Translated version of this PSD: Romanian
The EBRD is considering arranging a senior secured financing of up to €207 million for Vimetco Power Romania SRL to support the construction of a new gas-fired state-of-the-art cogeneration power plant (“CCPP”) in Tulcea, Romania.
Vimetco Power Romania SRL is a special purpose company owned by Vimetco NV, set up to carry out the first phase of the project.
This would be the first project finance transaction in private conventional power generation in Romania.
The 250 MWe/195 MWth CCPP power plant is expected to be built and commissioned between 2012 and 2014. Its output - power and heat – will be sold on the Romanian market but is also expected to cover part of the needs of the Vimetco group in Romania.
The transition impact of the Project is derived from:
1. More widespread private ownership. With the exception of a 860 MW gas-fired power plant built by OMV Petrom in Brazi, and a number of recently constructed renewable energy projects, the power generation sector in Romania is virtually state-owned.
2. Increased overall efficiency of the sector, as the new plant will operate as one of the most efficient power plants in the country. Being a high efficiency cogeneration the project will deliver steam to ALUM and district heating to Tulcea municipality as well.
3. Demonstration effects of successful financial structuring, by supporting private investment in power generation. This will be the first project finance transaction in private conventional power generation, thus being an example for future similar projects.
4. More competition on the Romanian energy markets. The Project could deliver electricity on both the day ahead and the bilateral contracts markets of OPCOM (the Romanian energy exchange), in both cases contributing to greater transparency and increased competition.
Vimetco Power Romania SRL, a special purpose company established to carry out the Project, wholly-owned by Vimetco NV, the holding company of Vimetco Group.
In Romania, Vimetco group owns Alro SA, one of the largest industrial Romanian companies and the largest aluminium smelter in Southeast Europe Alum SA, an alumina refinery located in Tulcea and Vimetco Extrusion, a company producing aluminium extruded profiles.
The EBRD is considering arranging up to €207 million, or 75 per cent of the project’s costs, through the use of the Bank’s A/B loan structure and/or by parallel loans from IFIs and/or commercial lenders.
The project’s costs are estimated to amount to €276 million.
Environmental classification and rationale
The Project, a new 250 MWe/195 MWth gas-fired state-of-the-art cogeneration power plant to be constructed at an existing Alum SA alumina refinery plant in Tulcea, Romania, has been categorised A under the Bank’s Environmental and Social Policy (2008), requiring an Environmental and Social Impact Assessment (ESIA) of the Project.
The Project is the new cogeneration plant, which will operate as a separate company, whilst the area of influence includes the alumina refinery in accordance to the Bank’s Environmental and Social Policy.
Due diligence undertaken and outcomes
The Bank’s Environmental and Social Due Diligence (ESDD) consisted of an environmental and social audit of the existing alumina plant and an ESIA of the planned investment. The Bank has an existing project with Alro (Project ID: 40875), and a monitoring visit was undertaken by the Bank in 2011 for this Project.
The ESDD was undertaken by an independent consultant and included a review of current operations. The ESDD confirmed that existing operations at the alumina plant are in compliance with National and EU environmental standards, and Alro has well developed environmental, health and safety management systems, hence the institutional capacity to fully implement the Bank’s Performance Requirements. The ESDD as well as the Bank’s monitoring confirmed that Alro is implementing the agreed Environmental and Social Action Plan (ESAP) at the Tulcea Alumina Refinery.
The new cogeneration plant in Tulcea will meet the Bank's Performance Requirements and EU environmental standards, namely the EU Industrial Emissions (IE) Directive. The ESDD confirmed that the plant will not have material environmental or social impact.
- Vimetco; Vimetco Power Rivergate Center; No. 64, Splaiul Unirii; 040036 Bucharest District 4; Romania; Tel: +40 (0)21 408 35 00; Fax: +40 (0)21 408 35 82; Contact: Dr. Marian Cilianu; Director General Vimetco Power / Project Director; E-mail: firstname.lastname@example.org
- Alum; SC Alum SA; Str. Isaccei, nr. 82,Tulcea, jud.; Tulcea, 820228; Romania.
- Local municipal offices: PRIMARIA MUNICIPIULUI TULCEA; Strada Pacii nr. 20,; Tulcea,; Jud Tulcea; 820033
- Additional local independent location: Administration Offices; ENERGOTERM; SC Energoterm SA; Str. Isaccei nr 73, Tulcea, jud Tulcea; 820207
Vimetco Power SRL
Rivergate Center; No. 64, Splaiul Unirii; 040036 Bucharest District 4; Romania;
Tel: +40 (0)21 408 35 00;
Fax: +40 (0)21 408 35 82;
Contact: Dr. Marian Cilianu; Director General Vimetco Power / Project Director;
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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