DFF - Varus


North Macedonia

Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

09 Nov 2021



PSD disclosed:

16 Nov 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The provision of up to €2.6 million loan financing to Varus DOOEL, a distributor of pharmaceutical and chemical products, in two tranches to support the company's investment plan.

Project Objectives

The EBRD's proceeds will be used for the construction of the new logistic/warehousing centre and upgrade of the existing facility for expanding the production capacities and a new ERP system, to support the Company's growth and expanson.


Transition Impact

ETI score: 60

The DFF SME framework primarily targets the Competitive quality by helping SMEs restructure and become more efficient or professional. Sub-projects can target any of the other transition qualities as a secondary objective. This project is supporting framework objectives by supporting an SME in the following areas: Competitive and Green.

Client Information


Varus DOOEL established in 1990, is an exclusive distributor of Merck's pharmaceutical and chemical products for North Macedonia and Kosovo. 

EBRD Finance Summary

EUR 2,600,000.00

A senior loan of up to €2.6 million provided to the Borrower in two tranches.

Total Project Cost

EUR 2,600,000.00

Total Project Cost is €2.6 million.


The EBRD is additional due to its ability to support the client with expertise in the area of energy and resource efficiency. It will help the company in setting high operational standards and obtaining relevant certifications. The Bank is also additional because of its ability to support the incrase of the client's knowledge capacity through various advisory programmes. It will provide mitigation to the non-financial risk in support of the company's growth and expansion.

Environmental and Social Summary

Categorised B (2019). Low-Medium Risk for financing of a new pharmaceuticals warehouse facility in an industrial zone north of Skopje. The environmental and social impacts associated with the Project are site-specific and can be addressed via an ESAP implementation. 

Technical Cooperation and Grant Financing

The EBRD has supported Varus with few advisory projects, including the assistance in the production and business development. The Bank will also be assisting the Company in further development through the Blue Ribbon Program that would addresses several aspects of Varus operations including the production efficiency and product quality improvement, business development, marketing operation and organisational development.

Company Contact Information

Marko Novovic
“Skupi” No. 57, 1000 Skopje

PSD last updated

16 Nov 2021

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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