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Alibunar Windfarm, Serbia Cumulative Impact Assessment WindVision

April 2015

Alibunar Windfarm, Serbia Cumulative Impact Assessment

Atkins Alibunar Windfarm CIA | Version 1.0 | 22 April 2015 | 5135216

Table of contents

Chapter Pages 1. Introduction 3 1.1. Approach to the Cumulative Impact Assessment 3 1.2. Project Description 3 1.3. Findings of the Project ESIA 6

2. Basis of the CIA 7 2.1. Legal Context 7 2.2. Scope of the CIA 7 2.3. Other windfarm developments 8 2.4. Information sources and limitations 9

3. Potential Impact on Birds and bats 11 3.1. Birds 11 3.2. Bats 13

4. Landscape and visual 15 4.1. Landscape 15 4.2. Visual impact 15

5. Transportation and construction 16

6. Socio-economic impacts 19

7. Conclusions and next steps 20

8. Obtaining further information on the Project 21

Tables Table 2-1 Status of the windfarm developments within the study area 9 Table 2-2 Overview of available information related to windfarm developments in Vojvodina 10 Table 5-1 Available information about construction of the windfarms 16

Figures Figure 1-1 Location of the Alibunar Windfarm 4 Figure 1-2 Geographical context of the Alibunar Windfarm 5 Figure 2-1 Proposed windfarm developments within the study area 8 Figure 3-1 Bird vulnerability areas in Vojvodina plus schematic locations of the proposed windfarms 11 Figure 5-1 Transport routes from the Port of Pančevo and the windfarm sites 17


Atkins Alibunar Windfarm CIA | Version 1.0 | 22 April 2015 | 5135216 Page 3 of 23

1. Introduction

WindVision Operations d.o.o. is developing a 174 megawatt (MW) wind power plant about 50km northeast of Belgrade, Serbia. The Project is being developed in two phases: Alibunar A will comprise 33 x 3MW turbines across a land area of about 3,000 hectares; Alibunar B will comprise 25 x 3MW turbines across about 2,200 hectares. For the purposes of this assessment we have considered Alibunar A and Alibunar B to be a single project, the Alibunar windfarm (or “the Project”).

In 2014, WindVision submitted a formal Environmental Impact Assessment (“EIA”) for each element of the project to the Vojvodina General Secretariat for Urbanism, Building, and Environmental Protection. Both EIA’s have been approved by the Vojvodina General Secretariat.

The European Bank for Reconstruction and Development (“EBRD”) and the European Investment Bank (“EIB”) (together, the Lenders) are considering providing financing for the Alibunar A project, the substation, and the transmission line. The involvement of the Lenders requires WindVision to comply with their Environmental and Social Policy and performance standards. The first step was for WindVision to prepare a broader Environmental and Social Impact Assessment (“ESIA”) that considered the whole Project, i.e. Alibunar A and B, the 35kV/220kV substation and the 11.8 km transmission line. Following the completion of the ESIA and a due diligence exercise by the lenders a number of additional actions have been agreed. These actions are summarised within the Environmental and Social Action Plan agreed between WindVision and the Lenders. The preparation of this Cumulative Impact Assessment is one of the listed Actions.

1.1. Approach to the Cumulative Impact Assessment The International Finance Corporation (“IFC”) has published excellent Guidance on how to complete a Cumulative Impact Assessment (“CIA”) and this Guidance has been used to develop this CIA1. The main challenges in the completion of any CIA are the development status of the other projects being considered (e.g. will they be built, when or at all?) and the availability of data for these projects.

For the CIA to be meaningful it must be based upon good, reliable information. The use of speculative assumptions relating to potential or possible projects must not be seen by Project stakeholders as true or inevitable. This CIA is based upon information available in the public domain and the authors have not speculated on the likelihood that any of the other windfarms under consideration will be built.

Similarly, the CIA should be risk based and should assess the impact on ‘valued’ environmental and social components. The authors have assumed that each of the projects assessed within the CIA will be faced with very similar issues.

As a consequence of the extremely limited availability of data, this CIA fulfils the definition of a Rapid CIA provided by the IFC.

1.2. Project Description The Alibunar windfarm will be developed by a Serbian subsidiary of a Dutch renewable energy company called WindVision. The windfarm will be located to the northeast of Belgrade in the south Banat region, close to the settlements of Seleuš, Vladimirovac, and Alibunar. See Figure 1-1.

The windfarm will be located on gently rolling agricultural land that is currently used to grow maize, sunflowers, and other crops. The Alibunar windfarm covers an area of about 5,200 hectares (A and B) and will include the following components:

Fifty eight turbines, each capable of generating up to 3MW of electricity, a total of 174MW. The turbines will be up to about 120 metres high, with blades about 60 metres long. They will be painted a white or grey neutral colour, with a red stripe on the blades.

1 Good Practice Handbook. Cumulative Impact Assessment and Management: Guidance for the Private Sector in Emerging Markets. August 2013.



Improvements to about 60 kilometres of existing municipal roads to connect turbine locations, and 17 kilometres of access and common roads. The upgraded roads will comprise crushed stone to a depth of 30-40 centimetres over a width of 4 metres.

