Financed ProjectsSuvorovo Wind Farm

Identification Code:

OP/09/0749

Total Operation Cost:

108.500.000

Maturity:

192 months

Operation Status:

Description and Purpose of the Operation:

The operation involves the provision of a long-term debt facility to finance the construction and operation of the 60MW wind farm located in the municipality of Suvorovo in the North East part of Bulgaria about 25km inland from the Black Sea. The project will contribute to the expansion of renewable energy markets in Bulgaria supporting the country in achieving its target of sourcing 16% of its electricity consumed from renewable sources by 2020.

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

Loans

Sector:

Utilities

Domain:

Private

Borrower/Client:

EOLICA BULGARIA AD is a special purpose vehicle set up to finance the construction and operation of the Suvorovo Wind Farm in Bulgaria ("the Project"), a 100% owned subsidiary of Eolica Suvorovo EOOD. Eolica Suvorovo EOOD is majority controlled by the renewable energy developer, Grupo Empresarial Enhol, S.L., based in Spain

Co-Financiers/Participants:

EBRD & Commercial Banks

Guarantors/Sponsors:

Grupo Empresarial Enhol, S.L. (Enhol or Enhol Group), an experienced wind project promoter and investor with a successful track record in developing and operating wind farms in Spain, Central and Eastern Europe, Latin America and India.

Developmental and Regional Cooperation Impact:

The operation has high developmental impact as it is not only expected to facilitate renewable energy development and generate carbon free electricity in Bulgaria, but also to create new employment opportunities in the region. It further facilitates the mobilization of funding outside the Black Sea region and exploits co-financing opportunities between BSTDB, EBRD and international commercial banks.

Environmental Classification and Impact (summary):

Considering the size of the proposed wind farm, which is a medium size (30 wind turbines of 2 MW each) and the potential environmental, health & safety (EH&S) impacts that can be readily assessed, as well as the location of the farm, which does not represent a sensitive environmental, cultural, and archaeological area the project was screened as B0. Under the Bulgarian EH&S legislation the project needs an Environmental Impact Assessment (EIA), which was carried out in 2005. In 2007 the Ministry of Environment and Water issued the positive resolution which allowed for the project to start. The EIA study considered the impacts in the following fields: ornithology, other fauna and flora, landscape and visual amenity, traffic and transportation risks (public health and safety), labor and working conditions, management of social and environmental commitments, environmental site management of pollutants and environmental assessment of emergency events, occupational health and safety, construction facilities impacts, land acquisition and compensation, cultural heritage, electromagnetic interference, and raw materials used. The report concludes that there will be no significant negative impacts as a result of project implementation, however there are a few issues identified during the environmental assessment which needed further clarification, namely ornithology, impacts on other fauna and flora and EH&S management systems. An Environmental and Social Action Plan (ESAP) was agreed between EBRD and the Borrower to ensure that the project fully complies with its performance requirements, as well as EU/Bulgarian EH&S legislation. The ESAP includes such actions as implementation of a Social, Environmental, Health and Safety Management and Monitoring Systems, carrying out of additional on-site surveys for flora and fauna, etc.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org