Project number:


Business sector:

Information and Communication Technologies

Notice type:


Environmental category:


Approval date:

07 Apr 2020



PSD disclosed:

19 Aug 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

EBRD, together with the Enterprise Expansion Fund ("ENEF"), to provide financing to HTEC doo Beograd ("HTEC" or the "borrower") in the form of a EUR 12.0m long term loan to support HTEC's growth and development strategy, the first stage of which envisages the acquisition of the well-established Serbian IT company Execom doo Novi Sad ("Execom" or the "target").

Project Objectives

The project will enable the development of HTEC's strong regional R&D hub in the Western Balkans which in return will support local engineering talent and help offer world class services much needed under the conditions of remote working patterns.

Transition Impact

ETI score: 60

The transition impact stems from the following two transition qualities:

Competitive: The acquisition will facilitate the introduction of improved knowledge management practices for the target, which are already embedded in the business processes of the acquirer. The new entity will benefit from the target's specific sector expertize by extending these additional services to the existing clients.

Integrated: The acquisition will enable the expansion of activities in foreign markets where the target is present.

Client Information


Founded in 2008, HTEC Group Inc. (the "Parent") with its fully owned subsidiary, HTEC doo Beograd, (the "Company", "HTEC" or the "Borrower") provides software and hardware engineering services, and digital solutions consultancy to companies ranging from large corporates to venture-backed companies and start-ups mainly based in Europe and USA.

EBRD Finance Summary

EUR 6,000,000.00

Total Project Cost

EUR 12,000,000.00


EBRD's additionality stems from providing funding under a tailor-made structure, availability of which is limited in the current market environment.

Environmental and Social Summary

Categorised B (2014 ESP) and Low-Medium Risk. ESDD based on ESD's review of the completed ESDD Questionnaire as well as follow up communication with the client confirmed that the project and client are not associated with significant environmental and social issues. HTEC is in compliance with national E&S law and has adequate E&S risk management capacities. HTEC's HR and OHS are largely in line with PR2 & 4, and it has been confirmed that the proposed acquisition will not be associated with labour restructuring. For the upcoming project, HTEC is required to comply with EBRD PRs as well as submit an annual ES report to the Bank. Specifically, HTEC has the following accreditations: ISO27001 (information security); ISO13485 (data integrity in the life science industry), and ISO9001 (quality of management). There is no GET component associated with this project.

Technical Cooperation and Grant Financing

Financial due diligence of the Borrower and the Target, Amount: EUR 26,000; Commercial and Technical due diligence of the Borrower and the Target, Amount: EUR 75,000; English Law Legal Counsel and Serbian Law Legal Counsel, Amount: EUR 28,000 and EUR 18,500, respectively. TC Source: Western Balkans SME Platform - ENEF Support.

Company Contact Information

Dusan Kosic
+381 11 228 11 82
Milutina Milankovica 11/B, Belgrade, Serbia

PSD last updated

19 Aug 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

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 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.

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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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