Translated version of this PSD: Greek
A senior secured loan of up to EUR 50 million to Terna Energy SA (the "Company"), to finance the development, construction and operation of the Company's renewable energy power plants in Greece (the "Project").
The Project will support the development, construction and operation of renewable energy power plants in Greece, which will support Greece in achieving the target to reach 40% of electricity consumption from renewable sources by 2020.
The Project aims to both help Greece meet its renewable energy targets, as well as to facilitate the country's planned transition to a more market-based support mechanism for the development of renewable energy.
TERNA ENERGY S.A.
The borrower will be Terna Energy SA, a company incorporated in Greece, owned by GEK Terna Group, Terna Energy's chairman George Peristeris, and a subsidiary of the American hedge fund York Capital. It is one of the largest and most respected renewable energy companies active in Greece. It directly owns and operates 110 MW of renewable energy projects and another 557 MW are indirectly owned by the borrower through special urpose vehicles located in Greece, Bulgaria, Poland and the USA.
EBRD Finance Summary
Up to EUR 50 million senior secured loan alongside a parallel loan to be provided by a Greek commercial bank.
Total Project Cost
Approximately EUR 60 million
Environmental and Social Summary
Category B (2014). Environmental and Social Due Diligence ("ESDD") was undertaken by the Bank, which confirmed that the Company has good corporate governance and the capacity to fully implement the Bank's Performance Requirements ("PRs"). The ESDD focused on the Company's existing corporate E&S management capacity and capabilities and resulting policies and procedures.
In addition, the E&S performance of a selection of the Company's operations, planned and active projects, were also assessed inclusive of site visits.
As part of the ESDD, meetings where held with the Hellenic Ornithological Society (part of BirdLife International) to assess the sensitivity of current projects. The meeting was attended by some of the Company's representatives as part of their increasing stakeholder engagement process.
Furthermore, the Company confirmed it will undertake the Environmental Impact Assessment ("EIA") for any new project, in line with best practice and EU requirements inclusive of cumulative assessments.
Overall, the E&S governance structure of the Company is good and can be further strengthened in line with industry best practice. This requirement has been incorporated into the Environmental and Social Action Plan ("ESAP") which has been agreed with the Company, and whose implementation will be monitored by the Bank. The Company has also agreed to increase its transparency and engagement activities at a corporate level, including engaging with recognised specialist biodiversity NGOs and reporting of non-financial information.
The E&S risks and impacts associated with the Company's operations that will benefit indirectly from EBRD financing (expected to be 48MW of wind capacity) have been confirmed to be readily identified and mitigated. In addition, it has been confirmed that these projects in themselves would not trigger Category A requirements. The agreed ESAP therefore ensures that any future projects developed by the Company that would trigger Category A requirements would need to be treated as such, and would be structured to meet EBRD's PRs. The Company has agreed to disclose relevant information on the project and a Non-Technical Summary ("NTS") for future projects on the Company web site.
Company Contact Information
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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.