Constructing a new 35kV/220kV substation and control centre that will cover an area of about 1.78 hectares.

Constructing 11.8km of 220kV overhead transmission line to carry electricity from the substation to an existing 220kV line that runs between Zrenjanin and Pančevo.

Burying electrical cables under the roads to carry electricity from the turbines to the new substation.

Figure 1-1 Location of the Alibunar Windfarm



The main components of the Alibunar Windfarm are shown in Figure 1-2. This Figure also shows the proximity of other windfarms being planned in the district, the port of Pančevo (to the SSW) and the alignment of the River Danube (to the south).

Figure 1-2 Geographical context of the Alibunar Windfarm



WindVision currently plan to start the construction of roads late in 2015 and for construction of all project elements to continue through 2016 until the project begins operating in 2017. Alibunar A turbines will be erected first, along with the substation and power line. Construction will continue with Alibunar B, which will also be commissioned in late 2017 or early 2018.

The main contractor for Alibunar A will be the German company that supplies the turbines, and WindVision will encourage this company to hire many or most workers from the South Banat region and Belgrade. At its height in 2016, construction will employ up to about 200 workers. There will not be a workers’ camp; construction workers will live in their own homes or in rented accommodation nearby. During operation, about 10 people will be employed for the entire project.

1.3. Findings of the Project ESIA The Alibunar ESIA confirmed that the project will involve a variety of activities which could affect the environment and people if they are not carefully designed and implemented. The potentially significant effects include:

The movement of birds. Bird monitoring in 2011 and 2012 showed that the Project site is not on a primary path that birds follow when moving from one area to another or in their seasonal migrations north and south. The main route that birds follow is from Deliblato Sands to the Danube, which is to the south and southwest of the site. The risk of collision for most species was found to be negligible or low, with a few species considered to be at moderate risk. These moderate-risk species typically do not pass through or use the site, or do so at heights much higher than the turbines. The ESIA also concluded that the windfarm would not serve as a significant barrier to bird movement. The site does not lie between areas with important habitat and so birds generally do not traverse the area with notable frequency.

Landscape and visual. Wind projects can have a significant effect on the visual landscape as the turbines are tall and are visible from a distance. The ESIA concluded the impact on the visual landscape would be moderate as seen from the roads entering Vladimirovac, Alibunar, and Banatsko Novo Selo, and in Seleuš, and low or negligible from other settlements and roads (including Novi Kozjak, Padina, Samoš, and Lokve, and between Ilandža and Novi Kozjak). Because of topography, the wind project will not be visible from the valleys nearest the Project or from the Alibunar depression, from the Deliblato Sands Special Nature Reserve, from the valley southwest of Padina, from the valleys south of Alibunar, from the valley of the Tamiš river, from the valleys located between Kočarevo and Banatsko Novo Selo, and to the south of these last valleys.

Employment and community revenues. It is expected that about 200 people will be employed during the construction of the windfarm. The numbers employed during the 25 year operational life of the plant will be low (c. 10), however, there will be positive contribution to local tax revenues.

Transportation of turbines and construction materials to the site. Turbines and construction materials will be delivered to the port at Pančevo and then transferred to site on trucks. Each turbine will require up to ten oversize trucks, or a total of 330 trucks for Alibunar A. In addition, large amounts of sand and stone will be needed for construction. The ESIA concluded there will be a 50% increase in truck traffic on national highway E-70 during construction phase in 2016. This could interfere with normal traffic and also increase the possibility of accidents.



2. Basis of the CIA

2.1. Legal Context Cumulative impact assessment is regulated in Serbia on two levels, as part of the:

Strategic Environmental Assessment (“SEA”) of plans or strategies, and

Environmental Impact Assessment (“EIA”) of individual developments.

Although formally regulated, the practical implementation of CIA in development planning is poor due to the lack of integration of regional development plans and specific sectoral plans.

The Serbian spatial planning system2 comprises a hierarchy of spatial and urban plans and requires any windfarm development to be determined by a municipal spatial plan and a detailed plan of regulation. However, the relation between spatial plans (e.g. regional or municipal) and sectoral plans (e.g. renewable energy) is not clearly defined in legislation and procedures for integration of such plans are not established. Sectoral planning is not coordinated with spatial planning or environmental planning. The spatial planning system is more focused on construction land and the prevention of illegal building than on sustainable territorial development.

Over the last seven years the South Banat region has become the main area of windfarm development in Serbia (due to its favourable wind conditions). As there is no South Banat regional spatial plan or strategy of windfarm development, the CIA remains solely a responsibility of project developers (via their EIAs). Given that management of cumulative impacts is a multi-stakeholder issue and that no single developer can have a direct control over cumulative impacts, it is of a highest importance that Serbian authorities become more actively involved in the CIA process.

2.2. Scope of the CIA The South Banat region is a rural area dominated by agriculture. The area is generally flat and it has wind conditions that are favourable to the development of wind energy power plants. As a consequence, a number of developers are considering the construction of windfarms in the area. These projects vary in size but each will have similar environmental and social impacts (both negative and positive). Therefore, this CIA is confined to the consideration of other windfarms and will assess the impact on ‘valued’ environmental and social characteristics of these windfarms. For the Alibunar CIA, the valued characteristics are considered to be:

Movement of birds and bats – there is a nature conservation area at the Deliblato Sands (within 25km) and there is a known bird migration corridor from the Deliblato Sands to the River Danube.

