HEP GoGreen



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

08 Feb 2023


Passed Structure Review, Pending Final Review

PSD disclosed:

25 May 2022

Project Description

The EBRD is considering arranging an A/B loan of EUR 300 million to Hrvatska Elektroprivreda d.d. (HEP), Croatia's national energy company.

Proceeds of the loan will be used to finance investments in various business areas, more specifically: construction of five solar power plants with total capacity of up to 130 MW; implementation of smart metering; modernization and extension of the electricity distribution infrastructure and replacement of obsolete distribution transformers.

Project Objectives

The loan proceeds will be used predominantly for financing of construction works and installation of the required equipment as well as procurement of goods, all of which will be procured under the EBRD's procurement policies and rules.

Transition Impact

ETI score: 64

The expected transition impact stems from the contribution to the Resilient and Green transition qualities:

  • Resilient: The loan will support the digitalization of the Croatian power grid by enabling HEP to increase the national share of smart meters from 8% to around 25%;
  • Green: The loan will support the development of 5 solar power plants with total installed capacity of up to 130 MW, and the modernization of the electricity distribution infrastructure, which are expected to result in CO2 emission savings of up to 30,000 tones per annum.

Client Information


Hrvatska Elektroprivreda d.d. (HEP, or the Borrower) is a joint stock company established in Croatia and fully-owned by the government of Croatia. The main activities of HEP include the generation, transmission and distribution of electricity, the provision of district heating and gas distribution services throughout the country.

EBRD Finance Summary

EUR 150,000,000.00

Total Project Cost

EUR 300,000,000.00


The project demonstrates strong additionality with EBRD offering a large volume instrument that fills a market funding gap and is required to structure the project. Furthermore, EBRD will mobilise additional funding through an A/B loan structure.

Environmental and Social Summary

Categorised B under 2019 ESP and High-Medium risk due to extensive construction works and potential labour, social and solar supply chain impacts.

The Project involves construction of five solar power plants with total capacity of up to 130 MW; implementation of smart metering; modernization and extension of the electricity distribution infrastructure and replacement of obsolete distribution transformers. The screening of the subprojects demonstrates that none of them is located in Natura 2000 network.

ESDD will be undertaken by an independent consultant retained by the Bank and will include corporate E&S audit and review of the management capacity, impact management and monitoring controls, as well as assessment of E&S impacts of individual sub-projects. Key issues to be considered include site sensitivity and biodiversity, construction H&S management and supply chain; land acquisition issues; visual and other social impacts. An ESAP will be agreed with the Company to structure the Project in line with the PRs and NTS disclosed. The Operational Team is required to work with Impact, CSD and ESD on the GET dimension and approach for this project. PA alignment will be established in the course of ESDD.

Technical Cooperation and Grant Financing


Company Contact Information

Petra Zemljic
HEP d.d. Ulica grada Vukovara 37 Zagreb, Croatia

PSD last updated

25 May 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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