Dolovo Cibuk I Wind Farm

Location:

Serbia

Project number:

43764

Business sector:

Energy

Notice type:

Private

Environmental category:

A

Approval date:

20 Jun 2017

Status:

Repaying

PSD disclosed:

11 Feb 2015

Translated version of this PSD: Serbian

Project Description

The beneficiary company is a special purpose vehicle incorporated in Serbia, "Vetro Elektrane Balkana D.o.o.". The project company is wholly owned by Tesla Wind, a joint venture 60% owned by Abu Dhabi Future Energy Company PJSC (Masdar), 30% owned by the Taaleri SolarWind I fund (managed by Finnish renewable energy infrastructure fund manager and developer Taaleri Energia) and 10% owned by the German development finance institution DEG.

Project Objectives

The Project will be the largest wind farm to be developed under Feed-in Tariff ("FiT") programme developed by the Serbian government to support the construction of up to 500MW of wind generation capacity in the country. The project will help the country to increase the share of primary energy consumption produced from RE sources from the currently estimated level of 23% to 27% by 2020.

Transition Impact

The expected transition impact of the project stems from (i) the successful implementation of the first large scale private renewable energy project in Serbia, stimulating the expansion of renewable resources in a country highly dependent on coal, (ii) increasing private participation in the currently state-dominated power sector in Serbia, (iii) confirming the credibility of Serbia's regulatory framework for renewables, which directly benefited from the Bank's intensive policy dialogue activities and (iv) supporting a project that results in substantial emissions reduction of over 390,000 tonnes CO2 per year.

Client Information

WETRO ELEKTRANE BALKAN

The beneficiary company will be a special purpose vehicle incorporated in Serbia, "Vetro Elektrane Balkana D.o.o.". The project company is currently 60% owned by Abu Dhabi Future Energy Company PJSC (Masdar) and 40% owned by Cibuk Wind Holding (the Sponsors). It is expected that Cibuk Wind Holding sell its remaining participation to other institutions prior to financial close.

EBRD Finance Summary

EUR 60,000,000.00

EBRD to provide a senior loan of up to EUR 60 million with the remaining funding being provided by IFC, other financial institutions and the Sponsors.

Total Project Cost

EUR 300,000,000.00

Total project cost is approximately EUR 300 million.

Environmental and Social Summary

Categorised A. The Project is the construction of a large wind farm in an area near to a protected area (SNR Deliblato Sands an IBA). Due to the size, location and cumulative impacts, the Project required an Environmental and Social Impact Assessment (ESIA) in accordance to the Bank's Environmental and Social Policy as part of the appraisal process. An ESIA disclosure package was disclosed by the Sponsor in 2014. This was updated to include Bank requirements in February 2015.

The Project is being co-financed by the IFC among others. An additional review of the Project in 2017 confirmed that the ESIA is fit for purpose of public consultation.

An independent consultant was retained to undertake an Environmental and Social Due Diligence (ESDD) of the Project and develop the ESIA disclosure package. The ESDD confirmed that the Project will have limited impacts on the protected area, and is structured to comply with IFC and EBRD's respective Performance Standards and Requirements, and National and EU environmental legislation. This includes the EU EIA Directive and the EU Habitats Directive as applicable and transposed into Serbian legislation.

The ESIA has assessed possible impacts on the Delibalta Sands, and a Habitats Assessment was undertaken of the Project. This confirmed that the Project will not have a significant effect on the conservation objectives set for the qualifying features of the SNR Deliblato Sands or the Ramsar site Labudovo Okno (located 30 km from the site). This has been confirmed by the independent consultant as well as local Competent Authorities.

The ESDD also confirmed that the Sponsor has been implementing best practice and has the institutional capacity to fully implement the Bank's Performance Requirements. The ESDD identified additional measures to be implemented as part of best practice and these have been included in an agreed Environmental and Social Action Plan (ESAP). These include among others additional monitoring and the appointment of an independent expert to monitor and re-evaluate any bird and bat impacts as well as support the Company in the assessment of additional cumulative impacts.

Based on the monitoring the independent advisor will also advise on the need to revise or update the existing management plan, as appropriate.
 
Update March 2018 - The Project is under construction and the Company is implementing the agreed ESAP. No material issues or non-compliance issues have been identified or reported. The Project should be completed in early 2019. The Bank will continue to monitor the Project implementation

Technical Cooperation

The Bank provided substantial TC funding to support the development of renewable energy in Serbia. This includes:

(i) a wind energy grid integration study (funded by the Bank's Western Balkans Fund);
(ii) assistance to the authorities on the level of FiT (funded by the Western Balkans Fund);
(iii) drafting of the primary and secondary legislation and regulations governing support for renewable energy (funded by the Bank's Shareholder Special Fund); and
(iv) development of a bankable PPA for Serbia (funded by the Bank's Shareholder Special Fund). The PPA has been developed in close consultation with the Serbian authorities and other stakeholders including EPS, EMS, the regulator, developers and other IFIs (funded by the Bank's Shareholder Special Fund).

Company Contact Information

Zeljko Duric
Zdjuric@teslawind.rs
+381 11 244 1431
+381 11 245 1342
Green Square, 7 Mutapova st 11000, Belgrade, Serbia

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Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.

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