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Project Summary Documents Project Summary Documents (PSDs) are disclosed for each project prior to Board consideration. They contain project descriptions, financial details, client information, environmental issues, tender guidelines, and contact details. PSDs for private sector projects are disclosed at least 30 days prior to Board consideration and for state sector projects, at least 60 days. Signed projects Board approval is the final stage in the project approval process. After Board approval, the EBRD and the client sign the deal and it becomes legally binding. Signed project lists reflect year-end data.
Signed projects
Case studies Boosting agribusiness in Mongolia - Annual report 2008 A recent EBRD loan to a Mongolian beverages company is set to boost production and widen consumer choice. In its third investment in the agribusiness sector in Mongolia, the EBRD is financing MCS Coca-Cola, a soft drinks producer which holds the franchise for Coca-Cola products in the country. A loan of €9 million will see the company not only expand and broaden its product range but also improve wastewater treatment and recycling processes. Established by two brothers Odjargal and Od Jambaljamts, MCS Coca-Cola has become one of the largest private companies in Mongolia. The soft drinks market has grown too, with sales of the last two years jumping from 56 per cent to 80 per cent in volume and value. Messrs Jambaljamts's plant is now too small to produce enough drinks to quench the thirst of the Mongolians. The company delivers soft drinks to 500-600 customers every day. Although the plant works at full capacity, it is not able to meet consumer demand, particularly during the summer months. Expansion has been on the company’s agenda for a long time but long-term finance from local banks is hard to access. The EBRD finance brings the beverage business in Mongolia to a new level; promoting local manufacturing, employment and environmental production. MCS Coca-Cola is constructing a greenfield bottling plant in the outskirts of the capital, Ulaanbaatar, which will increase the company’s production capacity with new products such as fruit juices and flavoured waters for introduction to the market. Consumers will benefit from lower prices compared with similar imported products. The local community will also benefit, with more jobs created. A part of the EBRD finance will be invested in building a new wastewater treatment and recycling plant for the new bottling plant and a brewery belonging to the company. Local dairy producer grows with EBRD finance Siut Bulak, a Kyrgyz dairy producer, has turned to the EBRD for financing the improvements in its plant. The EBRD has acquired a 34 per cent stake in Siut Bulak to support the Kyrgyz company’s expansion. The investment is helping to expand the state-of-the-art processing plant in the Tiup region, located in the eastern part of the Kyrgyz Republic. The programme complements an initiative launched at the end of 1995 by the Swiss government to revive the local economy in the region through investments in Kyrgyz companies. Local farmers will benefit from the increased capacity of the plant which will allow for the procurement of more milk from local farmers. Implementation of the expansion plan will also enable the company to widen its range of high-quality products and will support Siut Bulak’s strategy to continue its growth in Central Asia and to enter the Russian market. Some 1,250 families from the Tiup region supply the dairy producer with milk, thus obtaining a guaranteed regular income. The plant is currently processing up to 45,000 litres a day during summer. The dairy mainly produces cheese and butter and its products are popular in the Kyrgyz Republic and are also exported. The EBRD finance comes under the Bank’s Early Transition Countries Initiative, which was launched in 2004 to stimulate market activity in the Bank’s lowest-income countries of operations by using a streamlined approach to financing more and smaller projects, mobilising more investment and encouraging economic reform. Savouring the sweet smell of success It has been making the chocolates and biscuits for dipping into coffee – so loved in south-eastern Europe’s steamy cafés – since 1922. Soko Štark, Serbia’s leading confectionery producer, has a long tradition of making sugary snacks and salty nibbles. Now this well-established company is modernising, with a €10 million loan from the EBRD. The loan will help Soko Štark upgrade and renew its machinery and support its brand and market development. This will enhance a process that has been under way since Soko Štark’s privatisation, finally completed in 2005, and will reverse a lack of investment that had been affecting performance and sales. The EBRD loan is just one element in a bigger picture. Improvements to this company with its long history in the region are part of a broader transformation of the economies of south-eastern Europe after the conflicts of the early 1990s. The most successful companies are now working together, forming region-wide trading ties – an outcome that was set as a priority for the area during the Bank’s Annual Meeting in Belgrade in 2005. Soko Štark’s transformation was accelerated when a majority stake was bought in 2005 by Grand Kafa, a local company majority-owned by the largest food and beverage company in neighbouring Slovenia, the Droga Kolinska Group. Droga Kolinska’s aim is to become the largest food group in the region. Already selling brands such as Argeta, Grand Kafa and Soko Štark worldwide, it has also been acquiring and investing in companies in Serbia and Bosnia and Herzegovina. “It is important to build business with neighbouring countries if we are to become the biggest food group in the region,” said Robert Ferko, Droga Kolinska’s chairman. “Droga Kolinska already generates over 75 per cent of its income in foreign markets. We believe that building our position through investment and modernisation is of mutual interest for all parties involved: Droga Kolinska, Soko Štark and the local and regional economy.” Since Droga Kolinska became a majority stakeholder, Soko Štark has been restructuring and modernising across the board and making significant additional investments. It currently employs over 1,400 staff in Belgrade and looks set to meet its latest sales and net profit targets. This EBRD investment is important as it supports the restructuring and the immediate modernisation of the leading Serbian confectionery producer following its privatisation process. The loan reflects the EBRD’s strategy of supporting projects that have a regional dimension and that demonstrate the benefits of cross-border investment. Visitors to Serbia, meanwhile, can simply enjoy the biscuits and chocolates that café-goers here have always liked to dip in their coffee. |
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