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Project summary document

Project name:Olivaria
Country:Belarus
Project number:35555
Business sector:Agribusiness
Public/Private:Private
Environmental category:B
Board date:26 July 2005
Status:Signed
Date PSD disclosed:
Date PSD updated:
20 June 2005
29 June 2005
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Project description
and objectives:

The proposed project involves financing the modernization and capacity expansion of the existing Olivaria brewery in Minsk, Belarus.

Transition impact:

The Transition impact of the proposed project is expected to derive from the demonstration effect associated with the successful restructuring of a privately run company, through modernisation of its production lines and rationalisation of the internal control processes. 

These, in turn, are expected to generate efficiency gains in production and to improve product quality and distribution, leading to market expansion and greater competition in the beverage sector in Belarus. The project’s transition impact potential is further enhanced by setting standards of corporate governance and business conduct at the company level that could be replicated in the sector.

The client:

Olivaria is a fully privately-owned brewing company based in Minsk, Belarus.

EBRD finance:

Financing will be via the provision of a loan and equity investment for an amount not exceeding USD 8 million.

Total project cost:

USD 12.3 million.

Environmental impact:

Project description
The proposed investment by the European Bank for Reconstruction and Development (EBRD) involves a loan and equity to OAO Olivaria to finance the modernisation and capacity expansion of Olivaria’s brewery facility located in the centre of Minsk.

Environmental, health and safety issues
The project has been categorised B/1 according to EBRD’s Environmental Policy and as such requires an Environmental Analysis and Audit to assess any past, current and future environmental issues and impacts associated with the facilities and proposed project. Additionally, as a ‘B’ level project the EBRD requires this Environmental Review Summary to be released locally into the public domain by OAO Olivaria prior to the Bank’s final management review of the project.

Environmental, health and safety risks associated with the modernisation and capacity expansion of Olivaria’s brewery facility have been addressed within the scope of the Environmental Audit and Analysis. The Audit and Analysis have been conducted by an independent environmental consultant and whilst the reporting is not completed the initial findings indicate that there are no major environmental sensitivities associated with the current facility or the proposed project. A time-bound Environmental Action Plan is being developed and will be agreed with the Company to ensure the project meets national and EU standards for environment, health and safety. 

Air emissions
OAO Olivaria operates in compliance with its permit for air emissions. The company have commissioned a study detailing how its emissions will change during its modernisation and expansion. Any necessary mitigation measures identified by the study will be incorporated into the Environmental Action Plan.

Effluent discharges
OAO Olivaria operates in compliance with the water protection legislation. Waste water is discharged to the municipal sewer system for treatment at the municipal waste water treatment facilities. Storm water run-off is undergoes pre-treatment at tri-sectional settling tanks with filters before it is discharged to the municipal storm-water sewer system. The company carries out activities aimed at the protection and sustained use of water resources and has as part of its investment plan measures aimed at reducing the discharge of contaminants in its waste water.

Solid and hazardous waste management
OAO Olivaria carries out waste-management practices in accordance with its permit requirements.  The company will ensure that future waste handling will conform to Belarusian / EU standards and will be recycled where facilities exist.

Emergency response planning and preparedness
The facility has emergency response plans which include a special plan for the ammonia-containing refrigeration plant. 

Employee health and safety
Health and safety issues are well recognised by OAO Olivaria. Their health and safety management system is compliant with Belarusian standards.

Environmental opportunities
As part of the modernization of the facility the company will install new, modern, energy efficient equipment.  The company intend to install a replacement beer filtration system and employ utilisation of bottom yeast – both measures that will improve waste water quality and reduce the pollutant load. Changes to wort supply will result in reduced dust emissions while recovery of fermentation carbonic acid will reduce CO2 emissions.

Monitoring and compliance
OAO Olivaria will be required to report annually to EBRD on environmental, health and safety issues associated with the plants operation. In additional staff from the Bank’s Environment Department may make periodic monitoring visits to the plant.

(For more information on EBRD’s Environmental Policy requirements please contact EBRD at 34 A Engelsa St., building 2, 6th floor, Minsk, 220030, Belarus or visit EBRD's environmental pages)

Technical
cooperation:

It is envisioned that the Bank will seek technical assistance funds. Additional details will be provided once the donor has been confirmed and TC application finalized.

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

Company contact:

General Director: Nikolai Dudko

E-mail: dudko@gin.by

EBRD contact:

Miljan Zdrale, Operation Leader: zdralem@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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