Georgian Property Debt Facility - Green Building

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 37058

Status Complete

Location

Georgia

Business Sector

Real Estate

Notice Type

Private

Project timeline

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

Project ID 37058

Status Complete

Location

Georgia

Business Sector

Real Estate

Notice Type

Private

Environmental Category

Approval Date

09 Jan 2007

Disclosure date

01 Nov 2006

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

The proposed project will finance the construction, refurbishment and operation of four commercial properties (two office buildings, one shopping centre and a train station to be renovated to maximise its retail potential) in Tbilisi, capital of the Republic of Georgia.

Transition Impact

The proposed project is the Bank’s first property debt financing in the Republic of Georgia.

Tbilisi property market is at its nascent stage and requires substantial capital recourses for redevelopment of the existing stock as well as for financing of the construction of new properties. The Project significantly contributes to the structure and extent of Tbilisi real estate market by providing supply of quality product to the market which will trigger greater competition in the property sector.

In addition to that, the Bank’s investment will facilitate the development of local retail and office real estate sectors, transferring skills and know-how to the local economy during construction, implementation, and management of the three sub-projects through backward linkages in the local construction sectors. Local contractors should be engaged in construction works, which should facilitate skills transfer and upgrade them towards international standards.

The Client

Four special purpose companied registered in the Republic of Georgia which are majority controlled by Georgian Reconstruction and Development Company N.V.

EBRD Finance

Senior Loan of USD 43.4 million structured as A/B Loan comprising Bank ‘A’ loan of USD 21.7 million and Participants (commercial banks) ‘B’ loan USD 21.7 million.

Project Cost

USD 72.3 million.

Environmental Impact

Screening categories and rationale for classification

Urban property redevelopment such as this project has specific environmental impacts which, however, can be readily identified and prevented through adequate measures and application of good international practice. For the above reasons, the EBRD has classified the project B/1, requiring an Environmental Analysis and Audit of the proposed site and associated facilities.

Information reviewed during the environmental appraisal

Reviews of the completed Environmental Questionnaire and relevant documentation have been carried out and site assessments of the four sub-projects in Tbilisi are currently underway.

Environmental impacts and mitigation measures

Potential environmental issues associated with property redevelopment and operation, which can be readily identified, and mitigated include the following: soil and water contamination at the site; the status of official environmental approvals; cultural and historical heritage; environmental, health and worker safety issues (including potential labour issues) during the construction; traffic impact issues, safety of construction materials; and environmental, life and fire safety aspects during the operation of the sub-projects.

Environmental due diligence to date has confirmed that the sub-projects are unlikely to be associated with significant past environmental liabilities as well as health and safety documentation is being prepared for each sub-project. Further environmental due diligence including the site assessments will examine the remaining issues. An Environmental Action Plan (EAP) might be required if any significant shortcomings are identified during the further due diligence. The Sponsor will be required to ensure that each sub-project complies with national and EU environmental, health and safety standards and requirements. To achieve that, the Sponsor will incorporate all necessary preventive and mitigation measures into the project design as well as commit itself to good international practice.

Environmental opportunities

The project may allow for urban regeneration through the redevelopment of the existing buildings. In addition, the environmental due diligence will examine energy efficiency opportunities.

Monitoring

The Bank will evaluate the project’s compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports (AER) prepared for the project covering: (1) on-going performance of project-specific environmental, health and safety programmes if applicable, and (ii) the status of implementation of environmental mitigation measures as well as EAP if required.

Technical Cooperation

None.

Company Contact

Tbilisi: Irakli Kilauridze, CEO / GRDC N.V.

T: +995.32.942207, irakli@grdc.ge

London: Daniel Geoghegan, Partner, Argo Saint George LLP

T. +44 (0) 207 493 2797, dg@argo-sg.com

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

General enquiries

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

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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