Financed ProjectsAES Maritza East I

Identification Code:

OP/05/0504

Total Operation Cost:

1.055.000.000

Maturity:

206 months

Operation Status:

Description and Purpose of the Operation:

BSTDB participated in the financing of a 600 MW net lignite-fired power plant to be constructed in Bulgaria by Alstom and operated by a special purpose company AES-3C Maritza East I EOOD, an ultimate subsidiary of AES, one of the world's largest power producers. The amount of the BSTDB financing is Euro 18 million provided for a period of 16.5 years. The total cost of the project is about EUR 1.1 billion, which represents the largest new power generation investment in the country. The new plant built to full EU standards will use latest pollution-control technology, and will replace older, less efficient generation and lower the cost of a significant source of domestic electricity, thus benefiting consumers. The project is a high priority for Bulgaria, utilizing the country's limited domestic fuel source, and supporting the on-going electricity sector privatisation and restructuring process. EBRD, Calyon (Credit Agricole Group), ING and BNP Paribas also participate in the syndicated loan to the company in the amount of EURO 430.5 million, guaranteed by HERMES (Germany) and COFACE (France).

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

Loans

Sector:

Utilities

Domain:

Private

Borrower/Client:

AES-3C Maritza East 1

Co-Financiers/Participants:

EBRD, Calyon, ING and BNB Paribas

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

The Operation will bring about substantial developmental impact, since it will utilize the country's limited domestic fuel source and support the ongoing electricity sector privatization and restructuring process. It has an opportunity to create new employment and generate taxes.

Environmental Classification and Impact (summary):

The proposed project is expected to bring significant environmental benefits, as the new plant will be using state-of-the-art technology and replace older polluting generating units in the region. The project will also help to satisfy future demand for electricity in Bulgaria as old inefficient coal/lignite fired plants are decommissioned. The Project is in compliance with Bulgarian and EU environmental emission standards and will help to attain EU ambient air quality standards in the area.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org