Imavere Sawmill Expansion II

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 8840

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 8840

Status Complete

Location

Estonia

Business Sector

Manufacturing and Services

Notice Type

Private

Environmental Category

Approval Date

22 Dec 1999

Disclosure date

20 Dec 1999

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

Loan to A.S. Imavere Saeveski to allow the company to increase the capacity of its second sawmill line and to install a new fully computerised wood component line. This loan was Board Approved in 1999. On 11 February 2002, the EBRD approved a new operation to finance further investments into computerised technology and support the capital structure of the company.

The principal objectives of the project are to:

increase the production capacity of the sawmill line;
install a new fully computerised finger-jointed wood component production line to increase the value added of the company’s production;
install new computerised equipment for the sorting line (new loan);
optimise financial leverage of the company (new loan).

Transition Impact

The project will contribute to the transition process by:

increasing competition in the wood-processing sector in Estonia, which will improve the efficiency of forestry resources utilisation;
developing technology and skills as the new line will comprise state-of-the-art fully computerised equipment;
demonstrating to local industry the use of a new higher-quality production range.

The Client

A.S. Imavere Saeveski (IS) is a joint-stock company incorporated under the laws of Estonia. It is the largest and one of the most modern sawmills in Estonia.

EBRD Finance

Corporate loan of DM 10.0 million (€5.1 million)
Corporate loan of €7.0 million (new loan)

Project Cost

DM 14.4 million (€7.4 million)
€12.3 million (new project)

Environmental Impact

This operation was screened B/1, requiring an environmental analysis and environmental audit. The combined environmental analysis and audit conducted on Imavere Sawmill in 1997 was updated in October 1999. The due diligence revealed that the company complies with Estonian health, safety and environmental regulations and standards, with one minor exception in the area of worker safety training which is currently being addressed by the company. The company also continues to comply with applicable EU and World Bank environmental standards. Considerable progress has been made in implementing the Environmental Action Plan prepared in 1997 to meet ISO 9002 standards. The company has also introduced a new dust removal system, installed a sprinkler system in the old sawmill, and taken noise and vibration abatement measures. The additional loan will allow Imavere to cease the use of wood preservatives, further improve its energy efficiency, and continue its progress to obtain ISO certification.

Most of the wood is currently sourced in Estonia, where the volume of logging activity remains below the projected sustainable annual log harvest. Until the company has been granted Forest Stewardship Council's certificate, it will be required to use its best efforts to ensure that (i) the wood is not sourced from old growth forests or areas protected under national law or international conventions, and (ii) is supplied from sustainably managed forests, i.e. those that are, at a minimum, in compliance with all applicable regulations, standards and licences on forest management and logging in the country of origin. In 1998, a national working group including representatives from a wide range of economic, environmental and social interest groups was set up to develop, for Estonia, a voluntary certification system for sustainable forest management in accordance with internationally accepted standards. Once introduced, such certification can provide an effective tool for wood buyers who wish to assure themselves of the sustainability of their supplies.

Technical Cooperation

None.

Transition impact

ETI Score:40

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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