VALIDATION REPORTBELECTRIC SOLAR LTD.
VALIDATION OF THE
PADDOCK WOOD SOLAR FARM LTD

BUREAU VERITAS CERTIFICATIONREPORT NO.BVC/UK-VD/001/2015
REVISION NO. 00

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2015 rev. 00
VALIDATION REPORT
Date of first issue:

Organizational unit:

22/06/2015

Bureau Veritas Certification

Client:Client ref.:

Belectric Solar Ltc.

Mr. Paul Camp

Summary:

Bureau Veritas Certification has conducted the validation of the Paddock Wood Solar Farm Ltd.,
constructed by Belectric Solar Ltd., located in the village of Paddock Wood, United Kingdom, on thebasis of the Climate Bond Standard.
The validation scope is defined as an independent and objective review of the Climate Bond (the Bond)in question, its associated projects and/or its physical assets, and consisted of the following threephases:i) desk review of the Bond and its associated projects documentation and additional backgrounddocuments;ii) on-site inspection;iii) resolution of outstanding issues and the issuance of the final validation report and opinion. The
overall validation, from Contract Review to Validation Report & Opinion, was conducted using
Bureau Veritas Certification internal procedures.
The first output of the validation process is a list of Clarification Requests and Corrective Actions
Requests, presented in Appendix A. Taking into account this output, the Bond issuer has revised its
Bond and its associated project documentation.
In summary, it is Bureau Veritas Certification’s opinion that the Bond meets all relevant Climate Bond
Standard requirements.

Report No.:

Subject Group:

BVC/UK-VD/001/2015

Climate Bonds

Project title:

Indexing terms
Work approved by:

Paddock Wood Solar Farm Ltd.

Murray Sayce

Work carried out by:

Flavio Gomes - Team Leader
James Boanpong - Technical Specialist

No distribution without permission fromthe Client or responsible organizational
unit

Internal Technical Review carried out by:

Limited distribution

Murray Sayce
Date of this revision:Rev. No.:

Number of pages:

22/06/2015

01

21

Unrestricted distribution

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VALIDATION REPORT

Table of Contents

Page

1.

INTRODUCTION ...................................................................................................... 42.

METHODOLOGY ..................................................................................................... 4

2.1.
2.2.
2.3.
2.4.

Review of Documents
On-site Inspection
Resolution of Clarification and Corrective Action Requests
Internal Technical Review

3.

VALIDATION CONCLUSIONS ................................................................................. 5

3.1.
3.2.
3.3.
3.4.
3.5.
3.6.
3.7.
3.8.
3.9.
3.10.
3.11.
3.12.
3.13.
3.14.

Project Nomination
Use of Proceeds
Non-Contamination
Environmental and Social Integrity
Verification
Climate Bond Certification and Limits of Use
Non-Compliance
Eligible Projects and Physical Assets
Technical Criteria
Traceability
Project Holding
Confidentiality
Settlement Period
Ring-Fenced Cost Centres

4.

VALIDATION OPINION .......................................................................................... 105.

REFERENCES ....................................................................................................... 11

4
4
4
5

6
6
7
7
8
8
8
8
9
10
10
10
10
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APPENDIX A: VALIDATION PROTOCOL ............................................................................ 123

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2015 rev. 00
VALIDATION REPORT

1. INTRODUCTION
Belectric Solar Ltd. has commissioned Bureau Veritas Certification to validate its Climate Bond
project Paddock Wood Solar Farm Ltd. (hereafter called “the Project”) at Paddock Wood, Kent,
UK.
This report summarizes the findings of the validation, performed on the basis of the Climate
Bond Standard criteria.

