Ukrposhta Logistics Development

Location:

Ukraine

Project number:

51975

Business sector:

Transport

Notice type:

State

Environmental category:

B

Approval date:

04 Nov 2020

Status:

Signed

PSD disclosed:

28 Jul 2020

Project Description

The provision of a senior sovereign-guaranteed loan of up to €63 million to Ukrposhta JSC, the national postal operator of Ukraine, consisting of three tranches:

i Tranche 1 of up to €23 million for the acquisition and equipping of postal vans to be deployed in rural areas ("Mobile Post Offices")

i Tranche 2 of up to €30 million for the development of modern automated sorting hubs in the three regional centres and an associated network of regional sorting depots

i Tranche 3 of up EUR 10 million for the acquisition and equipping of additional postal vans to complete the program of Mobile Post Office deployment in rural areas across the country. It is envisaged that Tranche 3 will be committed at a later date.

Project Objectives

The first and third tranches will support the reorganisation of Ukrposhta's branch network to ensure sustainable provision of modern delivery, retail and other services to the country's rural population.

The second tranche will help focus on the transformation of Ukrposhta's logistical model to improve operating efficiency and quality of service in its delivery business.

Transition Impact

ETI score: 64

Primary Quality - Integrated: The project will expand access to infrastructure services across regions via: i) opening  of three modern automated sorting hubs in regional centres; and ii) acquisition of new postal vans for Mobile Post Offices to upgrade the Ukrposhta's service model in rural areas  across the country.

 Secondary Quality - Well-Governed: The project builds on the Bank's ongoing work on supporting corporate governance and anti-corruption reforms at Ukrposhta. It will include a monitoring and implementation support TC for the Corporate Governance Action Plan (CGAP) and implementation support TC for the Anti-Corruption Program (ACP) of Ukrposhta.

Client Information

UKRPOSHTA PJSC

Ukrposhta is a joint-stock company 100 per cent owned by the Ukrainian state represented by the Ministry of Infrastructure. It is the national postal operator of Ukraine operating a network of over 11,000 branches and employing 65,000 staff.

EBRD Finance Summary

EUR 63,000,000.00

A senior sovereign-guaranteed loan of up to € 63 million

Total Project Cost

EUR 112,000,000.00

EBRD Loan: € 63 m

Tranche 1 € 23 m

Tranche 2 € 30 m

Tranche 3 € 10 m

EIB Loan: € 30 m

Client's own funds: € 19 m

Additionality

The Bank provides support to strengthen the client's capacity with respect to procurement, project implementation, environmental and social issues, corporate governance and anti-corruption reforms.

Environmental and Social Summary

Categorised B (2019 ESP). The acquisition and equipping of postal vans and development of modern automated sorting hubs is not associated with significant environmental or social risks or impacts and can be readily mitigated. Environmental and social due diligence (ESDD) for Tranches 1, 2 and 3 has been undertaken by ESD specialists in line with the ESD COVID-19 response and included a review of an ESDD questionnaire and publicly available information.

The ESDD confirmed that the Company is operating in compliance with national law and relevant EBRD PRs.  Ukrposhta's institutional capacity for environmental & social risk management was found to be generally appropriate and processes to address OHS risks linked to the COVID response have been established.

The Company, with support of external consultants under a Technical Cooperation project, will be required to develop and implement a Retrenchment Plan based on the principles of non-discrimination and consultation.

An Environmental and Social Action Plan (ESAP) has been developed and agreed with Ukrposhta to address the issues identified in the ESDD and associated with COVID-19. This includes the development of response plans related to labour management and stakeholder engagement to address COVID-19 related impacts, development of a Retrenchment Plan and development of Occupational Road Safety Management system to improve their road safety performance. A national EIA will be also required for Tranche 2 once the project design is further developed, and this will be verified by additional external ESDD and also aligned with the EIB approach to ensure that all environmental and social issues are addressed and will be subject to the to the Bank review and monitoring. The Company is required to ensure that the project complies with the PRs as well as submit an annual environmental and social report to the Bank.

Technical Cooperation and Grant Financing

TC1: Energy efficiency improvements and assessment of possibilities for certification of sorting hubs in accordance with international sustainable certification scheme (BREEAM/LEED)

TC2: Environmental and Social Assessment for Tranche 2

TC3: Retrenchment Plan development and implementation support

TC4: Road Safety Management to assist the Company with development and implementation of a formal road safety management system within its operations

TC5: Targeted Corruption Risk Management Action Plan development and implementation support

TC6: Implementation support for the Corporate Governance Action Plan including assistance with the establishment of risk management and compliance functions

Company Contact Information

Maksym Paliy
palii-mo@ukrposhta.ua
+380443232008
https://www.ukrposhta.ua/
22 Khreschatyk Str., Kyiv, 01001, Ukraine

PSD last updated

13 Oct 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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