Bajgora Wind

Location:

Kosovo

Project number:

50423

Business sector:

Energy

Notice type:

Private

Environmental category:

A

Approval date:

11 Dec 2019

Status:

Disbursing

PSD disclosed:

14 Jun 2019

Translated versions of this PSD: Albanian | Serbian

Project Description

Provision of a senior long-term loan to finance the construction of the 105MW wind farm located in the Mitrovica Municipality in Northern Kosovo (the "Project"). The project will be implemented by Sowi Kosovo LLC, a special purpose vehicle established for the purpose of the project, owned by Enlight Renewable Energy together with its Kosovan and German partners.

Project Objectives

The project will contribute to climate mitigation by increasing the share of renewable energy generation in Kosovo and add 105 MW of wind generation capacity to the national energy system.

The project will significantly increase the share of electricity generated by wind power in Kosovo, which is otherwise largely reliant on coal-fired power generation.

Transition Impact

The project will add 105 MW of renewable capacity, supporting the "green" transition quality. This will contribute to the reduction of CO2 emissions in the country.

Client Information

SOWI KOSOVO LLC

The borrower is a special purpose vehicle incorporated in Kosovo for the purpose of developing, constructing and operating the project.

EBRD Finance Summary

EUR 55,000,000.00

Total Project Cost

EUR 157,000,000.00

Environmental and Social Summary

Categorised A (2014 ESP).  The Project involves the development of three adjacent wind power projects, with a total capacity of 105MW near Mitrovica, northern Kosovo. Electricity will be evacuated through a 19km 110kV transmission line to Vushtriia, to be developed by the Project and then transferred to KOSTT, the state owned transmission company. The Project is categorised A requiring an Environmental and Social Impact Assessment ("ESIA") and disclosure thereof for a minimum of 60 days. The Project disclosed an ESIA disclosure package on 4 October 2019 following review by an independent lenders consultant and the EBRD.

The Project and the transmission line have been subject to national EIAs. These assessments have been supplemented to align the Project and the transmission line with the EBRD’s E&S requirements, and the requirements of other lenders, in the form of an ESIA disclosure package and which includes a series of management plans to mitigate and manage Project impacts.

The Project will developed in a mountainous area with the northern section of the Project footprint extending into a cross border, internationally recognized Important Bird Area (IBA), the Kopaonik IBA.  The presence of the IBA and the nature of the Project has prompted various biodiversity surveys and assessments including an assessment for the presence of, and impacts to, Priority Biodiversity Features (PBF), Critical Habitat and Natural Habitat (as defined by IFC’s Performance Standards) in the Project area.   The ESIA has confirmed the presence of five trigger species for Critical Habitat including two flora and three bird species. Various PBF’s have been identified including the IBA and various fauna and flora species.  Parts of the wind power project site have been classified as natural habitat but it is noted that large parts of it have been affected by activities such as grazing and vehicle use. The Project is not located in a bird migration corridor. Impacts to biodiversity, including priority features, have been assessed and mitigation developed such that the residual impacts are expected to be negligible to low and no net loss (NNL) achieved.  Significant bird collision risks are not expected and bat collisions will be reduced through higher turbine cut in speeds in some areas. The Project will further put in place a full monitoring programme including bird and bat monitoring, carcass surveys, site reinstatement, avoidance of quality natural habitat and installing bird diverters on sections of the transmission line.  Depending on the outcomes of monitoring, an offset management plan will be developed if NNL, and a net gain where necessary, is not achieved in a reasonable amount of time.  Biodiversity surveys are continuing and will extend into construction.

The wind power project site has been acquired through voluntary land purchase and lease agreements while the transmission line corridor will go through an expropriation process.  Transmission line tower footprints will be permanently acquired while the corridor will be subject to easements with some restrictions on land use. The routing of the transmission line has sought to avoid and reduce potential impacts. The Project has developed a Land Acquisition and Livelihood Restoration Framework to ensure that land acquisition is conducted in line with the Bank’s PR 5 and any impacts on livelihood mitigated.  For much of the transmission line route it is expected that current activities can continue. Similarly, the wind power project area will be accessible by the public and activities like grazing will continue.

The ESIA has included an assessment of visual impacts, the potential for shadow flicker and noise issues.  These assessments have not identified significant impacts due primarily the distances between the turbines and the inhabited areas. These potential impacts will be monitored and measures implemented if required. Geotechnical surveys of the wind power project site have identified the presence of naturally occurring asbestos which may present a risk to Project workers and people accessing the Project site.  An asbestos management plan has been developed to manage this risk during both construction and operation.

The ESIA disclosure package includes a Non-technical summary of the ESIA; a Stakeholder Engagement Plan which will guide the ESIA disclosure process, including public meetings, grievance mechanism and will further guide engagement during construction and operation; and a Land Acquisition and Livelihood Restoration Framework (LALRF).  A draft E&S action plan (ESAP) has been agreed with the Project and includes various measures with respect to mitigating and managing Project impacts and putting in place the necessary management provisions, capacities and procedures as required by the Bank.

This PSD will be updated following the completion of the ESIA disclosure period.

Technical Cooperation

None.

Company Contact Information

Marko Liposcak
marko@enlightenergy.co.il
+972-3-9008700
+972-3-9008701
www.enlightenergy.co.il

13 Ha'amal St. Afek Industrial Park Rosh Ha'ayin Israel 4809249

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