Project Description
The Project involves the provision of a senior loan of up to PLN 175 million (approx. EUR 37 million) to YVS Nozdrzec Sp. z o.o. (the "Borrower" or the "Company"), a special purpose vehicle ("SPV") incorporated in Poland. The loan will be dedicated for the construction and operation of a 48MW onshore wind farm in the south-eastern Podkarpackie region of Poland (the "Project"). The Project consists of 16 wind turbines and is expected to generate 138GWh of electricity per annum. The Project includes the possibility of extension with 2 additional wind turbines for a total of 6MW.
Project Objectives
The Project will contribute to climate mitigation by adding 48MW wind generation capacity to the Polish national energy system. Wind and solar farms are critical to Poland in achieving its ambitious decarbonisation goals and their rapid development is key to diversifying away from hydrocarbon reliance. In addition, the Project will strengthen the private sector's role in the renewable energy sector in Poland.
Transition Impact
ETI score: 60
The Project targets the "Green" Transition Impact quality by supporting the construction of onshore wind farm with a total installed capacity of 48MW. This capacity is expected to replace coal-fired power plants in the generation mix and consequently result in associated CO2 savings of over 100,000 tonnes annually.
Client Information
YVS NOZDRZEC FARMA WIATROWA SP Z O O
YVS NOZDRZEC FARMA WIATROWA SP Z O O a limited liability company incorporated in Poland and established for the sole purpose of constructing and operating the Nozdrzec wind farm. The Company is ultimately majority owned by Yevulei Shemesh Renewable Energy Group Ltd ("YVS"), an Israeli renewable energy Group. The Company is managed by YVS Cerac management CY Ltd whose founders have been involved in the development, construction and asset ownership of more than 300MW of wind capacity in Poland.
EBRD Finance Summary
PLN 175,000,000.00
Additionality
Financing structure and Risk mitigation. EBRD helps a foreign investor to enter the market and supports the implementation and operation of the wind farms. EBRD also provides comfort in relation to the country, regulatory and political risks, related to financing renewable energy projects for the Sponsor and co-lender.
Environmental and Social Summary
Categorised B (2019 ESP). The Project is the construction of a 48 MW wind farm in Nozdrzec, Podkaprackie Voivodhsip in Southern Poland. The project is located outside of protected areas and environmentally sensitive areas. Based on review of project documentation and environmental and social impact report in line with the Bank's ESP 2019, the Project has been categorised B. The project is considered aligned with the objectives of the Paris Agreement.
The ESDD concluded that the Developer has a robust capacity to manage the project in line with EBRD's PRs and international best practice. The ESDD undertaken by independent consultant confirmed that the project is structured in line with EBRD PRs as well as national and relevant EU legislation.
Overall, studies undertaken to date (including local EIA) have shown that the Nozdrezc wind farm, consisting of 16 wind turbines, is not located in a sensitive area in terms of biodiversity (such as IBAs or Natura 2000 areas) or near human receptors. Results of biodiversity studies show low risk of bird collision from the planned wind farm. The local Competent Authorities have approved the development and this is included in the local development plans and no issues have been raised as part of the development consent and consultation process. The ESDD has confirmed that land has been acquired on the basis of willing buyer and seller and the Company has been operating in compliance with local labour laws and H&S systems, and in line with relevant PRs.
The Developer has developed its sustainability disclosure documentation for this project and developed an NTS and SEP that covers the results of cumulative assessments. This includes landscape impact and potential impacts on local landscape parks in the region. The Developer will also extend the existing stakeholder engagement plan (SEP) and EHS procedures. Based on the ESDD an ESAP is being developed and this is being agreed with the client and will be agreed prior to Bank approving the Project. This will include post construction monitoring as well as stakeholder engagement and contractor management procedures.
Additional information on the Company can be found below: https://farma-nozdrzec.pl/
Upon completion of the ESDD and agreement of the ESAP, the PSD will be updated and links provided to the Non Technical Summary (NTS).
Technical Cooperation and Grant Financing
N/A
Company Contact Information
Ruth Oren
Ruth@yvscerac.com
+48 606 912 826
https://www.cerac.energy/yvs-cerac-management
YVS Cerac Management CY Ltd
Diagorou
4 Kermia Building, 1st Floor, Office 10,3
1097 Nicosia
Cyprus
PSD last updated
01 Feb 2023
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.
