Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

30 Jun 1998



PSD disclosed:

02 Jul 1998

Project Description

Modernisation and expansion of the production facilities of two existing wineries and construction of a third greenfield winery in Bulgaria.
Project objectives: The A and B loans, together with equity contributions from the sponsor, Baring Central European Investments B.V., the Dutch wine trader Baarsma and the EBRD, will enable the client to increase wine production capacity and improve quality through the modernisation and expansion of its two existing wineries and through the construction of a greenfield winery. Such development will enable the sponsor to secure the supply and improve the quality of Bulgarian wine it currently distributes.

Transition Impact

The project will have a strong transition impact stemming from: (i) the demonstration effect of the first major private investment in the wine sector in Bulgaria; (ii) the enhancement of skills and technology at Domaine Boyar through the introduction of new and replicable technologies based on the latest wine processing methods developed in Australia and California; and (iii) the strengthening of the competitive position of Domaine Boyar, and more generally of Bulgarian wines in their export markets.

The Client

Domaine Boyar AD, a company registered in Bulgaria, will control three Bulgarian wineries: two existing wineries in the towns of Yambol and Shoumen, which were privatised a few years ago, and a third winery to be built in the town of Sliven.

EBRD Finance

US$ 28.5 million A/B loan (ECU 25.9 million) to the client, including a US$ 19.0 million (ECU 17.3 million) A-loan from the EBRD and a Deutschmark B-loan equivalent to US$ 9.5 million (ECU 8.6 million) from ING Barings.
The EBRD will also invest US$ 2 million (ECU 1.8 million) in equity in Domaine Boyar AD.

Project Cost

US$ 61.5 million (ECU 55.9 million).

Environmental Impact

This operation has been screened as B/1, requiring: (i) an environmental analysis of the new Sliven facility and of the proposed modernisation of the wineries of Yambol and Shoumen; and (ii) an environmental audit of the existing plant at Yambol and Shoumen. These studies were undertaken by independent environmental consultants and submitted to the EBRD for review.
The analysis confirmed that both the new facility to be built and the modernisation of the existing facilities will comply with national and European Union (EU) environment, health and safety regulations and standards. Several issues identified by the environmental audit will be addressed through the implementation of an Environmental Action Plan (EAP) at each of the existing wineries, which has been agreed with the company and included in the Capital Expenditure Programme. Among other things, the EAPs contain the following improvements:
  • implementation of an Environmental Management System on a company-wide basis;
  • construction of waste-water treatment facilities at the two existing facilities;
  • removal of hazardous materials such as asbestos from on-site infrastructure;
  • monitoring and reduction of noise levels;
  • implementation of a more comprehensive occupational health and safety policy.
Management have agreed to implement the EAPs, and will report annually to the EBRD on progress with regard to that commitment.

Technical Cooperation


Company Contact


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