Project description
and objectives:
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EBRD is considering providing a senior loan for up to EUR 30 million to Citygas Bulgaria AD (“Citygas”), the holder of a concession to develop and operate the gas distribution network in the Bulgarian region of Trakia. Citygas is 90.22% controlled by Gruppo Societa’ Gas Rimini Spa (“Gas Rimini”), an Italian gas distribution and supply utility. The project’s objective is the construction and operation of 1,700km of gas distribution pipelines and associated infrastructure that will provide a gas connection to over 1,000 industrial clients, 1,500 commercial clients and 96,000 domestic users. The project will contribute to the gasification of Bulgaria, providing the background for economic growth and market development in the region of Trakia, as well as contributing to move the country away from the use of less efficient and more polluting fuels.
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Transition impact:
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Through this project, the Bank will support the privatisation of gas distribution and liberalisation of the gas market in Bulgaria. As such, the project will support a privately-owned company in fulfilling its concession agreement and expand its gas distribution network. Furthermore, the project is expected to support higher standards of business conduct in the Bulgarian gas distribution segment since Citygas will apply best international practices in its environmental, health and safety action plan.
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The client:
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The EBRD will provide financing to Citygas, the holder of the concession. The Sponsor of the project will be Gas Rimini, which has a long established track record of constructing and operating gas distribution networks in several municipalities in Italy.
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EBRD finance:
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EUR 30 million.
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Total project cost:
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Up to EUR 125 million to build the gas distribution network in the Company’s concession area.
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Environmental impact:
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The project has been categorised as B since the potential adverse environmental and social impacts that may give rise are typically site-specific, can be readily identified and addressed through mitigation measures. The following factors were considered in terms of categorisation of this project:
- 1,500 km of the 1,700 km pipeline construction will be within urban and suburban areas. Outside the urban and suburban areas (greenfield construction), there will be no pipeline sections of 40 km or more in a continuous length.
- The maximum pipeline diameter to be used is 400 mm.
- The construction corridor width will be 6 meters with the exception of bends, crossings, etc., where there is a slightly wider construction corridor (max. 12m)
- 20 km of the pipeline crosses proposed Natura 2000 sites. The sections that cross the Natura 2000 sites have been assessed by representatives of the Ministry of Environment (MoE). The MoE has issued a statement that the construction of the pipeline would not result in any significant impacts and necessary permits have been obtained for construction.
- There are no compression/ de-compression stations or other above ground facilities within the Natura 2000 sites.
- There will be no resettlement or permanent economic displacement as result of the project
The ToR for the due diligence of the project are currently under preparation. The due diligence will cover an environmental and social analysis of the potential impacts of the project and an audit of the completed sections.
This PSD will be updated as further information becomes available with respect to the results of the environmental and social due diligence.
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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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Demis Diotallevi - Chief Financial Officer
Gruppo Società Gas Rimini S.p.A. - Rimini, Via Chiabrera 34/b - 47900, Italy
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EBRD contact:
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Matteo Colangeli, Operation Leader: colangem@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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Public Information
Policy (PIP):
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The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
Text of the PIP
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Independent Recourse
Mechanism (IRM):
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The EBRD has established the IRM to give local groups that may be directly and adversely affected by a Bank project a means of raising complaints or grievances with the Bank, independently from banking operations.
Guidelines for Making a complaint and the Rules of procedures
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