ENEA Operator

Location:

Poland

Project number:

43001

Business sector:

Power and energy

Notice type:

Public

Environmental category:

B

Status:

Cancelled

PSD disclosed:

12 Mar 2013

Translated version of this PSD: Polish

Project Description

The EBRD is considering providing a loan of up to PLN 800 million to the Polish electricity utility ENEA (the “Company”) along with the European Investment Bank and the Nordic Investment Bank. The debt financing will support the PLN 3.2 billion (€772 million) investment programme (the “Project”) of Company’s distribution business, ENEA Operator, in the period 2012-2015.

The investment programme will strengthen the distribution network of ENEA Operator, lead to a decrease in energy losses and improvements in the quality of energy distribution services in north-western Poland. Furthermore it will also enable the distribution grid to connect new renewable energy producers.

The transaction is the Bank’s second operation with ENEA. In November 2008 the Bank invested PLN 170 million in the initial public offering of ENEA to support the first stage of Company’s privatisation. Since then EBRD remains a minority shareholder in ENEA, holding approximately 2.5 per cent of Company’s shares.

Transition Impact

The extensive investment programme upgrading ENEA Operator’s distribution network will lead to the modernisation and extension of distribution grid, reduction of network losses, and further improvements in the quality of the electricity distribution services.

Furthermore, the envisaged investments will increase the connection capacity of ENEA Operator’s distribution grid, and will facilitate new connections of renewable energy sources.

ENEA Operator plans to connect over 500 MW of new renewable energy capacity to its network, in the next few years. Therefore, the Project will also contribute to further expansion of Polish renewable energy sector.

The Client

ENEA is one of the four large Polish vertically-integrated energy groups, with its operations concentrated in North-Western Poland.

ENEA is incorporated under the Polish Law, headquartered in Poznan and is 51.3 per cent owned by the Polish State Treasury.

ENEA Operator is the distribution system operator and a 100 per cent owned subsidiary of ENEA.

EBRD Finance

Maximum of PLN 800 million senior unsecured long-term (up to 15 years) corporate loan to ENEA, to finance the investment programme of ENEA Operator. EBRD financing is expected to be partly syndicated.
ENEA is also in discussions with the European Investment Bank and the Nordic Investment Bank on potential parallel multilateral financing for the Project.

Project Cost

PLN 3.2 billion (€772 million).

Environmental Impact

Category: requiring an Initial Environmental and Social Examination (IESE) to determine the Project category and scope of the Bank’s Environmental and Social Due Diligence (ESDD).

The Project is the investment programme and operation of assets of ENEA Operator, the distribution company, whilst the area of influence includes all operations of ENEA and its subsidiaries.

An independent consultant will undertake an ESDD of the Project, who among others will review the current investment program to confirm whether it is structured to comply with National, EU and the Bank's Performance Requirements. The full scope of the ESDD will be defined during the IESE, and specific attention will be placed on the location of any distribution lines (including 110 kV lines) with respect to sensitive areas, notably residential areas and protected habitats. All new or upgraded distribution lines will be subject to an appropriate environmental assessment appraisal and disclosure in accordance to National and Bank requirements. Any tasks within the investment program that is associated with significant environmental and social impacts and therefore falls under Annex 1 of the Bank’s Environmental and Social Policy, will need to be assessed and disclosed in accordance with the Bank’s Environmental and Social Policy for A Category projects.

Following the ESDD the Company will develop and publish on its web site a Non Technical Summary (NTS) and a Stakeholder Engagement Plan (SEP) . In addition, based on the Bank’s ESDD an Environmental and Social Action Plan (ESAP) will be agreed with the Company as appropriate to ensure the investment program is structured to meet the Bank’s Performance Requirements. Additional corporate requirements may be included in the ESAP.

Technical Cooperation

None.

 

Business opportunities

For business opportunities or procurement, contact the client company.

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