Project Description
A loan of up to EUR 125m or its equivalent in RON in favour of Delgaz Grid SA (“Delgaz”, or the “Borrower”), a corporation registered in Romania. Delgaz is a distribution network operator (“DSO”) of electricity and gas in the Northern half of Romania. The Borrower is majority owned by E.ON SE, the German based multinational energy utilities group (the “Group” or “E.ON”) with a minority stake owned by Allianz Infrastructure Luxembourg I S.A R.L, and Allianz-Tiriac Asigurari S.A, and Romanian Ministry of Energy.
Project Objectives
The loan will finance part of the Borrower’s capital expenditures programme for its electricity distribution network for the period 2023-2025, aiming at modernisation and upgrades to the electricity grid.
Transition Impact
ETI score: 59
Transition impact stems from two qualities: “Resilient” and “Green”.
The project will assist the Borrower to improve network efficiency and reduce losses through technological modernisation, including a planned mass roll-out of approximately 219,000 smart meters to its customers by 2025. The implementation of this capital expenditure programme will also result in an estimated GHG emission reductions equivalent to approximately 40,000 tonnes of CO2 per year by 2025 through the reduction of network losses.
Client Information
DELGAZ GRID SA
Delgaz operates electricity and natural gas distribution networks in Romania, in the Northern half of the country. Delgaz’s electricity network has a length over 81,000 km, and it is present in 6 counties in the Northeast of Romania (Iaii, Botoiani, Vaslui , Suceava, Neami, and Baciu), while its natural gas network covers over 25,000 km, and it is present in all 20 counties located across the Northern half of the country. The Borrower served ~3.5 million domestic and business customers in Romania in 2022, during which period, it distributed 5 TWh of electricity.
EBRD Finance Summary
EUR 125,000,000.00
Total Project Cost
EUR 125,000,000.00
Additionality
The Bank’s additionality stems from the ability to offer a large volume instrument that fills the funding gap required to structure this project.
Environmental and Social Summary
Category B (ESP 2019). Operation of an electricity and gas distribution company is associated with a number of environmental and social issues, which can be readilly assessed and mitigated based on an Environmental and Social Due Diligence (ESDD). The ongoing ESDD has confirmed that the Project is structured to comply with the Banks Performance Requirments (PRs). The Borrower has a robust E&S management system and is compliance with national and EU legislations. The Borrower is implementing an ESHS management system and preparing for sustainability reporting and disclosures in line with National and EU requirements. The ongoing ESDD has not identified any material issues, however, the ongoign ESDD willl requiers further strengthening of the E&S management system. Based on the ESDD an ESAP will be finilized and agreed with the Borrower prior to Board consideration. The Borrower will report under the EU Corporate Sustainability Reporitng Directive (CSRD) and implement an apropriate assurance system,
Company Contact Information
Cristian Secosan
[email protected]
+40 722 200 949
https://delgaz.ro/
PSD last updated
31 Aug 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
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General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to [email protected]. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email [email protected] to get guidance and more information on IPAM and how to submit a request.
