Hrvatska Elektroprivreda d.d. GoGreen

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A loan of up to €31.62 million to Hrvatska Elektroprivreda d.d. (HEP), Croatia's national energy company to finance the construction and operation of a solar power plant with installed capacity of up to 99 MW. The project will benefit from 80% sovereign guarantee of the Republic of Croatia and will be a co-financed with another bank.

Project ID 52803

Status Signed

Location

Croatia

Business Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Petra Zemljic
petra.zemljic@hep.hr
www.hep.hr
HEP d.d. Ulica grada Vukovara 37 Zagreb, Croatia

Project ID 52803

Status Signed

Location

Croatia

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

11 Sep 2024

Disclosure date

25 May 2022

HEP GoGreen (Croatian) (PDF, 0.45MB)

Project description

Project objectives

The project will enable the Company to develop, construct and operate a solar power plant with total installed capacity of up to 99 MW, supporting HEP's decarbonisation plans.

Transition impact

ETI Score:60

ject targets the Green transition quality, and is expected to result in increased generation of renewable electricity by ca. 117,050 MWh/annum and associated CO2 emissions reduction of ca. 28,899 tons/annum. The new renewable energy generation is equivalent to at least 0.8% of annual electricity generation in Croatia.

Client information

HRVATSKA ELEKTROPRIVREDA DD

Hrvatska Elektroprivreda d.d. (HEP, or the Borrower) is a joint stock company established in Croatia and fully owned by the Republic 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 31,620,000.00

Total project cost

EUR 62,000,000.00

Additionality

The project demonstrates strong additionality with EBRD tenor and funding amount that are currently not available for the Borrower on the market under reasonable terms. Furthermore, EBRD is additional due to standard setting of higher E&S standards with focus on solar supply chain and application of the best international procurement standards in line with EBRD PP&Rs.

Environmental & Social Summary

Categorised B (2019 ESP). The Project involves construction of a solar power plant with total capacity of 99 MW. The project is located next to the existing WPP and outside of the inhabited or protected areas, there are no sensitive receptors in the vicinity. The Project does not require EIA under national legislation.

ESDD was undertaken by an independent consultant retained by the Bank and included corporate E&S audit and review of the management capacity, impact management and monitoring controls, as well as assessment of E&S impacts of the project. HEP is an existing client of the Bank and has certified Environmental (ISO 14001), Health and Safety (ISO 45001), energy management (ISO 50001) and Quality (ISO 9001) management systems in place, including dedicated E&S staff, policies and procedures, which will be implemented at the Project level by the Borrower and cascaded down to contractors.

Key issues that were assessed are SPV site sensitivity and biodiversity, construction H&S management and supply chain; land acquisition issues; visual and other social impacts. It has been confirmed that the E&S risks for the project are low and can be addressed through the implementation of good E&S management and monitoring program.

Independent ESDD has confirmed that the Project is compliant with the country's EHS legislation and can be structured to meet the Bank's Performance Requirements (PRs) through employment of good E&S management practices and management systems, implementation of the ESAP and ongoing monitoring. The project is located on non-agricultural state land and there is no physical resettlement associated with the Project. The Client will be required to identify and engage with any formal or informal users at the site, including current holders of hunting rights, and develop a Livelihood Restoration Plan if necessary. The site is not located in close proximity to residential areas and it is expected that existing access roads, sub-station and grid connection to the adjacent wind farm will be used by the Project. The Client will require the contractor to comply with PR2 and 4 requirements for its workforce and that of sub-contractors and develop appropriate labour and health and safety management plans for the construction phase.

Appropriate provisions have been included in the procurement documents and will be included in financing agreements in accordance with the Management Approach for Solar Supply Chain Risk Management (CS/FO/22-08) and will ensure that risks of forced labour with the selected module supplier and supply chain are identified and mitigated. Enhanced supply chain due diligence has been conducted by ESD as far as possible considering the on-going nature of the Engineering Procurement and Construction (EPC) contractor procurement process in accordance with Bank's Procurement Policies and Rules (PP&Rs), as the EPC will source the solar modules. The Client will ensure that all proposed module suppliers have completed self-declarations regarding forced labour, provided a preliminary supply chain map and the proposed suppliers are acceptable.

The selected EPC will be required to provide a final supply chain map, and satisfactory supply chain risk assessment, prior to module procurement. Moreover, the Supervision Engineer will control and certify during the implementation of the project, that the approved solar equipment is in line with the proposed and evaluated suppliers. In the event of any replacement or change of the supply chain map, the newly proposed supplier will be subject to a satisfactory supply chain risk assessment.

An ESAP has been agreed with the Company to structure the Project in line with the PRs. A number of the environmental and social management improvements were included in the ESAP, inter alia: maintenance of the robust EHS structure and implementation of the E&S management systems, waste management, adequate working and welfare conditions for the workforce, livelihood restoration as necessary, supply chain management, fire and emergency response, and grievance mechanism. Additionally, Stakeholder Engagement Plan (SEP) and Non-technical Summary (NTS) have been developed in both Croatian and English for Client's disclosure.

The Borrower will be required to maintain adequate capacity to implement and monitor the Project and independent consultant provision have been included into the Project documentation. Overall E&S performance will be monitored by the Bank via Annual Environmental and Social Reports and site visits if required.

Technical Cooperation and Grant Financing

None

Company Contact Information

Petra Zemljic
petra.zemljic@hep.hr
www.hep.hr
HEP d.d. Ulica grada Vukovara 37 Zagreb, Croatia

PSD last updated

04 Sep 2024

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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Hrvatska Elektroprivreda d.d. GoGreen

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)