Datagroup Ukraine

Location:

Ukraine

Project number:

52465

Business sector:

Telecommunications, Media and Technology

Notice type:

Private

Environmental category:

B

Approval date:

10 Mar 2021

Status:

Disbursing

PSD disclosed:

05 May 2021

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

Loan in the value of up to USD 65 million to Datagroup Holdings Limited and PJSC Datagroup.

Project Objectives

With its investment, the EBRD will finance the acquisition of Volia, Ukraine's leading retail TV and internet provider, by Datagroup, a Ukrainian telecom operator providing corporate data and wholesale services.

Transition Impact

ETI score: 68

The transition impact stems from the following transition qualities:

  • Competitive: the increased competitiveness of the merged entity is expected to improve the service quality and product range available to clients of both companies.
  • Inclusive: the company will increase access to skills and employment for young women and men by broadening its internship programme.

Client Information

DATAGROUP PJSC

Datagroup is a Ukrainian telecom operator providing corporate data and wholesale services.

EBRD Finance Summary

UAH 1,800,999,936.00

Total Project Cost

UAH 1,828,999,936.00

Additionality

The EBRD's additionality stems from the issuance of hryvnia-denominated loan with a tenor longer than what is available on the market, as well as the application of best practices on gender equal opportunities as part of the merger.

Environmental and Social Summary

Categorized B under the 2019 Environmental and Social Policy (ESP). Environmental & Social Due Diligence (ESDD) on the Company and the project was carried out internally, based on the review of the completed ESDD Questionnaires and follow up communications with the client. The ESDD showed that the company is in compliance with relevant law and its Human Resources (HR) & Occupational Health and Safety (OHS) procedures and practices are in line with EBRD Performance Requirement 2 & Performance Requirement 4. The project is not associated with significant environmental and social issues. The company is required to ensure that the project complies with Performance Requirements as well as provide an annual environmental and social (ES) report to the Bank.

The ESDD findings are as follows: The company's HR & OHS policies including a grievance mechanism and recognition of workers' right of freedom of association are in line with PR2 & PR4. The company is not anticipating labour restructuring associated with the project. The company has environmental, social and code of conduct policies in place. It assesses and monitors suppliers' and contractors' environmental and social performance and require them to comply with its policies. The company states that it is a subproject of a fund where the International Finance Corporation (IFC) is an investor and adheres to IFC's performance applicable for subprojects of a fund. While the company is not certified for compliance with an international environmental management system, they conduct their business in accordance with national environmental legal requirements, and their environmental, health and safety (EHS) management system is based on good international practice. The company has been implementing a Covid-19 response plan in accordance with government requirements including working from home, provision of personal protective equipment and disinfectants for essential workers at the offices and/or sites and health monitoring including polymerase chain reaction testing & self-isolation.

The Bank will monitor the project's environmental & social performance by reviewing an annual environmental and social report and site visit if deemed necessary.

Technical Cooperation and Grant Financing

None.

Company Contact Information

nullinfo@datagroup.ua
+380 44 538 00 08
https://www.datagroup.ua/en
03057, Ukraine, Kyiv, str. Smolenska, 31-33

PSD last updated

05 May 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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