Winsko Biomass

Location:

Poland

Project number:

43331

Business sector:

Power and energy

Notice type:

Private

Environmental category:

B

Status:

Cancelled

PSD disclosed:

12 Apr 2013

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 a greenfield project of 31MWe biomass fired power plant in Winsko, Poland (the “Project”), the first independent, stand-alone dedicated biomass fired unit in Poland.

The loan is to be made available to “Grupa PEP – Bioelektrownia 2 Spółka z ograniczoną odpowiedzialnością Spółka Komandytowa” private limited liability partnership (the “Borrower”), a special purpose company owning 100% interest in the Project.

The Borrower is fully owned by the Polish Energy Partners S.A. (the “Sponsor”).

Transition Impact

The Project’s transition impact stems from three factors:

(i) the demonstration effect of new replicable behaviour and activities by helping to build the first independent, stand-alone greenfield biomass fired unit and sending a strong demonstration signal of bankability of such projects in the light of the prolonged uncertainties linked with the expected regulatory changes in the Polish renewables market;

(ii) setting standards for corporate governance and business conduct, through promoting progress towards meeting the EU’s green energy targets and the use of best environmental practices; and

(iii) expansion of a competitive market, through a market based approach to the sale of electricity and green certificates, and therefore contributing to increased liquidity and transparency of the Polish energy market.

The Client

“Grupa PEP – Bioelektrownia 2 Spółka z ograniczoną odpowiedzialnością Spółka Komandytowa” private limited liability partnership is a special purpose entity incorporated in Poland and fully owned by the Polish Energy Partners S.A., a leading local renewable energy player and an independent energy producer, listed on the Warsaw Stock Exchange, approx. 60% indirectly owned by Polenergia Group (member of Kulczyk Investments Group).

EBRD Finance

Provision of a limited-recourse long-term financing denominated in Polish Zloty, in the amount of up to PLN 160 million (EUR 39 million equivalent) representing up to 35% of the total Project cost. The remaining funding for the Project is expected to be provided by the commercial banks and the Sponsor.

Project Cost

Approx. PLN 480 million (EUR 115 million).

Environmental Impact

Environmental classification and rationale

Category B. Environmental and Social issues associated with the construction of a 31 MWe biomass power plant can be readily assessed and mitigated as part of the Bank's Environmental Due Diligence (ESDD).

The Bank has worked with the Company in the past and the Company has develop a robust Environmental, Health and Safety (EHS) management system as part of implementing an Environmental and Social Action Plan (ESAP) agreed with the Bank.

Due diligence undertaken and outcomes

The current ESDD, undertaken by an independent consultant, has confirmed that the Project fully complies with Polish and EU environmental standards and that an appropriate Environmental Impact Assessment (EIA) has been undertaken for the Project as part of the local permitting. The new plant is located away from both residential areas as well as protected areas (such as Natura 2000- areas) and will have limited environmental and/or social impacts.

The new biomass plant is designed to comply with EU Industrial Emission Directive (IED) Best Available Techniques (BAT) emission standards as well as the Bank’s Performance Requirements.

The key environmental and social impacts are associated with the fuel supply chain (straw collection and transport). The ESDD has confirmed that the Company has fully assessed the fuel supply chain and has implemented mitigation measures, such as traffic management plans. As part of developing best practice the Company has developed a corporate policy to address biomass supply. This is available on the Company web site.

The independent ESDD concluded that the current project is complaint with the Bank’ s Performance Requirements and the Company has a good environmental and social management system. An Environmental and Social Action Plan (ESAP) has been developed for the Project to allow for ongoing compliance as well as set key performance indicators.

A Non Technical Summary (NTS) of the Project is available below:

Implementation requirements

  • The Company will implement an ESAP (as agreed with the Company) and an Environmental, Health and Safety Management System.
  • The Company will be required to provide the Bank with an annual environmental report, including updates on the ESAP (i.e. implementation status of the various projects), and notification on any material accidents or incidents.
    The Company will facilitate periodic monitoring visits by Bank staff or appointed representatives, when deemed necessary.

Technical Cooperation

None.

Company Contact

For project and financial matters Mr Piotr Maciolek, Polish Energy Partners, Tel: +48 22 390 81 00, Email: piotr.maciolek@pepsa.com.pl

 

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

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.