Translated version of this PSD: Polish
The EBRD is considering providing a loan of up to PLN 800 million to the Polish electricity utility ENERGA SA along with other IFI’s, and leading commercial banks. The debt financing, of which up to PLN 400 million will be on the Bank’s own account, will support ENERGA’s PLN 2.6 billion (EUR 620 million) investment programme for its distribution business in the period 2010-2011.
The investment programme will
(i) enhance ENERGA’s operations ahead of its privatisation by mid 2010, and
(ii) strengthen the distribution network to accommodate more renewable energy generation in Poland.
The transition impact of the project is expected to arise from supporting future privatization of one of the four major power utilities in Poland. The project will facilitate privatization of ENERGA by improving efficiency and increasing the client base of the company, thereby increasing its attractiveness to potential investors. In addition, the project is expected to support the expansion of the renewable energy market in Poland. Notably, the extension of the grid capacity will contribute to removing the major existing bottleneck to development of renewable energy and allow for the connection of sizable additional renewable energy capacity (about 50% of currently installed wind capacity). Finally, the project is expected to support the development of a framework for global carbon markets (emerging AAUs trading segment) by setting good practice standards for Green Investment Schemes, which legitimize AAU trading and provide lessons for future carbon finance mechanisms.
ENERGA SA is one of the four large Polish vertically-integrated energy groups, with its operations concentrated in Northern and Central Poland. ENERGA is incorporated under the Polish Law, headquartered in Gdańsk and is 97.5% owned by the Polish State Treasury. ENERGA-OPERATOR is the distribution system operator (the “DSO”) and a 100% owned subsidiary of ENERGA.
Maximum of PLN 800 million unsecured long-term corporate loan to ENERGA SA.
EBRD will syndicate up to PLN 400 million for the A loan and PLN 500 million for the B loan.
In addition, other IFI’s will provide parallel loans of up to PLN 1.2 billion.
PLN 2.6 billion.
Category B (2008). The initial environmental and social examination (IESE), confirmed that the Project, a multi-site operation seeking EBRD general corporate finance, requires a corporate audit. Overall, The financing of the upgrade and modernization of electricity distribution lines is associated with a number of environmental and social issues that can be readily assessed as part of an environmental and social due diligence (ESDD). The proposed project is associated with the upgrade of existing substations and power lines, aimed at improving the regional network, among others to support future wind farm development. A summary of the project and environmental and social impacts can be found in a non technical summary on the Company web site.
The Bank’s environmental and social due diligence (ESDD) was undertaken by an independent consultant and included a review of Energa SA's management system and capacity to implement the Bank's Performance Requirements throughout its operations. The ESDD confirmed that the Bank funded project will not have significant environmental impacts and is compliant with EU environmental standards and the Bank's PRs. Nevertheless, the ESDD identified the need for further strengthening of the corporate management structure and the need to develop specific procedures for future project implementation. This has been agreed with the Company as part of the Environmental and Social Action Plan (ESAP). Based on the ESDD a corporate Stakeholder Engagement Plan (SEP) has also been developed.
Some of the planned sub-projects under the investment programme will need to undergo an Environmental Impact Assessment (EIA) under Polish law, prior to final approval of the construction permits, but not according to EBRD’s Environmental and Social Policy (ESP) requirements (i.e. none would fall under Appendix 1 of the ESP). The EIA is required, among others, due to the change in the electromagnetic field on the line by increasing capacity. The ESDD reviewed the investment programme and confirmed that none of the projects would be associated with sensitive areas.
The ESDD has also shown that the Company has a good EHS management system, as well as HR Policies.
Expected implementation requirements
- The Company will implement a corporate Environmental, Health and Safety Management System as required by the ESAP and appoint an environmental manager.
- The Company will provide to the Bank an annual environmental and social report, including updates on the implementation status of the ESAP and notification on any material accidents or incidents.
- The Company will facilitate periodic monitoring visits by Bank staff or appointed representatives, when deemed necessary.
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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