Project description
and objectives:
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The proposed project will facilitate the entry of the Opet-Aygaz JV into the Bulgarian oil products market. This will be achieved via acquisition of existing petrol stations and investment in greenfield sites, as well as investment in petrol/LPG logistic and storage facilities.
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Transition impact:
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(a) The proposed Project would introduce increased competition in the sector.
(b) SME support: The proposed Project will provide opportunities for local entrepreneurship, with each l new site effectively being an SME. It will also facilitate the transfer of knowledge with respect to quality of service, improved governance, and efficient operation of new and existing retail sites.
(c) Introduction of high industry standards: The parent company will introduce commercial standards in line with best practice in the industry, as well as health and safety regulations in compliance with the EU standards.
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The client:
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The client is Opet-Aygaz Bulgaria EAD, a JV of Opet and Aygaz. Opet is the fourth largest liquid fuels distribution company in Turkey. Aygaz is the largest liquid petroleum gas (LPG) company in Turkey. Both are subsidiaries of the Koc Group, one of the largest industrial conglomerates in Turkey.
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EBRD finance:
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€ 32 million corporate loan, with an 8-year tenor. Envisaged to be partially syndicated to commercial banks.
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Total project cost:
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Estimated € 120 million.
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Environmental impact:
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The project was screened B/1 requiring and environmental audit and analysis. There are likely to be a range of environment and safety issues associated with this project and the environmental due diligence, which is currently being undertaken by independent consultants, will address the following issues:
- Environmental liabilities associated with past environmental damage and the use of hazardous materials
- Environmental issues associated with routine operation of the filling stations
- Regulatory compliance, particularly in relation to air emission and vapour recovery
- Hazardous waste disposal, particularly from periodical cleaning of storage tanks
- Process safety issues particularly in relation to the distribution, storage and handling of liquefied petroleum gas (LPG)
- Land use planning requirements including community issues associated with development of new green field filling stations
Preliminary due diligence indicates that the Company has an established Safety, Health and Environmental (SHE) policy and adheres to high international standards. The involvement of Opet-Aygaz in the proposed transaction is likely to result in further modernisation of the filling stations in line with international good practice, including compliance with the relevant EU Directives.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Ms Hale Baki, International Operations and Business Development
Aygaz A. S.
Buyukdere Caddesi 145/1
Aygaz Han Kat 9
80300 Istanbul
Zincirlikuyu
Turkey.
Tel: +90 212 354 1778
Fax: +90 212 288 3955
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EBRD contact:
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Maxim Kakareka, Operation Leader: kakarekm@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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