Serbia - Lafarge BFC



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:




PSD disclosed:

09 Nov 2012

Translated version of this PSD: Serbian

Project Description

The EBRD is considering providing financing to Lafarge Beocinska Fabrika Cementa to support its capital expenditure programme which includes the development of number of energy efficiency investments, further modernization of production facilities, environmental enhancements, and targeted acquisitions and integration of aggregates businesses with its main cement operations.

The Project will support Lafarge BFC to implement its investment strategy in the aggregate business and energy efficiency programme in Serbia.

Transition Impact

  • Setting standards of energy efficiency, environment and health safety, including targeted increase in alternative fuels use of more than 50 per cent of total fuels thermal contribution.
  • Demonstration of successful restructuring and integration of aggregates business, through development of a business operating model that will maximise synergies of cement and aggregate business and improve efficiency.

The Client

Lafarge Beocinska Fabrika Cementa, a cement producer in Serbia, fully owned by Lafarge S.A. in France.

EBRD Finance

Equity financing of up to EUR 58.0 million. The investment will be made in three separate tranches to reflect the timing of the investments.

Project Cost

Approximately EUR 58.0 million.

Environmental Impact

Category B. Environmental and social issues associated with an investment program at an existing cement plant can be readily assessed and mitigated as part of an Environmental and Social Due Diligence (ESDD).

The Bank has undertaken an ESDD, and this has confirmed that the Company has the capacity to fully implement the Bank’s Performance Requirements (PRs). The ESDD confirmed that the Company has a good Environmental, Health and Safety (EHS) system and has undertaken significant investments in environmental abatement over the past decade. These have included the closing down old wet lines and upgrade of the dry cement plant. As part of the on-going investment process the company is implementing EU Best Available Techniques (BAT) requirements and an IPPC permit is to be issued shortly. The current investment program will allow the Company to fully comply with the EU Industrial Emission Directive (IED) prior to 2016.

The company is developing a quarry management and rehabilitation program to ensure that impacts are limited on the nearby National Park. These include specific traffic management plans. The quarries are well managed and impacts are limited, although additional investments are needed to treat the limestone quarry mine water. This has been included in the Environmental and Social Action Plan (ESAP).
Based on the ESDD an ESAP and a Stakeholder Engagement Plan (SEP) has been developed for the Project.

The Bank will monitor the implementation of the Project

Technical Cooperation



Business opportunities

For business opportunities or procurement, contact the client company.

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