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Screening category and justification
Screened B/1. The project involves the provision of funds for investments at an electricity distribution company. In line with the Bank’s Environmental Policy a corporate Environmental Audit of the Company and an Environmental Analysis of the proposed investment programme has been undertaken as part of the due diligence.
Due diligence undertaken and outcomes
An environmental due diligence was undertaken of the project by an international environmental consultant. This consisted of a corporate Environmental Audit inclusive of site visits to substations and depots to assess the current compliance level and environmental risk associated with current and past operations. An Environmental Analysis of the planned investment programme was also undertaken to assess the planned line and transformer station upgrades as well as the planned new metering systems and assess whether the proposed investment programme will allow the Company to attain National and EU Environmental standards.
A number of key action areas have been proposed as part of an Environmental and Social Action Plan (ESAP). The majority are focussed at the Corporate level, although some site specific actions have also been identified. The most significant actions are considered to be:
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Systems investments to strengthen the transmission and distribution losses and thus increase overall energy efficiency;
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Implementation of a centrally coordinated EHS management system, including effective monitoring;
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Significant training of Macedonian staff through a mentoring programme with EVN staff and the setting up of the “ESM Academy” for more general staff training.
The implementation of the ESAP will allow the Company to maintain compliance and develop best practice. The planned investment programme will also allow for substantial energy efficiency gains as well as improve the safety to the system in terms of staff and the general public.
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