PEPSA Wind Portfolio

Location:

Poland

Project number:

44923

Business sector:

Power and energy

Notice type:

Private

Environmental category:

B

Target board date:

04 Sep 2013

Status:

Repaying

PSD disclosed:

27 Jun 2013

Translated version of this PSD: Polish

Project Description

EBRD provided a senior long-term loan to finance the construction and operation of a portfolio of three wind farm projects with the total capacity of 103.5MW, located in Gawlowice (41.4MW), Skurpie (36.8MW)  and Rajgrod (25.3MW) (the “Project”). The Project is being developed in two phases, with phase I comprising of Gawlowice and Rajgrod wind farms and phase II consisting of Skurpie wind farm. The Bank is currently considering the extension of Gawlowice and Skurpie wind farms, which are expected to increase the total capacity of the Project by 13.8MW to 117.3MW. Both extensions are expected to be operational by the end of 2015.
 
The Project is developed by respective special purpose companies, namely Grupa PEP – Farma Wiatrowa 1 Sp. z o.o., Grupa PEP – Farma Wiatrowa 4 Sp. z o.o. and Grupa PEP – Farma Wiatrowa 6 Sp. z o.o. (together the “Borrowers”) created to own, construct and operate respectively Gawlowice, Skurpie and Rajgrod wind farms.
The Borrowers are fully owned by the Polenergia S.A. (formerly Polish Energy Partners S.A., the “Sponsor”).

Transition Impact

The Project’s transition impact stems from three factors:

(i) the demonstration effect of new replicable behaviour and activities by helping to build the Project during the continuing regulatory uncertainty period in Poland and sending a strong demonstration signal of bankability of such projects,

(ii) setting standards for corporate governance and business conduct, through promoting progress towards meeting the EU’s green energy targets and the use of best environmental practices; and

(iii) expansion of a competitive market, through a market based approach to the sale of electricity and green certificates, and therefore contributing to increased liquidity and transparency of the Polish energy market.

The Client

“Grupa PEP – Farma Wiatrowa 1 Sp. z o.o.”, “Grupa PEP – Farma Wiatrowa 4 Sp. z o.o.” and “Grupa PEP – Farma Wiatrowa 6 Sp. z o.o.” private limited liability partnerships (together the “Borrowers” are special purpose companies incorporated in Poland and fully owned by the Polenergia S.A. (formerly Polish Energy Partners S.A.), a leading local renewable energy player and an independent energy producer, listed on the Warsaw Stock Exchange, approx. 66% indirectly owned by Kulczyk Investments Group.

EBRD Finance

Provision of a limited-recourse long-term financing denominated in Polish Zloty, in the amount of up to PLN 325 million (EUR 77 million equivalent), including PLN 33 million (EUR 8 million) for the extension, representing up to 35% of the total Project cost that will be used for the financing of construction and operation of the Project (incl. the extension). The remaining funding for the Project is provided by a co-lender and the Sponsor.

Project Cost

Approx. PLN 930 million (EUR 221 million, incl. VAT).

Environmental Impact

Environmental classification and rationale

Category B.  Environmental and Social issues associated with the construction of 3 small wind farms can be readily assessed and mitigated as part of the Bank's Environmental Due Diligence (ESDD).
 
The Bank has worked with the Sponsor and the  in the past and the Sponsor has develop a robust Environmental, Health and Safety (EHS) management system as part of implementing an Environmental and Social Action Plan (ESAP) agreed with the Bank.
 
Due diligence undertaken and outcomes
 
The current ESDD, undertaken by an independent consultant, has confirmed that the Project fully complies with Polish and EU environmental standards and that an appropriate Environmental Impact Assessment (EIA) has been undertaken for the Project as part of the local permitting.  Each of the wind farms is located away from both residential areas as well as protected areas (such as Natura 2000 areas) and the ESDD confirmed that they will have limited environmental and/or social impact.  The Sponsor has agreed the wind farms as part of local development plans to avoid cumulative impacts and this has been agreed with the relevant Competent Authorities.
 
The ESDD has concluded that each of the wind farms is complaint with the Bank’ s Performance Requirements (PRs) and the Sponsor has a good environmental and social management system and is implementing best practice for bird and bat monitoring prior to development and subsequently during and post construction stage. An Environmental and Social Action Plan (ESAP) has been developed for the Project to allow for on-going compliance.
 
Extension of the Project
 
The Project extension and operational change was requested in 2014. This was subject to additional Environmental and Social Due Diligence (ESDD) by an independent consultant inclusive of a review the project changes and how these affect the conclusions of the ESDD for the original project. This further due diligence confirmed that the Project is structured in accordance with the Bank’s Performance Requirements, and that the changes do not affect materially the findings of the original due diligence or the project category (B). The Company has updated the Non-Technical Summaries (NTS) and local disclosure, and obtained local permit associated with the changes in line with the National legislation.
 
A Non-Technical Summary (NTS) for each of the 3 wind farms is available below as well as on the web site.
  • Gawłowice wind farm: Non-Technical Summary (English);
  • Skurpie wind farm: Non-Technical Summary (English);
  • Rajgród wind farm: Non-Technical Summary (English);
Implementation requirements
  • The Sponsor and the Borrowers will implement an ESAP (as agreed with the Sponsor) and an Environmental, Health and Safety Management System.
     
  • The Borrowers will be required to provide the Bank with an annual environmental report, including updates on the ESAP (i.e. implementation status of the various projects) and summary of post construction monitoring as well as notification on any material accidents or incidents.
The Borrowers will facilitate periodic monitoring visits by Bank staff or appointed representatives, when deemed necessary.

Technical Cooperation

None.

Company Contact

For project and financial matters, Mr Michal Kozlowski, Polish Energy Partners S.A., Tel: +48 22 390 81 00

 

Business opportunities

For business opportunities or procurement, contact the client company.

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