Smardan Wind

cancelled

Translated version of this PSD: Romanian The EBRD is considering providing a loan to construct a 54 MW wind farm in the Galati county of Romania. The project will support Romania in increasing its renewable energy capacity to meet EU green energy targets. The implementation of the project would give confidence to potential investors in wind generation and increase the amount of green electricity and certificates traded on OPCOM, which should assist liquidity and pricing signals. This demonstration effect is expected to contribute to the development of a critical mass of renewable energy generation in Romania which will help to increase the share of renewable energy as a proportion of total electricity output to 38 per cent by 2020 (estimated to be 18 per cent when excluding large hydro) from a level of 5 per cent in 2012. Furthermore, the project will strengthen the project finance market in a country that has historically relied to a large extent on corporate finance structures to develop power assets. The project is controlled and developed by Inveravante Inversiones Universales, S.L. (“Inveravante”) through a special purpose vehicle, Smardan S.R.L., incorporated in Romania. Inveravante is a Spanish holding company present in more than 20 countries. It engages in a range of business areas, including the development of renewable energy projects and oil and gas exploration and production. The wind farm will be financed through an A/B loan structure of up to EUR 59 million. EUR 84.2 million. The Project has been categorised B under the Bank’s 2008 Environmental and Social Policy, with potential impacts readily identified and mitigated. The Bank’s environmental and social due diligence was completed with the assistance of an international consultant. Due diligence concluded that the Project could be constructed and operated in accordance with the Bank’s Performance Requirements. The Project is not located in or near sensitive habitats or along important migration routes and so is expected to have an insignificant or no effect on birds and bats. Even so, the Sponsor will undertake multiple seasons’ monitoring to verify this conclusion, and will implement additional mitigation if needed to ensure impacts are avoided or minimised. Several turbines will be within 300-500 metres of Smardan village, which could cause some noise nuisance during operation. The Sponsor will monitor noise before construction to develop a robust baseline, then will monitor noise at the request of any affected household once operations begin, and will take steps to reduce noise or develop mitigation if noise levels exceed applicable standards. One family resides closer to a proposed turbine location than allowed under Romanian law. The Sponsor will either relocate the turbine or arrange for equivalent residence farther away from the project in accordance with the Bank’s Performance Requirements. Most other potential impacts – erosion, traffic, waste, worker disruption, etc. – would be only experienced during construction. These impacts would be controlled through the application of best international practices. The agreed Environmental and Social Action Plan (ESAP) requires that the Sponsor ensure contractors develop and implement appropriate plans to avoid and control adverse effects. The Bank will monitor the Project’s compliance with environmental and social Performance Requirements and the ESAP during both the construction and operation of the wind farm based on regular reports from the Sponsor and site visits by Bank staff. None. Gustavo Jurado gjurado@inveravante.com Tel:+34620223027 Jorge Ricart jricart@inveravante.com Tel: +34981257481