A proposed Multi-Project Facility (MPF) agreement with Stora Enso to co-invest in projects in forest products sectors in the EBRD's countries of operations.
The aim of the MPF projects is to support the development of higher value added production in the forest products industry in the region, which has vast wood resources, to promote a more efficient utilisation of the raw materials and modern technologies.
More about selected sub-projects:
Project name: Setles sawmill, Russia
Project size: US$ 10 million
EBRD commitment: US$ 3 million
Setles sawmill will be established and owned by the Sponsor and it will be located in the southern part of Karelia near the Finnish boarder. Setles will operate modern sorting and sawing lines with computerised production processes and quality control systems. Setles will create jobs and transfer skills and technology to the region.
The project will provide a model to other regional wood-processing and packaging companies by promoting the best technologies and product quality standards. It will also promote improvement in corporate governance standards and management know-how throughout the industry.
Stora Enso is an integrated forest products company producing magazine papers, newsprint, fine papers, packaging boards and wood products, areas in which the Group is a global market leader. In 2001 Stora Enso's sales totalled € 13.5 billion and annual paper and board production capacity about 15 million tonnes. Domiciled in Finland, Stora Enso has production facilities in 20 countries on three continents.
The EBRD would provide financing up to €100 million in the form of A/B loans syndicated to commercial banks.
The MPF has been classified C/0 and does not require an environmental analysis or audit. Stora Enso is required to conduct environmental due diligence on all projects financed through this Facility in accordance with EBRD's "Environmental Procedures for Multi Project Facilities". In doing so Stora Enso will ensure that Project Companies comply with national and local environment, health and safety regulations and standards, and also with applicable EU environment, health and safety standards. Each sub-project will be approved by the Bank on an individual basis upon review of the environmental due diligence report prepared by Stora Enso. An annual environmental report will be submitted to the Bank on the project companies encompassed by the Facility.
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Text of the PIP