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Screening category and justification
The project involves the development and operation of nine small hydro plants along the Iskar River in Bulgaria. The nature of development due to the potential cumulative impacts has been screened A/0 requiring an Environmental Impact Assessment (EIA) in accordance with EBRD’s Environmental Policy and Procedures. An external consultant has assisted Vez Svoghe in complementing the EIA which had been produced for the purposes of meeting both the national and the Bank’s environmental standards and procedures. The latter included the development of a Public Disclosure and Consultation Plan and an addendum to the Bulgarian EIA.
Due diligence undertaken and outcomes
An environmental due diligence was undertaken of the project by an international environmental consultant. This consisted of an assessment of environmental and social impacts associated with the construction and operation of the nine mini hydro plants and updating the Bulgarian EIA to take account of the Bank’s Environmental Policy requirements and best international practice.
Overall, the construction of small hydro power plants has the potential to lead to a net positive environmental impact through reduced greenhouse gas emissions and the diversification of energy sources away from nuclear and fossil fuels. To maximise the benefits of the investment, it is important to assess and mitigate the potential environmental risks. These include any potential detrimental impact on the following: adjacent nature protection areas; flora and fauna (in particular fish populations); visual impressions; river sediments; and cultural / architectural heritage. The environmental due diligence undertaken by the Bank revealed that there are no significant environmental issues associated with the investment, and the project is likely to improve the environmental condition of the river and increase the amenity value to the local communities. An Environmental Management Plan (“EMP”) has been developed as part of the EIA and this will be implemented by the Company.
Implementation requirements
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The Company will be required to provide the Bank with an annual environmental report, including updates on the EMP, and notification on any material accidents of incidents.
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The Company and its facilities will conduct its business with due regard to national and EU environmental regulations and standards.
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The Company will arrange for periodic environmental audits and monitoring visits by Bank staff or appointed representatives, if and when deemed necessary.
There is an Environmental Impact Assesment available for this project.
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