DFF - CTP Serbia

Location:

Serbia

Project number:

51594

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

14 Apr 2020

Status:

Disbursing

PSD disclosed:

28 May 2020

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The project consists of an engagement with CTP Serbia to i) fund the development of three industrial parks located in Belgrade, Novi Sad and Kragujevac with a total of 62,000 sqm gross leasable area (GLA) and ii) refinance a legacy loan on a 10,000 sqm GLA, together forming the 72,000 GLA portfolio. The total debt deployed is EUR 29.9m, split between the EBRD (EUR 13.5m) and a parallel lender (EUR 16.4m).

Project Objectives

The project will support the development of A-class sustainable industrial real-estate and facilitate FDI inflow into the Serbian real estate sector.

Transition Impact

ETI score: 61

1) Green: CTP Serbia will develop highly sustainable industrial parks in a relatively under-supplied segment of the market, while complying with high standards of sustainability. The four logistics parks under development are expected to be BREEAM "Very Good" certified.

2) Integrated: The investment will facilitate cross border integration and FDI inflow into the Serbian real estate sector.

Client Information

CTP ALPHA

CTP Serbia, which unites four limited liability SPVs organised in Serbia and 100% owned by CTP Property B.V., a leading Central and Eastern Europe-focused investor, operator and developer of industrial parks. The CTP Group owns and manages a portfolio of c. 5.5 million sqm GLA across CEE.

EBRD Finance Summary

EUR 13,500,000.00

Total Project Cost

EUR 43,200,000.00

Additionality

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

Environmental and Social Summary

Categorised B under the 2014 ESP. Environmental and social due diligence (ESDD) undertaken by ESD, examined the client's environmental and social (E&S) risk management capacity to implement the Project in line with Performance Requirements (PRs) and their E&S performance in relation to preceding projects with the Bank. The ESDD showed that the client is in compliance with national EHHS legislation and has adequate E&S risk management capacity to implement the Project in line with PRs. An ESAP has been developed and agreed with the Client to that extent.

The Client has accredited ISO-14001 and ISO-50001 management systems at group level. There has been no breach of environmental, labour and health and safety laws and standards for the past two years. The Project will be constructed in industrial zones in Belgrade, Novi Sad and  Kragujevac and no PR 5, PR 6 or PR 8 related impacts are expected. The Client has obtained necessary permits for construction. The contractors will be obliged to comply with Serbian E&S law stipulated by the contracts. No OHS related fatalities were recorded in the last five years.

 The ESAP includes measures to develop grievance mechanisms for construction workers, tenants and the public, as well as OHS mitigation measures to be implemented during the construction and operational stage. The Bank will monitor the project's E&S performance by reviewing the annual E&S report and through site visits as necessary.

Technical Cooperation and Grant Financing

not applicable

Company Contact Information

Dragan Djordjevic
dragana.djordjevic@ctp.eu
+381 66 888 95 64
www.ctp.eu
Bulevar Milutina Milankovića 9ž, 11070, Beograd, Serbia

PSD last updated

28 May 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 how to submit a Request for review through our confidential online form, by emailmail 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. Requesters’ identities may be kept confidential, upon request.

 

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