EPBiH - Hydro Power Plants Project

Location:

Bosnia and Herzegovina

Project number:

44199

Business sector:

Power and energy

Notice type:

Public

Environmental category:

A

Approval date:

17 Sep 2013

Status:

Complete

PSD disclosed:

08 Oct 2012

Translated version of this PSD: Bosnian

Project Description

The EBRD is considering extending a non-sovereign secured corporate loan to Elektroprivreda Bosne i Hercegovine (“EPBiH”) of up to EUR 35 million for the financing of the rehabilitation of the Una Hydro Power Plant (“HPP”) and construction of Vranduk HPP.

The EBRD loan will finance the necessary infrastructure improvements at the Una HPP and an installation of an additional 6.4MW turbine, increasing the capacity of the plant from 9.4MW to 15.8MW. As part of the same facility, EBRD is also currently considering financing the construction of a 20 MW Vranduk HPP.

EPBiH will also be the implementing agency for this project.

Transition Impact

Financing of this project would be organised through a non-sovereign long term commercial loan that would set a reference for the power sector in BiH and send a positive signal to the commercial banking sector in the country.

As part of this Project, the Bank has arranged Technical Assistance to provide support for the drafting of the new energy law of the Federation of Bosnia and Herzegovina (Federation of BiH) and ensuring its alignment with the South East Europe Energy Community Treaty entered into by BiH.

As part of the project the Bank will agree with EPBiH to a set of measures that will allow EPBiH to fully align its financial reporting with International Accounting Standards, leading to further improvements in EPBiH’s reporting and accounting.

The project will be developed in compliance with EBRD’s E&S Policy 2008, which is fully compliant with EU’s environmental requirements.

The Client

EPBiH is an electric utility company operating in the areas of generation, distribution and supply of electricity in the Federation of BiH. EPBIH is a Joint Stock Company listed on the Sarajevo Stock Exchange (“SASE”), majority owned and controlled by the Federation of BiH with a 90% stake.

EBRD Finance

Loan in the amount of up to EUR 35 million.

Project Cost

EUR 35 million.

Environmental Impact

The Project includes works at two hydropower facilities, the existing Una HPP on the Una River and the new Vranduk HPP on the Bosna River.

The Una HPP component is considered Category B under the Bank’s 2008 Environmental and Social Policy. The Bank’s environmental and social due diligence (ESDD), which was assisted by an independent consultant, has confirmed that the potential impacts of this rehabilitation project are readily identified and mitigated. ESDD verified the project will not affect protected areas or protected species, and that primary impacts are expected to be temporary increases in turbidity in the river during instream construction works, which in turn could have minor effects on the aquatic ecosystem and may be visible to visitors on this part of the river. Lowering of the current concrete weir and addition of a flexible barrier will allow some reduction in downstream flooding, but also will cause a minor (less than a meter) rise in water levels upstream when the barrier is raised. EPBiH will manage the new barrier to reduce flooding, and will adopt a strict Construction Management Plan to ensure the use of best practices to reduce erosion and thus minimize instream impacts.

The new Vranduk HPP component is considered Category A under the Environmental and Social Policy since the dam is over 15 meters high over foundation, although six metres are below grade and only nine metres abovegrade. The Bank’s ESDD included reviews of project documentation, which were determined to be fit for purpose, and development of a draft Environmental and Social Action Plan that requires certain actions to ensure the project will meet the Bank’s Performance Requirements; the final ESAP will include changes based on significant findings of ongoing studies and comments received during the disclosure period.

The ESIA package, including the local EIA, Stakeholder Engagement Plan, NonTechnical Summary and Information Leaflet, and draft ESAP, have been disclosed for 120 days of public review and comment. This supplement disclosure and public consultations held in 2012 on the local EIA. If requested by any stakeholder, one or more further consultation meetings will be held.

The actions required by the draft ESAP include a series of plans to control potential impacts during construction (traffic, occupational health and safety, erosion control, waste management, etc.) as well as an assessment of the aquatic ecosystem to verify EIA conclusions that the project would have no significant adverse impacts operational plans and actions. The ESAP also requires detailed hydrologic and sediment modelling and management to protect river integrity, construction of a fish ladder if feasible, independent verification that ecological minimum flows are adequate to preserve biodiversity in the downstream river. EPBiH also will develop and implement a plan to manage any unexpected impacts on the nearby Vranduk Fortress and any other cultural heritage resources. In addition, filling of the reservoir would require one household to be relocated and other private land to be acquired from private landowners. EPBiH will implement a Resettlement Policy Framework to guide resettlement and land acquisition and ensure that all losses by landowners and land users are properly compensated or replaced.

This Project Summary Document will be updated prior to Board consideration as needed to reflect changes to the draft ESAP that are made in response to ongoing studies and to public review and comment on the ESIA package.

 

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

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Text of the PIP

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.