ADM-RISOIL UKRAINE

Location:

Ukraine

Project number:

35252

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

C

Target board date:

07 Sep 2004

Status:

Complete

PSD disclosed:

29 Jun 2004

Project Description

The proposed project consists of financing of working capital commodity stocks for a new edible oil crushing facility.

Transition Impact

The transition impact is expected to derive especially from positive development of the sector through backward linkages and EBRD policy dialogue regarding commodity financing instruments: The Company will buy seeds from a mix of traders and Ukrainian farmers. ADM and Risoil SA both bring relevant expertise to the Project. While there have been several foreign investments in the sector, the Ukrainian oilseed sector is still short of working capital, know-how and upgrades of outdated equipment. In addition, there are a number of regulatory issues general to the sector which the Bank is working to resolve in its dialogues and workshops with Ukrainian government. This project will contribute therefore to the Bank’s overall effort to support this critical sector for Ukraine.

The Client

Ilichevsk Maslo Extraction Zavod JSC, a 50/50 joint venture between Archer Daniels Midland a large American agribusiness company and Risoil SA, a Swiss registered agri-commodity trading company.

EBRD Finance

Up to US$30 million revolving working capital finance of which up to US$20 million for the Bank’s account.

Project Cost

US$46 million

Environmental Impact

The project has been classified as C/1 requiring an environmental audit of the Ilichevsk Maslo Extraction facility.   ADM has already conducted a certain amount of environmental due diligence including a technical study by independent consultants.  ADM will collate this information into a coherent environmental summary report to demonstrate how the facility currently complies with applicable national and EU standards for environment, health and safety.  As necessary, ADM will develop an environmental action plan to address any deficiencies identified.  ADM will also provide the Bank with an annual environmental report on environmental issues affecting the facility and on the implementation of any environmental action plans.

Technical Cooperation

None.

Company Contact

Mr Igor Yanchev, Director
Tel: + 380 444 944 210
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.