| Project Detail |
Location:
Croatia
Project number:
52899
Business sector:
Municipal and environmental infrastructure
Notice type:
State
Environmental category:
B
Approval date:
09 Jun 2022
Status:
Concept Reviewed
PSD disclosed:
24 Mar 2022
Project Description
Provision of a senior loan of up to EUR 5 million to Gradska Toplana d.o.o. Karlovac (the "Client" or the "Company") consisting of 2 tranches: A) up to EUR 3 million to be committed at signing (the "Tranche A"), and B) an uncommitted tranche of up to EUR 2 million (the "Tranche B").
The Project will serve as a trigger investment under the Green Cities 2 i Window II Extension 2 framework, which will help the City of Karlovac identify and address priority environmental challenges through development and implementation of a city-specific Green City Action Plan ("GCAP").
Project Objectives
Tranche A proceeds will support a comprehensive rehabilitation of the Citys DH network through the replacement of obsolete hot water pipes and shafts and implementation of SCADA to help enhance the efficiency of the heat distribution network and halve distribution network losses. In addition, the project is expected to result in an annual reduction in greenhouse gas emissions ("GHG") at the level of 3,105 tonnes of CO2 equivalent and 1.10 tons of NOx.
The Tranche B investment will support the incorporation of energy from the renewable sources, which will allow for further energy savings as well as additional substantial CO2 emissions savings.
Transition Impact
ETI score: 70
Green (primary): The Project will contribute towards (i) a decrease in losses from the distribution network, (ii) realisation of significant energy savings as a result of lower heat losses, and (iii) notable reduction in GHG emissions and air pollution from the Citys district heating system. In addition, the Project will covenant and support the development of a comprehensive GCAP that will help the City to measure, benchmark and prioritise environmental challenges and identify appropriate mitigation actions, reforms and priority green infrastructure investments.
Well-governed (secondary): the Project will promote good governance through the introduction of the Financial and Operational Performance Improvement Programme ("FOPIP"), which will support the Company in the improvement of financial and operational performance, commercialisation of operations, quality of management and institutional capacity building, including in the area of asset management. Additionally, the well-governed objective will be supported through the adoption of a Public Service Contract ("PSA") that will help ensure a fully transparent relationship between the Company and the City, with a well-defined required level of service and adequate tariffs. |
