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Bura Wind Portfolio, Croatia



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

23 May 2022



PSD disclosed:

08 Mar 2022

Project Description

Provision of a long-term senior secured loan of up to EUR 46 million, debt service reserve facility of up to EUR 3.5 million, and bank guarantee of up to EUR 15 million to Kunovac d.o.o., a Croatian SPV company owned jointly by Taaleri SolarWind II S.a.r.l and Encro Kunovac d.o.o., for the purpose of the acquisition, construction and operation of a wind farm project located in Benkovac county, Croatia, with grid capacity of 68 MW ("ZD2P") and a wind farm project located in Obrovac county, Croatia, with grid capacity of 43 MW ("ZD3P").

Project Objectives

The project will contribute to climate mitigation by increasing the share of renewable energy generation in Croatia and will add 111 MW of new wind generation grid capacity to the national energy system providing significant support to the country on delivering its 2030 green targets.

In addition, the project will strengthen the private sector's role in the renewable energy sector in Croatia relying on combination of financial power purchase agreement and market offtake without the need for state aid in form of feed-in tariffs or feed-in premiums.

Transition Impact

ETI score: 80

The Project will contribute to the "Green" transition quality by developing and connecting 111 MW of new renewable capacity to the grid, leading to CO2 emissions savings of approximatively 72,000 tons per year. The Project will be the first utility scale renewable project in Croatia developed outside of a subsidy scheme, as electricity sales will fully depend on a combination of off-take arrangements with an international counterparty and merchant exposure.

The Project is in line with the Bank's Green Economy Transition (GET) approach.

Client Information


Kunovac d.o.o. is a special purpose vehicle incorporated in Croatia for the sole purpose of the development, construction and operation of the ZD2P and ZD3P wind farms.

EBRD Finance Summary

EUR 64,500,000.00

EBRD financing consists of (i) a senior term loan facility of up to EUR 46 million and (ii) a senior revolving facility of up to EUR 3.5 million in favor of the Borrower, Kunovac d.o.o.  Additionally, EBRD will provide a bank guarantee of up to EUR 15 million in favor of power purchase agreement counterparty. The Project is expected to be co-financed with other financial institutions in the amounts of up to EUR 64.5 million.

Total Project Cost

EUR 176,000,000.00


The project demonstrates strong additionality by supporting a novel project structure in the renewable energy sector in Croatia which will be implemented on the basis of financial power-purchase agreement and merchant exposure.

Environmental and Social Summary

Categorised B (2019 ESP). Environmental and social due diligence (ESDD) was carried out by an independent consultant and included audit and assessment of Environmental and Social (E&S) project impacts related to construction of two windfarms (WFs) Zadar 2P (68 MW permitted installation and operational capacity) and Zadar 3P (53 MW permitted installation capacity and 43 MW operational capacity). The findings of the ESDD showed that the Client is in compliance with EU and national legislation for environmental impacts assessment and permitting requirements and has obtained separate permits for two WFs.

No formalised ESMS is in place yet the Client has agreed to implement relevant policies and procedures, which will include management of contractors, to ensure that the project is structured to meet the PRs. The ESAP has been developed and will be agreed with the Client prior to Board. The ESAP includes requirements to develop an Environmental and Social (E&S) Management System and procedures to cover (i) E&S policy; (ii) identification of risks and impacts; (iii) management plans; (iv) organizational capacity; (v) emergency preparedness and response; (vi) stakeholder engagement; and (vii) monitoring, as well as to appoint EHS Manager to fully comply with requirements of PR1. In line with ESAP, Environmental and Social Management and Monitoring Plan (ESMP) will be developed prior to the tendering process, outlining E&S mitigation and monitoring measures to be followed by the successful bidder during the construction and into operations and including birds and bats monitoring and evaluation survey protocols in line with relevant international guidelines. Should the installed capacity exceed the permitted project the environmental authorisations will need to be amended and updated accordingly, this requirement has also been included in the ESAP.

The labour conditions are set by Croatian labour legislation which forbid forced and child labour, and the same requirement will be passed to the Contractors as per ESAP. ESAP also stipulates the measure to develop worker's grievance mechanism to fully comply with PR2. The pollution prevention and control will be ensured through ESAP measures to develop and implement ESMP, to include waste management and mitigation measures, specific provision to be put in agreements with the contractors to develop procedure for Hazardous Material Management and mandatory monitoring of noise levels during operational phase. OHS and community health and safety issues and compliance with PR4 will be ensured through implementation of EHS Plan, Traffic Management Plan, Emergency Preparedness and Response Plan and H&S monitoring of contractors as stipulated by ESAP. An additional real case flickering model with regards to nearby receptors needs to be done during operation of ZD2P and ZD3P WF in line with ESAP, including the shutdown options based on the outcomes of the modelling. No physical or economic displacement is foreseen. Project is not located on agricultural land. The land plots for both WFs have been secured for the next 25 years based on the Agreements on easement signed between Republic of Croatia and the Company. Although limited grazing activities might be found in surrounding areas of the WFs, the project areas will not be fenced thus any impact to future grazing activities is low. The project locations are not planned in existing or future protected areas, Natura 2000 site, IBA, Ramsar sites or critical habitats. Field surveys and monitoring of birds and bats have been undertaken during 2012/2013, 2013/2014 and 2020/2021 in accordance with relevant national and EU good practice guidance as part of the local EIA studies. The collision risk assessments for bats and birds showed low collision risk for both groups. ESAP further stipulates (i) preconstruction biodiversity surveys for active raptor birds' nests including the supervision of vegetation clearance and (ii) implementation and guidance for the operational monitoring during the minimum of two years in line with GIP.

WF ZD3P is located around potential archaeological sites, therefore ESAP stipulates the measure to conduct trial archaeological research of area of the two turbines (WTGs VA 14 and VA 22). Additionally, ESAP includes the measure to develop the Chance Find Procedure to cover for mitigation measures for any unknown artefacts that may be found during construction works. A Stakeholder Engagement Plan (SEP) which includes an external grievance mechanism, has been developed during the ESDD. Both SEP and Non-Technical Summary will be publicly disclosed in English and Croatian language. The Bank will monitor the implementation of the Project through review of annual reports provided by the Client and site visits when deemed necessary.

The PSD will be updated following the completion of the ESDD and the agreement of the ESAP.

Technical Cooperation and Grant Financing


Company Contact Information

Stephen Butler
Taaleri Energia Szervita Square 8 1052 Budapest, Hungary

Mr. Iljko Curic
Encro Kunovac d.o.o.
Nikole Jurisica 1a
Zagreb, Croatia


PSD last updated

08 Mar 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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


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