PGE POWER GENERATION

The project comprises four gas-fired, combined heat and power (CHP) plants in various locations in Poland. The new units will be located within the boundaries of the existing heat and power generating facilities and replace obsolete coal-fired installations.

The projects will contribute to meeting heat and electricity demand at a competitive cost using natural gas as a a fuel source. All components of the project are located in a convergence region. The project is therefore eligible under Article 309 point (a) projects for developing less-developed regions and point (c) common interest of the Treaty on the functioning of the EU. The financing of these investments will contribute to the EIB's lending priority policies on energy efficiency, diversification and security of supply, climate action, and on convergence regions.

The project falls either under Annex 1 or Annex 2 of the Environmental Impact Assessment (EIA) Directive. The projects falling under Annex 2 were screened out by the competent authority in accordance with the national legislation. The environmental aspects of all four projects and the completed EIAs will be assessed during the appraisal. All the plants will be located on brown field sites within the boundaries of existing facilities. It is expected that the electricity generated by the plants will be co-generated at high efficiency as defined by the Energy Efficiency Directive 2012/27/EU.

The Bank will confirm during the appraisal that the promoter procures the contracts in accordance with the applicable EU procurement legislation (Directive 2004/17/EC), with publication of tender notices in the EU Official Journal.