Kormotech

Location:

Regional

Project number:

51181

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

26 Nov 2019

Status:

Disbursing

PSD disclosed:

07 Nov 2019

Project Description

The construction by Kormotech Group (Kormotech UAB and Kormotech LLC) of a new pet food production plant in Lithuania and the expansion of pet food production facilities in Ukraine.

Project Objectives

The Project will support Kormotech Group's strategy to expand its operations in Ukraine and other countries.

Transition Impact

Transition impact of the project is expected to stem from the following:

  • Integrated quality: The Bank will support the first cross-border investment of a Ukrainian company, consisting in the construction of a new production facility in Lithuania.
  • Inclusive quality: The Project will also facilitate the expansion of specialised veterinary education across Ukraine to improve employability of young professionals under the Inclusion quality.

Client Information

KORMOTECH LLC

Kormotech is one of the top-3 pet food producers in Ukraine.

EBRD Finance Summary

EUR 10,000,000.00

The provision of a senior secured long-term loan of up to € 10 million.

Total Project Cost

EUR 10,000,000.00

Environmental and Social Summary

Categorised B (2014 ESP). Investments into expansion of the existing and construction of the new pet food production facilities are associated with site-specific environmental and social (E&S) impacts that were assessed via environmental and social due diligence (ESDD). The identified gaps will be mitigated through the implementation of an environmental and social action plan (ESAP).

ESDD was undertaken in-house and included a site visit and EHS audit of the current operational activities, assessment of the proposed Project and corporate EHS management system. Particular attention was paid to labour and safety aspects, resource sustainability, air emissions and consistent application of the Corporate EHS requirements and policies to all operations

It has been established that Kormotech's current operations and E&S management systems are compliant with the national legislation and it has robust EHS management system and the institutional capacity to deliver the Project in line with EBRD requirements. Kormotech is certified in FSSC 22000 and ISO 22000. It's existing E&S management systems ESAP requirements will be extended on the newly established overseas operations.

Some gaps against the EBRD PRs were identified and in order to close them a targeted ESAP has been developed, which includes, inter alia, improvement of the existing E&S management system at all sites, implementation of supply chain and enhanced contractor management, implementation of a grievance mechanism for internal and external stakeholders, and emergency response improvement and further implementation of air emission abatement measures to bring the operations in line with EU requirements. The ESAP has been shared with Kormotech and will be agreed prior to the Board meeting. The Bank will monitor the Project through the review of the Annual Environmental and Social Reports (AESR) and PSD will be updated as required.

Technical Cooperation

TC funds provided by the Japan-EBRD Technical Cooperation Fund to partially cover Project's external legal costs.

Company Contact Information

Kateryna Kovalyuk
kateryna.kovalyuk@kormotech.com.ua
38 (050) 377 61 92
+38 (032) 298 98 39
http://kormotech.com
Kormotech LLC 79041, 73, Heroyiv UPA Str., Lviv, Ukraine

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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 email, mail 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. Requestors’ identities may be kept confidential, upon request.

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