Energobit Esco

Location:

Romania

Project number:

42207

Business sector:

Municipal and environmental infrastructure

Notice type:

Private

Environmental category:

B

Approval date:

01 Jun 2011

Status:

Complete

PSD disclosed:

03 Feb 2011

Translated version of this PSD: Romanian

Project Description

The Bank is considering providing a debt financing of up to €10 million to EnergoBit ESCO Co., a newly established entity wholly owned by EnergoBit Group Co., a Romanian company specialised in electrical engineering projects. The Group EnergoBit has a long track record of implementing energy efficiency projects in the public sector and EnergoBit ESCO will be able to leverage on the technical and commercial skills established within EnergoBit Group.

The debt provided by the EBRD will be used to finance a pipeline of energy efficiency projects in Romania, developed in the municipal sector as well as in the private sector. EnergoBit ESCO Co. will be able to offer the full range of ESCO type contracting models, including the use of energy performance contracts (EnPC).

Transition Impact

The transaction will support the implementation of energy efficiency projects and promote environmentally sustainable development. In addition, the project will demonstrate that it is possible to generate attractive returns in ESCO projects in Romania thereby developing a new market for the private sector. In addition, the proposed transaction should over time act as a catalyst for the wide spread implementation of the EnPC concept in Romania.

The Client

EnergoBit ESCO Co., a newly established company wholly owned by EnergoBit Group Co.

EBRD Finance

Up to €10 million senior debt financing.

Project Cost

Estimated €12 million, of which minimum €2 million is equity contribution from the parent company.

Environmental Impact

Category B. Environmental and social (E&S) issues associated with an energy service company can be readily identified and mitigated.
The Environmental and Social Due Diligence (ESDD) consisted of EnergoBit Group’s corporate E&S policies and management systems review to assess whether they are adequate to ensure that the Borrower's equipment and services meet the Bank’s Performance Requirements (PR’s). The ESDD was undertaken through a detailed review of the Company’s answers to the Environmental and Social Due Diligence questionnaires, as well as of relevant E&S documents and internal policies.

The Group’s operations are well managed with a good quality, environmental, health and safety management system in place, and all certified to comply with international standards (ISO 9001, ISO 14001 and OHSAS 18000 respectively). There is a specialised department covering all aspects related to quality management, environmental and health security.

Current key environmental issues are associated with the electric and electronic equipment (EEE) production activities of the Group, and compliance with legal requirements for EEE waste utilisation and restriction of hazardous substances in the EEE. There are no issues associated with the social performance of the Company.

Future ESCO activities will be linked with the development of sub-projects that will be required by national law to gain an environmental approval either as part of building permits for municipal lighting projects, or as a full Environmental Impact Assessment for cogeneration projects. To ensure compliance of the Company’s clients and sub-projects with national E&S requirements and Bank’s PR’s the Company will need to develop an internal environmental and social procedure for identification of any significant E&S risks or liabilities that would preclude potential clients from being supported through this Project.

It is important to emphasize that the project is associated with significant environmental opportunities as the services to be provided by the Company will lead to energy efficiency gains for its clients, and consequently environmental benefits through lower emissions. This brings a possibility for the Company to produce environmental credits and obtain green certificates under Romanian legislation.
The Company will provide the Bank with Annual Environmental and Social Reports (AESR) and notify the Bank on any material accidents or incidents. The Bank will evaluate the Project’s environmental and social performance in accordance with the Bank’s PR’s through reviewing the Client reporting and undertake periodic monitoring visits.

Technical Cooperation

No TC is associated with this project however a public sector buildings energy efficiency technical assistance (TA) programme has been running in Romania since the start of 2010, the main aim of which has been to identify the constraints within the market for Energy Performance Contracting (EnPC) in the public sector and to provide technical assistance to local authorities to prepare, tender and implement an energy savings programme based on EnPC contracts.

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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