Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

19 May 1998



PSD disclosed:

06 Feb 1998

Project Description

Privatisation and modernisation of IMGB and FECNE, two heavy engineering plants located on the outskirts of Bucharest. The sponsor of the project and the controlling shareholder of the companies is Kværner, an international engineering group, with headquarters in London.
The objectives of the project are to: (i) privatise IMGB and FECNE; (ii) modernise the plants; (iii) increase revenues and profitability through export; (iv) safeguard employment; and (v) improve the environment.

Transition Impact

Privatisation and foreign investment will improve management and corporate governance. The sponsor will help to raise the level of skills and expertise in the plants.

The Client

The clients are IMGB and FECNE. The sponsor, Kværner, will control the two Romanian plants through an off-shore holding company funded with the EBRD. In addition, IMGB will receive a direct loan from the EBRD.

EBRD Finance

Mix of equity investment and loan totalling approximately US$ 30 million (ECU 27 million). The loan will be syndicated.

Project Cost

Approximately US$ 90 million (ECU 80 million).

Environmental Impact

The project has been screened B/1, requiring an Environmental Audit of the existing facilities and an Environmental Analysis of the proposed development. As part of the privatisation process, the Romanian State Ownership Fund has commissioned the preparation of an Environmental Audit of the facilities. Kværner has prepared an extensive environmental review of the companies, including identification of environmental risks and liabilities. Kværner has prepared an Environmental Protection Assessment and Improvement Plan to address the key environmental issues and to bring the companies in line with international standards. In addition, these studies and other environmental issues associated with the project are currently being reviewed by an independent consultant according to the terms of reference prepared by the EBRD. The final Environmental Action Plan will be structured to ensure that the facilities meet both national and EU environmental standards and regulations.

Technical Cooperation


Company Contact


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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