Financed ProjectsGalata

Identification Code:

OP/00/0135

Total Operation Cost:

73.000.000

Maturity:

33 months

Operation Status:

Description and Purpose of the Operation:

Development of the proven offshore gas resources in Varna, Bulgaria by a UK registered independent private oil & gas Co Melrose Resourses in cooperation with the various entities in the Balkan region.

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

Loans

Sector:

Energy

Domain:

Private

Borrower/Client:

Galata

Co-Financiers/Participants:

IFC

Guarantors/Sponsors:

Melrose Resources plc

Developmental and Regional Cooperation Impact:

The expected development impact (intraregional trade in particular) has not been achieved due to the poor disbursement level. However, the operation delivered a good partnership with the intermediary and was a precursor to the follow-up SME term loans, which, given the performance and commitment of the intermediary, is likely to result in a series of successful operations.

Environmental Classification and Impact (summary):

According to the BSTDB Screening categories, the project is an "A0", meaning that a full EIA is required; several EIAs for various stages of the project have been completed and approved by the Bulgarian regulatory authorities. The Environmental Analysis determined that overall the likely environmental impact of the project should be neutral. Some minor negative impacts can be expected, but these will be either localized or temporary. There will also be short-term positive socio-economic benefits during the construction phase. For the minor impacts, mitigation and monitoring activities will be required to be included in an Environmental Action Plan. Submission and implementation of the EAP will be included in the loan agreement.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org