Provision of a EUR 7 million long-term loan to Istrabenz Plini Beograd d.o.o., a limited liability company organised in Serbia, to construct and operate an industrial gas filling station near Belgrade, Serbia (the "project").
The project will increase gas volumes available to the borrower to supply higher local demand and potentially cover other countries in the Western Balkans.
The transition impact of the project will be derived from the Competitive and Green quality. The project will support the expansion of the borrower in a highly concentrated market and will target to implement higher quality and safety standards. The project also supports the creation of a platform for the development of the borrower's ESCO business in Serbia, which ultimately will lead to a reduction of CO2 emissions.
TOMS Score: 62
ISTRABENZ PLINI BEOGRAD DOO
Istrabenz plini Beograd d.o.o. (the "Borrower"), a limited liability company organised in Serbia, and a fully owned subsidiary of Istrabenz plini d.o.o. (the "Guarantor"), a limited liability company incorporated in Slovenia.
The Guarantor is a limited liability company organised in Slovenia, a provider of solutions for gas supply (LPG, industrial gases, natural gas) and energy services to industrial companies and households in Slovenia and through subsidiaries in Serbia, Bosnia and Herzegovina and Croatia.
EBRD Finance Summary
Total Project Cost
EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions e.g. a longer grace period that is rarely available in the market. Such financing is necessary to structure the project.
Environmental and Social Summary
Categorised B (ESP 2014). The independent E&S due diligence consisted of the review of the corporate management systems and procedures, analysis of the proposed investment project and a site visit to the construction side. The ESDD did not identify any major issues. The national EIA, prepared for the Project, adequately considered the E&S risks. The Project is in line with Serbian regulatory requirements for environmental, social, health and safety and public consultation issues. All the permits and licences required by national legislation at this stage of the project have been obtained for the Project, with the exception of the Operation Permit and Water Permit which will be applied for once the construction is completed. The Project is located in an industrial area near Belgrade; the nearest residential areas are located about 1 km from the site. Historically, the Project site was a cultivated land and a widespread soil and groundwater contamination at the site is not likely. The wider Project area comprises cultivated land with limited semi-natural habitats having little ecological value.
Environmental and social impacts during normal operation of the Project will be limited to air emissions from small gas boilers during the heating season and a potentially contaminated surface runoff due to potential leakage of oil from the vehicles. An oil interceptor will be installed to treat the potentially contaminated surface runoff. Domestic wastewater will be collected in a septic tank. Minor quantities of waste will be generated. Potential risks typically associated with these kind of activities, (such as accidental leaks or releases or inadequate storage or handling of flammable and other compressed gases) will be mitigated by regular inspection and maintenance of vessels under pressure, pressure relief devices and fire protection.
The Project is designed in accordance with international standards and Serbian regulatory requirements for facilities for storage of flammable gases and LPG facilities. Minimum safety distances between facilities and buildings on-site were implemented in accordance with Serbian regulation and the US NFPA 55 (2016) standard. The fire protection infrastructure will comprise automatic and manual fire alarm systems, external and internal hydrant network, firewater tank, facility cooling systems, and portable fire extinguishers.
In line with the applicable provisions of the EBRD PRs, the Company will develop management systems, covering the construction and operation of the new filling station, including but not limited to: environmental policy and environmental and social management system; OHS management system based on a risk assessment process; contractor management procedures and grievance mechanism; hazardous Materials Management Plan. Mitigation measures for identified non-compliances have been included in the ESAP, developed and agreed with the Company to address these issues.
Technical Cooperation and Grant Financing
Company Contact Information
+386 5 66 34 600
+386 5 66 34 699
Istrabenz plini, plini in plinske tehnologije, d.o.o. Sermin 8a, 6000 Koper, Slovenia
PSD last updated
31 Jan 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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 firstname.lastname@example.org. 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 email@example.com to get guidance and more information on IPAM and how to submit a request.