Middle Iskar Cascade SHPPs Phase II

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VEZ Svoghe was planning the development of the second phase (8.89 MW) of the 25.6 MW 9 SHPP Ishar cascade, near the Svoghe and Mezdra municipalities, on the Iskar river. The second phase was to comprise the following three plants: Tserovo SHPP (3 MW), Opletnya SHPP (2.8 MW), and Prokopanik SHPP (3.2 MW). TVEZ Svoghe was a joint venture between Italian Petrolvilla Group (90%) and the Svoghe municipality (10%). In 2009, the full cascade was expected to produce 142 GWh annually. As of May 2008, Executive Director of VEZ Svoge was Mr. Plamen Dilkov. As of October 2011, no information was available about regulations or contracts. In May 2008, at the time of the completion of the first hydropower plant of the cascade, it was announced that CEZ was to buy the project's output at prices set by the SCEWR. The project started construction of the second phase in June 2010. At the launch of the first hydropower plant of the cascade, the 3 MW Lakatnik plant, the local power equipment had to be upgraded at a cost of $1.6 million carried by CEZ. In January 2011, it was reported that the project company was to pay $48,500 to the state for rezoning the forest land, as well as an additional $20,500 for compensatory afforestation. The total investment cost of the 9 SHPP Ishar cascade was estimated at EUR115 million ($153 million), although initially in 2008 estimated at EUR80 million ($123 million). The second phase of the project was estimated to cost EUR26 million ($34.6 million). Part of the EUR115 million ($153 million) was financed through an EBRD loan of EUR75 million ($100 million), initially valued at EUR54 million ($83.5 million). Under the $80 million, the structure was to be an A loan of $50.4 million and a B loan of $20 millon to an international bank; in May 2008 it was reported that the Bulgarian UniCreditBulbank was also investing in the cascade, but no amount was mentioned. UniCreditBulbank was part of the Italian bank UniCredit. Reportedly, the minister in charge of EU funds management Tomislav Donchev was present at the ceremony signalling the beginning of the construction period. However, no information was available about EU structural funds financing. The projec applied for UNFCCC JI financing.