Velvet Care Tissue II



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

23 Jun 2020



PSD disclosed:

06 Jul 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 long-term financing in the amount of EUR 24m, that will allow Velvet ("Borrower", "Client") to (i) install new state-of-the-art paper machine, as well as (ii) cogeneration plant (jointly referred as "Project"). 

It is the second project with EBRD after successful start up of very similar tissue machine in 2018.

Project Objectives

The Project will allow the Client to remain a leading tissue manufacturer on the Polish market. The Project will also reduce Borrower's carbon footprint by switching to internal electricity generation from gas in co-generation plant.

Transition Impact

ETI score: 67

The Project supports Company's (i) competitiveness, through support of innovative tissue paper production, as well as (b) foster Green Economy Transition, through reduction of exposure to carbon intensive electricity sources, due to switch to internal generation in gas-fired co-generation plant.

Client Information


Velvet Care Sp. z o.o. ("Borrower", "Client") is a leading tissue manufacturer in Poland, with market share in the sector of 12% and 96k tons converting capacity and two base paper machines with 90k tons output.

At the beginning of 2020 the Company acquired 100% shares in Moracell in Czech to strengthen its present in Central Europe.

EBRD Finance Summary

EUR 24,000,000.00

 The EBRD to provide EUR 24 million long-term financing.


Total Project Cost

EUR 63,000,000.00


The additionality of the proposed Project will be derived from: (i) EBRD financing effectively bridges a financing gap due to adverse market conditions resulting from Covid-19 outbreak; and (ii) EBRD expertise on adoption of emission standards, given construction of cogeneration plant, which is a first project of its kind for the Client.

Environmental and Social Summary

Categorised B (ESP 2019). The Bank financed the Company in 2016 and to-date the Company has been implementing the existing ESAP and providing satisfactory annual reporting. The current Environmental and Social due diligence (ESDD) was undertaken by ESD and an independent consultant taking into account travel and Health and Safety restrictions under COVID-19 and the Bank's internal guidance on due diligence.

The ESDD confirmed that the Company is compliant with National and EU legislation and has the institutional capacity to fully implement the Bank's Performance Requirements (PRs). The Company has a dedicated EHS manager and is certified to ISO 14001 and PN-N-18001:2004. The plant is not located in a sensitive area, close N2000 areas, and the site has a long manufacturing tradition, with much of the older production sites now demolished.

The new investment will increase capacity and also add a gas fired co-generation unit to the plant, which will improve overall efficiency of production. This is part of the Company's overall comprehensive program of modernization and working with the local community and local authorities as the facility provides wastewater facilities for the local community. The Company has a well-developed site specific stakeholder engagement plan (SEP) which forms part of a site specific social, environmental, health and safety management system.

The Company has made progress in addressing environmental liability issues (such as demolishing historic buildings) and has made significant investments in environmental abatement system and best practice at the plant. The Company no longer uses coal for steam and power generation or purchase steam from the neighbouring coal-fired boiler plant operated by a third party. The paper plant has a valid integrated permit, in line with the requirements of the Industrial Emissions Directive (IED), and are subject to regular inspection from the regulators. To ensure on-going compliance and the implementation of Best Available Techniques (BAT) in accordance with good international practice, the Company has made significant investments in technological and environmental upgrades, notably upgrading the wastewater plant, reducing fugitive emissions well as further energy and water efficiency measures. The new tissue paper production line will be designed to comply with IED and BAT. The new investment has also been permitted by the local Competent Authorities. This includes and Environmental Impact Assessment (EIA) in line with National and EU legislation. A Non-Technical Summary (NTS) and SEP have been developed for the Project and will be disclosed on the Company web site. A link to the NTS is enclosed below.

Based on the ESDD, the existing ESAP has been updated and is being agreed with the Company. This includes the need for continued implementation of the SEP and compliance with EU BAT derived environmental standards and long term energy efficacy and circular economy requirements. The Company will continue to further develop its ESG reporting in line with best practices. The Bank will monitor the implementation of the Project through review of annual reports provided by the Company.

Technical Cooperation and Grant Financing

EBRD will support the Client in exploring and a technical assessment of potential production of tissue from recycled fibres.

Company Contact Information

Artur Pielak - President
+48 22 461 27 10
Velvet CARE sp. z o.o. Klucze-Osada 3 32-310 Klucze

PSD last updated

06 Jul 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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

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 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 to get guidance and more information on IPAM and how to submit a request.


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