Plinacro Gas Storage Project

complete

The proposed project will be used for the acquisition of Podzemno skladiste plina d.o.o., the company that owns underground gas storage in Okoli. The company will be requested to undertake a capital expenditures programme over the life of the loan aimed at ensuring adequate maintenance and operations of the gas storage. The storage represents a strategic asset for Croatia since it will enable the State to control and regulate the gas supplies and consumption in the future as well as secure non-discriminative third party access to the storage to gas suppliers and gas traders. Through this Project, the Bank would promote improvements in the efficiency of the gas storage and supply services, including: 1) a clear commitment by the Company to an investment programme that will support the rehabilitation and expansion of the storage facility, and 2) improvements in the regulatory framework with respect to the status quo ante, which would allow non-discriminatory access by an enlarged set of end-users to the facility and avoid future discriminatory cut-offs in case of gas shortages. PLINACRO d.o.o., a 100% state-owned Croatian natural gas transmission system operator. Contact person: Mr. Marin Zovko, Head of Finance Department Tel: ++385 1 6301 704 Fax: ++385 1 6301 792 Email: marin.zovko@plinacro.hr Up to EUR 70 million senior corporate loan which will be secured with a sovereign guarantee. EUR 70 million. Use of proceeds is not associated with a major expansion and/or modernisation of the existing Okoli gas storage facility. Moreover, potential significant adverse environmental and social impacts are readily identified and addressed through mitigation measures. The Project has therefore been screened as Category B in accordance with the Bank’s Environmental and Social Policy (2008). An integrated audit covering environmental, social and occupation, health and safety issues related to Plinarco and the Okoli gas storage facility will be conducted by an independent consultant. Results from this audit will be included in an Environmental and Social Action Plan that will need to be agreed with the Company and implemented over an agreed timeframe. In addition, a Stakeholder Engagement Plan will be prepared and released to the public domain. EBRD considers the area of influence to include the Okoli project site and related auxiliary facilities; however, this will be further investigated as part of the Bank's due diligence in the field. The PSD will be updated with the results of investigations and main agreed actions as part of the Bank’s environmental and social due diligence process. N/A