Romgaz - Development of Decarbonisation Strategy (EBRD-17595)

Countries
  • Romania
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Romania - Romgaz
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Climate and Environment
  • Energy
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 54.29 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 50
Converted using 2024-01-23 exchange rate.
Project Cost (USD)
$ 407.16 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 375
Converted using 2024-01-23 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Mar 11, 2024

Disclosed by Bank Jan 23, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed advisory initiative will enable the development and implementation of sustainable and transformative projects in the public and private sectors in InvestEU priority areas identified under the Sustainable Infrastructure window.

These projects will contribute to the decarbonisation, digitalisation and sustainable transformation of the EU economies where the EBRD operates, and potentially beyond.

They will help address: a) the quality, efficiency, governance and inclusiveness of public services and public infrastructure; b) the climate change challenge, by supporting significant scale up of energy efficiency, circular economy and renewable energy / fuels deployment, and climate resilience; and c) the current environmental crisis, by promoting sustainable use of water, resources and natural capital and the consistency with the ‘do no significant harm’ (DNSH) principle.

Under the InvestEU Sustainable Infrastructure Window, the EBRD intends to select and engage a consultant to develop a decarbonisation strategy for Romgaz, the largest producer and main supplier of natural gas in Romania. Romgaz is implementing cutting-edge technologies in the field of geological exploration, production, and underground storage of gas, financed from own or external sources, while its economic and financial position is characterized by profit stability and liquidity. Thus, Romgaz is among the state-owned companies that have met all the conditions for economic growth, becoming one of the largest companies in Romania. To continue in this strong position, Romgaz needs to take into consideration the carbon-transition and the physical climate impacts in its financial and business decision-making.

Romgaz therefore wishes to develop a low-carbon strategy aligned with the objectives of the Paris Agreement, supported by an action plan to deliver those objectives.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

ICA is requesting GRU approval to use the associate funds for Technical Assistance under the InvestEU Advisory Hub to enable and support the successful delivery of the EBRD InvestEU Framework for Sustainable Transition, which will provide up to EUR 375 million debt supported by up to EUR 80 million guarantees (20 per cent or 25 per cent 1st loss cover) to predominantly private clients in a broad range of sectors within the remit of ICA, as well as potentially other standalone transactions supported by the InvestEU guarantee. The loan proceeds shall be used for GET-eligible CAPEX investments. The maximum size of the EBRD loan backed by the InvestEU guarantee under this framework is EUR 50 million.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Romgaz is the largest producer and main supplier of natural gas in Romania. It has been listed for trading since 2013 on the Bucharest Stock Exchange and the London Stock Exchange (LSE). The main shareholder is the Romanian state with a 70% stake.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Romgaz Client -

Contact Information
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General enquiries

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ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

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