Project number:


Business sector:

Property and tourism

Notice type:


Environmental category:


Approval date:

28 Jun 2011



PSD disclosed:

29 Sep 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering up to USD 20 million equity investment in Arrones Ltd, a limited liability company registered in Cyprus.

The Bank’s equity proceeds will be used to finance land acquisition, infrastructure and other start-up and construction costs of low-rise housing developments in Russian regional cities.

Transition Impact

The Project transition impact will derive from the following key areas:

  • The Project will deliver one of the first large-scale mass-market residential developments involving a number of regional cities and built with the use of modern construction technologies, a uniform architectural concept and integrated and well-organised commercial and social space.
  • The Project will also demonstrate the use of energy efficiency technologies and practices which exceed national standards in terms of energy performance and comply with international best practice. The upgraded specifications, which include super-insulation, ground source heat pumps, LED lighting and photovoltaic panels, are comparable to the Western European best practice.

The Client

Arrones Ltd, a limited liability company registered in Cyprus. The Company is beneficiary controlled by Baring Vostok Fund IV Management Limited.

EBRD Finance

Up to USD 20 million equity investment.

Project Cost

Total project costs amount to USD 57 million.

Environmental Impact

  1. Screening Category
    Both sub-projects in Orenburg and Obninsk were categorised “B” by European Bank for Reconstruction and Development (EBRD), which means that an environmental and social analysis was required by the Bank, in accordance with the 2008 Environmental and Social Policy and Performance Requirements. The sub-projects have some environmental and social impacts which can be readily addressed through mitigation measures and an action plan.
  2. Environmental and Social Issues
    The Bank’s environmental staff and consultants carried out a monitoring visit to the Project, specifically the EcoDolie headquarters in Moscow, Orenburg and Obninsk sub-projects in September 2012. The company has been developing its sub-projects: two sub-projects under construction (in Orenburg and Obninsk), two sub-projects under planning (in Samara and Yekaterinburg ) and other three sub-projects at the earlier stage (in Sholokhovo village, Moscow Region, Ufa and Kaluga).

    The monitoring visit and review of the updated documentation provided by the company indicated that the client has adequate environmental and social risk management capacities and ensures that necessary environmental service provisions such as water supply, waste water collection system and solid waste collection are developed in tune with the housing development. In the case of the Orenburg sub-project, social infrastructure such as kindergartens and schools will be constructed with co-operation of the local and regional governments. The Corporate Environmental & Social Action Plan (ESAP) and sub-project level ESAPs for the Orenburg and Obninsk sub-projects have been implemented in a satisfactory manner. However, construction worker health and safety issues offer scope for improvements. The Bank provides additional guidance to strengthen the company’s contractor management in order to ensure construction health and safety.

    Environmental and Social Analysis Reports on Samara, Yekaterinburg and Sholokhovo village, Moscow region provided by the company did not indicate significant environmental and social issues. The company is required to continue to implement the sub-projects in compliance with EBRD Performance Requirements and submit an annual environmental and social report to the Bank. The Bank continues to monitor the sub-projects as they progress.

  3. Environmental or Social Opportunities:
    The residential housing project is in line with the Russian government's aim to provide quality housing in regional cities. The third party energy efficiency performance assessment in 2011 confirmed that the project design includes energy efficiency technologies and practices which are beyond the energy efficiency standards required in Russia. Improved levels of thermal insulation, high efficiency gas boilers and high efficiency cooling system ensure energy savings estimated at 77,752 M Hh per year of primary energy and about 15,800 tons of CO2 emission reduction per year compared with actual minimum performance requirements once the two sub-projects (Orenburg and Obninsk with 4,500 dwelling in total) are fully finished and operational.

Technical Cooperation

Due to strong prospects of sustainable energy opportunities, the Project has been provided with technical assistance under the Energy Performance Assessment and Corporate Policy Support Framework – funded by EBRD’s Special Shareholder Fund.

Company Contact

Pavel Golovach, CFO

Tel: 7 (495) 380 3478 ext.243


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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