PROJECT

Projects

Environmental & Social Review Summary

Project Number

48725

Company Name

R-Engineering EAD

Date ESRS Disclosed

Apr 24, 2024

Country

Bulgaria

Region

Europe

Last Updated Date

Nov 27, 2024

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Jul 5, 2024
Signed : Oct 15, 2024
Invested : Nov 25, 2024

Sector

Solar - Renewable Energy Generation

Industry

Infrastructure

Department

Regional Industry INF LAC & EUR

Project Description

The proposed investment will support the development of the St George Solar Project (the Project), a 199 MW solar photovoltaic (PV) plant to be located near the town of Silistra in Northeastern Bulgaria.  The project will be developed by R-Engineering EOOD (the “Company”), an SPV established by Rezolv Energy (https://rezolv.energy/). Rezolv is an independent renewable energy producer focused on investments in renewables in the Eastern European energy market. It is wholly owned by Actis LLC. The project consists of the construction, operation, and maintenance of the solar plant. Construction work is expected to commence in mid-2024 and will take approximately 12 months. The plant is anticipated to be in operation for 35 years.

 

The PV plant will be a medium-size utility-grade grid-connected solar-PV power system consisting of approximately 395,000 PV panels mounted on fixed-tilt structures, string inverters, 110 kV step-up substation, grid connection equipment, and supporting infrastructure such as internal access roads, security system, office facilities, and maintenance buildings. The PV plant will be connected to the national grid via two 110 kV overhead transmission lines (OHTL) to be built as part of the project, connecting to existing transmission lines situated to the north (“Pelikan” OHTL) and the east (“Dorostol” OHTL) of the proposed plant substation. The to-be-constructed transmission lines will be approximately 3.7 km and 2.3 km, respectively.

 

The PV plant site is adjacent to Polkovnik Lambrinovo's village, located approximately 5 km south of Silistra in the Silistra District. The site is predominantly within a disused airfield, the remainder being former agricultural lands. The company has secured land for the PV plant on the basis of a limited in rem right to construct (right-to-build) over land owned by a third party. After the right-to-build has been exercised, the company has the right to hold and own the PV Plant for a period of 35 years. The PV plant site landowner removed all former airfield infrastructure except for a disused reception building, runway and taxiways and other asphalted/concreted areas (which will not be demolished) as a precondition to the company’s acquisition of the project. The footprint for the PV plant occupies approximately 164.2 hectares (ha). The project’s overhead transmission lines will be constructed on agricultural lands acquired via easement agreements.

 

The project will be developed under an Engineering, Procurement, and Construction (EPC) contract executed through a joint venture between a European-based, international construction company experienced in large-scale solar projects and a leading Bulgarian national EPC contractor with experience in designing and building large-scale PV plants. During the operations phase, the lead contractor will also act as an Operations and Maintenance (O&M) contractor.

Overview of IFC's Scope of Review

IFC's appraisal of this proposed investment consisted of a review of available environmental, health, safety, and social documents and the company’s responses to a series of E&S questionnaires. Documentation reviewed included an Environmental & Social Impact Assessment (ESIA), Stakeholder Engagement Plan (SEP), and Environmental and Social Management Plan (ESMP), all of which were developed by AON, a Romanian E&S consultancy, and the sponsors and EPCs EHS policies. The appraisal included discussions with corporate company representatives responsible for E&S, supply chain, and project delivery via video conferencing in January-March 2024. Further, IFC assigned an independent environmental and social consultant (IESC) to conduct the project's E&S Due Diligence (ESDD). The ESDD included a 2-day physical site visit completed by the IESC and their local partners in February 2024 (also attended by IFC E&S staff). Additionally, the IESC’s local partner attended a public consultation session held by the company in March 2024.

Contextual risk screening was conducted, including utilizing a gender risk assessment tool to screen the project for gender-related risks (refer to the Performance Standard 4 section below for more detail) and a high-level contextual risk screening conducted at the country level. Contextual risks identified that could be pertinent to this type of project and location included legacy land issues, conflict resolution mechanisms, reprisal risks, and labor and working conditions-related risks related to the PV panel supply chain.

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
Volume I St. George NTS V6.0_FINAL.pdf
Draft Volume I St. George NTS_BG.pdf
Volume II St. George ESIA v5.2_FINAL.pdf
Draft Volume III St. George Baseline Noise Report.pdf
Draft Volume III St. George Biodiversity Baseline Report.pdf
St. George SEP v4.0.pdf
Volume III_ESMP V.3.0 FINAL.pdf
Volume III_04 Socio-economic survey_FINAL.pdf