Pestera Wind Project

complete

The EBRD is considering providing a senior loan of € 36.9 million to finance the construction and operation of Pestera (90MW) wind farm, located in Dobrogea region. The full commissioning is expected to take place during the first quarter of 2011. The Project will support Romania to increase its renewable energy capacity to meet EU’s green energy quotas. Through this Project, the Bank will support the expansion of renewable energy market in Romania. The Project has the potential to help improve the regulatory regime for renewable energy, to demonstrate a successfully operating large scale wind power generation facility and, as such, attract other investors in the Romanian renewable energy sector. In addition, the project is expected to come from improving the standards for business conduct through the Client's application of international best practice in its environmental impact assessment. The Project is controlled and developed by EDP Renováveis (EDPR) through Renovatio Power SRL, a Special Purpose Vehicle (SPV), owning Pestera wind farm. EDPR is the world’s third largest wind energy company with installed capacity of 5,577 MW at year-end 2009 and another 1,293 MW under construction. EDPR has an active presence in six European countries (Portugal, Spain, France, Belgium, Poland and Romania), United States (43 per cent of EDPR’s installed capacity) and Brazil. The EBRD is considering providing a loan of €36.9m (29.3 per cent of total project cost). IFC is considering providing a loan of equal amount for the two wind farms. The total project cost is €126.2 million. Categorised A in accordance with EBRD’s 2008 Environmental and Social Policy (ESP). The project consists of constructing two wind farms located in the Dobrogea area of Romania, about 100km inland west from Constanta Black Sea port. Pestera (90 MW) and Cernavoda (138 MW) wind farms are located circa 10 km from each other, near the Danube Constanza canal and Cernavoda Nuclear Power Plant. Environmental Impact Assessments (EIA’s) have been undertaken for each project in line with National legislation. Neither of the wind farms is located in a Natura 2000 areas, however, Dobrogea county is associated with important bird migratory routes. An environmental and social due diligence (ESDD) has been undertaken for both projects by an independent consultant, taking into account cumulative impacts. This has confirmed that the projects are in compliance with the National, EU and Bank Performance Requirements (PRs) and environmental and social impacts are well managed and mitigated. Based on the results of the due diligence an Environmental Management and Monitoring Plan (EMMP) has been developed and agreed with the Company. This includes monitoring and reporting obligations. The projects have finished the development stage and currently are under construction. The projects have obtained environmental and construction permits in line with National requirements. In line with the Bank’s Environmental and Social Policy, undertaken an Environmental and Social Impact Assessment (ESIA) of the project and information on the project is available on the company and Bank web site at the following locations: Full EIA documentation is available locally at: 1. EDP Renewables, Romania office, Rosetti Tower Office Building, Maria Rosetti st 6, 3rd floor, Sector 2, Bucharest, Romania; Tel Tel. +40 72 592 98 84 ; Contact Ms Laura Lazar; e-mail: LauraLazar@edprenovaveis.com 2. EDP web sites: http://www.edprenovaveis.com/ - (under the link: sustainability/EDPR in the community/Romania sustainability) 3. Local community There is an Environmental and Social Impact Assessment available for this project. None. Celma Joao Batista Pires EDP Renewables, Serrano Galvache, 56 Centro Empresarial Parque Norte Edificio Encina, 1st CP 28033 Madrid Spain