2. METHODOLOGY
The overall validation, from Contract Review to Validation Report & Opinion, was conductedusing Bureau Veritas Certification internal procedures.
In order to ensure transparency, a validation protocol was customized for the project, according
to the version 1.0 of the Climate Bond Standard. The protocol shows, in a transparent manner,
criteria (requirements), means of validation and the results from validating against the identified
criteria.
The validation protocol serves the following purposes:
It organizes, details and clarifies the requirements a Climate Bond is expected to meet;
It ensures a transparent process where the Validation Team will document how a particularrequirement has been addressed and the result of the validation.
The completed validation protocol is enclosed in Appendix A to this report.

2.1. Review of Documents
The Bond and its associated project documentation as submitted by Belectric Solar Ltd. andadditional background documents related to the project design were reviewed in full.

2.2. On-site Inspection
On 28/04/2015 Bureau Veritas Certification performed an on-site inspection to confirm selected
information and to resolve issues identified as a result of the document review. Representativesof Belectric Solar Ltd. were interviewed as part of the site visit.

2.3. Resolution of Clarification and Corrective Action Requests
The objective of this phase of the validation is to resolve issues that require further elaboration,
research or expansion prior to Bureau Veritas Certification’s stated conclusion on the Climate
Bond.
A Corrective Action Request (CAR) is raised if applicable Climate Bond Standard
requirements have not been met.

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BUREAU VERITAS CERTIFICATION
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VALIDATION REPORTA Clarification Request (CL) is raised, if information is insufficient or not clear enough todetermine whether the applicable Climate Bond Standard requirements have been met.
To guarantee the transparency of the validation process, the issues raised, the responses
provided by the Bond issuer, the means of validation of such responses and references to any
resulting changes in the Bond documentation, are documented in the Validation Protocol in
Appendix A.

2.4. Internal Technical Review
The validation report underwent an Internal Technical Review (ITR).
The ITR is an independent process performed to examine thoroughly that the process ofvalidation has been carried out in conformance with the requirements of the Climate Bond
Standard as well as internal Bureau Veritas Certification procedures.
The Team Leader provides a copy of the validation report to the reviewer, including any
necessary validation documentation. The reviewer reviews the submitted documentation forconformance with the validation scheme. This will be a comprehensive review of all
documentation generated during the validation process.
When performing an Internal Technical Review, the reviewer ensures that:
The validation activity has been performed by the Validation Team by exercising utmost
diligence and complete adherence to the Climate Bond Standard requirements.
The review encompasses all aspects related to the Bond, closure of CARs and CLs during
the validation exercise, and review of sample documents.
The reviewer may raise Clarification Requests to the validation team and will discuss thesematters with the Team Leader.

3. VALIDATION CONCLUSIONSIn the following sections, the conclusions of the validation are stated.
The findings from the desk review of the original Bond documents and the findings from the onsite inspection are described in the Validation Protocol in Appendix A.
The Clarification and Corrective Action Requests are stated, where applicable, in the following
sections and are further documented in the Validation Protocol in Appendix A. The validation of
the Project resulted in 2 CLs.
The CLs were closed out based on adequate responses from the Bond issuer and which meet
the applicable requirements. They have been reassessed before formal acceptance and closure.

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3.1. Project Nomination
As per Bond invitation document “Big60Million – Power to the People”, the Climate Bond issued
specifies the Paddock Wood Solar Farm Ltd. as the project collateral and physical assets withwhich it is associated. Paddock Wood Solar Farm Ltd. is therefore the “Nominated Project”.
At the document review stage, the Validation Team was presented with a draft version of theBond invitation document. Therefore a CL (1) was raised requesting for a final version of thisdocument.
A final version of the Bond invitation document was sent on 07/04/2015. The Validation Teamevaluated this and confirms the right nomination of the project, hence this CL was closed.
Eligibility of the assets specified as backing, or linked to, the Bond is discussed in item 3.8 ofthis report.
A CL (2) was raised asking the Climate Bond Standard Board for confirmation that thenominated project has not been nominated in a previous Climate Bond. This was confirmed byexamining the last version of the Climate Bonds labeled green bonds data.

