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Terna Energy II

Greece | Utilities

Identification Code:: OP/14/0007
Total Operation Cost:: 8.500.000 EUR
Maturity:: 78 months
Operation Status:: BSTDB Approved Amount – Approval Date

8.500.000 EUR – 21 Jun 2014
: BSTDB Signed Amount – Signed Date

8.500.000 EUR – 03 Jul 2014
: Status:
Completed
Description and Purpose of the Operation:: A long-term corporate loan to Terna Energy S.A. (Greece) in the amount of Euro 8,5 million with use of proceeds earmarked for implementation of the Borrowers investment program involving the construction and operation of 8 biogas power plants in Greece. The proposed loan will support Terna Energy investments in the biogas sector.
Countries of Operation:: Greece (100,00%)
Financial Product:: Loans
Sector:: Utilities
Domain:: Private
Borrower/Client:: Terna Energy S.A
Co-Financers/Participants:: Not applicable
Guarantors/Sponsors:: Not applicable
Developmental and Regional Cooperation Impact:: The Bank will support further growth of one of the largest private companies in Greece by extending long-term financing, the supply of which is nowadays highly limited in Greece. The Bank's financing will contribute to creating new job opportunities both temporary during the implementation of the investment program and permanent once the biogas plants are launched into operation. The development of biogas energy sector offers multiple economic, social and environmental benefits: 1) Biogas plants are presenting cogeneration of "green" electricity and heat. The beneficial heat in biogas combined heat and power systems is used for heating the digesters and in partially for heating of premises (business / local households on the site). Electricity is used either locally in the farms or transmitted to public electricity grid. 2)Replacing fossil with renewable fuels, including biogas, means the reduction of fossil fuels use in the energy / transport sectors and the increase of sustainability in the national energy supply. Biogas can significantly contribute to the protection and improvement of local natural resources and environment.
Environmental Classification and Impact:: The operation was screened as Category B+ due to the fact that it is a green-field development in the renewable energy sector. The Bank's assessment was limited to Melissa Biogas Power Plant of 1 MW capacity in Xanthi which out of the 8 plants to be built by the Client is at a more advanced development stage. It focused on the following key issues: (i) existing environmental and social management system; (ii) labour and working conditions; (iii) pollution prevention and mitigation; and (iv) community health, safety and security. The assessment concludes that the Client has sufficient expertise and the necessary corporate environmental and social management systems in place to safely build and operate the biogas power plants and efficiently deal with the associated environmental and social issues. The EIA of Melissa Power Plant in Xanthi concludes that the Plant design and operation parameters, as well as the planned prevention and mitigation measures will ensure a proper environmental and social risk and impact control. For the purpose of this operation the Bank will need to review each individual Power Plant's EIAs as these are commissioned and become available. Overall, it is expected that the operation when fully completed will result in net positive impacts as it will produce energy from a renewable source such as livestock manure and vegetal wastes, and will contribute to further offsetting the power generation in Greece based on conventional fossil fuels, namely lignite. The operation will also provide a sustainable solution for an effective management of livestock wastes.
Operation Leader:: General Industries, Transport, Tourism 1
E-mail:: gitt1@bstdb.org