Belaya Dacha Equity



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

28 Jun 2011



PSD disclosed:

23 Jan 2009

Project Description

The project will provide up to US$ 20 million including US$ 10 million of
debt and US$ 10 million of equity financing to Belaya Dacha Trading. This
financing will support the construction of a new salad and vegetable processing
facility in Tatarstan, as well as allow the company to develop its own open
field lettuce production in Central and Southern Russia in order to meet its
needs. It will also finance its working capital needs over 2011-2014. The
financing will allow timely implementation of the investment programme and
strengthen the Client’s market positions.

Transition Impact

The Project will support a local agricultural producer in promoting market
expansion by strengthening backward linkages to the farmers via investments in
modern harvesting technologies to increase harvest yields. It will also support
introduction of healthy and value-added products to the general public outside
of Moscow as well as strengthening of the Company’s capital base and developing
its modernisation and expansion plan. Although the Company is the market leader
its further expansion should be viewed in the context of:


(i) investments in primary agriculture by applying modern cultivation methods
into various Russian regions thus improving yields and quality of raw


(ii) reduction of imports replaced by increase in domestic production and
continued support to local farmers;


(iii) increased production efficiencies securing better and cheaper products
to the end consumers.


The Client

ZAO Belaya Dacha Trading, a closed joint-stock company organised and existing
under the laws of the Russian Federation.


EBRD Finance

Up to US$ 20 million facility consisting of US$ 10 million of debt and US$ 10
million of equity.

Project Cost

US$ 32.8 million

Environmental Impact

1. Environmental classification and rationale
According to EBRD's
Environmental Policy and Procedures this project has been categorised B/0. EBRD
due diligence was structured to understand current environment, health and
safety ("EHS") impacts of the Company and issues associated with the current
operations in Moscow. The analysis of the greenfield plant in St Petersburg will
be conducted once the site for the new facilities has been decided and will
comprise a review of the OVOS (environmental impact assessment) to be undertaken
for permitting purposes.


2. Information reviewed during the environmental appraisal
submitted a range of information to the Bank including official reports
submitted for permitting purposes, internal documents on environmental, health
and safety management and an independent audit of Company’s supply chain quality
management. The Bank's aim was, among other things, to assess the Company's
management of EHS issues and assess compliance of current facilities with
national and applicable EU standards.


3. Key environmental issues and mitigation
This project may result
in a number of environmental impacts including those linked to the construction
process (e.g. increased noise, dust, traffic flows) and those linked to
operations including access to substantial amounts of drinking quality water,
disposal of contaminated waste waters and disposal of solid wastes.
Construction, food processing, and primary agriculture all present occupational
hazards (e.g. working with hazardous machinery and substances, manual handling
issues, working at heights) which need to be recognised and managed by the

The operations of BDT are currently compliant with national environmental
requirements. The Company is subject to regular inspections by a range of
government authorities including those in charge of environment, health and
safety, and hygiene. In terms of European Union standards, the Bank has made a
comparison of BDT’s activities against EU's Food, Drink and Milk Industries
Reference Document on Best Available Techniques (BAT). For those areas
identified as key issues for food industry BDT is generally complying with the
requirements of BAT. Under its agreement with the Bank BDT is committed to
maintaining compliance with both national and EU requirements for environment,
health and safety.

Being one of the main McDonald’s suppliers of iceberg lettuce BDT’s supply
chain quality management was audited by independent consultant with positive
compliance results. As a part of the ESAP the Company will implement ISO 14001,
OHSAS 18001 management systems at corporate level. The Environmental Management
System will develop key performance indicators based on EU IPPC BAT requirements
as provided in Food, Drink and Milk processes as well as the IFC EHS Guidelines
Plantation crop production of 30.04.2007.

4. Environmental opportunities
BDT are aware of the benefits of
improving eco-efficiency and is already committed to implementing actions which
minimize energy use and water consumption. Such actions include the
implementation of more energy efficient techniques for the production of PET
bottles and an increase in the recycling of production waters.

5. Summary of Environmental Action Plan
An environmental and social
action plan ("ESAP") has been drafted and includes actions for industrial and
solid waste minimisation, storm water treatment, food safety measures
improvement, and better labour relations management (workers representatives and
collective bargaining) and stakeholder engagement. The ESAP also includes
actions to implement an Environmental Management System compliant with ISO14001
and an occupational health and safety management system compliant with

6. Disclosure of Information and Consultation
The Company will
carry out its activities in accordance with national requirements for public
disclosure and consultation. Additionally, the Company is disclosing this
summary of key environmental issues locally, in accordance with EBRD
requirements, prior to the EBRD's final management review of the

7. Monitoring and Reporting
The Company will provide
the Bank with an annual environmental report and immediate notification of any
material incidents or accidents likely to have an effect on the environment or
worker and public safety.

Technical Cooperation


Company Contact

Vadim Ekomasov, CEO
Tel.: +7 495 921
Irina Shatskaya, CFO
Tel.: +7
495 921 1747


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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