RAO UES RESTRUCTURING LOAN.

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 6028

Status Complete

Location

Russia

Business Sector

Energy

Notice Type

Private

Project timeline

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

Project ID 6028

Status Complete

Location

Russia

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

04 Sep 2001

Disclosure date

04 Sep 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

The proposed project concerns: (a) the refinancing of short-term debt, including overdue accounts payable as part of the financial restructuring of the company prior to privatisation; and (b) the financing of urgent priority investments for the improvement in the efficiency of operations of the company.

Project objectives: The project is expectged to help RAO UES to prepare for industry restructuring and insure that it is properly carried out, striving for higher levels of transparency and corporate governance throughout the restructuring process.

Transition Impact

The transition impact of the loan derives from the following:

investments in improving transmission and communication, which will help the development of the competitive wholesale energy market to be established as part of the electricity reform programme and reduce losses;
consolidation of the debt of RAO UES which will facilitate the restructuring and unbundling which is also part of the electricity reform programme;
help in establishing an efficient market for trading carbon credits;
broadening the market for financing of electricity sector investments by the international financial community through the syndication of the loan in a very difficult market context;
improvement in the procurement procedures used by RAO UES in line with the Bank's standards and requirements;
establishment of a Working Group with participation of the Bank, open to minority shareholders and representatives of the Government to review progress of the restructuring; and
covenants that require RAO UES to consult with the Bank on the implementation of electricity reform.

The Client

RAO UES is a holding company with investments in many parts of the Russian power sector. The company owns and operates the national grid and three power stations with a total installed capacity of 2.1GW. It holds equity stakes in 46 large stand-alone power stations (59 GW) as well as in most (70 out of 72) of the regional vertically integrated heat and power companies that have a monopoly on sales to the final consumer.

EBRD Finance

A €100 million corporate loan, with €50 million to be syndicated to commercial banks.

Project Cost

€100 million.

Environmental Impact

The project was screened as C/1. The environmental issues likely to be associated with this transaction could include environmental liabilities associated with past and current operations of the company's facilities, compliance with environmental, health and safety regulations, and general corporate environmental practices of RAO UES. An environmental management review has been carried out that concentrated on corporate practices based on information available at corporate level. The company’s environmental and health and safety programmes are currently being reviewed by the Bank's environmental staff. The company is in the process of updating its ten-year environmental programme. Another initiative of RAO UES is the establishment in 2000 of an Energy Carbon Fund to help reduce greenhouse gas emissions in the sector.

Technical Cooperation

None.

Company Contact

Transition impact

ETI Score:60

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.

Our story

How we invest in changing lives

What we offer for businesses

Search