Plinacro Gas Storage Project

Location:

Croatia

Project number:

40223

Business sector:

Natural resources

Notice type:

Public

Environmental category:

B

Target board date:

06 May 2009

Status:

Signed

PSD disclosed:

05 Mar 2009

Project Description

The proposed project will be used for the acquisition of Podzemno skladiste plina d.o.o., the company that owns underground gas storage in Okoli. The company will be requested to undertake a capital expenditures programme over the life of the loan aimed at ensuring adequate maintenance and operations of the gas storage. The storage represents a strategic asset for Croatia since it will enable the State to control and regulate the gas supplies and consumption in the future as well as secure non-discriminative third party access to the storage to gas suppliers and gas traders.

Transition Impact

Through this Project, the Bank would promote improvements in the efficiency of the gas storage and supply services, including:

1) a clear commitment by the Company to an investment programme that will support the rehabilitation and expansion of the storage facility, and

2) improvements in the regulatory framework with respect to the status quo ante, which would allow non-discriminatory access by an enlarged set of end-users to the facility and avoid future discriminatory cut-offs in case of gas shortages.

The Client

PLINACRO d.o.o., a 100% state-owned Croatian natural gas transmission system operator.

Contact person:
Mr. Marin Zovko, Head of Finance Department

Tel: ++385 1 6301 704
Fax: ++385 1 6301 792
Email: marin.zovko@plinacro.hr

EBRD Finance

Up to EUR 70 million senior corporate loan which will be secured with a sovereign guarantee.

Project Cost

EUR 70 million.

Environmental Impact

Use of proceeds is not associated with a major expansion and/or modernisation of the existing Okoli gas storage facility. Moreover, potential significant adverse environmental and social impacts are readily identified and addressed through mitigation measures. The Project has therefore been screened as Category B in accordance with the Bank’s Environmental and Social Policy (2008).

An integrated audit covering environmental, social and occupation, health and safety issues related to Plinarco and the Okoli gas storage facility will be conducted by an independent consultant. Results from this audit will be included in an Environmental and Social Action Plan that will need to be agreed with the Company and implemented over an agreed timeframe. In addition, a Stakeholder Engagement Plan will be prepared and released to the public domain.

EBRD considers the area of influence to include the Okoli project site and related auxiliary facilities; however, this will be further investigated as part of the Bank's due diligence in the field.

The PSD will be updated with the results of investigations and main agreed actions as part of the Bank’s environmental and social due diligence process.

Technical Cooperation

N/A

 

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

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.