Healthy People - Equity

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 41665

Status Complete

Location

Russia

Business Sector

Manufacturing and Services

Notice Type

Private

Project timeline

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

Project ID 41665

Status Complete

Location

Russia

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

10 Nov 2010

Disclosure date

07 Sep 2010

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."

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a financial package of €20 million in combination equity and debt to finance the expansion of the Zdorovye Ludi (“Healthy People”) pharmaceutical retail chain mostly in the Russian Regions, and to refinance Company’s short-term debt, thus improving its capital structure.

The Project will lead to an increased competition in the Russian pharmaceutical market, contributing to an improved price-to-quality balance in the sector in Russian Regions.

Transition Impact

The Project transition impact will derive from the following key areas:

(i) Enhancing local competition and reducing the market share of State controlled pharmacies.

(ii) Transfer of skills through collaboration with local universities that includes organisation of internships for students in Healthy People drugstores and subsequent employment of students. In addition, some employees of the Company are also professors in local universities.

Locally hired staff will also benefit from the training programmes carried out in the headquarters of the Company.

(iii) Improvement of corporate governance.

The Client

Zdorovye Ludi (“Healthy People”), a pharmaceutical retail chain in Russia.

EBRD Finance

€20 million in combination of equity and debt.

Project Cost

Total project costs amount to €20 million.

Environmental Impact

Environmental classification and rationale

The project is categorised B. The expansion of a pharmaceutical retail network is associated with a number of site specific issues, which can be readily identified, assessed and mitigated through measures as defined in the Environmental and Social Action Plan.

Key environmental issues and mitigation

Environmental issues associated with the Company operation’s are not significant with regards to environmental, health and safety and social impact.
Due diligence has been carried out on the Company operations by means of discussions with management around policies, procedures and performance against environmental and health and safety regulations; and the corporate activities undertaken with regard to stakeholder engagement. Selected operational outlets were also visited to inspect operational conditions. Certain areas were identified that require to be addressed to bring the operations into compliance with the Bank’s Environmental and Social Performance Requirements (PRs) and these issues have been addressed via the drafting of an Environmental and Social Action Plan (ESAP) which is currently being agreed with the Company.

Summary of Environmental Action Plan

The Company will be required to adhere to the Bank’s PRs. Specific actions include the drafting and implementation of an Environmental Management System in line with the requirements of ISO 14001; the drafting of a Stakeholder Engagement Plan in line with the Bank’s PR10; upgrades to the current Health and Safety Management System where required to bring it into compliance with the requirements of OHSAS 18000; and the implementation of a Contractor Management Plan to ensure that the actions of contractor’s meet the requirements of the various management plans outlined above and the Bank’s PRs.

Monitoring and reporting

The Company will monitor the environmental impact of its operations in accordance with national law and regulations. 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 prepared for the project.

Technical Cooperation

None.

Company Contact

Alexey Batulin
General Director
OOO “Healthy People”
Primorsky pr., b.54, k.1, lit.A
St.Petersburg, 197374
Russia

Phone +7 812 321 0011
Website: www.zl.ru

PSD last updated

21 May 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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