Radzyn Wind Farm

Location:

Poland

Project number:

46645

Business sector:

Power and energy

Notice type:

Private

Environmental category:

B

Target board date:

10 Dec 2014

Status:

Repaying

PSD disclosed:

25 Sep 2014

Translated version of this PSD: Polish

Project Description

The EBRD is considering providing a senior long-term loan to finance the construction and operation of the Radzyn Wind Farm, a wind farm project with a total installed capacity of up to 39 MW located near the town of Grudziadz in north-central Poland (Kujawsko-Pomorskie province).

The construction is scheduled for commencement in the fourth quarter of 2014 and expected to be completed in the second half of 2015.

The Bank’s loan is to be provided to GB Radzyn 401 sp. z o.o., a special purpose company (the “borrower”), created to own, construct and operate the project.

The borrower is fully and directly owned by Green Bear SA. (the “sponsor”).

Transition Impact

The Project’s transition impact stems from three factors, as described below:

(i) The project has the potential to demonstrate the viability of a medium-scale wind power plant financed by an independent power producer. The financing structure is expected to be fully merchant, taking price risk on the sale of green certificates (GC) as well as electricity output. Such a transaction would demonstrate that lenders could take risks of price volatility on the market and also strengthen the pipeline of wind projects developed in Poland.

(ii) The project supports investment of a private investor in the Polish wind energy sector which is still largely state-controlled. By operating on a merchant basis the project is expected to contribute to the liquidity and transparency of the price signal in both the electricity and GC market.

(iii) The project will lead to saving of approximately 83.000 tCO2/annum.

The Client

The borrower is a private limited liability company, operating as a special purpose company incorporated in Poland. It is fully and directly owned by Green Bear SA, headquartered in Luxembourg. Green Bear SA is a wind farm developer active in the Polish market since 2007.

EBRD Finance

Provision of a limited-recourse long-term financing denominated in Polish Zloty, in the amount of up to PLN 100 million (EUR 24 million equivalent) as well as relevant foreign exchange and interest rate hedging facilities. The Bank’s investment represents up to 35% of the total project cost. The Bank’s financing will be used for the construction and operation of the project. The remaining funding for the project is expected to be provided by other financial institutions and the sponsor.

Project Cost

Approx. PLN 285 million (EUR 67.9 million).

Environmental Impact

Categorised B.

Environmental and social issues associated with the construction and operation of a medium sized wind farm can be readily assessed and mitigated as part of an Environmental and Social Due Diligence (ESDD). An initial review has been undertaken by the Bank, and an independent consultant was retained to undertake a gap analysis of the project in terms of compliance with the Bank’s Performance Requirements. The ESDD has confirmed that the project is not located near to any sensitive receptors, such as Natura 2000 areas, and that the project is structured to comply with the Bank’s Performance Requirements and Polish legislation.
 
Based on the ESDD findings an Environmental and Social Action Plan (ESAP) has been agreed with the Client, which includes post construction bird, bat and noise monitoring as well as implementation of an Environmental, Health and Safety (EHS) Management systems. A Non-Technical Summary (NTS) and Stakeholder Engagement Plan (SEP) can be down loaded at the project’s web site. The NTS is also available in Polish and English.
 
The Bank will monitor the implementation of the project.

Technical Cooperation

None.

 

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.