3.2. Use of Proceeds
Allocation of proceeds/funds could not be verified at the document review stage as the Bond
had not been issued yet and therefore there were no proceeds to be allocated.
However, the Validation Team was provided with the following information:••

A letter from the Bond manager Rockfire, confirming that it is:•Regulated Manager and Bond Principle;•

Receiving Agent and Registrar of the Bonds during the application period for theBonds and the issue of the Bonds to investors.

Rockfire’s engagement letter to Big60Million Ltd dated 14/03/2014, which outlines theabove mentioned functions in more detail.

The Validation Team examined the above mentioned documentation and concluded thatRockfire is responsible for administration of the Bond and acts in the interests of thebondholders.
This combination of roles provides the required “tracking system” that will ensure allocatedproceeds are being used (earmarked) for the assets claimed.
Regarding the investment in the Nominated Project, the Validation Team was provided with theBond manager’s Terms of Engagement for the Provision of Services for an Asset Backed Solar
Energy Mini-Bond, issued on 14/03/2014.
Item “Fees” of the above mentioned document caps the investment in the Nominated Project tothe maximum bond subscription of £5,788,140.

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3.3. Non-Contamination
Although the allocation of proceeds/funds could not be verified at the document review stage,as the Bond was not yet issued at this stage (refer to section 3.2 above), the final version of theBond invitation document defines that the funds will be allocated to the Nominated Project only.
Therefore, no contamination is expected.
The Validation Team recommends that this item is verified after the Bond is issued.
The requirement for the Climate Bond issuing organization to establish systems to monitor andaccount for the proceeds of a Climate Bond, as the funds flow through a treasury or othermixed-funds pool, was considered to be not applicable as the investment in the NominatedProject is known and clearly defined in the Bond invitation document.

3.4. Environmental and Social Integrity
Bureau Veritas has verified Paddock Wood Solar Farm Ltd Solar Power plant installation at
Paddock Wood Solar Park and satisfied that they have worked closely with the Local Planning
Authority in a positive and proactive manner to secure sustainable development which will
improve the economic, social and environmental conditions of the area.
It can be confirmed that Paddock Wood Solar Farm Ltd operates in accordance with relevant
environmental and social laws and regulations and adhere to environmental, social andgovernance standards and best practices.
Planning permission of the Solar Photovoltaic Power Plants was granted to Paddock Wood
Solar Farm Ltd and Paddock Wood Solar Farm Bond PLC valid from 19 December 2014 todevelop a ground mounted solar farm to generate up to 9.234MW of electricity with associatedinfrastructure including solar panels, temporary construction compound; double inverters;
transfer station; collecting station; security fencing; CCTV cameras and poles, landscaping andassociated works and infrastructure.
The site is located approximately 1.6 miles (2.8 km) southwest of the small town and civil parish
of Paddock Wood in the county of Kent. The larger town of Royal Tunbridge Wells andMaidstone are located 8.3 miles (13.3 km) to the southwest and 10.1 miles (16.2 km) to thenorthwest of the site respectively.
The site extends to an area of approximately 64 acres (25.9 hectares) and is situated within twoformer arable fields. The installed capacity of the solar farm once in operational will generate
9.234 MWp.
Below is the application reference and date of decision.
Application Ref: 14/502851/FULL
Date of decision: 19th December 2014
For the purpose of this certification report not all the planning permission conditions are stated.

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BUREAU VERITAS CERTIFICATION
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VALIDATION REPORTIn accordance with paragraphs 186 and 187 of the National Planning Policy Framework (NPPF),
the Council takes a positive and proactive approach to development proposals focused on
solutions. The Local Planning Authority has worked closely with the applicant Paddock Wood
Solar Farm Ltd in a positive and proactive manner in order to secure sustainable development
which will improve the economic, social and environmental conditions of the area.

