Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

17 Jun 1997



PSD disclosed:

30 Apr 1997


Project Description

Cementownia Chelm S.A., a Polish registered company. It is a producer of cement, located at Chelm in south-west Poland.

The project will finance the completion of the company's modernisation programme, which will: (1) make the company one of the most efficient cement producers in Poland; (2) substantially improve the environmental performance of the company; (3) enable the company to compete effectively with other cement producers now owned by major European companies; (4) contribute to the overall modernisation and restructuring of the cement industry in Poland and thereby facilitate its ability to meet Poland's needs for residential and economic infrastructure; (5) contribute to the continuing operation of a major employer in a relatively undeveloped region of Poland.

Transition Impact

The expected transition impact is high as the project will contribute to: (1) promoting competition; and (2) demonstrating ways for successful restructuring.

The Client

Cementownia Chelm S.A., a Polish registered company. It is a producer of cement, located at Chelm in south-west Poland.

EBRD Finance

DM 56 million (ECU 28.8 million)

Project Cost

DM 105 million (ECU 54 million)

Environmental Impact

This operation has been screened as B/1, requiring an environmental audit of the existing facilities and an environmental analysis of the proposed modernisation and development programme. The required studies have been carried out by an independent consultant according to the terms of reference prepared by the EBRD. The environmental audit confirmed that the company has all relevant environmental permits and fully complies with requirements stipulated by these permits. The environmental awareness and appreciation of environmental, health and safety performance and potential liabilities of the company's management are very high and, as a result, many of the necessary monitoring and management systems are already in place.

Chelm III will have positive environmental effects: (i) significant reduction of energy and fuel consumption; (ii) reduced volume of flue gases and therefore of atmospheric emissions by about 95 per cent; (iii) reduced water usage by about 90 per cent and reduced waste-water discharge; (iv) reduced solid wastes; (v) a decrease in the number of noise sources and improved acoustic parameters of equipment. Chelm III will be in compliance with all current and future environmental standards and regulations, including those resulting from the harmonisation process with the European Union (EU).

The environmental audit of the existing facilities identified several issues, which will be addressed through the implementation of the Environmental Action Plan (EAP) within the next three to four years to bring the existing plant into compliance with relevant Polish and EU environmental standards.

The company will be required to report annually on environmental, health and safety matters including progress on implementation of the EAP and compliance with the relevant regulations. Prior to project completion, the company will also be required to commission an independent audit of its facilities according to terms of reference agreed with the EBRD.

Technical Cooperation


Company Contact


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