USELF - Chigirin Solar

Location:

Ukraine

Project number:

50602

Business sector:

Power and energy

Notice type:

Private

Environmental category:

B

Target board date:

07 May 2019

Status:

Board Approved

PSD disclosed:

15 May 2019

Translated version of this PSD: Ukrainian

Project Description

The provision of a loan of up to EUR 19.7 million for the development, construction and operation of a 55.4MWp solar PV project in the Cherkassy region of Ukraine.

The Project is developed under EBRD's Ukrainian Sustainable Energy Lending Facility III (USELF-III), a EUR 250 million Facility to support renewable energy in Ukraine.

Project Objectives

The Project will add to domestic renewable energy capacity, which supports Ukraine achieve its target of 11 per cent gross final electricity consumption from renewable energy sources by 2020 and 25 per cent of primary energy generation by 2035.

Transition Impact

The facility's transition impact stems from the following two transition qualities:

Green: The Project will fund the development and financing of wind energy generation assets and contribute to the reduction of CO2 emissions, with 36,396 tonnes of CO2 savings estimated per year. 

Competitive: The Project will foster private ownership of renewables projects in the power generation sector, which is dominated by state controlled nuclear, some thermal power plants and large hydropower facilities, which make up almost 80 per cent of the country's total installed electricity capacity.

Client Information

GREENTECO SES LLC

The Borrower is a special purpose vehicle incorporated in Ukraine for the purpose of the dveelopment, construction and operation of the Project. The Borrower is ultimately owned by Scatec Solar ASA (Norway). FMO (the Netherlands Development Finance Company) is also considering investing in the Project.

EBRD Finance Summary

EUR 19,679,000.00

Total Project Cost

EUR 56,226,000.00

Environmental and Social Summary

Categorised B (2014 ESP).

The E&S impacts of the 55.4MWp solar PV plant located in the Cherkasy region of central Ukraine are site-specific and were identified and mitigated based on an Environmental and Social Due Diligence (ESDD). An independent ESDD was carried out as part of the overall Project assessment by an international Lender's Technical Advisor consultant. The ESDD confirmed that the Project is structured to comply with the Bank's Performance Requirements (PRs) and the Company has the institutional capacity to fully implement the Banks PRs.

Overall, solar projects are not associated with material environmental or social impacts, however, some specific issues were considered as part of ESDD including land acquisition process, site clearance and biodiversity implications, storm water drainage due to proximity to the River Tiasmin, potential visual impacts for surrounding residential areas, as well as site clean-up and compensation for plots used for allotments by local population. Part of the site was used for the illegal disposal of waste. An appropriate assessment of safe disposal of historic structures and waste will be made a as part of the site preparation. Public and occupational health issues will be taken into account. The ESDD identified that the above issues can be addressed to close compliance gaps with EBRD PRs via respective mitigation measures that are included in the Environmental and Social Action Plan (ESAP).

The ESAP has been agreed with the Sponsors and includes, among others, a commitment to implement construction stage Environmental, Health and Safety management plans, taking account of site preparation and disposal of historic waste from the site as well as additional site investigation and independent expert confirmation of any contamination. The final design will be based on the implementation of the EHS management land and include for instance compensation for the loss of access to allotments, if required.

The Bank will work closely to monitor the implementation of the ESAP. A Non-Technical Summary (NTS) is available for the Project: English | Ukrainian

Technical Cooperation

None.

Company Contact Information

Isil Onan
isil.onan@scatecsolar.com
+47 480 85 500
www.scatecsolar.com
Karenslyst Allé 49, NO-0279 Oslo, Norway

Business opportunities

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