INA: Rijeka Refinery Environmental Rehabilitation

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 5525

Status Complete

Location

Croatia

Business Sector

Natural Resources

Notice Type

Private

Project timeline

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

Project ID 5525

Status Complete

Location

Croatia

Business Sector

Natural Resources

Notice Type

Private

Environmental Category

Approval Date

27 Mar 2001

Disclosure date

30 Oct 2001

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

An EBRD loan will contribute to an implementation of programme of high priority capital expenditure related to INA's environmental performance. The programme intends to upgrade existing wastewater treatment, hazardous waste management and treatment facilities at the Company's refineries and, exploration and production division. As a result of the programme, INA would significantly reduce serious soil and water contamination in one of the most scenic parts of the Adriatic coast line and bring it closer into full compliance with EU environmental regulations.

Transition Impact

This project would facilitate the compliance of one of the major industries in Croatia with international environmental standards and would have a positive impact on Croatia’s move towards integration into the EU. The Bank’s involvement would also promote INA’s restructuring plan with a focus on profitability, sound corporate governance and privatisation.

The Client

The borrower under the EBRD facility will be Industrija Nafte Zagreb d.d. (INA), the Croatian vertically integrated national oil and gas company. As one of the largest companies in Croatia, its turnover represents approximately 5 per cent of Croatia’s GDP. The ultimate beneficiary of the EBRD’s funds will be INA’s downstream subsidiary Rijeka refinery. The Republic of Croatia will guarantee the loan.

EBRD Finance

A ten-year loan of up to €36 million to be repaid in equal semi-annual instalments.

Project Cost

Up to €36 million.

Environmental Impact

The Project was screened B/1 requiring an environmental audit of the facilities and an analysis of the modernisation programme. The Company also provided extensive information based on the Bank's Corporate Environmental Due Diligence Questionnaire. The remedial action plan is based on INA's own assesment and on the rehabilitation action programme for contaminated soil and groundwater carried out by independent environmental consultants. The independent experts identified active sources of hydrocarbon pollution being released to the subsurface soil and groundwater. To effectively address remediation, an extensive source control programme was proposed Bank's representatives have visited the facility to assess the extent of the contamination and the proposed remedial action and have reviewed INA's corporate environmental policy, procedures and performance. The project includes renewal of tank farms and pipelines; replacement of sewer systems, emission monitoring; waste treatment; construction of new landfill and modernisation of the existing one; reconstruction of waste water treatment plant and reduction of fugitive emissions. As a result of the remediation programme, INA will significantly reduce soil and water contamination to one of the most scenic parts of the Adriatic coastline and ensure full compliance with environmental standards of the European Union. Furthermore, the Project will address potential environmental liabilities that could adversely affect the privatisation process and the proposed environmental improvements will make INA more attractive for any future investor. Annual operational savings will amount to some USD 2.5 million.

Technical Cooperation

None.

Transition impact

ETI Score:75

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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