Potegowo Wind

Location:

Poland

Project number:

50200

Business sector:

Energy

Notice type:

Private

Environmental category:

A

Approval date:

09 Apr 2019

Status:

Disbursing

PSD disclosed:

11 Dec 2018

Translated version of this PSD: Polish

Project Description

Provision of a senior long-term loan to finance the development, construction and operation of the 219.5 MW Potegowo wind farm in north-western Poland (the "Project"). The Project has been developed by Mashav Management Sp. z o. o. ("Developer"). Construction works have already started and expected to be completed no later than by mid-2020.

The loan is to be made available to Potegowo Mashav Sp. z o. o. (the "Borrower"), established to develop, construct and operate the Potegowo wind farm. 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.

Project Objectives

The Project will contribute to climate mitigation by increasing the share of renewable energy generation in Poland and add 219.5 MW wind generation capacity to the national energy system.

This is expected to generate over 514 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.

Transition Impact

The Project targets the Green TI Quality through the addition of 219.5MW 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 500,000 tonnes annually. The Project is expected to benefit from the new renewable energy support payments on part of its expected production volume.

Such support was awarded to the Project during a competitive auctions conducted by the Polish authorities in November 2018. The remaining volume is expected to be sold on unsubsidised basis 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.

Client Information

POTEGOWO MASHAV SP ZOO

The Borrower is a private company incorporated in Poland, created with the sole purpose of constructing and operating the Potegowo wind farm.

Environmental and Social Summary

Category A (ESP 2014). An Environmental and Social Impact Assessment (ESIA) disclosure package was disclosed by the Developer in July 2018 and has been fully approved by the Polish Competent Authorities following statuary consultation periods. No material questions or issues have arisen during the statutory or the extended EBRD consultation process.

An independent consultant was retained to undertake Environmental and Social Due Diligence (ESDD) of the Project and the consultant has worked with the Developer and their adviser's to develop the ESIA disclosure package. 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 Developer has been implementing Environmental and Social best practice and has the institutional capacity to fully implement the Bank's Performance Requirements.

ESDD further identified additional measures to be implemented as part of best practice and which have been included in an agreed Environmental and Social Action Plan (ESAP). These comprise, inter alia, additional monitoring and the appointment of an independent expert to monitor and reevaluate any bird and bat impacts, as well as support the Developer in the assessment of additional cumulative impacts. It should be noted that during the ESIA preparation, some wind turbine locations were changed in order to reduce impact on birds and noise impact to local residents.

The Project will not be associated with any physical or economic displacement and additional monitoring will be undertaken during operation to verify disturbance impacts and effectiveness of mitigations. The due diligence confirmed that the Project has been subject to appropriate local agreements and included in the local development plans. A Corporate Social Responsibility (CSR) program is also being developed and agreed with the Developer to plan and carry out impact investments in local communities. The Project will contribute through local taxation to the local community, which includes an annual fee per turbine.

Information on the Project can be obtained on the Developer web site

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

None.

Company Contact Information

Tomer Eizenberg
tomer.eizenberg@mashavenergia.com
http://mashavenergia.com/

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

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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