Landscape and visual impact – the genera area is flat and turbines can often be seen at a distance of 20km.

Construction activities – there is the potential that a number of windfarms will be constructed within the next three years. Each one will require the transportation of turbine components and building materials on the local road network (within 30km).

Employment and community revenues – there will be opportunities for employment during construction and operation of the windfarms but perhaps more significantly, the power plants will become a source of tax revenues locally and nationally.

Having considered these environmental and social characteristics for the CIA, the geographic and temporal boundaries of the assessment have been set as:

A radius of 30km from Alibunar; this includes the whole of the Deliblato Sands and all of the windfarms.

2 Regulated by the Law on Planning and Construction (Off. Journal of RS, No. 145/2014)



The time horizon has been set at 5 years as it is impossible to consider construction or development activities beyond this.

2.3. Other windfarm developments In April 2015, there were eight windfarm schemes under development within a 30km radius of the Alibunar windfarm. The approximate locations of all developments are shown in Figure 2-1. These schemes were in different stages of development, from early planning (preparation of spatial plans) to construction. The only windfarm where construction had started was Plandište (18km to the north-east of Alibunar).

Figure 2-1 Proposed windfarm developments within the study area

An overview of windfarm developments with information on their current stage of development and estimated start of construction is provided in Table 2-1, below.



Windfarm (capacity) No. of turbines

Distance from the Alibunar site

boundary

Stage of development

Expected start of construction

Alibunar (174MW) 58 - Local EIA approved 1 year

Alibunar (42 MW) + Malibunar (8MW) – (Elicio – Electrawinds)

21 + 4 2 km to the South-East Local EIA approved / Construction permit

obtained

1 year

Čibuk 1 (158MW) 57 10 km to the South Local EIA approved / Construction permit

obtained

1 year

Kovačica (125MW) 39 13 km to the West Local EIA approved / Construction permit

obtained

1 year

Bela Anta (120MW) 40 18 km to the South Very early stage (spatial plan under

preparation)

> 5 years

Plandište (102MW) 34 18 km to the North-East

Construction of transformer station

Started in 2013

(but on hold)

Čibuk 2 (former Bavanište)

(160MW)

57 (TBC) 21 km to the South Very early stage (spatial plan not yet

prepared)

3 - 5 years

Kosava & La Piccolina (120MW + 6MW)

41 23 km to the East Local EIA approved 1-3 years

Table 2-1 Status of the windfarm developments within the study area

It should be noted that Čibuk 2 and Bela Anta are in the rather early stage of development, the spatial planning documentation for those windfarms is yet to be prepared. Whilst the CIA has included consideration of the Čibuk 2 windfarm the Bela Anta windfarm has been excluded as the likelihood that construction will begin the next five years is considered to be very low.

2.4. Information sources and limitations Information sources used for this assessment were the websites of:

Provincial Secretary of Environment (for published EIAs and Non-Technical Summaries),

Project developers (for published EIAs, bird surveys and information about the project progress),

Institute for Nature Conservation (for information about the sensitive habitats in the area of influence), and

Relevant municipalities (for information about the developments).

Of the identified windfarm developments, there are two EIA reports and two Non-Technical EIA Summaries available in the public domain. Apart from the Čibuk 1 public documentation which includes bird survey reports, other windfarm documents only include excerpts of bird survey findings and do not provide data on bird collision risk assessments.

It should be noted that absence of any relevant documentation in the public domain for Alibunar/ Malibunar windfarm is considered a limitation in this cumulative assessment. The windfarm layout is not publicly available and is illustrated only as a general shape in this document. For the purpose of this Rapid CIA it was assumed that condition of ‘valued environmental components’ in the Alibunar Malibunar site is similar to the Alibunar (given the proximity of the sites).

An overview of specific information available in those EIA reports is provided in Table 2-2.



Windfarm (capacity) Information

available Bird Survey Completed

Bird Survey Report

Available

Location of turbines known

Construction program

confirmed

Alibunar (174MW) Main EIA Report Y Y Y N

Čibuk 1 (158MW) Main EIA Report Y Y Y Y

Košava & La Piccolina

(120 MW + 6 MW) Main EIA Report Y N Y N

Kovačica (125 MW) Non-Technical Summary of EIA

Y N Y N

Plandište (102 MW) Non-Technical Summary of EIA

Y N Y N

Alibunar (42 MW) + Malibunar (8MW) – (Elicio – Electrawinds)

N/A Y N N N

Čibuk 2 (160MW) N/A N N N N

Where Y = Yes, N = No, N/A = Not Applicable

Table 2-2 Overview of available information related to windfarm developments in Vojvodina

As there is uncertainty as to whether all the windfarms will be developed, at this stage it is possible only to qualitatively assess the potential cumulative impacts.



