The construction of the new power plant will help Croatia improve its energy security and also diversify its energy supplies. The project will also increase the supply of potable water to the city of Dubrovnik.
In reaching its decision to support the project, the EBRD said it has acknowledged the environmental challenges that were raised during the due diligence process and public consultation, as well as other issues voiced by the NGO community.
The Bank said it will work closely with Hrvatska Elektroprivreda to ensure the project is implemented in line with national legislation as well as the relevant EU directives. In particular, an additional biodiversity study will be undertaken on the project’s potential impact on the integrity and conservation objectives of the proposed Natura 2000 sites and a biodiversity management plan will be prepared. The proceeds of the EBRD loan for the construction works will not be disbursed until a satisfactory study and biodiversity management plan is agreed with Hrvatska Elektroprivreda.
Structured under the EBRD’s A/B loan scheme, the financing facility to Hrvatska Elektroprivreda includes an €80M portion for the Bank’s account, with the remaining €43.2M to be syndicated to commercial banks.
“While recognising the technical and environmental challenges the project entails, we also believe the project is important to further develop Croatia’s renewable energy generation capacity, while also having significant benefits for the people of Dubrovnik. We are committed to ensuring the project is implemented in line with our agreed Environmental and Social Action Plan,” said Nandita Parshad, Director for Power and Energy Utilities at the EBRD.
“Hrvatska Elektroprivreda is pleased with our renewed business cooperation with the EBRD in delivering this energy project. We are glad that the EBRD has recognised HEP as a partner, and supported the construction of the Ombla hydropower plant, one of HEP's development projects based on sustainable development as a company's strategic commitment. We are sure that this project has the potential of a significant economic contribution, especially in times of great economic challenges,” added Leo Begovic, President of the Management Board, HEP.
