DIF - Javna Razsvetljava Street Lighting

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 48275

Status Complete

Location

Slovenia

Business Sector

Municipal Infrastructure

Notice Type

Private

Project timeline

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

Project ID 48275

Status Complete

Location

Slovenia

Business Sector

Municipal Infrastructure

Notice Type

Private

Environmental Category

Approval Date

22 Mar 2017

Disclosure date

23 Nov 2016

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."

Translated version of this PSD: Slovenian

Project Description

The provision of a senior loan to Javna Razsvetljava d.d. (the Company or Javna), a street lighting and energy services company (ESCO) engaged in the design, financing, installation, operation and maintenance of street, traffic, architectural, stadium, and tunnel lighting systems for Slovenian and Croatian municipalities. The Company is wholly owned by Enlux d.d., a Slovenian limited liability company.

The proceeds of the loan will be used to refinance short-term loans incurred in order to finance street lighting Energy Performance Contracts (EnPCs) with nine municipalities in Slovenia, as well as to finance new contracts the Company may enter into.

Project Objectives

Restructuring of the balance sheet of the Company by aligning the tenor of debt to the payback period of energy efficiency investments. This will enable the Company to undertake new projects and expand the market for street lighting with municipalities through new EnPCs.

Transition Impact

This transaction is linked to the Framework for Street Lighting in Central and South East Europe (CSEE). The Framework targets three main areas of transition impact: (i) it aims to promote the ESCO markets, which will (ii) demonstrate new forms of private contracting and financing of green investments in the region. The Framework is further expected to promote energy efficiency and hence (iii) demonstrate new green solutions based on modern LED technology and modern street lighting management solutions.

This sub-project under the Framework will promote the financing of public service provision of lighting through an ESCO. This type of structure is new in CSEE and once proven as a financing model, is expected to have a positive demonstration effect for the rest of the region's cities. This transaction will also support private sector ESCO markets in the region. The development of the ESCO market has been held back by limited access to financing; the provision of long-term financing will support the expansion of ESCOs in the region. Finally, the Project will promote environmentally sustainable development, as installed LED based street lighting systems give rise to significant energy savings and sizable CO2 reduction potential.

Client Information

JAVNA RAZSVETLJAVA D.D.

Javna Razsvetljava d.d. is a Slovenian limited liability company providing street lighting and energy services in Slovenia and Croatia.

EBRD Finance Summary

EUR 5,500,000.00

A long-term senior loan of up to EUR 5.5 million.

Total Project Cost

EUR 5,500,000.00

Environmental and Social Summary

The project is categorised B in accordance with the Bank's 2014 Environmental and Social Policy (ESP). Independent environmental and social due diligence (ESDD) performed as part of the Feasibility Study for the Project found that the Project is associated with limited future adverse impacts, which will be addressed through appropriate mitigation measures.

The implementation of the Project will result in better service, improved environmental standards due to significantly reduced energy consumption and reduced operating and maintenance costs, plus improvements to public safety and security through better street lighting. The Company's practices are compliant with Slovenian E&S legislation and largely compliant with EBRD’s ESP 2014. Javna has a comprehensive Health and Safety management action plan, implemented by also sub-contractors but has no formalised environmental policy or procedures.

An ESAP has been developed and will be agreed with the Company before signing. It includes requirements for the development and implementation of an environmental and social management system (ESMS), assignment of a suitably qualified manager to oversee the development and implementation of the ESMS, development of a procedure for the consideration of potential environmental and social risks associated with contractor management, and improvements to waste management.

There is a Non-Technical Summary for this project.

Technical Cooperation

Financial, environmental and legal due diligence supported by the Framework for Municipal Services for Project Preparation in the EBRD Advanced Transition Countries, financed by the Government of the Slovak Republic.

Company Contact Information

Stanko Furlan
+386 1 58 63 639
+386 1 54 29 400
www.jrl.si
Litijska cesta 263 1261 Ljuljana-Dobrunje Slovenia

Transition impact

ETI Score: 60

PSD last updated

21 May 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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