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Azura Edo IPP
Environmental & Social Review Summary

This Environmental and Social Review Summary(ESRS) 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 ESRS 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 32859
Country
Nigeria
RegionSub-Saharan Africa
SectorV-AB - Gas - Thermal Power Generation
Department
Company nameAZURA POWER WEST AFRICA LTD
Environmental category:A
StatusActive
Date ESRS disclosedSeptember 5, 2013
Previous EventsInvested: December 29, 2015
Signed: November 25, 2014
Approved: May 1, 2014
View Summary of Investment Information (SII), click here

OverviewE & S Project

Categorization

and Applicable

Standards
E&S Risks /

Impacts and

Mitigation
Stakeholder/

Engagements
BCSE & S Action

Plans
Availability

of Full

Documentation

Project Description
The Project consists of a Greenfield 450 MW (net) open cycle gas turbine (“OCGT”) power plant covering approximately 12.5ha of a 102ha site located in Edo State, Nigeria. The Project site is located to the north-east of Benin City, adjacent to the existing NIPP, just outside the limits of the built up area and within the Benin bypass road. It mainly consists of secondary forest, subsistence farming (slash and burn practices), plantation (palm oil, rubber), and dwellings and footpaths.

The Project Sponsor is Azura Power West Africa Limited (“Azura”), a subsidiary of Amaya Capital Limited (“Amaya”). The OCGT plant has been designed to accommodate the potential conversion to Closed Cycle Gas Turbine (CCGT) with a total net output of approximately 670 MW. There are two associated facilities: an above ground 300kV transmission line (less than 1 km), with two pylons, connecting the Project site to the Benin North substation (adjacent to the Project site); and an underground gas pipeline spur of approximately 1km in length connecting the power plant to the Escravos Lagos Pipeline System (“ELPS”). The existing Benin-North substation is not an associated facility given that its use predates the Project.

The World Bank is involved in the restructuring of the energy sector in Nigeria, and is expected to have a role in this Project through the partial risk guarantee (“PRG”) scheme being proposed. Azura is one of 14 IPPs nominated by the Nigerian Federal Ministry of Finance for participation in the proposed PRG series. MIGA is considering providing political risk insurance for the Project.
Overview of IFC's Scope of Review
IFC visited the Project site and area in November 2012 and coordinated its review with the complementary World Bank team supporting the Government of Nigeria in this effort. The following activities were also conducted:
Review of the Azura-Edo Independent Power Project (IPP) Environmental Impact Assessment (EIA) dated February 2012 by ERM;
Review of the Resettlement Action Plan (RAP) for the Azura-Edo Independent Power Plant dated February 2012 by ERM;
Review of the RAP addendum for Azura-Edo Independent Power Plant dated May 31, 2013 by ERM;
Review of ESIA addendum (including Air Modelling and Impact Assessment Update) For the Azura-Edo IPP dated July 2013;
Interviews with Azura Project Manager;
Meeting Ministry of Land – Benin State;
Separate Meetings with the Communities of Orior-Osemwende, Idunmwowina-Urho-Nisen and Ihovbor-Evboeka;
Meeting with the Association of Landlords affected by the resettlement;
Visit to the transmission station and also view of the of the National Integrated Power Project (NIPP) Plant established by the Federal Government and located closed to the Project; and
Visit to some of the Benin Moats network, and surrounds.

Refer to the Early Disclosure website which provides supporting documentation

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