3.5. Verification
The Climate Bond issuing organization engaged Bureau Veritas Certification to undertake acompliance audit of the Bond (whether existing or proposed) to confirm its compliance with the
Climate Bond Standard.
The Climate Bond issuing organization additionally agreed to provide further information if
requested by the Climate Bond Standards Board, as per item 3 of the Terms and Conditions of
the signed contract between Belectric Solar Ltd. and Bureau Veritas Certification.

3.6. Climate Bond Certification and Limits of Use
Belectric Solar Ltd. may register its Bond with the Climate Bond Standards Board, and therefore
has the right to use the Climate Bond Certification Mark in association with the relevant Bond(but no others) for the duration of the Bond term, provided that the Bond remains Climate Bond
Standard compliant.
The Validation Team therefore recommends that the Bond’s compliance with the Climate Bond
Standard is periodically verified.

3.7. Non-Compliance
If a Climate Bond is no longer compliant with the Climate Bond Standard, then the issuer isrequired to disclose that fact to the Climate Bond Standards Board, the bond holders and therelevant exchanges.
The Validation Team therefore recommends that the Bond’s compliance with the Climate Bond
Standard is periodically verified.

3.8. Eligible Projects and Physical Assets
The funds raised under the Climate Bond are used to finance Solar Energy Generation.
The electricity generated from this facility is 100% derived from solar energy sources.
The facility has a dedicated transmission infrastructure to supply power generated to the grid.
Use of non-solar fuel for gas-fired back up was not evident during the on-site inspection.

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VALIDATION REPORT

3.9. Technical Criteria
The Validation Team can confirm that Paddock Wood Solar Farm Ltd power plant project willachieve resource efficiency consistent with avoiding dangerous climate and will contribute to
Low-Carbon Economy and are therefore eligible to be financed by Climate Bond.
The electricity generated from this facility is hundred (100%) derived from solar energy sources
and has a dedicated transmission infrastructure to supply power generated to the grid.
The yield assessment report prepared by Sgurr Energy Ltd.
Date: March 2015
Report ref: 15/6247/001/GLA/R/001
Sgurr Energy Ltd was commissioned by Paddock Wood Solar Farm Ltd (the Client) to carry out
an independent energy yield prediction for a proposed 9.234 MWp solar photovoltaic (PV)power plant to be constructed in Kent England (the Project). The energy yield analysis
presented in the report was based on information provided by Paddock Wood Solar Farm Ltd
The energy yield assessment was undertaken for a plant design utilising First Solar photovoltaic(PV) modules and SMA Sunny Central inverters. The yield prediction was performed using TMY
data from the SolarGIS database. Industry standard modeling software was used to calculate anumber of loss factors according to the plant design and equipment characteristics.
The report presents the expected electricity yield of the Paddock Wood Solar Farm Ltd Solar PV
plant.
The annual average global irradiation at the site on a horizontal plane is 1096 kWh/m2 but they
were advised to use 987.1kWh/m2 for the yield assessment. An initial average annual specificyield of 1029 kWh/kWp was predicted.
The expected annual yield based on the system dimensions on average was predicted to be
9,500 mWh for the first year and expected performance ratio of the system for the first year to
be 85.9 %.
The report demonstrated a typical relative accuracy of measurements at a meteorologicalstation by a well-maintained pyranometer to be 2% to 5%. This represents the upper limit in theaccuracy of resource data obtained through meteorological stations. The annual uncertainty forthe site location was estimated to be 3.5% by GeoModel Solar S.R.O.
Based on the calculated and predictions we anticipate that the annual predicted value of 9,500
mWh for the first year is most likely to be achieved.
In general the verification process has established that Paddock Wood Solar Farm Ltd has met
the Climate Bond requirements at section 8.

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3.10. Traceability
This requirement was considered not applicable as this is a Project Development Bond as per
the Bond Invitation Document.

3.11. Project HoldingThis requirement was considered not applicable as this is a Project Development Bond as per
the Bond Invitation Document.

