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Screening category and applicable performance requirements
Following an Initial Environmental Examination (IEE), the project has been screened B under the Bank’s Environmental and Social Policy 2008, requiring an Environmental and Social Due Diligence (ESDD). The project is at an advanced stage of construction and, therefore the Bank's ability to leverage change to sitting, design and access road construction is limited. Nevertheless, the IEE and subsequent ESDD confirmed that the site is not located in a sensitive location and that both the construction and future operational impacts can be readily identified, assessed and mitigated.
The Bank has undertaken the ESDD jointly with the IFC who are also considering financing the project. The ESDD includes an Environmental Impact Assessment (EIA) prepared by an independent local consultancy and an environmental and social appraisal of the project by the Bank.
A Non Technical Summary of the project EIA and related documents are available on the Company’s web site.
Key Environmental and Social Issues and due diligence results
Although wind farms have significant benefits in terms of generating carbon free electricity, they can be associated with environmental and social impacts due to the location, notably in terms of impact on flora and fauna as well as possible impact on land use.
Although the project is not located in an environmentally or socially sensitive location, it will have a considerable impact on the landscape, due to its extensive infrastructure (access roads) and the positioning of 54 large wind turbines on a mountain ridge. This issue was identified as part of the ESDD, and although the impact is limited and the developer has designed steps to reduce impacts as far as possible, it can not be eliminated.
The project did not require a full EIA under National legislation, however, an EIA has been developed by the Sponsor for the Lenders. This EIA has confirmed that the project will have limited impact on flora and fauna and that the site is located a considerable distance from bird migratory routes. Furthermore, the location will also have limited impact on land use and local livelihoods. The Sponsor is developing a social programme and will support local educational programmes. One of the main environmental impacts is associated with the development of the associated infrastructure such as the access roads to the site. To mitigate the potential impact of soil erosion, an environmental and social management and monitoring plan has been developed with the Sponsor and is included as part of the EIA.
The ESDD has confirmed that the project is structured to meet the Bank’s Performance Requirements (PRs).
Summary of Environmental and Social Action Plan
As a result of the ESDD, an Environmental and Social Management and Monitoring Plan (ESMMP) has been prepared in line with the Bank’s Performance Requirements (PRs) to address both the construction and operational phase of the project. This includes the development of a systematic approach to environmental and social management of the construction process to limit erosion as well as avifauna monitoring at the wind farm. The Company will implement an environmental, health and safety management system to manage the construction, operation and future decommissioning phase. A Stakeholder Engagement Programme (SEP) has been developed by the Company, which will include the publication of annual information on environmental and social matters on the Company’s web sites, as well as local information in local newspapers, as appropriate. A grievance mechanism will be maintained by the Company.
Implementation requirements
- The Company will implement the ESAP (as agreed with the Company) and the Environmental and Social Management and Monitoring Plan.
- The Company will be required to provide the with an annual environmental report to the Lenders, including updates on the bird monitoring undertaken, implementation of the agreed environmental and social action plan, and notification on any material accidents or incidents,
- The Company will conduct its business with due regard to National and EU environmental regulations and standards, and
- The Company will facilitate periodic monitoring visits by Bank staff or appointed representatives, when deemed necessary.
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