Chirnogeni wind

Project Description

The EBRD is considering providing an A/B loan of up to € 92 million to finance the construction and operation of 80 MW Chirnogeni wind farm located in Dobrogea region. The construction is expected to start at the beginning of 2012,and full commissioning is expected to take place during the first quarter of 2013.

The Project will support Romania's efforts to increase its renewable energy capacity to meet EU’s green energy quotas.

Transition Impact

Through this Project, the Bank will support the expansion of renewable energy market in Romania.

The Project has the potential to help solidify the regulatory regime for renewable energy, to demonstrate a successfully operating large scale wind power generation facility and attract other investors in the Romanian renewable energy sector. In addition, the transition impact is expected to come from improving the standards for business conduct through the Client's application of international best practice in its environmental impact assessment.

The Client

EPGE is the developer of the Chirnogeni wind project. EPGE is a privately owned power development company incorporated in Cyprus, and a member company of the Paraskevaides Group based in Cyprus. EPGE is focusing on developing power projects in Eastern Europe, the Balkans, Middle East, The Gulf Region, and North Africa.

EBRD Finance

The wind farm will be financed through an A/B loan structure of up to € 92 million.

Project Cost

The total project cost is roughly €135 million.

Environmental Impact

The project is considered Category A, requiring an Environmental and Social Impact Assessment (ESIA) in line with the Bank’s 2008 Environmental and Social Policy.

Environmental and social due diligence completed by the Bank included a review of the separate Environmental and Strategic Impact Assessments (ESIAs) for the 80MW wind project and the rehabilitation of 42 kilometres of 110kV transmission line and supporting project information. Due diligence has confirmed that the Project has been structured to meet Romanian Law and Bank Performance Requirements. No significant issues were raised during public consultations following disclosure of the ESIAs under Romanian law.

The transmission ESIA included a cumulative impact assessment that considered this wind project and other nearby wind projects as well as additional monitoring of birds and bats on the project site. The evaluation of potential impacts on birds concluded there would be no adverse impacts on raptors or other large birds. Although the transmission line passes through a designated Natura 2000 the rehabilitation works will not disturb new land or have a significant effect on this protected area.

Following the Bank’s due diligence an updated ESIA package including the two ESIAs, Non-Technical Summary, Stakeholder Engagement Plan, and Environmental and Social Action Plan were disclosed on 26 October 2011 and are available on the project website, in EBRD offices in London and Bucharest, at EPGE office in Bucharest, and in nearby villages.

Should significant issues be raised during the 60-day Bank disclosure period, these will be brought to the attention of the Board.

An Environmental and Social Action Plan has been developed and agreed with the Company to ensure that the Project is structured to meet the 2008 Bank’s Environmental and Social Policy The plan includes substantial monitoring and reporting obligations, including seasonal monitoring for birds and bats during the first few years of operation, as well as extensive stakeholder engagement.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

None.

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