OJSC "POKROV GLASS PLANT"

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 35275

Status Complete

Location

Russia

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 35275

Status Complete

Location

Russia

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

06 Jul 2004

Disclosure date

27 May 2004

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

In March 2004, Anadolu Cam Sanayii A.S. (Anadolu Cam), a large glass container producer and member of the Turkiye Sise ve Cam Fabrikalari A.S. group, acquired OAO Pokrovsky PSZ from Norum, an EBRD Regional Venture Fund (RVF) focused on NW Russia, through its subsidiary Anadolu Cam Investment B.V. in the Netherlands .

Anadolu Cam has requested the Bank’s involvement in a 2 phase project to finance:

(i) completion of the Company’s reconstruction and turnaround as originally foreseen by Norum

(ii) expansion of the Company’s capacity via the addition of a second furnace.

Transition Impact

Contribution to post-acquisition restructuring needs of an existing operation. This project involving the only strategic investor currently present in the Russian glass container sector will bring the right levels of skills, training and manufacturing know-how to a company where these factors are urgently and demonstrably required given previous financial and operational difficulties at OAO Pokrovsky PSZ.
Introducing greater competition and innovation. With Phase 2 of the project Anadolu Cam intends to introduce lightweight bottle technology to the Company. It is expected this will be the catalyst for similar investment and innovation by other glass container producers in the NW Russia region.
Contribution to market expansion. Through the interaction with other parts of the food chain, the project will assist the company to provide the Russian food and beverage processing industry with greater choice of and better quality food packaging on a consistent and stable basis.

The Client

OAO Pokrovsky PSZ is a glass container manufacturer located in NW Russia. Currently its principle activity is to produce containers for the brewing industry.

EBRD Finance

An senior secured loan available in 2 phases:

Phase 1

(i) US$ 3.5 million investment loan

(ii) US$ 5.5 million revolving working capital loan; also to be available in RUB subject to market conditions.

Phase 2

US$ 11.25 million investment loan on an uncommitted basis and to be syndicated.

Project Cost

US$ 37.5 million

Environmental Impact

1. Environmental classification and rationale
The project was classified by the EBRD as a B/1 project requiring an environmental audit of the current facilities and an environmental analysis of potential impacts associated with the planned expansion in capacity.

2. Information reviewed during the environmental appraisal
Pokrovsky commissioned an independent environmental consultancy to conduct the environmental audit and analysis of its facilities to obtain an independent assessment of compliance with national and applicable EU environment, health and safety (“EHS”) standards, the specific environmental risks associated with past and current operations and to get recommendations for the improvement of EHS management. The recommendations for improvements have been formalised in a costed environmental action plan (“EAP”).

3. Key environmental issues and mitigation
A facility of this nature may be associated with a number of environmental issues which create environmental risks. These include air emissions from both the forming of the glass and from furnaces, storage and use of hazardous chemicals, use of water in the process and subsequent discharge of waste waters. The audit of the facility concluded that there were no significant environment, health and safety risks or non-compliances likely to impact the operation of the facility. Environmental issues are sufficiently managed to minimise such risks to, and impacts on, both the environment and staff. A number of major issues have already been solved by the Company, including, for example, a switch from oil to gas fired boilers which has resulted in a 4 times decrease in air emissions. There are, however, a number of issues which still need to be addressed including improvements in house-keeping, repair of waste water treatment facilities to better deal with suspended solids, and better management of certain non-hazardous solid wastes. Pokrovsky had already developed an EAP covering the years 2004 - 2008. This was reviewed and modified by the independent environmental consultants to ensure compliance not only with national environmental standards but also good international practice.

4.Environmental opportunities
The improvement of the environmental performance of the Company is a key aspect of the Company’s environmental management system and the EAP includes the development of a programme to reduce fresh water use and energy consumption and further minimise waste production.

5.Summary of Environmental Action Plan
The EAP covers air emissions, waste water treatment, solid waste management, house keeping and general environmental management. Actions include the installation of a number of filtering devices to reduce air emissions, reconstruction of the mechanical aspect of the waste water treatment system, reconstruction of the water intake from the local river, implementation of a waste minimisation plan and more efficient removal of solid wastes from the site and improvements to the overall management of environment, health and safety issues.

6. Disclosure of Information and Consultation
Pokrovsky is required to carry out its actions in accordance with national requirements for public disclosure and consultation. Additionally, as a Category B project, Pokrovsky is requested by the EBRD to release locally a summary of relevant environmental issues associated with the project and summarise the mitigation measures, action plans and other initiatives agreed. This annex was translated into the local language and released locally in accordance with those requirements.

7. Monitoring and Reporting
Pokrovsky will continue to monitor the environmental impact of its operations in accordance with Russia law. It will also provide the EBRD with an annual environmental report covering, among other things, progress on implementation of the agreed EAP.

Technical Cooperation

None.

Under the ownership of Norum, OAO Pokrovsky PSZ benefited in 2003 – 2004 from technical co-operation funding of approx. € 430,000 from Finland, Norway and Sweden. Funding was to used provide technical expertise, financial reporting assistance and investment and human resource guidance and recruitment services. This programme was terminated when the Company was sold to Anadolu Cam Investment B.V.

Company Contact

Aytac Mutluguller, Manager, International Finance & Investments
Turkiye Sise ve Cam Fabrikalari A.S.
Is Kuleleri
Kule 3
34330 4
Levent, Istanbul
Turkey

Fax: +90 212 350 5036

Transition impact

ETI Score:60

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

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Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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