3.12. Confidentiality
This requirement was considered not applicable as this is a Project Development Bond as per
the Bond Invitation Document.

3.13. Settlement Period
This requirement was considered not applicable as this is a Project Development Bond as per
the Bond Invitation Document.

3.14. Ring-Fenced Cost Centres
This requirement was considered not applicable as this is a Project Development Bond as per
the Bond Invitation Document.

4. VALIDATION OPINION
Bureau Veritas Certification has performed a validation of the Paddock Wood Solar Farm Ltd.,
constructed by Belectric Solar Ltd., which is located in the village of Paddock Wood, United
Kingdom. The validation was performed on the basis of the Climate Bond Standard criteria.
The validation consisted of the following three phases:i)

desk review of the Bond and its associated projects documentation and additional
background documents;ii) on-site inspection;iii) resolution of outstanding issues and the issuance of the final validation report andopinion.
The review of the Bond and its associated project documentation, and the subsequent on-site
inspection, has provided Bureau Veritas Certification with sufficient evidence to determine thefulfillment of stated criteria.

In our opinion, the project meets all relevant Climate Bond Standard requirements.

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VALIDATION REPORT

5. REFERENCES
/1/
/2/
/3/
/4/
/5/

Bond invitation document: Big60Million – Power to the People;
Letter from the Bond manager issued on 03/07/2014: Rockfire Capital Limited
confirmation of role;Terms of Engagement for the Provision of Services for an Asset Backed Solar Energy
Mini-Bond;
Paddock Wood Solar Farm Ltd. planning permission;
Yield assessment report prepared by Sgurr Energy Lt.

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VALIDATION REPORTAPPENDIX A: VALIDATION PROTOCOL
Table 1

Audit requirements based on the Climate Bond Standard (version 1 prototype)
CHECKLIST QUESTIONCOMMENTS

Draft Concl

Final Concl

CL1

OK

1.2. Are the assets specified as backing, or linked to, the Refer to Item 8 of this protocol.
Bond eligible assets as specified under Part B of the
Climate Bond Standard?

--

1.3. Is the asset specified a loan or other financial No. This is a project development bond as
instrument?
per the Bond Invitation Document.

OKOK

1.4. If yes, does the underlying collateral comply with Part Not applicable.
B of the Climate Bond Standard?

-

-

CL2

OK

OK

OK

Part A: General Requirements
1. Project Nomination
1.1. Does the Climate Bond issued specify the project The Bond Invitation Document specifies
collateral of physical assets with which it is associated Paddock Wood Solar Farm as the physical(these are referred to as the “Nominated Project(s)”?
asset associated with the bond.

1.5. Are the assets specified as backing, or linked to, the This is the first Climate Bond issued by
Bond nominated to pervious Climate Bonds?
Paddock Wood Solar Farm PLC.
2. Use of Proceeds
2.1. Are the proceeds allocated to Nominated Project(s)?

The Bond Invitation Document defines thatthe proceeds will be allocated to theNominated Project.
A letter from the bond manager Rockfire,confirms that it is:

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BUREAU VERITAS CERTIFICATION
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VALIDATION REPORTCHECKLIST QUESTIONCOMMENTS••

Draft Concl

Final Concl

OK

OK

OK

OK

OK

OK

Regulated Manager and Bond
Principle;
Receiving Agent and Registrar of
the Bonds during the application
period for the Bonds and theissue of the Bonds to investors.

