DFF - TFK III

Location:

Poland

Project number:

53210

Business sector:

Non-ferrous Fabricated Metal Product Manufacturing

Notice type:

Private

Environmental category:

B

Approval date:

02 Nov 2021

Status:

Disbursing

PSD disclosed:

22 Nov 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

The provision of a senior secured loan in the amount of PLN 60 million to TELE-FONIKA Kable S.A., the largest cable and wire producer in Central and Eastern Europe with headquarters in Poland. The loan will be used to co-finance the construction of a facility in Bydgoszcz, Poland, for medium and high voltage (MV&HV) cables, dedicated to renewable energy sources (mainly offshore windfarms).

Project Objectives

The Project will increase the production efficiency of TFK and will create an additional production capacities in medium and high voltage (MV&HV) cables. These improvements are essential to address the increasing market demand driven by the transformation of the energy sources shifting towards renewables. The new technology will also allow TFK to (i) offer more advanced products e.g. higher voltage cables as well as (ii) continue further R&D activities.

The project supports the Client in increasing its focus on the renewable energy market, while delivering innovation within the environmental dimension.

Transition Impact

- Competitive: the Project enables to continue supporting the TFK in further broadening the product portfolio, through focus on MV&HV cables dedicated to renewable energy (mainly offshore windfarms), and additional R&D activities.

- Well-governed: the transition is expected to come from ongoing improvements in corporate governance of the Company, including corporate CSR/ESG disclosures in line with best practice and the EU requirements.

Client Information

TELE-FONIKA KABLE SA

TELE-FONIKA Kable S.A., founded in 1992, is a leading cable manufacturer in Poland with a diversified product portfolio, over 2,250 employees, production facilities around the world and delivering cables to over 80 countries. TFK is fully owned by a Polish entrepreneur - Mr. Boguslaw Cupial.

EBRD Finance Summary

PLN 60,000,000.00

Total Project Cost

PLN 323,000,000.00

Additionality

Financing structure - the EBRD financing effectively bridges a financing gap, with other lenders unable to provide additional funding in the required amount and timeline.

Standard setting - In line with the Bank's recommendation, the Company will disclose and report on sustainability/ESG issues in line with best practice and the EU requirements.

Environmental and Social Summary

Categorised B (ESP 2019). TELE-FONIKA Kable S.A. is an existing client of the Bank and has demonstrated a robust approach to management of Environmental and Social (E&S) matters. The Company has been implementing the existing ESAP and reporting to date in as satisfactory manner. The Project is GET aligned and the GET allocation is 100 per cent and is considered aligned with the objectives of the Paris Agreement.

Overall environmental and social issues associated with the operation of heavy and precision engineering facilities are site specific and can be readily assessed and mitigated. The current investment is a brownfield development within the existing site. This investment will enable the expansion of production capacity in the Bydgoszcz plant in Poland into high and medium voltage cables (HV & MV) used by the offshore wind industry, which are designed to implement state of the art technology. The Company will apply circular economy philosophy throughout it business cycle.

The Project is in the process of being permitted by the local authorities and appropriate screening has been undertaken under the EU EIA Directive. Specific focus has been placed on potential flooding risks and water and waste water use. The Environmental and Social Due Diligence (ESDD) undertaken in-house by ESD confirmed that the Company has the institutional capacity to fully implement the Bank's PR's, and is generally in compliance with National and EU regulations. The Company has a good EHS management system and is implementing best practice, with the key sites certified to ISO 14001 and ISO45001. The Bank has a good relationship with the Company and a corporate Environmental and Social Action Plan (ESAP) was agreed in 2015 and updated in 2017 has largely been implemented by TFK, particularly in relation to ongoing EHS management systems, compliance with IED directive, and formalisation of the grievance mechanism. This ESAP is being updated to take account of E&S Policy 2019 requirements and include additional requirements related to implementation of sustainability disclosure and reporting and supply chain assessment best practices.

The Company has robust HR policy and labour management systems compliant with PR2, with engagement with labour unions to address among others skill shortages. The extension of the existing site took into considerations historical heritage (i.e. listed buildings) in the design and application.

The ESDD has not identified any material gaps with respect to the Bank's PRs or National or the EU environmental regulations. The Company is in the process of developing a corporate CSR/ESG system and the Company will disclose and report on sustainability/ESG issues in line with best practice and EU requirements.

The Bank will monitor the implementation of the Project.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

TELE-FONIKA Kable
info@tfkable.com
+48 12 652 5000
https://www.tfkable.com/en_pl/
Hipolita Cegielskiego 1 32-400 Myslenice, Poland

Implementation summary


PSD last updated

23 Nov 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

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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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