DIROL -- DANSK TYGGEGUMMI FABRIK A/S

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 3788

Status Complete

Location

Russia

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

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

Project ID 3788

Status Complete

Location

Russia

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

21 Oct 1997

Disclosure date

22 Sep 1997

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

A DM 90 million loan to ZAO Dirol, a newly created company, for construction of a new chewing gum factory, located in Novgorod, Russian Federation.

The main objective of the project is to substitute imported finished and semi-finished products with chewing gum produced in Russia in a modern, state-of the-art facility. The proceeds of the loan will be used to pay for construction of the building, acquisition of equipment and related services.

Transition Impact

The operation will promote competition in the consumer goods market, have a demonstration effect regarding modern cost-effective production in Russia and encourage skills transfer.

The Client

ZAO Dirol – a joint-stock company established for the purposes of manufacturing chewing gum for the Russian market. The sponsor of the project is Dansk Tyggegummi Fabrik A/S, Denmark – the largest manufacturer of coated chewing gum in Europe.

EBRD Finance

A DM 90 million (ECU 45.9 million) loan will comprise an "A" loan portion of DM 60 million for the Bank's account and a "B" loan portion of DM 30 million for the account of participating commercial banks.

Project Cost

The total project cost is DM 175 million.

Environmental Impact

The project was classified as B/0, requiring an Environmental Analysis of the potential impact resulting from the construction and operation of the facility. As the project had already undergone the Russian OVOS (equivalent to an Environmental Impact Assessment), it was not considered necessary to undertake further environmental impact studies. An English translation of the OVOS was reviewed by EBRD staff, and judged to be satisfactory. Further information was required to assess compliance with European Union environmental standards. The Russian factory will be based on the same design as the parent company in Denmark, utilising the same production equipment. The Danish facility complies with strict Danish and EU environmental standards, and therefore the Russian facility will operate to the same standards. Dansk Tyggegummi Fabrik A/S is committed to ensuring that both Russian and EU standards will apply, and ZAO Dirol intends to develop an Environmental Action Plan, incorporating improvement suggestions from the Russian environmental experts, to assist in the implementation of this commitment. ZAO Dirol will submit to the EBRD an annual environmental report, including updates on the implementation of the Action Plan.

The production of chewing gum is not associated with major environmental impact. Issues that might be of concern include hygiene issues related to raw materials, production, odours, dust, noise and product standards, workers' health and safety, solid waste and waste-water management and issues related to auxiliary facilities, including air emissions from boilers, energy consumption and efficiency. All of the above issues will be adequately mitigated through project design and process technology. For example, the exhaust ventilation system will include various air filters to ensure a cleansing efficiency of 98 per cent of pollutants, boilers will be powered by natural gas and include economisers to save energy, many waste streams will be sent for recycling and a waste-water treatment station will be incorporated into the facility, thus ensuring waste-water discharges comply with both EU and World Bank guidelines.

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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