Project description
and objectives:
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Up to EUR 60 million EBRD investment for a 10% stake into South Eastern Energy
Capital (“SENCAP” or the “Company”), an investment joint venture for energy
projects. Proceeds will be used to acquire or develop energy assets in the
Southeast European Energy Market, covering Albania, Bosnia and Herzegovina,
Bulgaria, Croatia, the Former Yugoslav Republic of Macedonia (“FYROM”),
Montenegro, Romania, Serbia and the United Nations Interim Administration
Mission in Kosovo (“UNMIK”), which is in desperate need of new energy
investment, particularly in electricity generation.
The proposed project will focus on the electricity generation business
including any associated mines, renewable energy and investing in electricity
transmission and distribution and in the region.
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Transition impact:
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By supporting the establishing of SENCAP the Bank will assist in addressing
one of the key transition challenges in the SEE power sector, privatisation
and private sector participation.
The project transition impact will derive from the following key areas:
1) Increased private sector participation - The Company will employ western
management practices with a strategy to optimise and restructure state-owned
companies and introduce improved technology that will lead to compliance with
EU environmental standards. Currently the share of SEE’s generation capacity
that is privately owned is less than 4%.
2) Market Expansion - One of the key strategies of the Company activities will
be to implement investments that support the integration of the SEE energy
market. The Bank is actively participating in regional efforts to promote
cooperation and integration in South East Europe to facilitate individual
countries of South East Europe in their efforts to rehabilitate and
restructure their power sectors through policy dialogue, technical assistance
and financing.
3) Transfer of skills - The proposed project is expected to allow for the
transfer of skills and will implement trading know-how and expertise coming
from the Sponsors, thus creating better market environment in line with
international best practice.
4) Greater competition in the SEE power sector - The Bank’s involvement in the
Company will support the establishment of a new regional player that will
facilitate much needed infrastructure investment in the SEE energy sector and
participate in tenders for state assets privatisation.
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The client:
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The Sponsors, founding partners and managers of SENCAP are Public Power
Corporation S.A. (“PPC”) and ContourGlobal (“CG”)
PPC is Greece's largest power generation company and currently the country's
sole power supply company, providing electricity to approximately 7.1 million
customers. PPC is also the owner (but not the operator) of the electricity
transmission and distribution networks. The company was incorporated in 1950
and in 2001 it was transformed into a limited liability company (“société
anonyme”). Greek Government owns 51% of PPC’s equity capital with a remaining
45% listed in the Athens stock exchange and a further 4% owned by its
employees.
CG is a privately owned energy infrastructure development and operating
company headquartered in New York with offices in Houston, Paris and Kyiv.
CG’s major shareholder is Reservoir Capital Group a private investment firm
with approximately USD 3 billion in capital under management. CG is the
primary investment vehicle of Reservoir Capital in the international energy
sector.
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EBRD finance:
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Commitment of up to EUR 60.0 million in equity pari-passu with the Sponsors
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Total project cost:
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Up to EUR 600 million.
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Environmental impact:
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The project itself is categorised C/0. The Sponsor will develop and adopt
acceptable environmental due diligence procedures which allow for the
case-by-case categorisation of each investment, the undertaking of
commensurate due diligence, and the structuring of environmental action plans
as required to address any liability issues and ensure compliance with
national and EU standards. The procedures will be agreed with the EBRD. The
Bank will review each project to ensure that the procedures have been met and
the Sponsor will also provide annual environmental reporting on the monitoring
of investments.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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ContourGlobal
650 Madison Avenue
New York, New York 10022
USA
Tel: + 212 610 9142
Fax: + 212 610 9144
PPC
30, Chalkokondili Str.
GR-104 32 Athens
Greece
Tel: + 30 210 523 5605
Fax: + 30 210 523 7460
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EBRD contact:
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Georgios Giaouris, Operation Leader: giaourig@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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