to accelerate the solar PV industry’s goal to reach grid parity, such that solar energy is an economically viable energy source without government subsidy.
- Job creation and other economic benefits: This facility will employ a total of approximately 2,900 skilled jobs in the Philippines and contribute to local economic growth. |
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| IFC's expected development contribution |
| IFC’s presence in the project will (i) help the company attract other long-term financiers, especially from local financial institutions, and (ii) signal to the market that renewable energy is an important industry to finance in emerging markets. |
| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects 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. Key environmental, health and safety, human resources and social issues that were reviewed included the following: Environmental and social management system; Quality and sustainability of water resources; Emissions to the environment – air, water and subsurface; Solid and hazardous materials management, including transportation; Life and fire safety; Community and occupational health and safety; Energy use and efficiency; and Community engagement. Performance Standards that are applicable for this investment include:
- PS 1: Social and Environmental Assessment and Management System
- PS 2: Labor and Working Conditions
- PS 3: Pollution Prevention and Abatement
The identified environmental, social and healthy and safety issues which require ameliorative measures are summarized in a Environmental and Social Action Plan (ESAP) that SunPower will implement as part of IFC’s Loan Agreement. Upon successful implementation of the agreed mitigation measures, the proposed Project is expected to comply with host country laws and regulations, IFC Performance Standards and applicable World Bank/IFC guidelines. Additionally, SunPower’s solar cell technology provides a significant positive impact on global climate change and its operations create jobs and opportunities for local communities, with no adverse social impacts. |
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| For inquiries about the project, contact: |
Jay Peir
SunPower Corporation
3939 N. 1st Street
San Jose, CA 95134 U.S.A.
Tel: 408.240.5500 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
City Government of Tanauan
Tindalo Ave. Mt. View Subd.
Barangay Poblacion 3,
Tanauan City, Batangas
http://www.tanauancity.gov.ph |
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