Provision of a senior long-term loan to finance the development, construction and operation of the 219.5 MW ("Phase 1") and 59.4 MW ("Phase 2") of Potegowo wind farm in north-western Poland (the "Project").
Phase 1 was successfully commissioned in 2020 and was co-financed by EBRD in 2019. EBRD is now also considering to provide additional financing for the construction and operation of Phase 2, which is expected to be commissioned in 2023.
The entire Project has been developed by Mashav Management Sp. z o. o. (the "Borrower"), established to develop, construct and operate the Project. The Borrower is owned by the Israel Infrastructure Fund ("IIF"), CERAC SA and Helios Energy Investments ("Helios") ("Sponsors"). Helios and IIF represent Israeli institutional equity investors focusing on infrastructure investments.
The Project will contribute to climate mitigation by increasing the share of renewable energy generation in Poland and add 278.9 MW (Phase 1 + Phase 2) wind generation capacity to the national energy system. This is expected to generate over 575 thousand tonnes of CO2 emission savings per annum. In addition the Project will strengthen the private sector's role in the renewable energy sector in Poland.
ETI score: 100
The Project targets the Green TI Quality through the addition of 278.9MW of renewable capacity to the Polish energy system. This capacity will replace coal-fired plants in the generation mix with expected associated CO2 savings of over 575 thousand tonnes annually. The Project is expected to benefit from the new renewable energy support scheme on part of its expected production volume secured through the competitive auctions conducted by the Polish authorities in November 2018 and in December 2020. The remaining volume is expected to be sold without subsidies and therefore remains exposed to electricity price risk. Such strategy would not only send a positive signal on the bankability of the new support scheme but also demonstrate the increasing competitiveness of onshore wind as a generation technology in the country.
POTEGOWO MASHAV SP ZOO
The Borrower is a private company incorporated in Poland, established with the sole purpose of constructing and operating the Potegowo wind farm.
EBRD Finance Summary
Provision of a long-term financing denominated in Polish Zloty. EBRD is expected to provide debt alongside commercial co-financiers, while equity necessary for the Project is provided by the Sponsors.
The Bank's additionality stems from its support to the renewable energy sector in an environment where long term non-recourse financing remains limited, particularly in comparison with the important needs required to support the ongoing Polish energy transition.
Environmental and Social Summary
Category A (ESP 2019).
The Project is categorized A due to the extension of an existing Bank funded A category project. An ESDD has been undertaken by an independent consultant of both the extension and status of implementation of the existing Project. No material issues have been identified and the existing ESAP has been updated based on the ESDD to strengthen the ongoing monitoring.
The Project consists of the development of a wind farm in Northern Poland. The initial Phase 1 of the Project consists of 219.5MWe wind capacity. Phase 1 has been commissioned in 2019-20 and is now operational. In 2021 the Sponsor approached the Bank for additional financing of Phase 2, which consists of the addition of an additional 59.4MWe of wind capacity. Phase 2 is the extension of Phase 1 and consists of Biecino wind farm (additional 8 wind turbines of 2.75MW each) and of Wieliszewo wind farm (17 wind turbines of 2.2 MW each). Phase 2 is located 10 km south of existing Phase1.
The Project has fully implemented the existing ESAP which includes the bird and bat monitoring. During the original ESIA preparation, some wind turbine locations were changed in order to reduce the impact on birds and noise impacts to local residents. An ESIA disclosure package for the Phase 1 initial 219.5 MWe was disclosed by the Sponsor in July 2018 and has been approved by the Polish Competent Authorities following statuary consultation periods.
The wind turbines of Phase 2 are located in the same local area. In accordance with the Banks ESP, the ESIA has been updated with a cumulative assessment of the entire wind farm of 278.9 MWe (219.5MWe Phase 1 + 59.4MWe Phase 2). The document was disclosed on the 26 Feb 2021. No material questions or issues have arisen during the statutory or the extended EBRD consultation process or during the implementation of the Project.
An independent consultant was retained to undertake an Environmental and Social Due Diligence (ESDD) of the Project and the consultant has worked with the Sponsor and their adviser's to develop the ESIA disclosure package in 2018 as well as to update the ESIA disclosure in 2021 and verify the status of Project and ESAP implementation for the entire Project inclusive of the 59.5 MWe extension.
The independent ESDD confirmed that the Project will have limited impacts on any protected or Natura 2000 area, and environmental and social issues are site specific and readily identifiable and mitigated. The Project is structured to comply with the EBRD Performance Requirements and National and EU environmental legislation.
The ESDD also confirmed that the Sponsor has been implementing Environmental and Social best practice and has the institutional capacity to fully implement the Bank's Performance Requirements.
The Project will not be associated with any physical displacement and land acquisition has been conducted through voluntary negotiation of land leases. The due diligence confirmed that the project has been subject to appropriate local agreements and included in the local development plans.
The Company has developed an CSR under the 2018 investment which is being implemented. The Company will also contribute through local taxation to the local community, which includes an annual fee per turbine.
The ESDD further identified additional measures to be implemented as part of best practice and which have been included in the initial and updated ESAP. These comprise, inter alia, additional monitoring, including carcass monitoring and the continued employment of an independent expert to monitor and re-evaluate any bird and bat impacts. An ESIA disclosure package for both the initial project and the extension is available on the Company's and Bank websites.
An ESIA disclosure package for both the initial project and the extension is available on the Company's and Bank website: https://www.ebrd.com/work-with-us/projects/esia/potegowo-wind-project.html
The Bank will continue to monitor the implementation of the Project.
Technical Cooperation and Grant Financing
Company Contact Information
PSD last updated
23 Apr 2021
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.