Romania: Oltenia-Turceni Rehabilitation, Power and energy, Investors
PCM review stage: Decision of further processing of the Complaint is being discussed with the Complainant due to the fact that the project has been suspended.
On 21 July 2014, the PCM registered a Complaint regarding the EBRD project Oltenia-Turceni Rehabilitation, approved by the Board of Directors on 23 July 2013. The Complaint was submitted by CEE Bankwatch Network and the environmental law firm Frank Bold Society and is seeking a Compliance Review.
CET Oltenia Turceni is Romania’s most important lignite fired power plant and is the core of the country’s generation sector. The project financing is towards the rehabilitation and modernisation of unit 6 of CET Oltenia’s Turceni in order to reduce its carbon intensity and to improve its efficiency, reliability and environmental standards. The modernisation is expected to result in reduction of CO2 emissions by more than 160,000 tonnes annually.
The Complaint alleges that the EBRD did not adequately assess the project’s environmental impacts and did not ensure proper public participation. Further, it claims that the Bank did not properly assess and did not ensure that the project complied with relevant carbon emission limit values. Also, the Complaint alleges that the Bank categorised the project incorrectly in view of the actual scope and nature of the works planned. Lastly, it claims that the Bank failed to assess the deforestation impact on some areas caused by the enlargement of the lignite mines providing supply for the Turceni power plant.
Source; PCM report 2014