After execution of the loan documentation for the 50MW Phase 1 of the Banie wind farm on 18 December 2015 with EBRD's commitment of up to PLN 150 million (EUR 35 million), the Bank is currently providing increasing its commitment with an additional senior long-term loan of up to PLN 127 million (EUR 30 million) to finance the construction and operation of 56MW Phase 2 of the Banie wind farm, located in north western Poland (Phase 1 and Phase 2 jointly referred to as the "Project").
The construction of Phase 1 was finalized in December 2015, whereas the construction of Phase 2 started at the beginning of 2016 and was completed by mid-2016. The loan is to be made available to Wiatromill Sp. z o.o. (the "Borrower") created to own, construct and operate the Banie wind farm.
The Borrower is fully owned by Energix Renewable Energies Ltd. ("Energix" or the "Sponsor").
The Project will lead to the construction of 106MW of new renewable energy capacity in Poland.
This is expected to generate over 187 thousand tonnes of CO2 savings per annum. In addition, the Project will also strengthen the private sector presence in the renewable energy sector in the country.
The Project's transition impact stems from three factors:
(i) the demonstration effect by supporting one of the few large scale wind farms in Poland to be fully merchant, being constructed during the regulatory transition period;
(ii) the expansion of a competitive market, through a market based approach to the sale of electricity and green certificates, and therefore contributing to increased liquidity and transparency of the Polish energy market; and
(iii) setting standards for corporate governance and business conduct, through promoting progress towards meeting the EU's green energy targets and the use of best environmental practices.
WIATROMILL SP ZOO
The Borrower is a private limited liability special purpose company incorporated in Poland, created with the sole purpose of constructing and operating the Banie wind farm.
The Sponsor is a leading Israeli independent renewable energy producer listed on the Tel Aviv Stock Exchange. It was established in 2009 and specializes in the development, construction and operation of renewable energy assets (including solar photovoltaic plants and wind farms).
EBRD Finance Summary
Provision of a long-term financing denominated in Polish Zloty, in the amount of up to PLN 277 million (EUR 65 million equivalent). The remaining funding for the Project is expected to be provided by other financial institutions and the Sponsor.
Total Project Cost
Environmental and Social Summary
Category A. As a result of the extension of the Project, due to potential cumulative impacts and size of the total Project financed by the Bank, the Project has been re-categorized as A category requiring a full Environmental and Social Impact Assessments (ESIA) and a 60 day disclosure of the ESIA disclosure package will be made in accordance to the Bank's Environmental and Social Policy prior
to Board consideration.
An updated Environmental and Social Due Diligence (ESDD) undertaken by an independent consultant confirmed that the Project is structured to comply with the Bank's Performance Requirements (PR's) and the Company has the institutional capacity to implement the Bank's PRs.
The ESDD included a cumulative assessment of all three phases and specific review of each phase and the ESDD confirmed that the Bank funded Project is compliant with the Bank's PRs and will not impact Natura 2000 areas.
Construction works associated with the Project's development have already been completed for Phase 1 and Phase 2 will be constructed in 2016. With respect to Phase 3, no final decision has been made as the development of this phase is dependent on the final form of the auction system and their eligibility for this support scheme.
All three phases have been permitted by the relevant competent authorities and no objections or issues have been raised to date by third parties. The Project will not impact residential areas, and noise modelling has not shown any noise exceedance. This will be verified as part of commissioning audits.
The Bank has agreed an Environmental and Social Action Plan (ESAP) for Phase 1, which includes actions and monitoring requirements for all three phases of the wind farm. The ESAP for the A category Project has been updated based on the Bank's ESDD includes, among others, the need for post construction monitoring and additional assessment of bird and bats prior to commencing any
additional work on Phase 3. Additional biodiversity reviews will be undertaken for any wind turbine located closer than approximately 500m from of any sensitive receptors and construction works of such wind turbines will be supervised by qualified experts.
Information on the Project can be obtained on the Company web site.
An ESIA has been disclosed for this Project.
The Bank will monitor the implementation of the Project.
Update March 2018
The Project is now operational and the Company is implementing the agreed ESAP. No material issues or non-compliance issues have been identified or reported. The Bank will continue to monitor the Project implementation.
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