3. Potential Impact on Birds and bats

3.1. Birds To properly estimate the cumulative impact on birds, the ornithological data provided in windfarm EIA reports should be comparable, i.e. based on the same (internationally recognized) methodology. Of all the published EIAs, only the EIAs for Čibuk 1 and Kovačica windfarm state that the Scottish National Heritage (“SNH”) methodology had been used for the consideration of the impact on birds. In addition, the Alibunar ESIA had used a methodology that “met the highest standards, including those recommended in EU and other best practice guidance (SNH)”. The other EIAs had not used the SNH methodology.

The cumulative effects of windfarms on birds are usually described as a set of the following impact types:

creating a barrier to regular movements or migration;

habitat loss and habitat fragmentation;

displacement and disturbance, and

collision with turbine blades.

3.1.1. Barrier effect to migration To estimate the risk of creating a barrier for bird migration reference was made to the Map of Bird Vulnerability Areas prepared by the Provincial Institute for Nature Conservation3. This map was specifically prepared to provide some general information about the migratory pathways and areas of high and low value for birds in the Province of Vojvodina. The CIA study area has been overlain in this and Figure 3.1 shows the locations of the windfarms under consideration.

Figure 3-1 Bird vulnerability areas in Vojvodina plus schematic locations of the proposed windfarms

3 Establishing of Ecological Network in the Province of Vojvodina - Provincial Institute for Nature Conservation, Novi Sad 2009



The map shows that the majority of windfarm schemes are located in the “low bird vulnerability” areas (the “mid-green” colour). This includes the Alibunar Project and the other closest schemes (Kovačica and Alibunar/ Malibunar).

None of the proposed windfarms are located on “bird migratory pathways” or within “high bird vulnerability” areas. It is noted that the Čibuk 1 site is located on the boundary between an area of “low bird vulnerability” and an area of “nature conservation value” (the Deliblato Sands). Čibuk 1 is located outside the buffer zone required by the Provincial Institute of Nature Conservation.

The windfarm with the most likely negative impact on migratory species is the Kosava windfarm as this lies in a very narrow strip of land between two “high bird vulnerability” areas. The Provincial Institute for Nature Conservation study suggests that this is a migratory pathway. The local EIA for this project has been approved.

The map indicates three migratory pathways in the area:

1. from the Deliblato Sands to the Vršac mountains (in the East),

2. from the Deliblato Sands to the Danube River valley (in the South), and

3. along the Tamiš river valley (in the North).

This information is in line with the results of bird surveys performed for all EIAs.

The Alibunar bird survey concluded that no distinct migratory corridors are present in the CIA study area. The Čibuk 1 bird survey indicated that the main migration route for birds in the area is from the Deliblato Sands towards the Danube River. The Kovačica EIA states that ornithological studies did not indicate that the site is along the route of any habitually used migration pathway for any birds including migratory raptors, wild fowl, water fowl and storks. The EIAs for Plandište and Košava indicate low migratory movement on both sites, mainly oriented to wet habitats of the Danube-Tisa-Danube canal (out of both sites’ boundaries).

None of the windfarms are considered to be located on a regularly used flight line between nesting and foraging areas. The spread of the proposed windfarms in the area of Alibunar is unlikely to create a significant barrier given that all three schemes are planned in the radius of 5 km which is considered short and not expected to lead to any flight diversions or to impact the flight energy. The distance between the Alibunar site and the Čibuk 1 site (10km to the South) and the Kovačica site (13km to the West) is such that it is unlikely that any in-combination effects will arise as a result of construction of all three developments for species potentially migrating through the region.

3.1.2. Habitat loss and fragmentation Habitat loss or fragmentation will be both temporary during the construction and decommissioning phases and permanent during the operational phase of windfarms. The scale of habitat loss is estimated only in the Čibuk 1 EIA - approximately 0.30% of the total windfarm site (estimated to be approximately 3,716 hectares) will be permanently lost and a further 0.18% being temporarily lost during construction. This information can be used to extrapolate the habitat loss for other windfarms – estimating that no more than 1-2% of each windfarm site will be lost.

Total habitat loss in the study area will be small in comparison to remaining suitable habitat. Given that the habitat within the region represents a uniform cultivated land, the effects of habitat loss for birds at one windfarm site are not considered significant, as they will have the use of abundant alternative habitat in the wider area.

3.1.3. Displacement and disturbance The scale of disturbance caused by windfarms varies greatly. The variation depends, among other factors, on seasonal pattern use, presence of important habitats and availability of alternative habitats. Temporary disturbance and displacement during the construction of windfarms is likely due to increased noise levels, vibration and human presence. Disturbance during the operational phase is considered to be similar to that of the existing disturbance levels as result of on-going agricultural practices.



Construction of the Alibunar windfarm is likely to present the impact of a moderate significance on disturbance of saker falcon and short-toe lark, during their breeding season. Therefore the mitigation measures are proposed. The EIAs for Kovačica and Čibuk 1 did not identify any bird species whose breeding could be significantly disturbed during construction.

Disposition of windfarms in the area is such that they are distanced from any important habitats (the Deliblato Sands, wetlands). The whole region comprises intensively cultivated monoculture of agricultural fields. In case that the affected bird species are disturbed during hunting, it can be compensated within alternative cultivated land in the vicinity of the area. Due to the availability of alternative habitats, there is not expected to be a significant impact.