A
Rockfire’s
engagement
letterto
Big60Million Ltd dated 14/03/2014 outlines
the above mentioned functions in moredetail.
This combination of roles provides therequired “tracking system” that will ensure
allocated proceeds are being used(earmarked) for the assets claimed.
However, the Validation Team recommends
that once proceeds exist, a review should bemade to confirm this has happened.
2.2. What is the original issuance amount of the Climate £5,788,140, as per Bond Invitation
Bond?
Document.
The Bond manager’s Terms of Engagement
2.3. What is the investment in the Nominated Project(s)?
for the Provision of Services for an Asset
Backed Solar Energy Mini-Bond, issued on
14/03/2014 caps the investment in the
Nominated Project to the maximum bondsubscription of £5,788,140.
2.4. What is the Fair Market Value of the Nominated £12,210,000 pounds, as per Report andValuation Prepared by Savills (03/03/2015),

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VALIDATION REPORTCHECKLIST QUESTION
Project(s)?

COMMENTS
produced under RICS Red Book.

2.5. Is the original issuance amount of the Climate Bond No
greater than the investment in the Nominated Project(s) of
the Fair Market Value of the Nominated Project(s) at thetime of its nomination?

Draft Concl

Final Concl

OK

OK

OK

OK

3. Non-Contamination
3.1. Are the funds already allocated to the NominatedProject(s)? (Issuers are permitted a grace period of one
year, which can be extended subject to Climate Bond
Standards Board approval, to allocate or re-allocate funds
to Nominated Project(s).

The Bond Invitation Document defines thatthe proceeds will be allocated to theNominated Project.
A letter from the bond manager Rockfire,confirms that it is:• Regulated Manager and Bond
Principle;• Receiving Agent and Registrar of
the Bonds during the application
period for the Bonds and theissue of the Bonds to investors.
A
Rockfire’s
engagement
letterto
Big60Million Ltd dated 14/03/2014 outlines
the above mentioned functions in moredetail.
This combination of roles provides therequired “tracking system” that will ensure
allocated proceeds are being used(earmarked) for the assets claimed.

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However, the Validation Team recommends
that once proceeds exist, a review should bemade to confirm this has happened.

Draft Concl

Final Concl

3.2. If not, are these funds placed in temporary Not applicable.
investments?

--

3.3. If yes, do these temporary investments include Not applicable.
greenhouse gas intensive projects?

--

3.4. Are unallocated funds in cash, or cash equivalent Not applicable.
instruments, being held within a Treasury function?

--

3.5. Are any systems used for temporary management of Not applicable.
Climate Bond funds and investments recorded anddisclosed to this verifier?

--3.6. Has the Climate Bond issuing organization Not applicable in this case as the investment
established systems to monitor and account for the in the Nominated Project is known.
proceeds of a Climate Bond as these funds flow through atreasury or other mixed-funds pool?

--

4.1. Does the Nominated Project(s) operate in accordance The Validation Team can confirm thatwith relevant international, regional and national Paddock Wood Solar Farm Ltd. operates inenvironmental and social laws and regulations?
accordance with relevant environmental andsocial laws and regulations.
APPLICATION REF: 14/502851/FULL
DATE OF DECISION: 19/12/2014

OKOK

4.2. Has the issuer publicly disclosed to Climate Bond On page 18 of the Bond Invitation Document
holders whether they and/or the Nominated Project(s) it is stated that “The site was constructed

OKOK

4. Environmental and Social Integrity

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financed, or to be financed, adhere to environmental, with the community and environment in mindsocial and governance standards and best practices?
and in order to adhere to environmental,social and governance standards and bestpractices.” The Validation Team evaluated it
and this CAR was closed.
Refer to 4.2.
4.3. If yes, which ones?

Draft Concl

Final Concl--

5.1. Has the Climate Bond issuing organisation engaged a Yes, Belectric has issued a Purchase Orderthird-party Verifier to undertake a compliance audit of the (102303)
engaging
BureauVeritasbond (whether existing or proposed) to confirm its Certification as its third-party Verifier.
compliance with the Climate Bond Standard?

OKOK

5.2. Has the Climate Bond issuing organisation additionally Yes, as per item 3 of the Terms andagreed to provide further information if requested by the Conditions of the contract between Belectric
Climate Bond Standards Board?
and Bureau Veritas Certification.

