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")
ii Tranche 2 of up to €30 million for the development of modern automated sorting hubs in the regional centres and an associated network of regional sorting depots, aquisition of e-bikes and trucks for the Company's operating fleet.
iii 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, as well as investments in universal mobile devices and Front Office Digitalisation component (IT systems for mobile post office).
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.
Primary Quality - Integrated: The project will expand access to infrastructure services across regions via: i) opening of 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.
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
A senior sovereign-guaranteed loan of up to € 63 million
Total Project Cost
EBRD Loan: € 63 m
Tranche 1 € 23 m
Tranche 2 € 30 m
Tranche 3 € 10 m
CAPEX grant € 4.5 m
EIB Loan: € 30 m
Client's own funds: € 30.4m
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 an Occupational Road Safety Management system to also cover the road safety issues related to the use of e-bikes.
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, and development of Occupational Road Safety Management system to improve their road safety performance. 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
A capex co-investment grant in the amount of up to EUR 4.5 million funded from the EBRD Shareholder Special Fund, to support the acquisition of satellite internet terminals, the cost of subscription for satellite internet services for up to one year, and supporting power generators and batteries for Ukrposhta.
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
22 Khreschatyk Str., Kyiv, 01001, Ukraine
PSD last updated
12 Jul 2023
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