Translated version of this PSD: Russian
The EBRD is considering participation in a bond issue which will be publicly placed by the Federal Grid Company. In case EBRD acquires the bonds (subject to market conditions) its financing will contribute to the modernisation of Pakhra substation located in the Moscow region. Federal Grid Company undertakes to procure goods, works and services related to this project in accordance with the Bank’s Procurement Rules in an amount of not less than Bank’s participation in the bond.
The Bank's financing will be used for refurbishment of the existing substation and will support the Company’s investment program aimed at improvements in stability and reliability of the system and losses reduction. The proposed facility is a concrete step in the implementation of the Memorandum of Understanding between the Bank and the Federal Grid Company on cooperation in the area of energy efficiency. Through this transaction the Bank will also contribute to the local capital markets development as the bond is expected to be the first 7-year domestic corporate (non-bank) Rouble bond.
JSC "Federal Grid Company of Unified Energy System" ("FGC" or the "Company") is a natural monopoly owning and operating high voltage (above 220kV) electricity transmission networks in the entire country. The Russian Federation owns 77.66% of the Company with the rest held by minority investors and traded on major Russian stock exchanges MICEX and RTS.
EBRD is ready to purchase the bonds in the amount of up to RUB 5 billion subject to market conditions.
Total size of the 2010 bond issuing program - RUB 50 billion.
The Project has been categorised B under EBRD's Environmental and Social Policy (2008), requiring an Environmental and Social Due Diligence ("ESDD").
The ESDD was undertaken by an international independent consultant consisted of a corporate Environmental, Social and Health and Safety Audit of the Company’s management systems and an Environmental Analysis of the proposed investment programme. The Consultant also reviewed the status of implementation of a previously agreed Environmental Action Plan.
The ESSD has confirmed that the EBRD-funded project (modernisation of Pakhra substation) will not give rise to material environmental or social impacts and will comply with EBRD's Performance Requirements.
Measures recommended by the independent consultant are aimed to strengthen further FGC’s institutional capacity in terms of its environmental, health and safety (EHS) management and to develop further best practice initiatives. Specifically such measures will include a more formalised EHS management system in line with best international practice as well as a commitment to develop a stakeholder engagement plan over the next year for both corporate operations as well as when developing new lines. As part of developing a public information campaign and stakeholder engagement programme the Company will develop information packs to provide to the public, local administration as well as own staff to help address concerns on public health and safety associated with transmission projects. These include among others, the following topics:
- Electromagnetic Radiation (EMR) and its Impact on Public Health
- Safety Considerations and Transmission lines
- Principles of Environmental and Social Impact Assessment for Transmission line projects
An Environmental and Social Action Plan (ESAP) has been agreed between the Bank and FGC to sanction agreed measures. Its implementation will be monitored by the Bank.
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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