BALTEX 2000 / QUALITEX

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 5772

Status Complete

Location

Estonia

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 5772

Status Complete

Location

Estonia

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

24 Nov 1998

Disclosure date

02 Nov 1998

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

Financing of Baltex’s capital expenditure programme and a knitting textile project (Lotus).

The operation will enable Baltex 2000 to complete the modernisation of a woven cotton fabric mill in Tallinn and to build a knitting mill with a dying/finishing line at its subsidiary, Lotus Colours 2000 in Sindi, Estonia.

Transition Impact

The project will support the restructuring of the Estonian textile industry by restarting operations in the previously bankrupt Sindi plant. Also, it will assist the local banks in improving due diligence skills.

The Client

Baltex 2000, together with its fully owned subsidiary Lotus Colours 2000, is the second largest cotton mill in Estonia. It was privatised in 1995 by Asean Interest Limited ( member of Tolaram Group).

EBRD Finance

EBRD financing consists of:

DM 5.0 million (ECU 2.6 million) equity investment in Baltex 2000;
DM 12.0 million (ECU 6.4 million) senior loan to Lotus Colours 2000;

The project will be co-financed with Hansapank, a local commercial bank, which will provide a DM 4.5 million (ECU 2.3 million) long-term loan to Lotus Colours in addition to its existing exposure to Baltex.

Project Cost

DM 56.5 million (ECU 28.4 million)

Environmental Impact

The project was screened B/1, requiring an environmental audit of the existing facilities and an analysis of the proposed modernisation. Independent environmental due-diligence, undertaken in 1995 and 1998 in accordance with EBRD requirements, did not identify any significant environmental issues associated with the company's operations.

The project is structured to comply with all relevant Estonian and EU legal requirements. There is no record of any fines, penalties or enforcement action against the company.

An Environmental Action Plan (EAP) has been developed by the company on the basis of the findings and recommendations of the environmental audit. The EAP sets out details of future actions to improve environmental health and safety management systems. Planned investments include the construction of a pre-treatment and waste water plant in order to remove elevated levels of ammonium nitrate presently found in the raw water intake. Significant energy efficiency and energy savings will be achieved by the modernisation of the company’s facilities.

Technical Cooperation

None

Company Contact

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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