Saria Plant extension

Location:

Belarus

Project number:

50267

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

23 Apr 2019

Status:

Disbursing

PSD disclosed:

29 Jul 2019

Translated version of this PSD: Belarusian | Russian

Project Description

The provision of a 17m loan to PTUE SARIA in order to provide capital expenditure and and working capital financing required for the capacity expansion.

Project Objectives

The loan will be used to finance the installation of the third production line (for poultry residues only) at the existing rendering facility in Bereza, Brest region, and additional capacities of water treatment facility as well as increased working capital needs.

Transition Impact

The project supports sustainable and efficient use of materials and resources, including waste minimisation and recycling. Additionally, the project aims to enhance competitiveness. By supporting the company's restructuring, the project plans to achieve efficiency gains, greater profitability and operational performance that exceed the prevailing standards in Belarus.

Client Information

SARIA PTUE

PTUE SARIA (the "Borrower") produces high quality inputs for food and animal food processors, agriculture, aquaculture and industrial clients.

EBRD Finance Summary

EUR 17,000,000.00

Up to € 17 million loan to the Borrower available either in € or in RUR.

Total Project Cost

EUR 17,000,000.00

Environmental and Social Summary

Categorised B (2014 ESP).  The environmental and social risks associated with the construction of a new poultry bio-waste rendering line and associated wastewater treatment facility extension within the existing production site are site specific and will be managed via the implementation of appropriate mitigation measures. The associated emissions and discharges can be controlled via modern German technologies that are used at other plants within the EU.

E&S due diligence was carried out in-house through review of ESDD questionnaires and additional supporting documents from the Client, a site visit to Saria's facilities in Belarus, previous visit to similar German facilities, to understand environmental and social performance of the Company against the PRs and to assess the additional E&S impacts and potential E&S risks presented by the Project. The findings of E&S due diligence confirmed that the Company's EHS management is generally good, they are in compliance with national E&S regulations, and the existing facilities in Bereza are well operated in line with the existing environmental permits.

No land acquisition is required for the project, and there will be no resettlement or displacement impacts or any impacts on sensitive areas. The new production line with the capacity of 70,000 t/a will be compliant with national and EU BAT environmental requirements and process safety regulations. It will separate poultry residues from other animal residues so achieving species separation at the plant in line with the EU requirements. The Company undertook the necessary local Environmental Impact Assessment (OVOS) and associated public consultations for the new facilities, and the respective environmental permits have been obtained. The required sanitary protection zone (SPZ) of 1000 m is observed, and the nearest residential settlements are more than 1 km away. The Company has also recently installed a new modern biofilter unit with odour control technology to reduce impacts of odours on the surrounding areas and site workers, and regular monitoring at the border of SPZ is carried out.

Additionally the new production line is expected to get EU-ISCC (International Sustainability and Carbon Certification) certification that confirms that the goods produced by the company, such as animal fat used as biofuel, are recycled products and are recognized as a source of renewable "green" energy. Risks associated with the handling, use and sale of materials potentially containing animal by-products have been assessed. The Company has the necessary controls in place on the safe use and disposal of animal-by products to safeguard public and animal health in line with the corresponding EU requirements. The Company is also in the process of preparation for HACCP and is planning for an international certification in line with ISO 22000.

The Company employs 100 people, and its labour-related practices are generally in line with PR2. No significant risks have been identified, and some further updates to HR policy will be required, including strengthening of the employee grievance mechanism and contractor EHS management practices. The labour performance of the client will be monitored through annual reporting. ESDD also reviewed the Company's occupational health and safety practices in working with potential biological hazards. Some further updates to OHS practices have been added in the ESAP.

An Environmental and Social Action Plan (ESAP) has been developed for this project to ensure that the project is structured in compliance with both national and EU standards for environment, health and safety and the EBRD PRs. The plan includes actions such as the development and implementation of a company-wide environmental and occupational health and safety (OHS) management systems in line with internationally recognised standards such as ISO 14001 and ISO 45001; further enhancing HR policy; improvements in OHS oversight for contracted workers; working with supply chain to ensure raw material quality and safety; developing a stakeholder engagement plan (SEP) including a grievance mechanism.

ESAP was agreed with the Company prior to signing and was covenanted in the legal documentation. The Client will submit annual E&S reports on the project's compliance with the PRs and implementation of the ESAP.

Technical Cooperation

None.

Company Contact Information

Aliaksei Vantsovich, Director
info@saria.by
+375 1643 69937
+375 1643 69934
saria.by
UP Saria, Ul .Dlinnaja 94, d.Podossie 225209 Bereza District Brest Region Republic of Belarus

Business opportunities

For business opportunities or procurement, contact the client company.

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