Translated version of this PSD: Montenegrin
The EBRD is considering providing a senior loan to a joint venture company to be owned by Adriatic Shipyard, Adriatic Marinas D.O.O. and an international yacht repair specialist, to finance part of the construction and development costs of a yacht repair facility on a site located within the existing Adriatic Shipyard (‘the Shipyard’) in Bijela, Montenegro.
The Bank’s loan will facilitate significant environmental improvement to the shipyard which is in need of new investment for its environmental remediation work, involving a waste-disposal programme and site improvements to mitigate environmental and health risks and impact assessment in line with international standards.
The Project is also an important part of the service sector that is needed to support the development potential of the tourism strategy (focused on low density and high-end sectors) for Montenegro which is a key industry in the country and actively promoted by the Government. By providing service facilities all year round, the Project will help make the area an attractive home port for boats, yachts and crews to stay on, thus providing employment to the local population all year round, and not only in the summer periods. The Project will thus bring significant social and economic benefits in terms of creating long term employment, regeneration and help support sustainable tourism and developments in the country.
The Project will involve a highly experienced yacht repair specialist as the operator and a shareholder. Its involvement would create considerable skills transfer and help to promote best business practice in accordance with international standards.
The Project will raise awareness of safety and environmental issues and promote best practice particularly in the development of an Environmental and Safety Action Plan (‘ESAP’) relating to site assessment, a clean-up programme and selection of appropriate waste disposal options, and introduction of an appropriate technology and waste management system which are of particular importance in view of the substantial industrial waste commonly generated by shipyards. The Bank aims to build upon the findings of the environmental study for six industrial areas, which has been initiated jointly by the government and the World Bank.
The involvement of an internationally experienced yacht repair operator will not only bring significant skill transfers, but also promote and ensure the implementation of the ESAP to be developed in line with the Bank’s requirements. It is expected that local staff and managers will benefit from the introduction of best practice in standards of business conduct such as transparency in the procurement process, as well as safety and environmental policies and other management systems and procedures in accordance with EU and international standards. Through interactions with local suppliers, the Project aims to promote and raise awareness with regard to these best practices which potentially can be replicated in the region.
The Project will contribute to the creation of a new market which supports the tourism industry in Montenegro. The new business sector is expected to bring about a significant expansion of backward linkages to suppliers and other businesses thereby promoting SME activities and increasing competitive interactions among the suppliers and sub-contractors for the yacht repair industry.
Montenegro Yacht Repair D.O.O. is a joint venture between the Shipyard, Adriatic Marinas D.O.O. and a yacht repair specialist.
The Shipyard is one of the largest ship repair yards in the Southern Adriatic and is majority owned by the state of Montenegro.
Adriatic Marinas D.O.O, incorporated in Montenegro, is the owner and operator of Porto Montenegro, the Marina in Tivat, Montenegro.
A yacht repair specialist company will be a part owner and the operator of the repair facility, and in charge of the daily operations and management of the facilities.
A senior loan of up to €9.1 million.
Construction of a yacht repair facility within an existing shipyard will result in site-specific impacts which can be readily identified and addressed through mitigation measures. Hence the Project is categorised B.
The main environmental concern with regard to the Project is the potential liability issues and risks that might be associated with the past/current operations of the existing shipyard. There is a substantial amount of mixed waste (hazardous and non-hazardous) accumulated in the shipyard.
In 2011, the Government of Montenegro has initiated an industrial waste management and clean-up project to remediate the shipyard. The first stage of this project, which is identification of the level of contamination at the shipyard, is currently underway. The initial results indicate that there is soil, groundwater and sediment contamination at the site.
An initial site visit was carried out by the EBRD in June 2012. During the site visit, it was observed that the contaminated grit is being separated from the rest of the waste and packed into bags. These bags will then need to be removed and safely disposed of as part of the clean-up project of the Government.
The environmental and social (E&S) due diligence for the Project will be carried out by independent consultants and will include:
- review of the contamination study report and other existing E&S studies and documentation;
- E&S management review of the Company;
- EHS audit of the Shipyard and the Marina with the aim of addressing the issues that might pose reputational risks or liability issues for the Bank;
- E&S analysis for the Project.
An ESAP will be developed based on the outcomes of the E&S due diligence to mitigate the identified E&S issues and impacts, and to bring the Project into compliance with the EBRD's PRs and will be agreed with the client.
This PSD will be updated once the E&S due diligence is completed.
Montenegro Yacht Repair D.O.O.
Phone: +382 32 660700
Fax: +382 32 674656
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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