Project Description
The provision of a MAD 65.0 million senior unsecured loan to Plastikpack Maroc (PM), a Moroccan manufacturer of plastic packaging. The financing will support the expansion of its current facilities, the acquisition of equipment for production of pharmaceutical packaging, the set-up of a greenfield facility for manufacturing of plastic pallets and crates made from recycled polypropylene, the construction of a new building, in accordance with Building Research Establishment Environmental Assessment Method (BREEAM) standards and a working capital increase.
Project Objectives
With the EBRD supported capital expenditure plan, the Borrower is looking to tap into high-growth market opportunities in Morocco, expanding its product portfolio into durable recyclable plastic packaging as well as packaging for pharmaceuticals.
Transition Impact
ETI score: 66
Competitive: The Company will implement high European standards to the project in Morocco
Green: The new construction of the manufacturing building, is expected to achieve Green Buildings certification. In addition, the capex plan includes a new facility to manufacture pallets and crates out of recycled polypropylene, promoting circular economy.
Client Information
PLASTIKPACK MAROC SA
Plastikpack Maroc is a Moroccan company involved in the production of plastic packaging.
EBRD Finance Summary
MAD 65,000,000.00
A MAD 65.0 million senior unsecured loan to PM for financing the project.
Total Project Cost
MAD 107,600,000.00
MAD 107.6m investment plan for the expansion of the current facilities, introduction of a new production line and a greenfield manufacturing facility.
Additionality
Additionality stems from financial structure offering financing in the local currency on reasonable terms and conditions, standard setting on energy and resource efficiency, as well as higher gender inclusion standards.
Environmental and Social Summary
Categorised B (2019 ESP). In-house due diligence was carried out by means of interviews with Client's management and workers, a visit to the existing production site in Morocco, and review of an information package supplied by the Client. The environmental and social impacts have been identified and will be managed by the implementation of an Environmental and Social Action Plan (ESAP). The results of the environmental and social due diligence (ESDD) indicated that the Company is well managed, and has the internal capacity and commitment to operate in line with the Performance Requirements although certain operational and organisational issues require improvements and have been included in the ESAP. These items include a commitment to 100 per cent recyclable products and the development of an internal grievance mechanism in line with PR2. The ESAP has been agreed with the Client.
The Project is Paris aligned for mitigation and adaptation. The Bank will monitor the Project's environmental and social performance and ESAP implementation by reviewing Annual Environmental and Social Reports (AESR) as well as conducting site visits when deemed necessary.
Technical Cooperation and Grant Financing
A. Technical Cooperation (TC)
The Bank has selected TC funds (20 per cent co-funded by the Client) to support the technical due diligence related to the Green Building component (project preparation support), the legal due diligence (project preparation support) and the financial due diligence that will support the Client starting reporting in line with the IFRS (project implementation support). The TC is funded under the HIPCA Framework.
B. Co-investment grants / Concessional Finance (Non-TC)
The Project will benefit from an investment grant provided by the HIPCA Framework. The investment grant will integrate more advanced material and technology in the building design to improve its energy performance to reach a Green Buildings certification (BREEAM with at least "Good" rating).
Company Contact Information
Saad Lakhmiri
s.lakhmiri@plastikpack.ma
https://plastikpack.ma/
207-1 PARC |, Sidi Bou Othmane 43303, Morocco
PSD last updated
25 Nov 2022
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
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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.
