Ukrposhta Logistics Development

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

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).

Project ID 51975

Status Repaying

Location

Ukraine

Business Sector

Transport

Notice Type

State

Project timeline

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

Company Contact Information

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

Project ID 51975

Status Repaying

Location

Ukraine

Business Sector

Transport

Notice Type

State

Environmental Category

Approval Date

04 Nov 2020

Disclosure date

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")

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

Client information

UKRPOSHTA SC

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 127,816,800.00

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

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 & 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

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

PSD last updated

12 Jul 2023

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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Ukrposhta Logistics Development

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

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)