DFF - Bingo Extension

Location:

Bosnia and Herzegovina

Project number:

52102

Business sector:

Agribusiness

Notice type:

Private

Approval date:

06 Aug 2021

Status:

Approved

PSD disclosed:

23 Aug 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Provision of a EUR 20 million senior secured long-term loan to Bingo d.o.o. (the "Company"), the leading retail chain in Bosnia and Herzegovina, for development of Sarajevo shopping centre and future capital investments.

Project Objectives

The loan in the amount of EUR 20m will be used for:

- development of Sarajevo shopping centre (EUR 10 million committed tranche);

- future investments in the retail network (EUR 10 million uncommitted tranche).

Transition Impact

ETI score: 62

The project will help the Company to obtain BREEAM certification of its new Sarajevo shopping centre, resulting in improvements in energy efficiency and contributing to "Green" quality, as well as support the expansion of the Company's retail network and enable additional products penetration mostly in major urban centres, contributing to "Competitive" quality.

Client Information

BINGO DOO

EBRD Finance Summary

EUR 20,000,000.00

Total Project Cost

EUR 20,000,000.00

Additionality

The Company will make use of EBRD expertise over energy and resource efficiency and obtain BREEAM certification of Sarajevo shopping centre, benefit from mitigation of non-financial risks and EBRD's ability to absorb additional risks where other financiers reached their limit.

Environmental and Social Summary

Categorised B (2019 ESP). Bingo is an existing client of the Bank, has been the subject of environmental and social due diligence in the context of previous project. Performance on E&S issues to date has been satisfactory as evidenced by annual environmental and social reporting. The new project will not result in any significant E&S impacts which cannot be managed through existing E&S management systems.  The action plan to achieve BREEAM Green Building certification is noted as is the planning for the identification of additional green investments.  The operation of retail outlets in general is not associated with significant environmental impacts. Bingo has a process in place to ensure that sites are fit-for-purpose and that planning issues are managed in compliance with national requirements and the Bank's Performance Requirements.  Bingo communicates with local communities both prior to construction of retail units and as part of on-going dialogue during both construction and operation. Bingo has a process for engaging with suppliers to ensure that products meet the required quality standards. Bingo also ensures that all HR issues are dealt with in accordance with national requirements including a comprehensive process for engagement with employees for both the continued improvement of working conditions and the receipt of grievances where relevant. Together with 6 local companies, Bingo d.o.o. Tuzla has founded a non-for-profit company which is an authorised Operator within the Federation of Bosnia and Herzegovina for packaging waste management. Eko zivot d.o.o. Tuzla is active in ecological projects and as an intermediary in socially responsible projects which have an objective of improving the environment. The goal of Eko zivot is that its activities will meet the legal obligations associated with packaging and packaging waste management. Its strategic standpoint is that packaging and packaging waste management activities and procedures are based on the experience gained within the EU, and these activities include gathering, sorting, returning, using and recycling of packaging and packaging waste. In the context of the new project with the Company, Bingo will be required to continue complying with the Bank's PRs and to provide the Bank with annual environmental and social reports.

Technical Cooperation and Grant Financing

Technical Cooperation (TC) support has been provided by the Republic of Austria under the Delivering Resource Efficiency Investments (DRIVE) Fund. The TC supported the preparation of the Company for BREEAM Green Building certification (EUR 29,097; the Company will participate with 20% in total costs) and will support the Company in the identification of green investments opportunities (up to EUR 45,903; the Company will participate with 20% in total costs). 

Company Contact Information

Ana Tomic Osmanovic
ana.tomic.osmanovic@bingotuzla.ba
+387 61 234 489
www.bingotuzla.ba
Bosanska poljana bb 75000 Tuzla Bosna i Hercegovina

PSD last updated

23 Aug 2021

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 more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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