AB Lietuvos Energija (f. Lietuvos Elektrine)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 40324

Status Complete

Location

Lithuania

Business Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 40324

Status Complete

Location

Lithuania

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

10 Dec 2009

Disclosure date

02 Oct 2009

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The EBRD is considering providing a loan of up to €71 million to AB Lietuvos Elektrine (Borrower) for the construction of a new combined cycle gas turbine (CCGT) power plant of 450MW (Project) located at the Lithuanian Power Plant (LPP) in the city of Elektrenai. The Project will phase out LPP’s old conventional gas-fired units 3 & 4 whose lifetime comes to an end. The Project will also mitigate the consequences on Lithuanian power supply caused by the closure of the Ignalina Nuclear Power Plant by the end of 2009. The new CCGT plant will become commercially operational by 2013.

Transition Impact

The Project is expected to significantly increase the generation efficiency of the LPP thermal power plant and upgrading its environmental standard of operation by applying state-of-the-art CCGT technology, while supporting the completion of planned INPP decommissioning as agreed with the EU.

The Client

AB Lietuvos Elektrine (Borrower) is the owner and operator of the 1,800MW thermal Lithuanian Power Plant (LPP). The Borrower is 96.4% State-owned and the remaining shares are listed on the Vilnius Stock Exchange. LPP is located in Lithuania, close to the city of Elektrenai, about 50 km west of the capital Vilnius.

EBRD Finance

The EBRD is considering extending a long term loan of up to €71 million to fund a portion of the €360 million costs associated with the construction of the new 450MW CCGT plant (Project). The Ignalina International Decommissioning Support Fund (“IIDSF”), a consortium of local commercial banks and the Borrower are expected to provide the balance of the financing.

Project Cost

€360 million.

Environmental Impact

Environmental classification and rationale

Following an Initial Environmental and Social Examination (IESE), the Project has been screened as category “B” under the Bank’s Environmental and Social Policy (2008), which requires an Environmental and Social Due Diligence (ESDD) of the Project. Environmental and social impacts associated with the replacement of two old and in-efficient gas fired unit with a state of the art Combined Cycle Gas Turbine (CCGT) at an existing power plant can be readily assessed and mitigated as part of an ESDD. The project does not result in the additional of generating capacity, above 300 MW thermal

Due diligence undertaken and outcomes

The ESDD consisted of an environmental and social audit of the existing power plant and environmental analysis of the planned investment. The ESDD was undertaken by an independent consultant. The Company is subject to IPPC permitting and an EIA was undertaken for the project in 2008 in line with National requirements. The Company has up-to-date environmental permits. The IPPC permit will need to be updated at the end of 2009.

The key environmental issue is associated with air emissions, notably NOx emissions.

The due diligence confirmed that the new CCGT plant as well as the existing units that will remain in operation will comply with EU environmental standards as defined by Large Combustion Plant Directive (LCP) and EU IPPC Directive. The CCGT plant will fully meet National and EU environmental standards.

The project was subject to the Lithuanian EIA process and no material issues or complaints have been raised by the public. Stakeholder Engagement Plan (SEP) and additional Non Technical Summary (NTS) have been prepared to keep the public informed of project developments and the NTS has been published on the Company’s website, including the English version.

The ESDD included a review of the company operations to asses the institutional capacity of the Company to implement the Bank’s Performance Requirements. The Company has a good environmental management system, but recommendations have been made for further institutional strengthening and the need for the development of a more formalized environmental, health and safety management system. The Company will also develop and publish on an annual basis a corporate environmental report. The Company has also committed to install continuous emission monitoring system on the new unit as well as unit 5 and 6, and to discontinue using unit 3 and 4 for heat and electricity generation upon the completion of the new CCGT plant (unit 9). Unit 3 and 4 will not be included in the new IPPC permit after 2010.

These requirements together with the implementing of a Stakeholder Engagement Plan (SEP) have been included in the Environmental and Social Action Plan (ESAP), which has been developed and agreed with the Company. The Bank will monitor the implementation of ESAP for this project as well as the implementation of the corporate ESAP. An independent commissioning audit will be undertaken to verify that the plant fully meets the ESAP requirements.

Information on the Company can be found on the Company web site. The Project NTS has been published on the Company’s website.

Implementation requirements

The Company will implement the ESAP (as agreed with the Company) and an Environmental, Health and Safety Management System (as indicated in the ESAP).
The Company will be required to provide the Bank with an annual environmental report, including updates on the ESAP (i.e. implementation status of the various projects), and notification on any material accidents or incidents.
The Company will publish a summary of environmental performance and key environmental performance indicators in its annual report and the internet.
The Company will facilitate periodic monitoring visits by Bank staff or appointed representatives, when deemed necessary.

Technical Cooperation

None.

Transition impact

ETI Score:40

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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

Public Information Policy (PIP)

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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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