Project description
and objectives:
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The proposed project will support the Company’s efforts to develop its own
storage capacities by developing a new grain storage facility in Ukraine,
which will improve the quality of grains under storage, reduce reliance on
third parties and substantially cut operating costs. The project is part of
the integrated primary agriculture production facility put in place in Ukraine
by the Sponsor and currently including 22,500 ha of arable land. Furthermore
the Project will facilitate the Company’s primary agriculture activities as
well linkages with local farming community.
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Transition impact:
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Transition impact derives from supporting a cross border investment into an
agricultural sector in Ukraine, including primary agriculture and silo
facility. In addition, backward linkages will be created and strengthened by
increased relationship with the local farming community. Furthermore, forward
linkages will be strengthened through increase of the quality and quantities
of the agricultural crop through development of the modern primary
agriculture. Finally, the Bank will continue to assist in a policy dialogue in
order to assist in implementation of the warehouse receipt programme.
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The client:
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Agroinvest, a company incorporated in Ukraine and owned by the
Sponsor-Agriholding, a part of MK Group. Agroinvest will be involved in
managing agricultural land, primary agriculture, grain trading and silo
operations.
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EBRD finance:
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EUR 10 million.
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Total project cost:
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EUR 39 million.
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Environmental impact:
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The project is screened B/1. Environmental impacts associated with the
construction and operation of modern silo storage facilities are limited and
can be readily identified through an environmental analysis. However, the
Company is involved in primary agriculture and there may be potential ESHS
issues such as excessive use of water resources for irrigation; soil
degradation due to poor soil management; use of pesticides and fertilisers;
soil and groundwater contamination due to storage of pesticides, fertilisers
or other hazardous chemicals; - Genetically Modified Organisms (GMOs); -
generation of crop residues and solid waste; fire risk; and - labour issues.
Therefore, an environmental audit is needed to establish the potential risks
and liabilities associated with the current operations and assets of the
Company particularly in relation to primary agriculture. ED will be visiting
the site for due diligence.
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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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Zeljko Erceg, Agroinvest,
Kiev, Ukraine
Tel/Fax: +380 44 522 97 80
E-mail: zeljko_erceg@agroinvest.com.ua
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EBRD contact:
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Vedrana Jelusic, Operation Leader: jelusicv@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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