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Project summary document

Project name:Saint Nikola Wind Farm
Country:Bulgaria
Project number:38838
Business sector:Power and Energy
Public/Private:Private
Environmental category:A
Board date:30 September 2008
Status:Board approved, Pending signing
Date PSD disclosed:
Date PSD updated:
22 May 2008
28 May 2008
Local language translation:Българcки превод 
Date translation disclosed:6 June 2008
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Saint Nikola Wind Farm [Environmental Impact Assessment]

Project description
and objectives:

The EBRD is considering a long-term debt financing of up to EUR 90 million for the construction and operation of a 156MW wind farm located in the Kavarna region, in the north-eastern part of Bulgaria about 3km inland from the Black Sea. The project will contribute approximately 1% of Bulgaria’s energy consumption and will significantly increase Bulgaria’s wind generation capacity, as currently only one other large scale farm (35MW) has been constructed in the country.

Transition impact:

The transition impact of the project stems primarily from:

  • The expansion of the renewable energy markets in Bulgaria: the project supports the country in achieving its target of sourcing 11% of its electricity consumed from renewable sources by 2010 and 16% by 2020, as per its commitment to the EU.

  • Strengthening the frameworks for renewable energy markets: the project has the potential to help solidify the new renewable energy legislation in Bulgaria.

  • Knowledge transfer of building and operating large scale wind farms - the Sponsor (AES) has considerable experience in similar projects.

  • Demonstration effect: the Bank’s participation will ensure that the project is implemented in accordance with best practise in Environmental Impact Assessment.

 

The client:

AES GEO Energy Ltd is a special purpose vehicle set up for the partnership between AES (the project Sponsor) and its Bulgarian partner, GeoPower.

AES has significant experience in the wind farm sector with more than 1000MW of wind facilities in the US, a global wind project pipeline of 4000MW (at various stages of development) and has successfully constructed multiple large-scale wind projects (100+ MW).

EBRD finance:

Long-term debt financing of up to EUR 90 million.

Total project cost:

Estimated at approximately EUR 258 million.

Environmental impact:

Environmental classification and rationale

The project has been screened A/0, requiring an environmental impact assessment (EIA) in line with the Bank’s Environmental Policy (2003) and Public Information Policy. The project classification was based on the location of the site and the possible impacts that the project may have on the Via Pontica bird migratory route. The project was subject to Bulgarian EIA requirements and an EU compliant EIA was undertaken in 2006-2007, with a permit issued in March 2007.

Due diligence undertaken and outcomes

An environmental due diligence was undertaken of the Project by an independent international consultant, inclusive of site visit's and meetings with the local regulators, the developer and their technical and environmental advisors.

The project will consist of 52 wind turbines each of 3 MWe located on the community land of the villages of Bulgarevo, Sveti Nikola, Hadji Dimitar, Rakovski and Porouchik Chounchevo, Kavarna Municipality, Bulgaria. The project forms part of Bulagria’s renewable energy commitments.

The main issue identified as prior to the due diligence is the possible impact of the project on avifauna, notable migratory birds. The project site is located near the cape Kaliakra area, which is a coastal headland with vertical limestone cliffs and many caves with relict steppe vegetation inland. The cape acts as a bottleneck for birds on autumn passage and part of the cape has been designated a Natura 2000 site of significant importance in terms of the EU Habitat’s Directive. The bird migratory route is referred to as the Via Pontica.

The site is located away from the sensitive steppe areas, residential areas and a minimum of 3 km inland from the coast. The project may affect migratory birds under very specific weather conditions but appropriate mitigating factors would be implemented to address this identified risk such as switching off turbines if radar and/or professional ornithologist observers indicated that migratory birds may be at risk. The due diligence confirmed that, taking account of commitments to mitigation, there will be no significant negative impacts to any Natura 2000 sites or avifauna.

The Sponsor has undertaken an Environmental Impact Assessment (EIA) as required by Bulgarian environmental law and obtained relevant permits. The EIA has been undertaken in accordance with the Bulgarian transposition of the EU EIA Directive, as amended. As part of the baseline assessment a comprehensive bird survey was undertaken of the site and the EIA was subject to Bulgarian public consultation requirements. The EIA process and scope of assessments was reviewed during the due diligence and additional expert opinions provided by independent experts. The EIA process was found to be broadly in line with EU requirements. The due diligence confirmed that the environmental assessment has met the Bank's requirements, although additional actions and studies are necessary in order to further refine site – specific aspects of the Environmental Action Plan for the project prior to Board consideration.

As part of the EIA process, the developer has agreed to the following:

  • Commitment to work with the local authoritarians and stakeholders to develop a bird sanctuary in this area and not to develop wind turbines in sensitive areas (particularly close to the coast). Furthermore, the Company will provide financial support to maintain such bird sanctuary.

  • Establishment of a monitoring plan over 3 years from constructing the project to study the impact of the project on local avifauna and share the results of this study with local regulators and interested stakeholders.

  • Install a radar system, which together with visual observation will allow for turbines to be switched off in case of adverse conditions which could result in a risk of bird collision with the turbines. This process will be documented and a transparent management system developed for the project as part of an environmental management system.

Development of a renewable energy information centre in the project area.

The PSD will be updated upon the completion of the Bank’s consultation process within 60 days of issuing the PSD,

Disclosure of information and consultation

The Project is subject to a public consultation and a disclosure plan (PCDP) that has been developed by the Sponsor.

The materials are available in hard copy at the following locations in Bulgaria:

  • Geopower / AGE registered office: 38, Chervena stena Str. 1421 Sofia Contact: Dimitar Hristov Tel: +359 2 816 78 10; email: office@yomibg.com

  • AES Sofia office (72 Ljuben Karavelov Str, Sofia 1000, Bulgaria) contact: Gergana Pavlova; email; Gergana.pavlova@aes.com

  • EBRD Sofia office (Moskovska 17, Sofia 1000) contact: George Giaouris (also available in London HQ) email: giaouriG@ebrd.com

  • AGE / GeoPower Kavarna office, 9650 Kavarna, 28, Dobrotitza Str. Office 4 Contact: Georgi Liapov Tel: +359 887 168 880. Email: glv@abv.bg

The EIA package and Executive Summary have also been released for public review by the project sponsor on its website www.geopowerbg.com and released locally in the following location:

AGE / GeoPower Kavarna office, 38, Chervena stena Str.
1421 Sofia, Contact: Georgi Liapov Tel: +359 887 168 880. Email: glv@abv.bg

Environmental Department, Kavarna Municipality, 9650 Kavarna, 50 Dobrotitsa str. Contact : Miglena Hristova, Phone: +359 (570) 8 23 08, Email: obshtina@kavarna.bg

Additionally the executive summary is available on the EBRD internet sites at www.ebrd.com

Implementation requirements

The project company will be required to:

(i) provide the Bank with an annual environmental report, including updates on the bird monitoring undertaken, and notification on any material accidents or incidents,

(ii) conduct its business with due regard to National and EU environmental regulations and standards, and

(iii) arrange for periodic environmental audits and monitoring visits by Bank staff or appointed representatives, if and when deemed necessary

There is an Environmental Impact Assesment available for this project.

Technical
cooperation:

None

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

John N. Bottomley, Project Director : john.bottomley@aes.com

Teodor Bobochikov, General Manager: Teodor.Bobochikov@aes.com

AES Geo Energy Ltd, 72, Ljuben Karavelov Str.
Sofia 1000
Bulgaria
Tel: +359 (2) 988 12 75

EBRD contact:

Georgios Gkiaouris, Operation Leader: giaourig@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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