Construction of grain storage and handling facilities at the Port of Constanza, Romania.
The main objective of the project is to support the expansion and modernisation of the grain handling and storage services offered to trading companies in the region as well as to introduce efficient, commercially operated grain facilities under private management and control at the Port of Constanza.
The transition impact would be realised through the following transition indicators:
- Market expansion – the project will introduce market efficiency, innovation and customer orientation to the grain handling sub-sector through competitive pressure. Setting up a private company will stimulate competition at the Port through the company's interactions with suppliers and clients.
- Private ownership – the project will introduce private sector ownership in an area dominated by state-owned enterprises.
- Demonstration effect – the project provides a clear demonstration of commercially oriented grain handling operations.
The client is Silotrans S.A., a joint-venture company formed by East Point Holdings Ltd (EPH) and Romtrans S.A. It is registered in Romania and has the sole purpose of building and operating the Constanza grain terminal facilities.
The sponsors are: (a) East Point Holdings Ltd (EPH), a Cyprus-based commodities trading company; (b) Romtrans S.A., a forwarding and port handling company registered in Romania.
A loan of US$ 14 million (ECU 12.8 million), part of which will be syndicated to commercial banks.
US$ 23.4 million (ECU 21.4 million).
The project was screened B/1, requiring an environmental analysis of potential impact associated with the expansion and modernisation of the grain terminal and an environmental audit to identify any environmental liabilities associated with the existing facilities. These studies were completed, to the satisfaction of the Bank, in October 1997 and concluded that there would not be any significant environmental impact resulting from the project.
Of the impact considered, air pollution by dust was ranked as the most important, and the reports showed that adequate mitigation, such as enclosed grain transfer mechanisms and dust filters, had been incorporated into the project design. In order to ensure that the project complies with both Romanian and European Union environment, health and safety standards, an Environmental Action Plan (EAP) is being developed by the environmental consultants responsible for the audit and analysis, which will be reviewed and approved by the Bank. The EAP will form part of the legal agreements governing this project, and the client will be required to provide annual reports on its implementation.
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