DFF - Enzym

Location:

Ukraine

Project number:

51606

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

13 Oct 2020

Status:

Disbursing

PSD disclosed:

11 Nov 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

The project will support an investment programme at PrJSC Enzym which includes: (i) construction of the new production facilities for yeast-based products such as yeast extracts and inactive yeast; (ii) expansion of the fermentation capacities at the existing yeast production (to be used by the new production as well); (iii) construction of the water treatment facilities.

Project Objectives

The project will support Enzym's strategy to expand its product range into more complex and higher value added biotechnological products.

Transition Impact

ETI score: 80

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

  • "Competitive" quality: The Bank will support Enzym's launch of new high value added products and sales diversification.
  • "Integrated" quality: The project will also facilitate expansion of the Enzym's export sales into new markets as well as growth of the export share of the company's revenues.

Client Information

ENZYM PJSC

Enzym is the leading yeast producer in Ukraine.

EBRD Finance Summary

EUR 7,000,000.00

The provision of the senior secured loan in the amount of up to EUR 10 million, of which EUR 3 million will be co-financed by the Agribusiness Value Chains Account of the Financial Intermediary and Private Enterprises Investment Special Fund sponsored by TaiwanICDF.

Total Project Cost

EUR 10,000,000.00

Additionality

Under DFF SME, additionality stems from the following:

  • Financing structure: the EBRD offers a tenor, which is longer than available to the client in the market on reasonable terms and conditions.
  • Standard setting: helping projects achieve higher standards as clients makes use of EBRD environmental expertise. 

Environmental and Social Summary

Categorised B (2019 ESP). Independent environmental and social due diligence (ESDD) has been completed and included an environmental and social (E&S) audit of the company's management systems and practices, the existing facilities and operations, and an analysis of the impacts and benefits of the proposed project. The ESDD confirmed that existing operational activities and facilities are in satisfactory condition and the project is structured to be in line with the EBRD's Performance Requirements (PRs).

A review of the company's corporate management system showed that it has a well-established and integrated Environment, Health and Safety (EHS) management systems that have been developed in line with good international practice, and have been implemented throughout their operations. Coordination, oversight and monitoring functions provided by the company seek to ensure consistency of the approach to, and the management of, key EHS issues for new projects and operational activities. The company has demonstrated its commitment to implementing the project in line with national and international environmental standards. Given the quality of their corporate management systems, it is expected that the environmental and social impacts associated with the project will be readily mitigated and properly managed.

An Environmental and Social Action Plan (ESAP) has been agreed with the company to address the continuous improvement of EHS management systems and some additional measures will ensure that the company will continue to comply with the Bank's PRs. Since the beginning of the ESDD, the company has already started implementation of some ESAP requirements and has already improved its EHS management system. As part of the ESAP the company will implement the following actions:

  • Maintain and continuously implementation of the principles of corporate EHS management system at project level in line with ISO 14001, OHSAS 18001 and relevant EBRD PRs and develop EHS training plan for employees involved in the operation of new facilities and ensure its implementation.
  • Obtain all necessary environmental, sanitary, H&S and fire safety permits prior to operation of the new facilities.
  • Carry out regular internal environmental and fire, H&S audits according to the national and EBRD requirements and ensure timely and effective implementation of the notices from environmental, sanitary, health and safety and fire safety state authorities.

The company will undertake local disclosure of its environmental and social performance to the local public and report on that to the Bank on annual basis. The Bank will monitor the company's environmental and social performance and implementation of the ESAPs through annual E&S reports.

Technical Cooperation and Grant Financing

TC funds provided by the EU4Business Fund in Ukraine to cover project's external environmental and social due diligence, technical due diligence and legal costs.

This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

Company Contact Information

Zarina Akopiants
press@enzym.com.ua
+380 68 296 12 33
+38 (032) 298-98-43
http://enzym.com.ua
PrJSC Enzym Company 79014, 232, Lychakivska Str, Lviv, Ukraine

PSD last updated

11 Nov 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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