Fenice ESCO

Location:

Russia

Project number:

43661

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

18 Sep 2012

Status:

Completed

PSD disclosed:

22 Jun 2012

 

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a long-term Rouble-denominated loan equivalent to €20 million to Fenice RUS LLC (the “Company”).

The EBRD loan will be used by the Company to finance a pipeline of energy efficiency projects at industrial companies under long-term Energy Performance Contracts (the “EnPC”). The funds will be used to purchase and upgrade equipment and undertake construction and commissioning works.

Transition Impact

The transition impact potential of the transaction derives from the following sources:

  • Demonstration of new replicable behaviour/activities. The ESCO market in Russia is at a nascent stage of development with only a handful of players present and EnPC services not widely utilised by industrial companies. This project will serve as a demonstration case for a new type of service provided on a fully commercial basis to industrial clients under long-term energy service contracts.
  • Transfer and dispersion of skills. Project will allow transferring Fenice experience, skills and best practice on energy efficiency and energy management to staff of industrial companies involved in the implementation of projects based on EnPC.

The Client

Fenice RUS LLC is the first specialised energy service company in Russia providing turn-key solutions to industrial clients in the development, financing, implementation and operation of energy efficiency projects, through long term contracts (7 to 12 years).

Fenice RUS LLC is a 100% subsidiary of Fenice Spa, Italy (the “Sponsor” or the “Guarantor”), which is a 100% subsidiary of Electricité de France (EDF) Group, France (the “EDF SA”).

EBRD Finance

A senior Rouble-denominated loan equivalent to €20 million split in three tranches.

Project Cost

Total project costs are estimated at €51.5 million, over the next 3 years.

Environmental Impact

Categorised FI in accordance with the EBRD Environmental and Social Policy (2008). ESD has reviewed the pipeline of proposed sub-investments and these are all within the boundaries of existing industrial facilities and are expected to result in improved energy efficiency and lower GHG emissions. The Sponsor has well established environmental, safety and HR management systems, which are also being adopted by the Company. These management systems are certified to ISO14001, ISO9001 and OHSAS18001 standards. There may be indirect environmental and social risks associated with the host sites, but these risks are mitigated by ESD's review of the proposed pipeline, the procedures agreed with the client, and the Company' corporate management procedures.

The Company will be required to implement sub-projects in line with PR9 requirements, including:

(1) Screening all sub-projects against the Bank's Environmental and Social Exclusion List.

(2) Referring to the Bank proposed investments that could be associated with high social or environmental risks, including where environmental and social issues may be associated with the host company. Sub-projects that would fall under Category A, if presented as stand-alone projects, will not be eligible for financing from this facility.

(3) New developments or refurbishment projects with significant environmental or social impacts, and with capital costs of US$ 10 million or more, will have to meet EBRD PRs 1-8 and 10, and EBRD will have prior notification and approvals for these.

The environmental and social performance of sub-projects and the benefits achieved will be reported to the Bank annually. This will include the results of energy saving and associated CO2 reductions.

Technical Cooperation

None.

Company Contact

Mr. Vincent de Rul, General Director
FENICE RUS Limited Liability Company
8, Zemlianoy Val str., 105064 Moscow

Phone: +7 495 781 93 35
Fax: + 7 495 781 93 36

 

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

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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.