Croatia’s Ombla HPP project comes under scrutiny after NGO complaint – EBRD

1 August 2012, HydroWorld

ZAGREB (Croatia), August 1 (SeeNews) – The European Bank for Reconstruction and Development said on Wednesday certain aspects of Croatia’s Ombla hydro power plant project, which EBRD is set to co-fund, are under scrutiny following a complaint from a non-governmental organisation.

Several weeks ago, the EBRD received a complaint from Friends of the Earth under the bank’s independent Project Complaint Mechanism (PCM) and related to certain aspects of the Ombla project. Independent PCM experts are currently assessing these aspects, EBRD head of media relations Anthony Williams told SeeNews in an emailed statement.

Croatian state-owned utility group HEP, which is EBRD’s borrower for the investment in the Ombla power plant project, continues its project implementation work, including finalising the biodiversity study for the planned investment in compliance with the EU Habitat Directive and with the support of outside consultants, the statement read.

“As communicated earlier, the EBRD will not disburse funds under its loan agreement signed with HEP in late 2011 until the above assessment as well as related mitigation and compensation plans are in place.”

In November, the EBRD said HEP is getting a syndicated loan of up to 123.2 million euro ($152 million) to finance the construction of the 68 megawatt Ombla hydro power plant.