PROJECT

Projects

Environmental & Social Review Summary

Project Number

33839

Company Name

VETROELEKTRANE BALKANA D.O.O

Date ESRS Disclosed

Dec 19, 2014

Country

Serbia

Region

Europe

Last Updated Date

Nov 12, 2022

Environmental Category

A - Significant

Status

Completed

Previous Events

Approved : Oct 6, 2017
Signed : Oct 16, 2017
Invested : May 9, 2018

Sector

Wind Power - Renewable Energy Generation

Industry

Infrastructure

Department

Regional Industry INF LAC & EUR

Project Description

The proposed investment is IFC A loan of up to EUR 60 million, MCPP loan of up to  EUR 45 million and B loans of up EUR 25 million to  Vetroelektrane Balkana d.o.o. (the “Company”), a limited liability company incorporated in Serbia.  The project was originally developed by Continental Wind Partners LLP (CWP), a US-based independent power producer with proven experience in wind energy project development in Central and Eastern Europe.  The principal project sponsor is Abu Dhabi Future Energy Company PJSC (Masdar), a commercially driven renewable energy company established in 2006 by the Government of Abu Dhabi.  Masdar is wholly owned by Mubadala Investment Company (Mubadala), a sovereign wealth fund established and owned by the Government of Abu Dhabi with a strategic role in diversifying country's economy. 

 

The project consists of the construction, operation and maintenance of a 158 MW wind farm and ancillary facilities (a 35/400 kV sub-station, a 10.8 km long 400 kV power line, an underground medium-voltage power cable network connecting the turbines with the sub-station, a network of access roads and a control building) in the Municipality of Kovin in Serbia. The project will be constructed by an Engineering, Procurement and Construction (EPC) contract arrangement with General Electric Wind Energy GmbH (GE)   and General Electric International – branch Serbia  that will manage all construction activities on behalf of the company. The European Bank for Reconstruction and Development (EBRD) will be a lender to the project alongside IFC.

 

The proposed site is located about 30 km to the north east of Belgrade and covers an area of approximately 3,700 ha on reasonably flat terrain with ground elevations ranging between 127 m and 150 m above sea level. The land is in agricultural use and is intensively farmed. The Special Nature Reserve (SNR) Deliblato Sands, an Important Bird Area (IBA), is located 1.3 km east of the proposed wind farm site. The local area is sparsely populated, with the nearest village (Dolovo) located 2 km to the south west, Mramorak located 1.1 km to the south, Vladimirovac located 2.5 km to the north and the weekend settlement of Devojacki Bunar located 1.5 km to the north east of the wind farm boundary.   

 

The project comprises 57 GE 2.78 MW wind turbines. The turbine rotor diameter of this model is 120 m, with a hub height of 110 m. A number of proposed and/or anticipated wind power plants are located within a 30 km radius of the the project site, namely Alibunar 1 (172 MW), Alibunar (42 MW), Malialibunar (8MW), Cibuk 2 (160 MW), Bela Anta (120 MW), Kosava (120 MW), and Kovacica (125 MW).   

 

The proposed site is located in an area designated for wind farm development under the Spatial Plan of the Municipality of Kovin. The wind farm design and development schemes have followed the requirements of the Detailed Plan of Regulation adopted by the Municipality of Kovin in 2010. The company has purchased 65% of the land from private individuals and the remaining 35% from the Municipality of Kovin at market rates on a willing-buyer, willing-seller basis. The land acquisition is not expected to involve any economic or physical displacement of people, although a Land Acquisition Plan was prepared in 2014 in case involuntary resettlement became necessary. 

 

The project will be an independent power producer (“IPP”) and all the output generated will be sold to the country’s single buyer, Electric Power Company of Serbia, under a 12 year Power Purchase Agreement (“PPA”). Construction of the project commenced in 2017 and commercial operations are expected to begin by the end of 2018, including completion of the 400 kV overhead power line.

 

Overview of IFC's Scope of Review

IFC’s review of this investment consisted of appraising technical, environmental and social information made available by the sponsor, including the following documents:
  • Study on the Environmental Impact Assessment (EIA) for the development of “Cibuk 1” Wind Park in Mramorak, Kovin Municipal Territory on 58 Cadastral Parcels. 
  • Additional bird and bat survey (Nov 2011 to July 2012) and collision risk assessment, Atkins, August 2012;
  • Habitat Regulations Assessment Screening, Atkins, June 2012;
  • Land Acquisition Plan, Vetroelektrane Balkana d.o.o., October 2014;
  • Stakeholder Engagement Plan and Grievance Mechanism, Vetroelektrane Balkana d.o.o., November  2014; 
  • ECODA (wwww.ecoda.de) Assessment of impacts on bats, November 2011;
  • ECODA Assessment of impacts on birds, October 2011;
  • ECODA Assessment of impacts on booted eagle and saker falcons, July 2012;
  • ECODA Assessment of impacts on shrikes , July 2012;
  • Nature Protection and Wind Farm Development in Serbia, UNDP 2013;  
  • Environmental and Social Impact Statement, Atkins, October 2014;
  • ESIA Non-Technical Summary, November 2014;
  • Archeological report of wind farm and 400 kV power line, Institute for the Protection of Cultural Monuments Pancevo, 2013: 
  • General Construction Health and Safety Plan, PORR GmbH, 2014 
  • General Safety Requirements, PORR GmbH, 2014; 
  • WEBG Program for support of social initiatives in 2013 and 2014 ;  
  • Site visits to the project site, Alibunar Municipality, Dolovo and Mramorak villages and the transmission line route were conducted by IFC staff in May and October 2014 and Sin eptember 2016. Meetings and discussions were held with the Mayors of Alibunar and Kovin municipalities; president of  Dolovo Local Community Council; representative of Dolovo water supply company, land owners, representatives of Serbian Electric Power Company and sponsor staff. 
    IFC’s appraisal considered environmental and social management plans for the project and gaps if any between these plans and IFC requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP the project is expected to be designed and operated in accordance with Performance Standards (PS) objectives.

    E & S Project Categorization and Applicable Standard

    Environmental and Social Mitigation Measures

    Stakeholder Engagement

    Broad Community Support

    Environmental & Social Action Plan

    Client Documentation

    File Name Actions
    Archaeological report.pdf
    Cibuk 1 ESIA NTS_November 2014.pdf
    Cibuk 1 ESIS_October 2014.pdf
    Cibuk 1 Land Acquisition Plan_October 2014.pdf
    Cibuk 1 Stakeholder Engagement Plan_November 2014.pdf
    Cibuk 1_Additional Bird and Bat Surveying and Collision Risk Assessment.pdf
    Cibuk 1_Habitat Risk Assessment Screening.pdf
    ECODA_Assessment of impacts on bats.pdf
    ECODA_Assessment of impacts on birds.pdf
    ECODA_Assessment of impacts on booted eagle and Saker falcon.pdf
    S Banat Region WPP RCIA Rev 6.pdf