CNH/Kamaz: Senior Debt



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

07 Dec 2010



PSD disclosed:

15 Oct 2010

Translated version of this PSD: Russian

Project Description

The EBRD is considering financing the manufacture of tractors, combines and other agricultural and construction machinery. The investment will be used for the modernisation of the existing production premises of OAO KAMAZ and purchase of modern production equipment. The project will be located in Naberezhnye Chelny, the Republic of Tatarstan. The project will be implemented by a joint venture set up by OAO Kamaz and CNH Global N.V.

Transition Impact

The project is expected to benefit the transition process by: transferring skills through backward linkages to the local suppliers as well as training of local employees; setting standards in the area of environmental management through introducing European Union environmental standards; and introducing modern agricultural equipment increasing competition in a developing market.

The Client

OOO CNH-Kamaz Industriya, a 50/50 joint venture set up by KAMAZ and CNH, will be the beneficiary of the financing. It will be managed by KAMAZ, a leading Russian heavy truck manufacturer and CNH, one of the worlds’s leading agricultural and construction machinery manufacturers.

EBRD Finance

The financing will be in the form of a senior secured Rouble-denominated loan to the Company of the Rouble equivalent of up to USD 30 million (about RUB 915 million).

Project Cost

The initial project cost is estimated at USD 70 million (excluding working capital).

Environmental Impact

Environmental classification and rationale

The project is Categorised IESE. The Bank is awaiting the findings of an Environmental Assessment that is being carried out on behalf of the Company before finalising a full Categorisation.

Due diligence

The Bank has worked with the Company and supported their engagement of an Independent Consultant to carry out a Corporate Environmental Audit of the Company’s operations and a detailed Environmental Analysis of the Project. The due diligence assessment will evaluate the Company’s capacity to operate within the Bank’s Environmental and Social Policy and Performance Requirements. Should areas be identified where improvements are required to meet those standards then an Environmental and Social Action Plan shall be drafted to document the necessary activities.

Disclosure of information and consultation

In the context of the EBRD’s participation in the project, the Company will release locally a summary of relevant environmental issues associated with the project and summarise mitigation measures, action plans and other initiatives agreed.

Monitoring and reporting

The Company will monitor the environmental impact of its operations in accordance with national law and regulations. The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports prepared for the project covering:

(i) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programmes, and
(ii) the status of implementation of environmental mitigation and improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.

Technical Cooperation


Company Contact

Michele Lombardi
Tel.: 41 91 985 38 69
Fax: 41 91 985 36 48
Address: Riva Paradiso 14
6902 Paradiso-Lugano


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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