Hydro Verbano

Italy
2018

Financing of a Hydro portfolio consisting of 2 plants of about 2 MW (in construction)

Project
Hydro Verbano – company of the Building Energy group, primary promoter in the construction of renewable source plants in Italy and in the world – concluded a financing operation with Banco Popolare di Milano for the construction of two hydroelectric plants called “Idrolap” and “Simo” “, Located on the Melezzo torrent, in the province of Verbano-Cusio-Ossola, (Piedmont Region). The two plants – whose definitive entry into service is expected by 2019 – are recorded in the GSE Register to benefit from the incentive tariffs as per the FER DM Decree 23/06/2016.

Performed activity
EOS assisted BPM in evaluating the projects’ technical aspects, performing the Due Diligence checks to define the bankability of investment. EOS activities started from the pre-shipbuilding phase with the verification of the design choices technical goodness, and with the identification of any project risks impacting on feasibility, timing and investment costs, also with reference to the routes authorizations and the requirements for admission to the tariffs applicable to the plants. The Due Diligence work therefore continued with on-site monitoring of the work in progress of both plants. Particular attention was paid to the hydrological resource study, to determine the most accuracy production estimates for the Base Case definition. The contractual provisions, relating to both the construction phase and the operational phase, were also subject to joint checks with the Legal Advisor, in order to guarantee the adequacy of the contract architecture and the correct allocation of risks.