Project Description
Provision of up to TND 20,000,000 working capital loan to Compagnie Generale des Industries Alimentaires ("COGIA" or the "Borrower") to support its olive oil procurement and bottling operations in Tunisia (the "Project").The Borrower is one of the few leading olive oil companies in Tunisia exclusively focusing on export of bottled olive oil, and 100% owned by one of the leading agribusiness groups in the MENA region, IFFCO Group, headquartered in Dubai, United Arab Emirates.
Project Objectives
The Project supports a strong international sponsor with a positive spill-over effect to primary agriculture, and demonstration effect to other companies in the Tunisian olive oil sector. Through expansion of the olive oil sourcing activity and the focus on exports of bottled olive oil, the Project will lead to enhanced backward linkages to local olive oil mills and farmers, as well as contribute to the development of the "Made in Tunisia" brand and create value in a sector which remains dominated by bulk exports.
Transition Impact
ETI score: 64
Primary quality - Competitive: The Borrower is piloting the introduction of blockchain technology in order to improve the traceability, identification of origin and management of its olive oil products. This technology allows the creation of a digital log of information derived from the stages of farming, milling, transport and processing and bottling. The piloting of this technology will allow the Borrower to implement an innovative process while also adding value to its premium products.
Secondary quality - Integrated: The Borrower will expand the number of countries to which it exports its products.
Client Information
COMPAGNIE GENERALE DES INDUSTRIES ALIMENTAIRES-COGIA SA
Compagnie Generale des Industries Alimentaires ("COGIA" or the "Borrower") is a joint stock company incorporated in Tunisia which sources and bottles olive oil in Tunisia and targets select export markets (GCC countries, Canada, USA, Brazil, and others). The Borrower's operations also include bottling and sales of soybean oil for domestic market, as well as confectionery segment (biscuits and wafers) via a dedicated subsidiary.
EBRD Finance Summary
TND 20,000,000.00
Up to TND 20,000,000 one-year revolving working capital facility for the Borrower's working capital needs.
Total Project Cost
TND 20,000,000.00
Additionality
Risk mitigation: EBRD's long-term relationship with the Borrower provides comfort to the Borrower to be willing to take on more risk, enabling outcomes such as innovation (blockchain technology) and expansion into new markets.
Knowledge, innovation and capacity building: EBRD provides expertise, innovation, knowledge and capabilities that are material to the timely realisation of the projects objectives, including support to strengthen the capacity of the client. The Bank will provide various technical assistance to the client including the capacity building of the client's employees and suppliers, as well as assistance to improve quality standards across the value chain also strengthening the supply chains of aggregator companies.
Environmental and Social Summary
Categorised B (2019 ESP) and Low/Medium E&S Risk. The provision of short-term working capital to COGIA, an existing Client of the Bank, is not associated with any new environmental or social risks or impacts. Due diligence for this transaction comprised a review of the Company's annual reports, their COVID-19 emergency preparedness and response plan and a review of the Company's progress with implementation of the previously-agreed environmental and social action plan (ESAP) under the existing exposure. ESDD has confirmed that the Client operates with good E&S standards and has fulfilled the ESAP requirements. No new ESAP is required for this transaction. There is no GET component associated with this Project.
Internal ESDD was undertaken in 2018 by ESD staff and included meetings with COGIA staff and a site visit to the Company's manufacturing facility in Sousse, Tunisia. The Client has all the necessary permits in place, and the factory was subject to an Environmental and Social Impact Assessment, which is updated on an annual basis. Olive oil production is operated to high quality standards, and is certified to International Food Safety (IFS) standards, BRC for Food Safety, ISO 9001 for quality and ISO 14001 for Environmental Management. There is a strong health and safety culture on site.
The ESAP previously agreed with the Client has been fulfilled according to the timelines specified. The company has provided COVID-19 information and training for its employees and its contractors. COGIA has no plans to introduce temporary or permanent redundancies. EBRD will continue to monitor COGIA's environmental and social performance via the review of annual reporting.
Technical Cooperation and Grant Financing
The Bank will provide the client direct technical assistance through its Value Chain Competitiveness Programme (funded by the EU) which aims to improve quality and traceability standards across the company's olive oil supply chain
Company Contact Information
Moez Zid, CFO
mzid@iffco.com
+216 97 696 362
+216 73 306 266
Compagnie Generale des Industries Alimentaires - COGIA SA Route de Moureddine, km 3.5,
Sousse, Tunisia, 4000
Implementation summary
PSD last updated
30 Mar 2021
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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.
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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.