OKOK

5.3. Does the Climate Bond issuing organization intends to There are no declared intentions of further
issue further Climate Bonds?
Climate Bonds issuance.

OKOK

5.4. If yes, has the Climate Bond issuing organization Not applicable.
provided the verifier with all Climate Bond compliancedocumentation related to existing Climate Bonds?

-

-

OK

OK

-

-

5. Verification

Part B: Low Carbon Contribution
8. Eligible projects and physical assets
8.1. Are the funds raised under the Climate Bond used to No. The funds are used to finance Solar
Energy Generation.
finance or refinance Wind Energy Generation?
8.2. If yes, do the projects include one or more than the16

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Draft Concl

Final Concl

-

-

-

-

-

-

OK

OK

following?
8.2.1. The development and construction of wind farms.

Not applicable.

8.2.2. Operational production of manufacturing facilities Not applicable.
wholly dedicated to wind energy development.
8.2.3. Wholly dedicated transmission infrastructure for Not applicable.
wind farms.
8.3. Are the funds raised under the Climate Bond used to Yes as per Bond Invitation Document.
The yield assessment report was preparedfinance or refinance Solar Energy Generation?
by Sgurr Energy Ltd:
Date: March 2015
Report ref: 15/6247/001/GLA/R/001
The energy yield analysis presented in thereport was based on information provided by
Paddock Wood Solar Farm Ltd.
The
energy yieldassessment
wasundertaken for a plant design utilising First
Solar photovoltaic (PV) modules and SMA
Sunny Central inverters.
The yield prediction was performed using
TMY data from the SolarGIS database.
Industry standard modelling software wasused to calculate a number of loss factors
according to the plant design and equipment
characteristics.
The report presents the expected electricity
yield of the Paddock Wood Solar Farm Ltd
Solar PV plant.
The annual average global irradiation at the17

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site on a horizontal plane is 1,096 kWh/m2
but they were advised to use 987.1kWh/m2
for the yield assessment. An initial averageannual specific yield of 1029 kWh/kWp was
predicted.
The expected annual yield based on thesystem dimensions on average waspredicted to be 9,500 MWh for the first year
and expected performance ratio of thesystem for the first year to be 85.9 %.
The uncertainty of the models andcalculation steps with respect to the average
specific yield and average yield is estimatedto be 3.5%.
The actual system yield was verified duringphysical inspection of the plant on
28/04/2015.
Based on the current yield we anticipate thatthe annual predicted value of 9,500 mWh forthe first year is most likely to be met.
8.4. If yes, do the projects include one or more than thefollowing?
8.4.1. The development, construction and operation of The electricity generated from this facility issolar electricity generation facilities, where a minimum of hundred (100%) derived from solar energy
85% of electricity generated from the facility is derived sources.
from solar energy resources.
8.4.2. Wholly dedicated transmission infrastructure for The facility has a dedicated transmission
infrastructure to supply power generated tosolar electricity generation facilities.
the grid.

Draft Concl

Final Concl

-

-

OK

OK

OK

OK

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8.5. Do the solar electricity generation facilities use non- Use of non-solar fuel for gas-fired back up
was not evident during the on-site
solar fuel for gas-fired back up?
inspection.
8.6. If yes, what is the allowed non-solar fuel use?
Not applicable.

Draft Concl

Final Concl

OK

OK

-

-

-

-

-

-

-

-

-

-

Part C: Bond structures(i) Requirements for Corporate Bonds only
10. Traceability
10.1. Do the financial flows of the bond principal remain Not applicable as this is a Project
between the Climate Bond and the linked Nominated Development Bond as per Bond Invitation
Project(s)?
Document.
11. Project Holding
11.1. Does the issuer of a Corporate Climate Bond with Not applicable as this is a ProjectNominated Projects linked to a portfolio of assets hold Development Bond as per Bond Invitation
eligible assets at least equal to the Fair Market Value at Document.
the time of issuance of the original principal amount of the
Climate Bond?
12. Confidentiality
12.1. Is information about Nominated Projects disclosed to Not applicable as this is a Project
Verifier and to members of the Climate Bond Standard Development Bond as per Bond Invitation
Board?
Document.
13. Settlement Period
13.1. Has the Climate Bond issuing entity demonstrated Not applicable as this is a Projectthat the proceeds of a Climate Bond have been allocated Development Bond as per Bond Invitation
to the Nominated Project(s) within one year after the bond Document.

