Project description
and objectives:
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The proposed project comprises supporting the further expansion of Lenta’s
branded retail chain to the Russian regions. As part of the project the
company will purchase land or usage rights for land, construction, equipping
and start-up of several large format food retail stores in the Russian regions
to be operated under the Lenta brand.
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Transition impact:
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The Bank’s finance supports the 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.
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The client:
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Lenta Group is one of the leading Russian food retailers operating a branded
chain of large format discount stores.
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EBRD finance:
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USD 125 million equity, including a potential institutional investor
participation.
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Total project cost:
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USD 125 million.
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Environmental impact:
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The project has been screened C/1. Environmental due diligence was carried out
on Lenta under the Lenta II project that was signed in October 2006. The due
diligence covered Lenta’s approach to environmental, health, safety and labour
management and compliance status. An Environmental Action Plan was agreed and
covered such actions as the appointment of an Environmental Manager, the
implementation of an Environmental Management System and the conducting of an
environmental audit. For this equity project the Bank and Lenta have agreed
that the schedule for appointing an environmental manager and the conducting
of an audit will be brought forward and will be completed early 2007. The
audit will identify any necessary actions to bring Lenta into compliance with
Russian and EU regulations for environment, health and safety. These actions
will be formulated into an action plan to be implemented by Lenta within an
agreed timetable.
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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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Website: http://www.lenta.com
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EBRD contact:
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Lindsay Forbes, Operation Leader: forbesl@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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