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Project summary document

Project name:LLC Lenta
Country:Russia
Project number:33288
Business sector:Agribusiness
Public/Private:Private
Environmental category:B
Board date:6 July 2004
Status:Completed
Date PSD disclosed:
Date PSD updated:
19 May 2004
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EBRD backs Russian retailer Lenta [Press Release]

Project description
and objectives:

The proposed project comprises the purchase of land or usage rights for land, construction, equipping and start-up of 4 large format food retail stores in the area of St. Petersburg to be operated under the Lenta brand.

Transition impact:

The Bank’s finance will support further development of the Russian retail sector with improved access for the consumer to an efficient, competitive and hygienic shopping environment.  The project also supports improvements in corporate governance and transparency as well as improved operational efficiency in a successful Russian company.

The client:

JSC Istochnik R – a Russian limited liability company, owner and operator of a chain of cash & carry Lenta stores, one of the leading retailers in St. Petersburg, Russia.

EBRD finance:

8-year senior loan of up to US$ 30 million.

Total project cost:

US$ 85 million.

Environmental impact:

Environmental Review Summary

1. Environmental classification and rationale

The project involves the construction and operation of a series of cash & carry stores across St Petersburg, which may result in some environmental impacts. The potential impacts can be readily identified, assessed and mitigated through an environmental analysis. Therefore, the EBRD has classified the project B/0.

2. Information reviewed during the environmental appraisal

The environmental analysis was based on the following information:

  • Completed questionnaire for retail companies submitted to the Bank by Lenta;
  • Meetings with Lenta representatives held in St Petersburg.
  • Environmental documentation prepared for obtaining pertinent environmental permits for one of the Lenta stores.

3. Environmental issues

The principle environmental issues associated with this project include those related to the sites chosen for each store and their suitability for the intended purpose, the impacts created during the construction of the stores (e.g. dust, noise, construction waste management, construction traffic) and the impacts associated with the operation of the stores (e.g. increased traffic flows, air emissions, wastewater discharges and solid and hazardous waste management).

The Environmental Analysis was focussed on Lenta's corporate environmental and health and safety safeguard procedures during the construction and operation of its stores. The investigations showed that Lenta has a comprehensive understanding and control of the environmental and hygiene aspects of its operations. Its facilities are designed to conform to Russian environment, health and safety requirements as well as to achieve international standards for food stores. The site selection and construction of each store is preceded by environmental site investigation as well as an environmental impact assessment and public consultation in accordance with Russian law.

The design, construction and operation of the stores and their car parking areas involve a number of environmental mitigation and energy efficiency investments and measures, including drainage and wastewater treatment systems, solid and hazardous waste management as well as noise abatement. Modern European technology is used for refrigeration and boilers. Only natural gas is used as a fuel in the boilers. International conventions for the protection of the ozone layer are fully respected in the design of cold-storage facilities. No environmentally harmful materials or substances (asbestos, formaldehyde, oil-cooled transformers etc.) are used. Russian requirements for fire safety and emergency response are followed.

4. Environmental opportunities

In the design of its stores Lenta incorporates good environmental practice.  The procurement of main equipment takes into consideration the environmental performance and energy efficiency. Solid waste management is organised in accordance with principles of waste minimisation and recycling.

5. Summary of Environmental Action Plan

No environmental action plan required for this operation.

6. Disclosure of Information and Consultation

Each new store development undergoes an environmental impact assessment and public consultation in accordance with Russian law. This entails that environmental information is disclosed to public 30 days prior to a public meeting on the environmental impacts of a project. The competent Russian environmental authorities take the public comments into consideration when defining the conditions and requirements for the project design and implementation fro the planning, construction and operation permits.

In accordance with the public disclosure provisions of EBRD’s Environmental Policy (2003) for category B-projects, the EBRD will ensure that Lenta has met the Russian public disclosure and consultation requirements and  released locally a summary of the relevant environmental issues associated with the project and the mitigation measures, action plans and other initiatives agreed by the time of the Bank’s final management review of the project, prior to Board consideration.

7. Monitoring and Reporting

Lenta will monitor the environmental impact of the project and its operations in accordance with Russian environmental law. Lenta will provide an annual environmental and health and safety report to the EBRD as well as notify the EBRD on any changes, incidents and accidents that may have material effect on the environment or safety. This will allow the EBRD to monitor Lenta’s compliance with applicable Russian and EU standards.

Technical
cooperation:

None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Website: http://www.lenta.com

EBRD contact:

Felix Potishman, Operation Leader: potishmf@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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