Galnaftogaz Loan IV

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a senior loan of up to US$ 35 milion to finance 2020-2022 capital expenditure and working capital needs of JSC "Concern Galnaftogaz" ("GNG" or the "Company"), an independent distributor of transportation fuels based in Ukraine.

Project ID 51838

Status Repaying

Location

Ukraine

Business Sector

Natural Resources

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Nazar Kupybida
nkupybida@gng.com.ua
+38 032 298 96 44
http://www.okko.ua
72 Heroiv UPA Str., Lviv, 79018, Ukraine

Project ID 51838

Status Repaying

Location

Ukraine

Business Sector

Natural Resources

Notice Type

Private

Environmental Category

Approval Date

10 Jun 2020

Disclosure date

06 May 2020

Galnaftogaz Loan IV (Ukranian) (PDF, 0.24MB)

Project description

Project objectives

The Project will focus on the following objectves: (i) working capital to develop GNG's Farmer Supply Programme; (ii) improvements in GNG's logistics infrastructure; and (iii) capital expenditure for GNG's fuel stations network, including the installation of electric vehicles charging stations

Transition impact

ETI Score:62

etitive: As a result of the Project, the Company aims to expand its Farmer Supply Programme which will provide highly innovative pre-financing and supply of raw materials (fuels, natural gas and fertilisers) to the farmers in Ukraine by using crop receipts as a collateral. Moreover, the Company aims to introduce a number of fast electric vehicle charging stations supporting e-mobility in the cities and between the cities.

Green: The Company is committed to continuous improvement in energy and resource efficiency of its operations. The investment programme will involve installation of electric vehicle charging stations, fuel stations and tank storages renovation.

Client information

CONCERN GALNAFTOGAS JSC

GNG is Ukraine's largest company in retail distribution of transportation fuels in terms of sales volume and third largest by the number of filling stations. As of December 2019, the Company owned and operated 357 OKKO-branded filling stations.

EBRD Finance Summary

USD 35,000,000.00

Total project cost

USD 135,000,000.00

Additionality

Financing structure: (i) the EBRD offers a tenor, which is above the market average and is necessary to structure the project; (ii) the EBRD offers a large volume instrument that fills a market funding gap and is required to structure the project.

Risk mitigation: (i) the EBRD's long-term relationship with a client provides comfort to the client to be willing to take on more risk and finance, enabling outcomes such as innovation; (ii) the EBRD provides comfort to clients and investors by mitigating non-financial risks, such as country, regulatory, project, economic cycle, or political risks.

Environmental & Social Summary

Category B (2019 ESP). Due diligence on this Project was carried out utilising the Bank's approach to the COVID-19 situation, and involved a number of different elements. A review of due diligence results from previous Projects; a review of the Annual Environmental and Social Reports submitted by the client for the Bank's review; a review of the potential investment plans that the Company has developed; a series of remote conferences with the client investment and EHSS Management team; and follow-up Q&A on specific issues were all used to carry out the EHSS due diligence. The Bank has a long relationship with the client who, over time, has developed and maintained internal capacity to operate the company to the standards contained in the Bank's Performance Requirements (PRs). Due diligence confirmed that this situation in regards of capacity and capabilities remains in place. The proposed use of proceeds of the Bank's funding covers a number of different capital expenditures and corporate acquisition tasks and each were reviewed during due diligence and were found to be generally in compliance with the Ukrainian and the EU regulations and capable of being structured to meet the PRs. An Environmental and Social Action Pan has been drafted and will be agreed with the client to confirm compliance with the PRs in relation to the standard of construction pertaining to tank storage safety and containment, risk assessment of facility location and design, community relations and stakeholder engagement, and contractor management.

Technical Cooperation and Grant Financing

None

Company Contact Information

Nazar Kupybida
nkupybida@gng.com.ua
+38 032 298 96 44
http://www.okko.ua
72 Heroiv UPA Str., Lviv, 79018, Ukraine

Implementation summary

PSD last updated

18 Jun 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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Galnaftogaz Loan IV

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)