3.1.4. Collision with turbines Of all the published EIAs, only the EIA for Kovačica and Čibuk states that the collision risk modelling was undertaken, however no results are included in the publicly available Non-Technical Summary.

In the Alibunar windfarm area the following species are considered to be under moderate collision risk: saker falcon, white stork, skylark, short-toed eagle. Saker falcon, white stork and short-toed eagle were observed only several times within the site. Skylark was observed more than 100 times, however, its population size in Serbia is way above the thresholds for concern.

The EIA for Kovačica states that it is possible that direct mortality will occur for waders, farmland and woodland birds and saker falcon. No other species including raptors, geese and swans had significant flights at Potential Collision Risk Height (PCH). The effect of direct mortality is uncertain for saker falcon as there were limited flights at PCH indicating that this species at the site tends to fly at lower altitudes.

The Čibuk 1 EIA included a Collision Risk Assessment (SNH compliant, August 2012), and this indicated that there is a low risk of birds colliding with moving turbine blades or turbine towers. The EIA did not identify any bird species that are under significant collision risk (for all 11 species of special interest the risk is assessed as negligible).

The EIAs for Plandište and Košava refer to several species observed to have flights at PCH: common buzzard, geese and white stork. Their flights were recorded in the area of the Danube-Tisa-Danube canal which runs out of the both sites’ boundaries. Both reports conclude that the number of recorded flights was low so the collision risk is considered non-significant.

The study area is flat and without any topographic features that might influence birds to lift or to lower their flight. Large birds with poor manoeuvrability (swans, geese) were not observed in significant numbers in any of the windfarm sites. None of the windfarm sites are located on migratory flyways that might be intercepted by the turbines.

Although none of the reviewed EIAs identified significant collision risk for any of the recorded species, the occasional presence of Saker falcon in the area of Alibunar and Kovačica windfarms should be further clarified. Saker falcon is a high risk species going through a serious decline both in Serbia and internationally. The potential cumulative effect of direct mortality on Saker falcon is considered a major significance impact. It is highly necessary to liaise with other windfarm developments in Alibunar and Kovačica and the Institute for Nature Conservation to harmonize the windfarms’ monitoring programmes during operation. This would help to identify the turbines which have the potential to result in significant mortalities and could be switched off during critical periods of the annual lifecycle of this species i.e. breeding.

3.2. Bats Windfarms included in the cumulative assessment on bats are: Alibunar, Alibunar/ Malibunar, Čibuk 1, Kovačica, Čibuk 2 and Plandište. The Košava windfarm is considered unlikely to give rise to additional cumulative effects given the distance involved.

The cumulative effect of construction and operation of the proposed windfarms could potentially, in the absence of mitigation, lead to disturbance to flight paths habitually used by bats species. This effect could lead to a displacement and barrier effect. The placement of turbines within the areas of higher value to bat



species may in the long term lead to disturbance of flight lines especially along the woody valleys and rough tracks.

The reviewed EIAs for Čibuk 1 and Kovačica windfarm indicate that during the planning processes micro-siting of turbines away from areas of high bat activity was undertaken thus reducing potential effects of disturbance to flight paths. In the Alibunar site, a precautionary measure was implemented - a buffer area was designed so all the turbines will be at a minimum distance of 200 m from the identified bushes that serve as a bat ecological corridor. It also applies to the Čibuk 1 and Kovačica windfarms where the EIAs confirm that a distance of 200 m between turbines and identified bat habitats was applied. This precaution measure reduces significantly the risks of bat fatality at the windfarms.

No bat roosts were identified within any of the sites (Čibuk 1, Alibunar, Kovačica, Plandište) and no evidence of the use of the sites as migration flyway for bats was found. The bat survey results referred in the EIAs for Alibunar, Čibuk 1, Kovačica and Plandište indicate that species which migrate long-distances were present in the area as residents but migratory movements were not recorded.

The distance between the Alibunar site and the Kovačica (to the West) and the Čibuk 1 (to the South) is such that it is unlikely that any in-combination disturbance effects to bat flight paths will arise as a result of construction of all three developments.

There could be a possible cumulative impact on the local bat populations should the construction of two or more windfarms overlap. A proper management of existing habitats on the windfarm sites would be important and it would be only effective in liaison between the windfarm developers and the Institute for Nature Conservation. The creation of new woodland and scrub in undeveloped areas between the windfarm sites would provide suitable foraging habitats. In addition, careful management of the existing habitats on each site would allow bat species that are currently present to remain on site after initial disturbance effects.



4. Landscape and visual

Windfarms included in the cumulative assessment are: Alibunar, Alibunar/ Malibunar, Čibuk 1, Kovačica, Čibuk 2, Plandište. The Košava windfarm is considered unlikely to give rise to additional cumulative effects beyond those arising from these windfarms.

4.1. Landscape Wind projects can have a significant effect on the visual landscape as the turbines are tall and are visible from a distance. Some people find the turbines and their slowly rotating blades to be pleasing additions to the visual landscape, but others find they are distracting and negative, especially in the first weeks and months.

