Winsko Biomass

cancelled

Translated version of this PSD: Polish The EBRD is considering providing a senior long-term loan to finance the construction and operation of a greenfield project of 31MWe biomass fired power plant in Winsko, Poland (the “Project”), the first independent, stand-alone dedicated biomass fired unit in Poland. The loan is to be made available to “Grupa PEP – Bioelektrownia 2 Spółka z ograniczoną odpowiedzialnością Spółka Komandytowa” private limited liability partnership (the “Borrower”), a special purpose company owning 100% interest in the Project. The Borrower is fully owned by the Polish Energy Partners S.A. (the “Sponsor”). The Project’s transition impact stems from three factors: (i) the demonstration effect of new replicable behaviour and activities by helping to build the first independent, stand-alone greenfield biomass fired unit and sending a strong demonstration signal of bankability of such projects in the light of the prolonged uncertainties linked with the expected regulatory changes in the Polish renewables market; (ii) setting standards for corporate governance and business conduct, through promoting progress towards meeting the EU’s green energy targets and the use of best environmental practices; and (iii) expansion of a competitive market, through a market based approach to the sale of electricity and green certificates, and therefore contributing to increased liquidity and transparency of the Polish energy market. “Grupa PEP – Bioelektrownia 2 Spółka z ograniczoną odpowiedzialnością Spółka Komandytowa” private limited liability partnership is a special purpose entity incorporated in Poland and fully owned by the Polish Energy Partners S.A., a leading local renewable energy player and an independent energy producer, listed on the Warsaw Stock Exchange, approx. 60% indirectly owned by Polenergia Group (member of Kulczyk Investments Group). Provision of a limited-recourse long-term financing denominated in Polish Zloty, in the amount of up to PLN 160 million (EUR 39 million equivalent) representing up to 35% of the total Project cost. The remaining funding for the Project is expected to be provided by the commercial banks and the Sponsor. Approx. PLN 480 million (EUR 115 million). Environmental classification and rationale Category B. Environmental and Social issues associated with the construction of a 31 MWe biomass power plant can be readily assessed and mitigated as part of the Bank's Environmental Due Diligence (ESDD). The Bank has worked with the Company in the past and the Company has develop a robust Environmental, Health and Safety (EHS) management system as part of implementing an Environmental and Social Action Plan (ESAP) agreed with the Bank. Due diligence undertaken and outcomes The current ESDD, undertaken by an independent consultant, has confirmed that the Project fully complies with Polish and EU environmental standards and that an appropriate Environmental Impact Assessment (EIA) has been undertaken for the Project as part of the local permitting. The new plant is located away from both residential areas as well as protected areas (such as Natura 2000- areas) and will have limited environmental and/or social impacts. The new biomass plant is designed to comply with EU Industrial Emission Directive (IED) Best Available Techniques (BAT) emission standards as well as the Bank’s Performance Requirements. The key environmental and social impacts are associated with the fuel supply chain (straw collection and transport). The ESDD has confirmed that the Company has fully assessed the fuel supply chain and has implemented mitigation measures, such as traffic management plans. As part of developing best practice the Company has developed a corporate policy to address biomass supply. This is available on the Company web site. The independent ESDD concluded that the current project is complaint with the Bank’ s Performance Requirements and the Company has a good environmental and social management system. An Environmental and Social Action Plan (ESAP) has been developed for the Project to allow for ongoing compliance as well as set key performance indicators. A Non Technical Summary (NTS) of the Project is available below: Implementation requirements None. For project and financial matters Mr Piotr Maciolek, Polish Energy Partners, Tel: +48 22 390 81 00, Email: piotr.maciolek@pepsa.com.pl