Democratic Republic of Timor-Leste / Reinsurance for Solar PV and Battery Energy Storage Project－ Collaborative Project with MIGA －

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has decided to provide reinsurance coverage for a political risk insurance (PRI) policy issued by the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group for an investment in a solar photovoltaic and battery energy storage project in the Democratic Republic of Timor-Leste (Timor-Leste) by I-Environment Investments Pacific (IEIP), a subsidiary of ITOCHU Corporation. The Project will be developed jointly with EDF Power Solutions S.A., a subsidiary of France's EDF S.A.

NEXI has been collaborating with MIGA by providing reinsurance coverage to promote investment and financing for projects involving Japanese companies. In this Project, NEXI will provide reinsurance coverage for MIGA's guarantee supporting the investment by IEIP and EDF Power Solutions S.A. through a special purpose vehicle (SPV) established for the development of the Project in Timor-Leste.

The Project involves the development, ownership and operation of approximately 74 MWac of solar photovoltaic generation capacity together with approximately 80 MWh of battery energy storage capacity under a build-operate-transfer (BOT) scheme under a 25 year 100% power purchase agreement with Electricidade de Timor-Leste, Empresa Publica (EDTL, E.P.) in the Laleia area of Manatuto Municipality, Timor-Leste. The Project also includes the construction of associated transmission and substation facilities. It is expected to be the first independent power producer (IPP) project and the first large-scale grid-connected renewable energy project in the country.

The Government of Timor-Leste is actively promoting the deployment of renewable energy and has set a target of increasing the share of renewable energy in electricity generation to 50% by 2030. The Project is expected to support the government's energy policy objectives, contribute to a more stable and sustainable power supply, reduce dependence on diesel-fired generation, and help lower greenhouse gas emissions.

As Japan's official export credit and investment insurance institution, NEXI will continue to support Japanese companies in developing their business overseas, including in the Asia-Pacific region, and contributing to the realization of a decarbonized society.

Contact:
Overseas Investment Insurance Underwriting Group I
Investment Insurance Department
Tel: +81-(0)3-3512-7668