The introduction of the Alibunar windfarm on its own has been assessed to have a minor to moderate adverse effect on the landscape character. The turbines are likely to become the dominant feature and a key characteristic of the landscape within the local area (Seleuš, Vladimirovac). The ESIA concludes that some turbines could be visible from as far as 30 kilometres, but only barely visible at that distance.

If all six developments were to be constructed, wind turbines would become a characteristic feature of landscape in the South Banat Region: wrapping around west, north and east of the Deliblato Sands. This would be a significant cumulative change to the character of landscape (which is uniform and ordinary).

Looked at more locally, in the area around Vladimirovac, the introduction of the Alibunar windfarm to a landscape containing the proposed Alibunar/ Malibunar and Čibuk 1 developments would change the landscape from one “with a view of a windfarm” to one “surrounded by windfarms”. This would be defined as a moderate adverse cumulative effect and this would be difficult to mitigate.

4.2. Visual impact The introduction of the Alibunar windfarm on its own has been assessed to have a moderate visual effect on residential properties at the edges of Seleuš and Vladimirovac. It has also been assessed to have a significant effect on road users between Vladimirovac and Alibunar and between Vladimirovac and Banatsko Novo Selo.

Assuming the remaining four windfarms are constructed (Alibunar/ Malibunar, Čibuk 1, Kovačica, Plandište) a significant cumulative visual effect is likely to be expected. In addition to Alibunar, there would be distant views of the windfarms from the edges of Seleuš, Vladimirovac, Padina, and Dolovo. From the edges of Vladimirovac, the Alibunar, Alibunar/ Malibunar and Čibuk 1 windfarms would be seen in mid-range to close proximity. From the edges of Padina, all Alibunar windfarms and Kovačica windfarm would be seen in mid-range to close proximity. From the edges of Dolovo, Deliblato and Bavanište, the Čibuk 1 and Čibuk 2 windfarms would be seen in direct proximity. A cumulative impact would mainly affect residential houses on the edges of settlements, vehicle users on roads and farmers working in the open countryside. This would be a cumulative change of major significance.



5. Transportation and construction

Development of windfarm projects in the South Banat region started over 6 years ago and has progressed in parallel with the legal framework development. Presently (April 2015) there are still some major legal issues unresolved (e.g. model of power purchase agreement) that prevent developers to commence the construction. In the meantime, nearly all windfarm schemes that had started the permitting procedure received the construction permits. This applies to all windfarms present in the Alibunar area of influence. Theoretically, this means that once the necessary by-laws are adopted (expected by the end of 2015), construction of four windfarms in the radius of 15km could begin, even simultaneously.

Information available in April 2015 about the expected dynamics of construction is provided in Table 5.1. It should be noted that latest information about the start of construction of Kovačica and Alibunar/ Malibunar windfarms should be taken with caution given that it is coming from the local municipalities which sometimes use windfarm developments for the public image purpose.

Windfarm Expected start of construction

Expected duration of

works

Number of heavy truck movements

per day

Location of concrete batch

plant

Alibunar Q4 2015 24 months 40 Not yet decided (could be offsite)

Alibunar + Malibunar (Elicio)

Q1 20164 No data No data No data

Čibuk 1 Q1 20165 18 - 21 months 60 Near Dolovo

Kovačica Q1 20166 24 months No data No data

Table 5-1 Available information about construction of the windfarms

Apart from the Čibuk 1 windfarm, no information is available related to construction programmes or traffic plans for other three windfarm projects.

For the purpose of this cumulative assessment, it is assumed that construction of all four windfarms will start simultaneously (or with a few months in between). All four windfarms plan to use the port of Pančevo for the supply of components. The main transport route for Čibuk 1, Alibunar and Alibunar/ Malibunar is the E-70 road connecting Pančevo and Vladimirovac. The main transport route for Kovačica is the state road No. 111 (Ečka - Pančevo – Kovačica). Transport routes are illustrated in Figure 5-1.

4 Information published by the Municipality of Alibunar on their website about the meeting held with representatives of the developer (Elicio NV) in March 2015 5 Project developer’s website (www.wpc.rs) 6 Information provided by the Mayor of Kovačica municipality, published in the daily newspaper Novosti in January 2015



Figure 5-1 Transport routes from the Port of Pančevo and the windfarm sites

Information about site access routes is available for Alibunar, Kovačica and Čibuk 1. Site access to Kovačica via local road is not relevant for this analysis as the local routing goes to the north. Site access for the Alibunar, Čibuk 1 and Alibunar/ Malibunar windfarms would inevitably follow the same route from Pančevo (using the E-70) through the northern part of Vladimirovac (Figure 5-1). The village is small and traffic volume is low but cumulative effect is likely to arise as the construction of two or more windfarms overlaps. It will be necessary that transport avoids peak commuting hours and that appropriate transport management measures are implemented (in cooperation with local authorities and windfarm developers).

Cumulative short-term impact on traffic is likely to affect the urban area from the port of Pančevo through the eastern outskirts of the city. It is one of the busiest roads in the region but has one or more potential pinch points such as cross-roads. To avoid significant disruption it will be essential for all of the windfarm developers to work closely with traffic management authorities (Continental Wind Partners - Čibuk 1 whose construction is considered the most certain).