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Draft Concl

Final Concl

13.2. If not, are the surplus or unallocated funds invested Not applicable as this is a Projectin Climate Bond compliant projects not otherwise Development Bond as per Bond Invitation
nominated for a specific Climate Bond issuance? and/orDocument.

--

13.3. Has the issuing entity made temporary investments Not applicable as this is a Projectof surplus funds to the nominal Fair Market Value of the Development Bond as per Bond Invitation
Climate Bond at the time of issuance, in compliance with Document.
the provisions of Clause Non-Contamination of the Climate
Bond Standard?

-

-

-

-

-

-

-

-

is issued?

14. Ring–Fenced Cost Centers14.1. Has the Climate Bond issuing organisation Not applicable as this is a Project
established at least on ‘Climate Bond Cost Centre’ to Development Bond as per Bond Invitation
manage and account for funding to Climate Bond eligible Document.
projects?
(ii) Requirements for Portfolio Bonds only
10. Traceability
10.1. Do the financial flows of the bond principal remain Not applicable as this is a Project
between the Climate Bond and the linked Nominated Development Bond as per Bond Invitation
Project(s)?
Document.
11. Project Holding
11.1. Does the issuer of a Portfolio Climate Bond with Not applicable as this is a ProjectNominated Projects linked to a portfolio of assets hold Development Bond as per Bond Invitation
eligible assets at least equal to the Fair Market Value at Document.
the time of issuance of the original principal amount of the
Climate Bond?

20

BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2015 rev. 00
VALIDATION REPORTCHECKLIST QUESTIONCOMMENTS

Draft Concl

Final Concl--

13.1. Has the Climate Bond issuing entity demonstrated Not applicable as this is a Projectthat the proceeds of a Climate Bond have been allocated Development Bond as per Bond Invitation
to the Nominated Project(s) within one year after the bond Document.
is issued?

--

13.2. If not, are the surplus or unallocated funds invested Not applicable as this is a Projectin Climate Bond compliant projects not otherwise Development Bond as per Bond Invitation
nominated for a specific Climate Bond issuance? and/orDocument.

--

13.3. Has the issuing entity made temporary investments Not applicable as this is a Projectof surplus funds to the nominal Fair Market Value of the Development Bond as per Bond Invitation
Climate Bond at the time of issuance, in compliance with Document.
the provisions of Clause Non-Contamination of the Climate
Bond Standard?

--

12. Confidentiality
12.1. Is information about Nominated Projects disclosed to Not applicable as this is a Project
Verifier and to members of the Climate Bond Standard Development Bond as per Bond Invitation
Board?
Document.
13. Settlement Period

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BUREAU VERITAS CERTIFICATION
Report No: BVC/UK-VD/001/2015 rev. 00
VALIDATION REPORT

Table 2

List of Clarification and Corrective Action Requests

NUMBERDESCRIPTIONCONCLUSION

CL 1

The Bond Invitation Document is still in its draft version. A final A final version of the bond invitation document was sent ondraft has to be provided as much of the evidences for this 07/04/2015. The Validation Team evaluated it and confirms theassessment are described there.
right nomination of the project and this CL was closed.

CL 2

To be confirmed with the Climate Bond Standard Board if the By examining the last version of the Climate Bonds labeled
nominated project is not nominated in a previous Climate Bond. green bonds data, it is concluded that the nominated project is
not nominated in a previous Climate Bond.

22