The provision of a € 20 million working capital loan to support operations of Stadler Minsk. The EBRD loan will allow Stadler Minsk to withstand the impact caused by the Covid-19 pandemic on its production. The funds will be used to support the production against the exisisting rolling stock orders and mitigate the disruption of supply materials.
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.
The proposed working capital support facility will allow the company to deliver the contracted orders in a timely manner and maintain its competitive advantage as a reliable provider of the rolling stock in the region.
ETI score: 85
The Transition Impact (TI) goal of this operation is to preserve the gains achieved under the ongoing project with Stadler Minsk.
The TI agenda for the existing Project has been focussed on, inter alia, setting standards of corporate governance and business conduct (establishment of the board of directors), dispersion of skills, obtainment of energy efficiency, environmental and health & safety certifications (ISO 9001; ISO 14001 and OHSAS 18001) (Well-Governed quality) as well as market expansion, launch of specific production lines (establishment of converter competence centre) and Company's ability to independently participate in various tenders on its own (Competitive quality).
STADLER MINSK CJSC
CJSC "Stadler Minsk", a subsidiary of the Stadler Rail AG, a Swiss manufacturer of railway rolling stock. The company produces suburban and regional transport trains, light rail vehicles, metro trains and trams. Stadler Rail serves customers worldwide.
EBRD Finance Summary
Total Project Cost
COVID-19 crisis response: the EBRD financing effectively bridges a liquidity gap due to adverse market conditions, e.g. the COVID-19 crisis.
The Bank is highly additional in absence of immediate commercial bank capital, constrains of which are not directly linked to the Company's capacity to receive such financing. Sponsor's financing is currently deployed for critical working capital needs throughout the Group. The Bank's ability to respond quickly to client's needs is also a key additionality element.
Environmental and Social Summary
Categorised B (ESP 2019). This an existing client of the Bank; the Environmental and Social Due Diligence (ESDD) was therefore based on the review of the most recent Environmental and Social (E&S) audit report (May 2019), recent annual E&S reports and an updated corporate E&S and COVID-19 questionnaires.
To date, the Company has demonstrated good E&S performance and has largely implemented the agreed Environmental and Social Action Plan (ESAP). The Company has certified quality, environmental and occupational health and safety management systems in line with ISO 9001, ISO 45001, and ISO 14001 standards. Contractor management provisions are in place, and environmental and occupational health and safety parameters are included in contractors' selection criteria. All employees have a written Employment Agreement. Working conditions and remunerations are determined by a number of Internal Regulations (covering Workplace, Wages, Bonuses, Provision of Guarantees and Social Benefits). The Company has a grievance procedure in place for collecting and addressing complaints and suggestions from the employees, including anonymous complaints.
The Company has all necessary environmental permits and contracts with specialized companies for collection, treatment, utilisation and disposal of waste. The areas of temporary waste accumulation and storage of paints and varnishes need to be improved; this issue should be solved when the new painting workshop, including additional warehouse for paints and varnishes, will become operational.
The Company has robust fire safety arrangements in place. The Emergency Preparedness Plan is in place and revised annually. Fire safety trainings for all employees and visitors are conducted during the safety induction and periodically for all employees at the workplace.
The ESDD identified that the Company has a robust business continuity plan in place and follows strict procedures related to containment of COVID pandemic in line with WHO and corporate regulations. Current situation related to COVID restrictions will not have any adverse impacts on implementation of the previously agreed ESAP and general compliance with EBRD environmental and social requirements. Adequate Health and Safety resources are in place and there will be no retrenchment of personnel. The Bank will continue monitoring the implementation by the Company of its environmental and social commitments.
Technical Cooperation and Grant Financing
Company Contact Information
+375 1716 22 953
CJSC Stadler Minsk 47 Zavodskaya Str. 222750 Fanipol, Dzerzhinsk District, Region of Minsk Belarus
PSD last updated
07 Dec 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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.
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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 firstname.lastname@example.org. 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 email@example.com to get guidance and more information on IPAM and how to submit a request.