The average annual daily traffic on the E-70 is currently about 5,000 vehicles. These average figures include about 79 heavy trucks per day, 213 middle size trucks per day and 324 light trucks per day7. Given the

7 Daily average for the period 2007-2011, source: Roads of Serbia, 2012



expected number of heavy truck movements for the Čibuk 1 (60 trucks/day) and Alibunar (40 trucks/day) it is likely that the number of heavy trucks using the E-70 will more than double if both windfarms are constructed at the same time. However, the E-70 is large and safe enough for cars to easily overtake trucks and has the capacity to support the likely short-term increase in the number of trucks using the road.

Properties near the main E-70 road through Vladimirovac have the greatest potential for increases in noise due to cumulative impact of traffic during construction.

Another possible short-term cumulative effect could affect the port of Pančevo operations. The port has appropriate facilities in place to manage the unloading of large scale wind turbine components from barges and appropriate laydown/ storage areas to hold wind turbine components, prior to transfer to road going vehicles. However, in case that components for two or more windfarms are supplied to the port during the same time period – appropriate management of the port activities is likely to be necessary to prevent the disruption of normal activities in the port.

Apart from the Čibuk windfarm for which the concrete batch plant site is determined (outskirts of Dolovo), no information is available related to locations of other concrete batch plants. Therefore it is not possible to estimate any cumulative effect of dust emission to nearby communities. However, in case that construction of the Alibunar windfarm overlaps with construction of Alibunar/ Malibunar windfarm – it would be highly necessary to ensure a proper construction management plan in liaison with the local authorities to prevent any cumulative emission of dust to local properties.



6. Socio-economic impacts

The South Banat region is one of the economically least developed areas of Vojvodina province. The unemployment rate in the affected municipalities is higher that the Serbian average. For instance, the official unemployment rate in the Municipality of Alibunar is 27.4% while the national unemployment rate is 22.5% (non-official rates are even higher).

In respect to cumulative socio-economic effects to the area, no adverse effects are identified. The most significant cumulative effects are beneficial and are related to increase of community revenues and, to a certain extent, increase of employment.

Municipal budgets are likely be increased as a results of agreements between the windfarm operators and local municipalities (e.g. profit sharing agreements or similar) and social investment programmes. For instance, it is reported that the Čibuk 1 windfarm developer will provide the Municipality of Kovin a total of 2% of net income generated from electricity sale. The Kovačica municipality reported that they will receive 3% of the windfarm developer’s net income. The incomes to municipal budgets are planned to be increased gradually during the windfarms operational periods. Additional income to municipal budgets is related to VAT revenues, given that windfarm operators tend to register their companies in the local municipalities.

Although no information is currently available about the specific arrangements between the Alibunar municipality and related windfarm developers, in case that all three proposed windfarms become operational, the beneficial cumulative effect on Alibunar municipal revenues and social investment programmes is likely to be significant. Additional income will be provided to single land owners for the leasing of their land.

The construction of windfarms is expected to create both direct and indirect employment opportunities. For instance, approximately 400 workers are required for construction of a windfarm of the Čibuk 1 size. In addition, materials needed for civil works and infrastructure improvements will be procured in the local municipalities creating opportunities for local contractors. Construction of windfarms will require the upgrading and widening of access roads which will have a beneficial impact on infrastructure in the area. At the operational phase, presence of two or more windfarms must support the growth of local industry for service and maintenance.

Each windfarm project will also result in some development of the local area, in particular in terms of improving access between local communities and improving access to farm fields through improvement of some roads, as well as providing some local employment and other economic opportunities.

WindVision will encourage the Technical Consultant to recruit the construction workers from the nearby communities whenever possible and appropriate. Given that no qualified electrical engineers are present in the local community, WindVision will offer one or more grants a year to students coming from local communities for them to study electrical engineering in Belgrade or Novi Sad.

Operation of windfarms could also have an effect on increased tourism opportunities, especially in the communities close to the Deliblato Sands. It is difficult to assess whether windfarms alone will be enough to initiate tourism in the area but being the first windfarms to be constructed in Serbia, they may attract visitors to the area to see them.



7. Conclusions and next steps

The CIA indicates that:

Birds. The overall impact of the windfarms within the study area on migratory birds is likely to be low as the main flight corridor is to the east and south of the study area and none of the windfarms are located on a regularly used flight line between nesting and foraging areas. The likelihood of any significant barrier effect being created is considered to be low. The windfarm with the most likely negative impact on migratory species is the Kosava windfarm as this lies in a very narrow strip of land between two “high bird vulnerability” areas. The Provincial Institute for Nature Conservation study suggests that this is a migratory pathway. The local EIA for this project has been approved.

Landscape. The introduction of the Alibunar windfarm on its own has been assessed to have a moderate visual effect on residential properties at the edges of Seleuš and Vladimirovac. Assuming the remaining five windfarms are constructed (Alibunar, Alibunar/ Malibunar, Čibuk 1, Kovačica, Plandište) a significant cumulative visual effect is likely to be expected.

