TAMEGA IBERDROLA HYDROPOWER AND STORAGE PORTUGAL

The project concerns the construction of three new large dams and three hydropower plants with a total capacity of 1,158 MW in the Tâmega River Basin in northern Portugal.

Initiated in 2007 as part of the Portuguese National Programme for Dams with High Hydroelectric Potential (PNBEPH), the project aims at supporting the increase of electricity generation from renewable sources in Portugal as well as contributing to security of electricity supply by providing system flexibility and system services in the joint Portuguese-Spanish electricity market.

The project falls under Annex I of the Environmental Impact Assessment (EIA) Directive (2011/92/EU) and therefore has undergone an Environmental and Social Impact Assessment (ESIA) according to the national standards which also included a public consultation. The project's environmental permit has been issued on 21 June 2010. The project is expected to create up to 3 500 direct employments and 10 000 indirect employments. As required in the environmental permit, the sponsor put in place a Social & Economic Action Plan in 2014, of which 40% represents compensation and enhancement actions.

The promoter is a private entity operating in the energy sector. It is listed as a contracting entity in the EU Directive 2004/17 on public procurement. Following a competitive tendering process organised in 2008, the sponsor Iberdrola has been awarded the 70 year concession for the design, building and operation of the project. The Bank will require the promoter to ensure that contracts for the implementation of the project have been tendered in accordance with the relevant applicable EU procurement legislation, Directive 2004/17/ 2014/24/EU / 2014/25/EU, where applicable, as well as Directive 92/13/EEC (amended 2007/66/EU) as interpreted by the Court of Justice of the European Union, with the publication of tender notices in the Official Journal of the European Union, as and where required.