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The Warsaw Voice » Business » September 19, 2018
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Bank to change model of financing renewables
September 19, 2018   
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Jakub Papierski
Listed lender PKO BP seeks to change the model of financing wind and offshore farm projects by banks after last year's termination of such contracts by one of the Polish operators undermined trust in the solutions that have been used so far, PKO BP's deputy CEO Jakub Papierski told reporters.
"A very important element for the whole sector will be finding a new model in financing investments in wind farms or offshore projects by banks, after the suits that had been filed by one of the operators resulted in certain undermining of trust into the previous model," Papierski said.
"Together with the partners in the power sector, we need to work out a model which will dispel doubts that have accumulated following last year's events and will allow for further support for the sector in terms of wind farm investments," he added.
In September 2017, listed power utility Energa's unit Energa-Obrot ceased to comply with 22 contracts on the purchase of green certificates and filed motions with courts demanding confirmation of their invalidity. The company claimed the contracts are "extremely unfavorable" and were not signed in line with a required procedure.
"From the banks' perspective, it seemed that those contracts were unquestionable; however, an attempt was made to question some of them," Papierski observed, while adding that efforts towards working out a new financing model will be made after the current legal dispute ends.
Banks see a rigid off-take contract as indispensable in the new financing model, as it ensures stability and reliability of a given credit model in the light of a given investment, according to Papierski.
"Lack of rigid contracts is a big fault," the manager remarked. "It is about finding a certain legal formula, which will ensure that the mechanism that have been used so far will not be challenged."
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