Sunce Koncern d.d.

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 49666

Status Complete

Location

Croatia

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 49666

Status Complete

Location

Croatia

Business Sector

Real Estate

Notice Type

Private

Environmental Category

Approval Date

28 Mar 2018

Disclosure date

23 Feb 2018

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: Croatian

Project Description

Provision of a syndicated senior loan of up to EUR 39.35 million to Sunce Koncern d.d. (the "Company"), a hospitality corporation established in Croatia, and its key subsidiaries (Hoteli Zlatni Rat d.d., Hoteli Brela d.d., Hoteli Tucepi d.d. and Hotel Alan d.d.). The EBRD's loan will be a part of a syndicated loan structure of up to EUR 93 million to be provided by the EBRD and commercial co-lenders for refinancing, permanent working capital and selected capital expenditures on the Company's hotels.

Project Objectives

The EBRD's investment will be part of a comprehensive refinancing of the Company's short and long term debt, comprising more than 20 loan facilities provided to the Company by more than 10 local commercial banks and representing adequate long term funding for further capital investments.

Transition Impact

The loan is expected to be one of the first sub-projects under the Bank's envisaged Inclusive Tourism Framework for the Eastern Mediterranean. The Framework's expected transition impact will focus on two main transition qualities, inclusive and competitive. Under the inclusive quality, the EBRD will support improved access to training and employment opportunities for young people and women in countries with high youth inactivity and unemployment as well as gender disproportion in equality of opportunity. Under the competitive quality, the EBRD will engage with stakeholders to support stronger backward linkages to local suppliers, notably in agribusiness. More broadly, the framework may also help to promote more diversified and sustainable tourism models that generate benefits for the local economies through employment, income and revenue opportunities.

Client information

Sunce Koncern d.d. is a public limited company incorporated in Croatia and listed on the Zagreb Stock Exchange. Sunce Koncern owns and operates 11 beachfront hotels on the Croatian Adriatic coast with more than 2,450 rooms, one camping ground and other tourism related properties located in 4 popular touristic locations in Croatia. It has been operating in its current form since 2005 and all properties are mostly managed and operated in-house, under the brand "BlueSun Hotels and Resorts."

EBRD Finance

EUR 39,350,000

Total Project Cost

EUR 93,000,000

Environmental and Social Summary

Categorised B (2014 ESP). Balance sheet restructuring of the Company which owns and operates 11 beach front hotels is likely to be associated with some specific environmental and social issues which can be readily identified and addressed by adequate mitigation measures.

Environmental and Social Due Diligence (ESDD) was carried out by a review of a completed Corporate ESDD Questionnaire and site specific questionnaire as well as a site visit to the four hotel buildings (February 2018). The ESDD showed that the Company has adequate environmental and social risk management capacities and operates in compliance with Croatian environmental and social law and there were no significant environmental and social issues identified with the Company and the project. The Company has HR and Occupational Health & Safety (OHS) policies covering the seasonal employees in line with PR2 and PR4.

The Company has adequate environmental and social risk management capacities and is planning to obtain Travelife accreditation (www.travelife.org). Travelife is an international sustainability certification scheme co-founded by the Eco-innovation created by the EU to assist over 1,300 hotel members around the world to improve their environmental, social and economic impacts cost-effectively. Travelife covers solid waste management, water supply and waste water management, energy and water saving, labour issues, stakeholder engagement, supply chain issues among others.

The ESDD confirmed the following: in the hotels, water is provided from the municipal water supply and wastewater is discharged into the municipal wastewater collection systems: oil traps are in place for the kitchen wastewater; solid waste is collected and sent by a licensed company to the municipal landfills. Regarding life and fire safety issues, the hotels complies with Croatian fire codes as well as international tourist hotel operators' life and fire requirements as the hotels are affiliated with them. The international tour operations send their third party auditors to inspect the hotels. The Company supports the local fire brigade by contributing to firefighting equipment in relation to forest fires. The Company has also recently built employee accommodation for seasonal workers which is the first of such in the country. This is to attract workers by providing quality of accommodation as young rural population tends to migrate to other EU countries. The Company owns some listed buildings which have been renovated and preserved in accordance with the Ministry of Culture's requirements. ESDD confirmed that the project is not associated with biodiversity and resettlement and economic replacement.

A concise Environmental and Social Action Plan (ESAP) is currently being developed to address sustainable tourism through accreditation of Travel life, construction contractor management and life and fire safety issues. The Company is required to ensure that the project is in compliance with PRs as well as submit an annual environmental and social report to the Bank.

Technical Cooperation

Technical cooperation under the Inclusive Tourism Framework for the Eastern Mediterranean will contribute to the enhancement of industry practices on inclusion, including youth and gender, as well as backward linkages. A consultant would work with the Project to map potential demand and identify local suppliers, trying to address frictions in communication and coordination.

Company Contact Information

Tea Picun

tea.piacun@bluesunhotels.com

+38516442247

+38513844177

www.bluesunhotels.com

Sunce Koncern d.d. Trpinjska 9 10000 Zagreb Croatia

Transition impact

ETI Score:70

PSD last updated

19 Nov 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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