GNG Wind Volyn (IFC-48387)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Ukraine
Geographic location where the impacts of the investment may be experienced.
Specific Location
Volyn region
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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."
Voting Date
Dec 10, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Wind Power GSI Volyn LLC (GNG Group)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 62.78 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 58.5
Converted using 2024-11-06 exchange rate.
Loan Amount (USD)
$ 59.02 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 55
Converted using 2024-11-06 exchange rate.
Project Cost (USD)
$ 252.19 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 235
Converted using 2024-11-06 exchange rate.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Nov 27, 2024

Disclosed by Bank Nov 6, 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.

As stated on the project disclosure page, IFC is considering a loan to support the Volyn Wind Project, a 147 MW (installed capacity) wind power project (WPP) within the Volyn region of Ukraine.

The project is to be developed by Wind Power GSA Volyn LLC and Wind Power GSA Volyn 3 LLC (collectively known as “the Borrower”), two special purpose vehicles (SPVs) established by GNG Retail Limited, a Cyprus-based holding company for Concern Galnaftogaz JSC (“GNG” or “the Sponsor”), an independent Ukrainian fuel distribution company operating a network of filling stations under the “OKKO” brand (https://www.okko-group.com.ua/en/).

The project consists of the development, construction, operation, and maintenance of the wind farm, which is anticipated to be operational for 25 years. The project will involve the installation of 25 Nordex N163/5.X wind turbine generators (WTGs), each with a capacity of up to 6 MW. Each turbine will have a hub height of 120 m and a rotor diameter of 163 m. The wind turbines will be connected to the national grid via a substation within the project area and an 8.7 km 110 kV transmission line (8.154 km via overhead line (OHL), 546 m underground).
The project will be served by a network of existing agricultural roads and newly built access roads, along which underground cable lines will be installed. During project construction, an off-site concrete batching plant, to be operated by the borrower’s main contractor, will be installed to service the project.

The borrower commenced initial construction activities in July 2024, including road upgrades and earthworks, cabling, and piling works, with project completion expected in Q3 2026.  Land required for the project is either owned by the borrower or secured for 29, 45, 47, or 49 years via voluntary lease or easement agreements concluded with public and private landowners. Land within the project area is currently used for crop agriculture.

The project’s construction activities will temporarily affect approximately 61.5 ha, while permanent facilities will occupy 45 ha. The 25 turbines will permanently affect an area of 22.6 ha. The pylons of the overhead transmission line (OHL) will affect a total area of 0.13 ha leased from private owners or the village council. 
The project is situated in the Central European mixed forests ecoregion of the temperate broadleaf and mixed forests biome (as designated by the Worldwide Fund for Nature, WWF). The wind farm site, and its associated OHL are located in a heavily human-modified landscape, dominated by crop agriculture. All project infrastructure is sited within Modified Habitat, per IFC definition. Neither the wind farm nor its associated OHL overlap with Key Biodiversity Areas (KBA) or Legally Protected Areas (LPA).

The project will be developed and operated under a multi-contract scheme executed by international and Ukrainian contractors. An owner’s engineer will be appointed to provide construction supervision services, including E&S monitoring. An independent environmental and social consultant (IESC) has been engaged on behalf of the project Lenders to monitor project development during the construction and initial operational phase.                                                

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

As stated by the IFC, Wind Power GSI Volyn LLC and Wind Power GSI Volyn 3 LLC are majority-owned by GNG Retail Limited and its subsidiary JSC Concern Galnaftogaz (together “GNG Group”). GNG Group is Ukraine's largest transportation fuels retail company in terms of sales volume.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Nordex SE Contractor Energy
GNG Retail Limited Client Energy owns JSC Concern Galnaftogaz Subsidiary Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Borrowers - Wind Power GSI Volyn LLC / Wind Power GSI Volyn 3 LLC:

Sabina Horlova - Project Manager
Khrystyna Hrytsa - E&S Specialist
Phone: +38 (032) 298 96 01
Email: shorlova@gng.com.ua / khhrytsan@gng.com.ua
Address: Ukraine, 79018, Lviv city, Heroiv UPA 72
Website: https://www.okko-group.com.ua/en/ 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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