DFF - Coral Serbia



Project number:


Business sector:

Natural resources

Notice type:


Environmental category:


Approval date:

25 Feb 2020



PSD disclosed:

29 Jun 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Provision of a senior unsecured 7-year loan (the "loan") of up to EUR 10m-equivalent in Serbian dinars (RSD) to Coral SRB d.o.o to finance the expansion of Coral Group to the Serbian market through the development of the Shell brand gas station network, offering high quality fuels and lubricants. The loan will be guaranteed by Goral Group, a leading fuel retail company in Greece and 100% shareholder of Coral SRB.  

Project Objectives

The project will support the expansion of the fuel stations network to 30 gas stations by 2023 and the offering of premium quality fuels on the Serbian market. The project represents a good opportunity for the EBRD to support the cross-border expansion of a private operator to a new market, promoting higher industry standards and enhancing competition.

Transition Impact

ETI score: 57

The Tracsition Ompact of the project is expected to derive from the "competitive" transition quality by supporting the expansion of a privately-owned regional company offering superior quality V-power fuel which is not available in the Serbian market. The project will also promote "resilience" through local currency financing which will help manage currency mismatches and contribute to promoting local currency lending in the country.

Client Information


The borrower is Coral SRB d.o.o. Beograd, a distribution and fuel trading company established in Serbia in 2017 with the aim to develop a network of retail stations in the country operating under the Shell brand.

EBRD Finance Summary

RSD 1,180,000,000.00

RSD 1,180,000,000

Total Project Cost

RSD 4,366,000,128.00

RSD 4,366,000,000


The EBRD offers financing with a longer grace period and a back-loaded repayment profile that will help the company to match longer-term cash flows from assets acquired with debt repayment. The longer tenor financing, which is available in the market only limited, will also help the company to implement its expansion strategy to a new market. In addition, the EBRD offers a local currency loan, which will help the business to avoid an asset vs liability currency mismatch.


Environmental and Social Summary

Categorised B (2014 ESP). The Environmental and Social (E&S) risks and impacts associated with the expansion of retail filling stations are site specific, can be readily assessed and avoided or mitigated through good design, management practices and targeted E&S actions.

Internal Environmental and Social Due Diligence (ESDD) was undertaken by ESD resources. This included a review of corporate standards of the company for operating retail filling stations by means of questionnaires. Supporting documents reviewed also included the company rulebook for managing safe operations, emergency plans relevant for all stations, contractor audit standards and fuel delivery procedures. The ESDD focused on corporate standards for the existing operations and also for the planned future expansion of the retail filing stations which may include both new constructions or the acquisition of existing stations.

The company currently operates four active retail filling stations in a well-regulated sector. Stations are periodically inspected by relevant authorities to ensure compliance and continued permission to operate under local license. National legislation in Serbia associated with the operation of retail filling stations are aligned with EU standards. The company operates under a well know global brand (Shell) through a licensing agreement. This requires the company to implement specific E&S management arrangements to ensure they meet brand performance requirements. These include performance monitoring, brand assurance and audit processes.

The company has developed an Environmental, Health and Safety (EHS) management system to manage operations and although these systems are not yet certified, the company is currently working to complete certification as per respective ISOs. A dedicated Health, Safety, Security and Environmental (HSSE) Advisor has been appointed locally and operations are closely monitored by the parent company a well established operator in Greece. The company confirmed the EHS performance in Serbia contributes to the parent company's EHS performance scorecard. Human Resources are currently managed by the parent company in Greece with a Serbia focal point to coordinate and manage local issues. A majority of staff are employed through employment agencies and no formalised grievance mechanism in place. It was confirmed as operations increase the company plans to transfer all core staff into direct employment. All employees are provided with relevant EHS training, including managing the delivery of fuel products and dealing with all foreseeable emergency situations. All contractors are evaluated prior to engagement and must agree to the Shell General Business Principles which the company have adopted as core values and their operating philosophy. These eight principles cover E&S, and other core topics, and set expectations for all operations. Contractors are periodically audited to confirm compliance with these principles. The company have carried out the classification of hazardous areas for each retail filling station, and these are in line with ATEX 137 EU Directive. Emergency plans are in place for each retail filling stations to deal with all foreseeable emergency situations. The company confirmed the construction operation and maintenance of all storage tanks, and associated equipment, follow international standards and any local requirements. Each station undergoes planned preventative maintenance to manage pollution risks and includes periodical pressure testing and physical inspections of all below and above ground storage vessels to ensure integrity. All new construction sites will be subjected local environmental impact study.

The company has demonstrated good E&S management arrangements and the project has been structured to meet EBRD performance requirements. As operations increase in Serbia, the company will be required to continual review these arrangements and as necessary increase capacity and further develop E&S arrangements. Prior to the acquisitions of existing stations the company will required to assessed the E&S risks and impacts and identify any legacy issues prior to acquisition. A Project specific Environmental and Social Action Plan (ESAP) has been developed and will be agreed and implemented by the client. Actions include, inter alia; to undertake ESDD on future acquisitions to ensure compliance with the EBRD E&S Policy (2014) requirement; further develop EHS management systems to align to international good practice as operations increase; periodically review and increase EHS capacity to ensure adequate organisational arrangements to manage risks; undertake an independent labour audit of the workforce in compliance to PR2 requirements and develop and implement a formal worker and operational grievance mechanism. A Stakeholder Engagement Plan (SEP) will also be developed and implemented by the client and the project will be monitored through annual reporting and site visits as appropriate to confirm ESAP implementation progress and PR compliance.

Technical Cooperation and Grant Financing

No Technical Cooperation assignments are envisaged as part of the Project.

Company Contact Information

Spyros Balezos
+30 (210) 9476155

PSD last updated

29 Jun 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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 compliance@ebrd.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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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