GNG Wind Volyn

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IFC is considering a loan to support the Volyn Wind Project, a 147 MW (installed capacity) wind power project (WPP) within the Volyn region of Ukraine (the Project). The project is to be developed by Wind Power GSA Volyn LLC and Wind Power GSA Volyn 3 LLC (collectively known as “the Borrower”), two special purpose vehicles (SPVs) established by GNG Retail Limited, a Cyprus-based holding company for Concern Galnaftogaz JSC (“GNG” or “the Sponsor”), an independent Ukrainian fuel distribution company operating a network of filling stations under the “OKKO” brand (https://www.okko-group.com.ua/en/). The project consists of the development, construction, operation, and maintenance of the wind farm, which is anticipated to be operational for 25 years. The project will involve the installation of 25 Nordex N163/5.X wind turbine generators (WTGs), each with a capacity of up to 6 MW. Each turbine will have a hub height of 120 m and a rotor diameter of 163 m. The wind turbines will be connected to the national grid via a substation within the project area and an 8.7 km 110 kV transmission line (8.154 km via overhead line (OHL), 546 m underground). The project will be served by a network of existing agricultural roads and newly built access roads, along which underground cable lines will be installed. During project construction, an off-site concrete batching plant, to be operated by the borrower’s main contractor, will be installed to service the project. The borrower commenced initial construction activities in July 2024, including road upgrades and earthworks, cabling, and piling works, with project completion expected in Q3 2026.  Land required for the project is either owned by the borrower or secured for 29, 45, 47, or 49 years via voluntary lease or easement agreements concluded with public and private landowners. Land within the project area is currently used for crop agriculture. The project’s construction activities will temporarily affect approximately 61.5 ha, while permanent facilities will occupy 45 ha. The 25 turbines will permanently affect an area of 22.6 ha. The pylons of the overhead transmission line (OHL) will affect a total area of 0.13 ha leased from private owners or the village council. The project is situated in the Central European mixed forests ecoregion of the temperate broadleaf and mixed forests biome (as designated by the Worldwide Fund for Nature, WWF). The wind farm site, and its associated OHL are located in a heavily human-modified landscape, dominated by crop agriculture. All project infrastructure is sited within Modified Habitat, per IFC definition. Neither the wind farm nor its associated OHL overlap with Key Biodiversity Areas (KBA) or Legally Protected Areas (LPA). The project will be developed and operated under a multi-contract scheme executed by international and Ukrainian contractors. An owner’s engineer will be appointed to provide construction supervision services, including E&S monitoring. An independent environmental and social consultant (IESC) has been engaged on behalf of the project Lenders to monitor project development during the construction and initial operational phase.