The project will finance investments in the construction of a new automated parcel sorting terminal in the city of Dnipro in central Ukraine. The project is part of Nova Poshta's long-term growth strategy envisaging a transformation of its logistical model in order to meet growing market demand, optimise the supply chain and offer better quality of service to the clients.
Overall objectives of the Project:
- increase of operating performance through automation;
- reduction of harmful GHG emissions and increase of fleet utilisation rate.
ETI score: 68
- The project will support the investments in physical infrastructure in order to optimise the supply chain by increasing the speed of delivery, reducing costs and expanding capacity ("Competitive" transition quality);
- The project will support the reductions of GHG emissions driven by optimisation of logistics chains ("Green" transition quality).
NEW POST LLC
Nova Poshta is the leading private postal and courier operator on the Ukrainian market providing the services of express delivery of documents, parcels and cargo to individual and business customers. The company operates a network of ca. 8,500 branches and 6,700 lockers, employs over 32,000 staff (including the employees of its franchise partners) and serves over 8 million clients across the country. In 2020 the company processed over 327 million shipments in Ukraine.
EBRD Finance Summary
A senior secured corporate loan of up to EUR 13 million to be provided as a multi-currency facility available for disbursement in UAH and EUR in favour of Nova Poshta LLC.
Total Project Cost
Terminal design and construction EUR 14.0 million
Equipment Purchase (sorting line and other equipment) EUR 11.9 million
Contingencies EUR 2.6 million
This is a repeat transaction with Nova Poshta. The company is willing to work with the Bank as a reliable and trusted partner in the current unstable economic environment affected by the COVID-19 pandemic. Furthermore, the Bank is additional in terms of financing structure (tenor) and risk mitigation (regulatory risks, GHG emissions).
Environmental and Social Summary
Category B (2019 ESP). Investments in the construction of a new automated parcel sorting terminal are associated with site-specific environmental, health, safety and social impacts typical for the transport service sector, which can be addressed through good management practices.
The client is well known to the Bank through the previous project and submits regular environmental and social (E&S) reporting that demonstrates good progress in implementation of the previously agreed Environmental and Social Action Plan (ESAP) and Road Safety Management System (RSMS) supported by an EBRD technical cooperation project. Implementation of RSMS helped achieve 34% reduction of the traffic accidents.
Environmental and Social Due Diligence (ESDD) for the new transaction has been undertaken in-house based on the desktop review of the Annual Environmental and Social Report and Q&A sessions. E&S risks associated with the new terminal include contractor management arrangements, safety in design, emergency preparedness and response during construction and operation. Land has been acquired through acquisition of the company, which owned it, therefore Performance Requirement (PR) 5 is not triggered. The company has implemented Covid-response plan based on the risk assessment and existing regulation.
Client was found to be compliant with current Ukrainian E&S regulation and have required E&S management system and capacity to deliver the project in line with Bank's PRs.
Existing ESAP has been updated to include provisions pertaining to implementation of gender-based violence and harassment measures and will apply to the existing and new facilities.
Technical Cooperation and Grant Financing
Company Contact Information
103 Stolychne highway, building 1, 9 floor, 03026
PSD last updated
21 Sep 2021
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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).
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