Proposed capacity expansion and upgrading of the company’s existing pharmaceutical facilities in Vršac, FR Yugoslavia to meet the increased demand for Hemofarm products. The proceeds of the Bank loan will be used to finance capacity expansion and facilities/equipment upgrade to meet the increased market demand for Hemofarm’s products.
This will be the first project with a strong, privately-owned local sponsor in FR Yugoslavia. The transition impact of this project is emphasised by the ability of recently privatised companies to access capital in the form of a long-term corporate loan. The Project will also help foster competition and efficiency in the country’s pharmaceutical sector.
Hemofarm A.D., a joint stock company, incorporated in FR Yugoslavia, manufacturing pharmaceuticals, vitamins, medical materials, veterinary and crop protection products.
€18.0 million senior loan to the Company. The facility will be split into two phases: Phase 1 in the amount of €12.4 million and Phase 2 in the amount of €5.6 million.
The Project was screened B/1. Independent environmental consultants undertook environmental due diligence, which included an environmental audit and environmental analysis of Hemofarm's facilities. An environmental specialist from the Bank also conducted a site visit to Hemofarm facilities in October 2001. The environmental investigations confirmed that all Hemofarm facilities comply with Yugoslav and Serbian legal requirements.
Hemofarm has been certified ISO 9000 and is expected to obtain the Environmental Management System, ISO 14000 certification, in May 2002. These two certifications, along with the Bank's investment, will assist Hemofarm in substantially upgrading the environmental management of its facilities. These upgrades are detailed in the Environmental Action Plan (EAP) and include improvement of air emission monitoring and control, better housekeeping in waste management, and participation in the upgrade of the municipal wastewater treatment plant. An EAP was agreed with the company and when implemented will ensure compliance with all relevant EU environmental standards.
The company will report annually to the EBRD on the progress of implementation. In addition, Hemofarm will provide a copy of the Environmental Impact Assessment (EIA) which is required by the Serbian authorities for the construction of the extension to its facilities.
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