A senior loan of up to EUR 36.7 million to CTPark Bucharest West I SRL (the "Company"), to support the Company's expansion within the existing logistic park (the "Bucharest West Park") located in the outskirts of Bucharest, 23 km west of the city center.
The proceeds of the loan from EBRD will be used to finance the development of two new warehouses in Bucharest West Park.
ETI score: 60
The main transition impact of this operation is expected to come from setting standards of corporate governance and business conduct. The two newly developed warehouses will incorporate best available technologies, potentially to be reflected in certification under an internationally recognised scheme (such as LEED or BREEAM). Since building certification of logistics assets is not yet very common in Romania, this project is expected to demonstrate advanced building sustainability standards.
CTPARK BUCHAREST WEST I SRL
The Company is part of CTP Group and owns and operates Bucharest West Park of approx. 600,000 sqm gross leasable area ("GLA"). CTP Group owns the largest portfolio of premium business parks in Central Europe with over 3 million sqm GLA of A-Class properties in over 60 strategic locations.
EBRD Finance Summary
Total Project Cost
Total project cost is EUR 111.8 million and includes the value of existing buildings within Bucharest West Park and the development cost of the new warehouses.
Environmental and Social Summary
The project was categorised B in accordance with the 2014 EBRD Environmental & Social Policy as the environmental and social impacts associated with the Project can be readily identified and addressed by adequate mitigation measures. Environmental and Social Due Diligence (ESDD) undertaken by ESD staff focused on examining the client's environmental and social risk management capacities, legal compliance, impacts and mitigation measures related to the refurbishment work, and the potential impacts to existing tenants.
The two warehouse buildings currently under construction are located next to each other in an existing logistic park on the outskirts of Bucharest. There are no residential housing, schools and hospitals in close proximity as the buildings are in an industrial zone. They are expected to become operational in 2017. The Sponsor has the largest portfolio of premium business parks in Central Europe and is accredited with ISO14001 and ISO 50001 at the Group level. The Sponsor both at the group and project levels has had no legal breach in relation to environment, labour and health and safety standards for the past two years. Their strategy is to own the portfolio for a longer term, and therefore energy and resource savings are sought to reduce the maintenance costs. The company has an established design template for the warehouses in line with good international practice, and a traffic study has also been carried out for each development.
The land plots are greenfield, and a geotechnical survey has been undertaken for each plot. The survey results showed that the sites are suitable for the warehouse development. An environmental permit for the warehouse construction, including public disclosure of the project by the municipality, has been obtained prior to a construction permit being issued in accordance with the Romanian law. The sponsor asserted that there are no known public concerns about the project. The project is not associated with resettlement and economic displacement. Given the location, there are no issues associated with biodiversity and cultural heritage impacts. Water is supplied from wells drilled in the logistic park with an official permit. Wastewater is pre-treated at the site and discharged to the municipal sewage network with a permit. Construction waste and solid waste generated by the project are handled and disposed in accordance with the national law.
Regarding the life and fire safety, the project will be equipped with automated fire alarm, sprinkler and hydrogen fire fighting systems. Prior to the commencement of the warehouses, the local fire authority will inspect the facilities to confirm that the fire prevention and fire fighting systems are in accordance with the approved design. The Sponsor regularly monitors the use of the warehouses to ensure the safety standards are maintained on site.
With regard to construction worker labour and Occupational and Health issues, the following were identified in the ESDD. One warehouse under EBRD's financing has been already roofed and the other warehouse's structure has been built. The structure of the warehouses are relatively simple compared with other types of buildings. There are approximately 80 workers at the site (February 2017). During the remaining work, a maximum of approximately 200 workers will be at the site. All construction workers' employment documentation needs to be in place and it is checked as the first requirement by the labour inspector when the inspection takes place. The workers commute from the surrounding areas, and there is no on-site accommodation. The general contractor is part of the group and hires various specialised subcontractors. The subcontractors are obliged to comply with Romanian environmental, labour, health and safety law stipulated by the contracts exchanged with the general contractor. There have been no material accidents at the project site from the start of the earth works. Any incident involving requests for ambulance services at the project site is required to be reported to the authority and to be followed up by the Client. When the site becomes operational, there will be a need for a grievance mechanism that can be used by workers and tenants of the buildings which has been included in the ESAP.
While the remaining construction, finishing and commissioning work are relatively less complex, there is a scope for improvement in terms of construction OHS practice such as stringent enforcement of wearing protective helmets and fencing the work area. An ESAP is currently being developed to address construction workers and public grievance mechanism, OHS risks and mitigation measures during the construction and operational stage. The Bank is also in the discussion with the sponsor about the possibility of energy efficiency accreditation. If it is agreed by the sponsor by time of the Board discussion, it will be incorporated into the ESAP.
The Sponsor is required to ensure that the project complies with EBRD's PRs as well as submit an annual environmental and social report to the Bank.
Technical Cooperation and Grant Financing
Company Contact Information
Ana Dumitrache, Co-Country Manager
CTP, 5-7 Vasile Lascar St., 2nd floor, Bucharest, sector 2, 020491, Romania
The proceeds from the loan agreement were used by CTP to finance the development of two new warehouses within an existing logistics park situated in the outskirts of Bucharest. The Project delivered the expected transition impact, as both buildings received BREEAM certification (one of the most recognised sustainability certifications), target technologies were installed and green clauses were introduced in the lease agreements.
PSD last updated
07 Jul 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.