Quadran Wind Portfolio

Location:

Poland

Project number:

51122

Business sector:

Energy

Notice type:

Private

Target board date:

27 Nov 2019

Status:

Concept Reviewed

PSD disclosed:

09 Oct 2019

Translated version of this PSD: Polish

Project Description

Provision of three senior loans to finance the development, construction and operation of a 68 MW portfolio of three onshore windfarms (Udanin, Parzeczew and Wrzesnia) alongside the provision of two senior loans to finance the acquisition and operation of a 106 MW portfolio of two onshore windfarms (Linowo and Rzepin) in Poland (all five together, the "Project"). The borrowers will be the five special purpose companies owning each of the wind farms: Farma Wiatrowa 5 Sp. z o.o, Quadran Wind Park 2 Sp. z o.o, EW Niechanowo 2 Sp. z o.o, QWP Linowo Sp. z o.o and QWP Rzepin  Sp. z o.o  (the "Borrowers").

Project Objectives

The Project will contribute to climate mitigation by adding wind generation capacity to the national energy system, increasing the share of renewable energy generation in Poland. In addition, the Project will support the entry of a new player in the Polish renewable energy market.

Transition Impact

The Project will target the "Green" quality by supporting the development, construction and operation
of renewable energy in Poland.

Client Information

QUADRAN INTERNATIONAL

The Borrowers are private companies incorporated in Poland established with the sole purpose of constructing, operating and managing the Udanin, Parzeczew, Wrzesnia, Linowo and Rzepin wind farms.

The Lucia Holding Group, via Quadran International, is the majority shareholder of the Borrowers. Lucia Holding is an experienced renewable energy developer and operator incorporated in France.

EBRD Finance Summary

Provision of a long-term financing denominated in Polish Zloty. EBRD is expected to provide half of the debt portion alongside a commercial co-lender.

Environmental and Social Summary

Category B (2014). Environmental and social ("E&S") issues associated with the Project can be readily assessed and mitigated.

An independent environmental and social due diligence ("ESDD") was undertaken, which confirmed that Quadran International (the "Company") has good corporate governance and the capacity to fully implement the Bank's Performance Requirements ("PRs") and is in compliance with National and EU law. The ESDD focused on the Company's existing operations and the Project as well as corporate E&S management capacity and capabilities and resulting policies and procedures. The ESDD included site visits and review of local development plans as well as assessment of compliance with EU regulations and implementation of best practices.

The due diligence confirmed that no part of the Project is located in a sensitive area, such as Natura 2000 or residential areas, and that impact on birds and bats is expected to be limited. Nevertheless, to seek to limit further any impact, additional monitoring will be undertaken and mitigation measures will be implemented as needed. Noise will be monitored to ensure compliance with relevant regulations.

Overall, the ESDD confirmed that the Company's environmental and social governance is good. Best practice E&S governance requirements are reflected in corporate and site-specific Environmental and Social Action Plans ("ESAPs") that have been agreed with the Company. The Company has also agreed to increase its transparency and engagement activities at a corporate level, including engaging with recognised specialist biodiversity NGOs and reporting of non-financial information.

The ESAPs ensure that any future projects developed by the Company that would trigger Category A E&S requirements will be structured to meet EBRD's PRs. The Company has agreed to disclose relevant information on the Project and a Non-Technical Summary ("NTS") for future projects. Links to the NTS are provided below.

Information on the Project

NTS documents

The Bank will monitor the implementation of the Project and the ESAPs.

Technical Cooperation

None.

Company Contact Information

Ana DE LA MATA DE LA ISLA
a.delamata@lucia-holding.com
+33 (0) 4 11 95 11 10
+33 (0) 4 11 95 11 10
www.lucia-holding.com
@7 Center # Immeuble l#@ltis # 1er étage 521, rue Georges Meliès - 34000 Montpellier # France

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Text of the PIP

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