DFF - Teraplast 1

Location:

Romania

Project number:

49305

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

05 Mar 2019

Status:

Disbursing

PSD disclosed:

03 Dec 2019

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 EBRD has provided senior loans of up to EUR 16 million to two companies within TeraPlast Group (the "Group"), to support the expansion of the Group steel segment business in Romania and the CEE region:

(i)         Wetterbest SRL (former Depaco SRL): EUR 5 million for financing a new roof systems production and storage facility in Romania;

(ii)        TeraSteel: EUR 11 million for the refinancing of the costs with setting-up the operations in Serbia for metallic sandwich panels production and developing the CEE presence of the company;

Project Objectives

Support the expansion of TeraPlast Group steel segment business in Romania and CEE area and support work-based learning opportunities to local youth in Romania as well as improve Group's Corporate Governance.

Transition Impact

ETI score: 80

This project will make a significant contribution to additional technological skills transfer via enhance its training offer in close collaboration with established local training providers to offer accredited dual learning and other work-based learning opportunities to local youth. The company also engaged to improve its Corporate Governance by implementing various measures directed at improving company's procedures, internal regulations and transparency.

Client Information

WETTERBEST SRL

TeraPlast Group is one of the leading manufacturers of materials for construction and installation markets in Romania, with production sites in two countries, Romania and Serbia. The production of the Group is structured in two main business lines: plastic division and steel division (which include metallic sandwich panel and metallic roofing activities).

EBRD Finance Summary

EUR 5,000,000.00

EBRD Finance Summary:

Wetterbest SRL: EUR 5,000,000

TeraSteel CEE: EUR 11,000,000

 

 

Total Project Cost

EUR 9,200,000.00

Total Project Cost:

Wetterbest SRL: EUR 9,200,000

TeraSteel CEE: EUR 19,400,000

Environmental and Social Summary

Categorised B (2014 ESP). The environmental and social issues associated with balance sheet refinancing and provision of capex addressing the expansion of TeraPlast Group's steel segment business in Romania and the CEE area can be readily identified and managed. Due diligence, carried out by ESD, focused on TeraPlast Group's existing management systems, current facilities and operations. An ESAP has been developed and agreed with the Company to ensure the project complies with the Bank's PRs.

The ESDD included a review of the E&S Questionnaire, the Company's policies and procedures, a site visit to the production facilities in Saratel and Bistrita and interviews with relevant management staff. Identified issues that need to be addressed include a lack of formal corporate grievance mechanism; inadequate on-site traffic and pedestrian management, and exceedance of permitted noise and dust limits in the Romanian industrial park; and outstanding environmental and other permits for the new facility, and it's inclusion in the existing IMS system of the Company.

As stated above, an ESAP has been developed, and agreed with the Company to address these issues. The specific measures include the inclusion of a new facility into the existing IMS; obtaining the required permits and development of a Construction Environmental and Social Management Plan for the new facility prior to construction; development of a Traffic Management Plan for the Romanian industrial park; bringing and maintaining the microclimate working conditions within permissible levels in all the Company's facilities; and the development of a formal corporate grievance mechanism.

Technical Cooperation and Grant Financing

None.

Company Contact Information

Ioana Birta
ioana.birta@teraplast.ro
+40 725 809 498
www.teraplast.ro
Saratel village, Sieu-Magherus commune, Bistrita-Nasaud county, DN 15A, km 45+500, 427301, Romania

PSD last updated

12 Dec 2019

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 how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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