Elektro-Bijeljina smartmetering expansion

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 49203

Status Repaying

Location

Bosnia and Herzegovina

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 49203

Status Repaying

Location

Bosnia and Herzegovina

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

04 Jul 2018

Disclosure date

29 Aug 2017

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: Bosnian

Project Description

A senior corporate loan of up to EUR 15 million to be divided into two parallel tranches (i) the EBRD tranche and (ii) a concessional tranche provided by the Green Energy Special Fund ("GESF"), a Special Fund established and administrated by the Bank with the contribution of the Taiwanese International Cooperation and Development Fund (TaiwanICDF) to support EBRD projects related to investments in efficient (also known as "green") energy technologies. The size of the GESF tranche will be determined prior to signing and will depend on the amount of the carbon emission reduction (measured in tonnes of CO2 equivalent saved). In any event it will be limited to a maximum of 50 per
cent of the total project costs (i.e. up to EUR 7.5 million to be provided by GESF). The proceeds of the loan will finance the (i) reconstruction of medium and low-voltage networks (ii) reconstruction of substations (iii) and expansion of smart metering ("the Project").

Project Objectives

The Project will support ZEDP Elektro Bijeljina to reach its strategic objectives of a) Reducing losses, through the installation of new protected cables and substations as well as new meters with remote reading and disconnection features; b) Improving the quality of supply, with the replacement of substations and reconstruction of networks in the most populated areas which is projected to reduce frequency and duration of unexpected grid disconnections, as well as to provide a more stable supply of electricity; and, c) facilitating new renewable connections to the distribution network, mainly small PVs and small HPPs.

Transition Impact

The transition impact of the project is expected to derive from its contribution to the Green Economy Transition (GET) and the country's energy resilience. The reconstruction of medium and low-voltage networks and introduction of around 30,000 new smart meters is expected to reduce distribution losses from 8.83 per cent (including commercial losses) to 6 per cent, saving at least 20 GWh of electricity per annum with significant associated CO2 emissions reductions.

Client Information

ZEDP ELEKTRO BIJELJINA AD BIJELJINA

ZEDP Elektro Bijeljina is a power distribution company servicing 13 municipalities in the Bijeljina region in Republika Srpska, Bosnia and Herzegovina. The company is majority owned (65 per cent) by Elektroprivreda Republike Srpske (EPRS), one of the three national energy utilities 100 per centowned by the Government of Republika Srpska that cover electricity generation and distribution in Republika Srpska. Elektro Bijeljina employs some 900 employees and is the second largest distribution subsidiary of EPRS (out of a total of 5 distribution subsidiaries in EPRS).

EBRD Finance Summary

EUR 7,500,000.00

The loan will be divided into two parallel tranches (i) the EBRD tranche and (ii) a concessional tranche provided by the Green Energy Special Fund (GESF), a Special Fund established and administrated by the Bank with the contribution of the Taiwanese International Cooperation and Development Fund (TaiwanICDF). The GESF tranche will be limited to a maximum of 50 per cent of the total project costs (i.e. up to EUR 7.5 million to be provided by GESF).

Total Project Cost

EUR 15,000,000.00
The full amount of the proceeds will be used to finance the CAPEX for the project.

Environmental and Social Summary

Categorised B (2014 ESP). The upgrade of existing distribution networks and smart metering installation will have mainly positive effect resulting in the reduction of energy losses and improved supply and safety. The environmental and social risks associated with the Project are expected to be site-specific, can be readily identified and managed via the implementation of an ESAP.

The Company is an existing client of the Bank with a good track record on the previous transactions. ESD will undertake an in-house ESDD to check the Company's current E&S compliance status and management systems, supply chain and contractor management, operational practices in place and overall ability of the Company to manage E&S risks and deliver the Project in line with EBRD requirements. Opportunities to maximise the benefits from smart metering for the end-users will need to be identified and implemented taking into account the affordability analysis that will be conducted.

Major potential E&S risks associated with construction and operational health and safety, social and labour issues. An E&S questionnaire will be sent to the Company, and the full scope of the ESDD will be defined and fully agreed following the receipt of the answers to this questionnaire. ESD will work with E2C2 on assessing the GET component of the project. Additional consultancy support may be required for the E&S assessment of investment plans, development of NTS and SEP. This may be combined with the technical assessment. An ESAP will be prepared and agreed with the Company before submission to Board.

Technical Cooperation

Support to the company by a PIU consultant during preparation and implementation, EUR 250,000 to be provided by an international donor.

Company Contact Information

Nedeljko Coric, General Manager
elektrobn@elektrobijeljina.com
0038755226700
0038755210304
www.elektrobijeljina.com
Majevicka 97 76300 Bijeljina Republika Srpska Bosnia and Herzegovina

Transition impact

ETI Score:61

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

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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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