Translated version of this PSD: Polish
The EBRD is considering providing a senior loan to Elektrociepłownia Stalowa Wola S.A. (the “Borrower” or “EC SW”), a special purpose company owning 100% interests in the Combined Cycle Gas Turbine (the “CCGT”) unit with the generation capacity of 449 MWe and 240 MWt (the “Project”). The Borrower is owned by Tauron Wytwarzanie S.A. (the “TW”) and PGNiG Energia S.A. (the “Shareholders”), who in turn are respectively owned by Tauron Polska Energia S.A. (Tauron”) and Polskie Górnictwo Naftowe i Gazownictwo S.A. (“PGNiG”) (together the “Sponsors”). The financing will enable the Borrower to build and operate Poland's largest CCGT unit to be located in the town of Stalowa Wola. The Project is scheduled for completion in mid 2015.
The Project’s transition impact stems from three factors:
(i) demonstration effect of the gas-fired technology as a solution supporting emission reductions in the light of decommissioning of outdated power generation capacity in Poland;
(ii) demonstration effect of the financial feasibility of gas-fired generation and
(iii) demonstration effect of best environmental standards (incl. Equator Principal, EU and EBRD Environmental Standards) in the gas-fired power generation in Poland.
- EC SW is a special purpose company incorporated in Poland indirectly co-owned, on a 50:50 basis by Tauron and PGNiG.
- PGNiG will be a gas supplier to the Project, and both Sponsors will off-take 100% of electricity generated by the Project.
Provision of a non-recourse long-term financing denominated in Polish Zloty, in the amount of up to PLN 566 million (approx. EUR 138 million equivalent), representing 50% of the total debt and 35% of the total project costs, of which 50% will be syndicated to commercial banks.
Approx. PLN 1,558 million.
Environmental classification and rationale
The Project, a new state-of-the-art 449 MWe and 240 MWt CCGT power plant to be constructed at the site of the existing Stalowa Wola power plant, has been categorised A under the Bank’s Environmental and Social Policy (2008), requiring an Environmental and Social Impact Assessment (ESIA) of the proposed investment programme as well as an audit of the associated facilities.
An Environmental and Social Impact Assessment (ESIA) disclosure package has been prepared for the Project. This has utilised the Environmental Impact Assessment (EIA) undertaken by EC SW for the new CCGT and modernization programme of EC SW in line with National requirements.
Due diligence undertaken and outcomes
The Bank’s Environmental and Social Due Diligence (ESDD) consisted of an environmental and social audit of the existing power plant and an ESIA of the planned investment.
The ESDD was undertaken by an independent consultant and included a review of current operations. The ESDD confirmed that existing TW, Stalowa Wola branch (the “TW SW”) is in compliance with National and EU environmental standards, and has a well developed environmental, health and safety management systems. The Company has the institutional capacity to fully implement the Bank’s Performance Requirements. EC SW is subject to IPPC permitting and has up-to-date environmental permits.
The new CCGT will meet the Bank's Performance Requirements and EU environmental standards, namely the EU Industrial Emissions (IE) Directive. The ESDD also confirmed that the planned modernziation of the associated TW SW will allow TW SW to comply with the future requirements of the EU IE Directive and reduce carbon emissions per kWh. TW SW is a coal and biomass fired power plant and the ongoing investment programme will enable the facility to increase biomass use and move away from coal.
As part of the EHS management system, a biomass supply management system is being developed by the Company and this will be further strengthened through the implementation of the Bank’s Environmental and Social Action Plan (ESAP) to verify that biomass is obtained from sustainable, and where appropriate, certified suppliers.
The existing plant is located alongside the Lower San Valley Natura 2000 designated area. The River San is the source of cooling water for the plant, which operates an open cooling system. The Project and current operations of TW SW are associated with a new stabilization weir along the San River. The ESDD has confirmed that the planned operations will have limited impacts on the Natura 2000 area along the San River. The weir has been approved by the relevant Competent Authorities following an Appropriate Assessment under Annex 6 of the Habitats Directive. The Bank will monitor the implementation of this associated project.
The ESIA package and Non-Technical Summary (NTS) have also been released for public review by the Project sponsor locally and on its corporate website.
There is an Environmental and Social Impact Assessment available for this project.
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