DFF - Dniprovska Meat

Project number:

50701

Approval date:

02 Apr 2019

Status:

Disbursing

PSD disclosed:

08 Jul 2019

Translated version of this PSD: Ukrainian

Project Description

A loan of up to EUR 20 million consisting of a committed Tranche 1 of EUR 10 million and an uncommitted Tranche 2 of EUR 10 million to the  Dniprovska Agri Group poultry company  (the "Group") to finance  the reconstruction and expansion of its slaughterhouse during 2019-2020 and to further increase production capacities during 2020-2021.

Project Objectives

The Project will support the reconstruction and expansion of the Group's slaughterhouse, allowing it to obtain the required certifications for entering market of the European Union.

Transition Impact

The transition impact is derived from further exports expansion and diversification of export markets away from the traditional CIS region to new foreign markets, including the EU.

Furthermore, the Project will support replacement of key process equipment and introduction of a number of resource efficiency measures.

Client Information

POULTRY COMPLEX DNIPROVSKIJ LLC

EBRD Finance Summary

EUR 20,000,000.00

Senior long-term loan of up to EUR 20 million, including committed Tranche 1 of EUR 10 million and uncommitted Tranche 2 of EUR 10 million.

Total Project Cost

EUR 33,800,000.00

EUR 33.8 million, including EUR 23.8 million to be invested during 2019-2020 and EUR 10 million during 2002-2021.

Environmental and Social Summary

Categorised B. E&S due diligence for Tranche 1, the construction of a new extended slaughterhouse on the site of the existing slaughterhouse and construction of new rendering plant within the existing footprint of the Company's facilities, was undertaken by independent TC-funded environmental, social and animal welfare consultants. They assessed the environmental, social and animal welfare performance of the client against the existing ESAP and PRs; and the additional E&S impacts and potential E&S risks presented by the Project such as the need for additional waste water treatment and waste management. Tranche 2 of the loan is uncommitted and undefined and additional ESDD
may be required when it is presented for review.

The findings of ESDD confirmed the Company's EHS management is generally good, they have made progress with the implementation of the agreed ESAP (under the existing project with the client 'Dniprovska Agri, ID number 48474'), they are generally in compliance with national E&S regulations, are within the limits of their environmental permits and undertook the necessary EIA/OVOS for the new facilities. There is a good level of compliance with EU BAT, though with some gaps, but as yet only partial compliance with the PRs.

Other issues that require action include improvement of the Company's OHS supervision of their construction contractors, formalising the Company's environmental and social management system, development of an animal welfare and biosecurity policy, removal of bone meal from poultry feed, strengthening of the employee grievance mechanism, conducting an asbestos survey and management plan for all facilities and a number of other E&S improvements.

These have been formulated into an ESAP to ensure compliance with both national and EU standards for environment, health and safety and EBRD's ESP 2014 and agreed with the Company prior to signing. The Project is expected to result in environmental benefits such as efficiencies in water consumption and energy, emissions reductions and rain water harvesting.

The Company will be required to continue to submit annual monitoring reports.

Technical Cooperation

Technical cooperation consists of two tasks: (1) environmental due diligence for costs up to EUR 25,550 (25% cost-share with client), and (2) legal due diligence for costs up to EUR 75,000 (25% cost-share with client).

Company Contact Information

Anna Sarnatskaya
office@ofc-pkd.com.ua
+38 061 702-02-02
+38 061 702-02-01
http://dneprovsky.com
Ukraine, Zaporizhia, 69065 Electrozavodskaya str., 3

Business opportunities

For business opportunities or procurement, contact the client company.

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