Transportation. There are no publicly available Traffic Management Plans for any of the developments. The expected start dates for Alibunar, Čibuk 1, and Kovačica (Q4 2015 or Q1 2016) indicate that the cumulative impact of heavy vehicles will be a significant issue for the whole of 2016 and the first half of 2017. The main transport route for Čibuk 1, Alibunar and Alibunar/ Malibunar will be the E-70 road connecting Pančevo and Vladimirovac. The number of heavy vehicles used will be high and delivery of the turbine sections during night time hours will be disruptive. The road safety implications of the increased movement of heavy vehicles from the main highways to the local road systems must be carefully considered. The levels of nuisance could be high and firm controls will need to be established in the Traffic Management Plans. For the majority of local stakeholders this is likely to be the most significant issue for them.

Employment. The construction of windfarms is expected to create both direct and indirect employment opportunities and to improve revenues to local communities. In addition, there is likely to be a positive cumulative benefit effect on Alibunar from municipal revenues and social investment programmes. The scale of this benefit cannot be calculated at present.

The windfarm projects in the study area will play an important role in Serbia’s strategy to reduce its greenhouse gas emissions in energy production. However, it must be noted that the Government of Serbia has proposed a 500MW cap for wind energy plants. The total capacity of the windfarms identified within the CIA is 841MW so it should not be possible for all of these plants to be constructed. If we consider that the Plandište windfarm (102 MW) is already in construction (although it is on hold) and that construction permits have already been issued for Alibunar/ Malibunar (50MW), Čibuk 1 (158 MW), and Kovačica (125 MW) then the total ‘committed’ capacity is already 435 MW.

The involvement of the IFIs in the development of a number of the proposed windfarms is considered to be positive. The performance requirements they impose illustrate how Good International Practice can be applied successfully, to the benefit of the environment and the local communities. The Environmental and Social Action Plan (“ESAP”) agreed between each of the Lenders and Developers provides clear guidance on the establishment of each windfarm. However, it is not the responsibility if each developer to assess and manage the impacts of another’s windfarm. This is the responsibility of the government, both local and national. It is therefore recommended that the IFIs use their influence with the authorities to enhance the quality of spatial plans and the practical application of Cumulative Impact Assessments.

In addition, the Lenders, through the delivery of their ESAPs, can help ensure that the windfarm developers in the study area work together to:

Prepare integrated traffic management plans for the construction periods. The construction dates for the majority of the windfarms are not in the public domain and the scale of issue can yet be determined.

Share information from bird monitoring activities. This will help refine the understanding of, and need for radar.

Build technical skills within the local workforce.



8. Obtaining further information on the Project

This Cumulative Impact Assessment is part of the overall impact assessment for the Project required by the Lenders. More detailed information can be obtained from the Environmental and Social Impact Assessment (ESIA) and its companion documents. The documents comprising the impact assessment are available from WindVision and the Lenders (in Serbian and in English) and include:

The ESIA that covers the entire project and the EIAs for Alibunar A and B. This document contains detailed analysis of the existing environmental conditions, the planned Project, and suggested mitigations.

A Non-Technical Summary of the ESIA.

A Stakeholder Engagement Plan that describes how WindVision will communicate with people and institutions, and how they may communicate with WindVision and be assured of being heard.

An Environmental and Social Action Plan that identifies actions WindVision and its contractors will have to take to make sure there are no unacceptable impacts on people or the environment from construction and operation of the Project.

In addition, WindVision is disclosing the results of a year’s monitoring of birds and bats (Serbian only) as well as archaeological studies conducted by the Institute for Protection of Cultural Heritage Pančevo.

All these documents will be publicly available on the internet at www.windvision.com, www.ebrd.com, and www.eib.org. Electronic copies may be requested from Milicia Vukojicic at the WindVision Alibunar address below, by calling +381 11 3283 527, or by sending an email to [email protected].

They may also be reviewed (in Serbian) at the following places:

WindVision, 18-20 Obilicev venac str., Floor VII, Apr. 1 &2, Belgrade (also in English) and 10 Zarka Zerenjanina str., Alibunar

Opština Alibunar, TRG Slobode 4, Alibunar

MZ Vladimirovac, Cara Lazara 76, Vladimirovac

MZ Seleuš, Branka Radičeviċa 2, Seleuš

MZ Banatsko Novo Selo, Maršala Tita 67, Banatsko Novo Selo



Notice

This document and its contents have been prepared and are intended solely for WindVision’s information and use in relation to the IFI project disclosure process.

WS Atkins International Ltd assumes no responsibility to any other party in respect of or arising out of or in connection with this document and/or its contents.

Document history

Job number: 5135216 Document ref: alibunar windfarm cia april 2015. rev 2.1

Revision Purpose description Originated Checked Reviewed Authorised Date

Rev 1.0 Draft for client review MS, AGI ES AGI AG Iles 22.04.15

Rev 2.0 For issue MS, AGI ES / WindVision

AGI AG Iles 24.04.15

Rev 2.1 For issue MS, AGI IFC/ WindVision

AGI AG Iles 29.04.15

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