Translated version of this PSD: Bulgarian
A senior loan of EUR 116 million to CEZ Razpredelenie Bulgaria AD, an electricity distribution company incorporated in Bulgaria and operating in the western region of Bulgaria. CEZ Razpredelenie is 67 per cent owned by the CEZ Group in Czech Republic and 33 per cent by other minority shareholders' legal entities and individuals.
The proceeds of the loan will be used to finance the company's capital investment programme in the distribution network for the period 2016-2017 including the acquisition of energy infrastructure, equipment and reconstruction and building of new infrastructure. The investment is expected to reduce the company's grid losses and improve the quality of distribution services.
With this investment the Bank will contribute towards the successful implementation of sector reforms, encourage infrastructure investments and move towards greater liberalisation of the electricity market. Alongside this investment the EBRD is preparing a technical cooperation project with the Bulgarian Energy Regulator, which will focus on providing assistance on key regulatory matters related to the upcoming market liberalisation and enhance the analytical ability of the regulator with a particular emphasis on the regulation of electricity networks. In addition, the investment programme will contribute to setting new standards for business conduct in Bulgaria since it will primarily aim to reduce technical and commercial losses, leading to CO2 emission savings of up to 47,000 tonnes per year.
CEZ RAZPREDELENIE BULGARIA AD (BULGARIA)
CEZ Razpredelenie AD is a joint stock company incorporated in Bulgaria and responsible for the distribution of electricity in the country's western region. CEZ Razpredelenie is 67 per cent owned by CEZ Group and 33 per cent by other minority shareholders- legal entities and individuals. CEZ Group is an integrated electricity utility headquartered in Czech Republic and operating in central, south-eastern Europe and Turkey.
EBRD Finance Summary
A senior loan of EUR 116,000,000.00
Total Project Cost
Total project costs of EUR 116,000,000.00
Environmental and Social Summary
Categorised B (2014 ESP). In addition to various modernisation/ upgrade activities on existing assets and obligatory buyouts, the new linear infrastructure elements to be constructed under the investment programme (Project) consist of segments of new underground MV lines connections in total length of approximately 30 km yearly and overhead LV lines in total length of approximately 10 km yearly. These will be mostly constructed along existing roads and streets. The Environmental and Social Due Diligence (ESDD) is being carried out by an independent consultant and focused on review of the Company's corporate Environmental, Health and Safety and Social management systems and procedures in place, and E&S Assessment of the investment programme to identify main risks and status of compliance with the EBRD's E&S Policy Performance Requirements (PRs).
The ESDD identified a number of E&S impacts that require implementation of mitigation measures, including past soil contamination with transformers' oil, biodiversity impacts, electric and magnetic fields exposure of workers and community, permanent and temporary loss of land and/or crops as well as labour and human rights issues among others.
The Environmental and Social Action Plan (ESAP) representing a roadmap for implementation of key environmental and social actions required for the investment programme is developed and need to be agreed with the Company. Among key actions the ESAP includes the following:
Developing and implementing procedures addressing environmental and social aspects in relation to the Company's waste management, spills management, wastewater discharge, noise, environmental management, supervision of contractors, etc.
Improving management of potential oil spills at Company's sites and during implementation of new projects.
Mitigating potential impacts of any works performed at the infrastructure located in nature protected areas.
Ensuring public disclosure of the investment programme and its impacts.
- Implementing a Stakeholder Engagement Plan (SEP) allowing for stakeholder feedback consideration during investment programme implementation.
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