RF - Typhoon Resilience

Location:

Ukraine

Project number:

52171

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

01 Sep 2020

Status:

Disbursing

PSD disclosed:

01 Oct 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The provision of a senior secured loan of up to €4.0 million under the Resilience Framework to the Borrower to Tayfun-Plus PE, Ukraine's leading producer of hardwood components for parquet industry

This project was approved in the context of the Bank's response to the Covid-19 pandemic. To avoid delays in the delivery of this project, the Bank granted a deviation from the ordinary timelines for PSD disclosure. the details of which can be found on the website.

Project Objectives

The loan will support Tayfun's liquidity and help withstand the Covid-19-caused crisis by preserving its capital expenditure plans, as envisaged by the original project approved by the EBRD in 2019. 

Transition Impact

ETI score: 60

Competitive. The introduction of higher value added production. 

Green. The reduction in wood waste by improvements in the existing technologies and operations. 

 

Client Information

TAYFUN-PLUS PE

Tayfun-Plus PE is one of the leading Ukrainian producers of hardwood components for parquet industry, located in Lviv region, Western Ukraine. During 2017-2020 the Bank co-financed the Company's investment projects related to the capacity expansion and modernisation,  impovement of the output ratio and minimisation of wood waste. 

EBRD Finance Summary

EUR 4,000,000.00

Total Project Cost

EUR 4,000,000.00

Additionality

The EBRD financing is provided under extraordinary circumstances stemming from the COVID-19 crisis. Specific triggers for the Enhanced Additionality Approach will not apply.

Environmental and Social Summary

Categorised B (2019 ESP) and Low-Medium Risk.  Investment to provide additional working capital under Resilience Framework to the producer of hardwood components for parquet industry is associated with site-specific E&S impacts that can be managed via implementation of good E&S management practices. The Borrower is an existing EBRD Client who has been subject to an in-house Environmental and Social Due Diligence (ESDD) for the original Project, where financing was provided for expansion of existing facilities and installation of new equipment.  That ESDD included a site visit by an ESD specialist; review of EHSS documentation, E&S management systems and existing operational practices; as well as analysis of the impacts and benefits associated with the Project. It was established that the Company is in compliance with national regulatory requirements, has adequate environmental, safety and social systems in place, and is in possession of all the required authorizations and permits. The Company also has valid FSC certification.

The Client has been implementing the ESAP agreed for the original Project and its progress was assessed for the proposed investment through review of the Annual Environmental and Social Report (AESR). The Client has demonstrated good progress on the implementation of the environmental, health and safety and energy management systems ISO 14001/45001/50001; implementation of the wood supply plan; improvement of the contractor management; fire and explosion preventive safety measures; emission reduction and overall safety culture improvements.  There are no new E&S risks associated with the current Project; no Covid-19-related redundancies are envisaged; and the Client developed preventive crisis response measures for a potential Covid-19 2nd wave to avoid personnel dismissal or outflow.

The Client will be required to continue the agreed ESAP implementation and comply with ESP PRs.

Technical Cooperation and Grant Financing

The Company will benefit from the Technical Cooperation component funded from EU4Business program for Ukrainian SMEs. The TC funds will be used as a post-investment support in conjunction with the new financing under the EBRD Covid-19 Solidarity Package. The TC funds will cover part of the outside legal counsel and technical due diligence costs in a total estimated amount of € 47,000.

Company Contact Information

Yosyf Ivanyuk (Official Representative, Of сounsel)
yivanyuk@simplex.com.ua
+38 097 513 24 54
www.simplex.com.ua
Simplex / 6th floor, 46 P. Kulisha Street, Lviv, Ukraine, 79000

PSD last updated

01 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.

 

Share this page: