Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

06 Apr 2004



PSD disclosed:

19 Jan 2004

Project Description

The proposed project will consist of debt and equity financing of JSC Narzan (the Company), a leading Russian mineral water producer located in Kislovodsk, Stavropol region. The Bank's financing will enable the Company to expand its bottling capacity, develop new products and satisfy the working capital needs.

Transition Impact

The transition impact of the Project is expected to be good and will derive primarily from corporate governance improvement resulting from the Bank's involvement as shareholder in the Company, including the introduction of IAS accounting, integrated MIS systems, and an independent board director. Additional transition impact will derive from: (i) the demonstration effects of the Bank's investment in a region which has seen relatively little investment; and (ii) forward linkages based on the Company's know-how transfer to distributors across the country.

The Client

JSC Narzan is a joint stock company, incorporated in Russia and focused on production, bottling and distribution of mineral water.

EBRD Finance

Up to US$ 12.25 million financing, which includes a secured senior corporate loan and an equity investment into the Company.

Project Cost

US$ 12.25 million

Environmental Impact

Screened B/1. An environmental audit and analysis of the operations, including a site visit to the Kislovodsk facility by the Bank's Environmental Specialist, confirmed that there are no significant environmental issues associated with the project and demonstrated the company's commitment to high environmental standards. The environmental due diligence addressed a range of issues including the impact of water abstraction on the regional water balance and the security and supply of the water source and product quality vis-à-vis applicable international standards; and post consumer waste issues. The company is committed to comply with all relevant national and EU environmental, health and safety standards.

Technical Cooperation


Company Contact

Viacheslav Sinadski, Member of the Board of Management.
Tel: +7 095 775 3949
Fax: +7 095 244 7511

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

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Text of the PIP

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