Translated version of this PSD: Ukrainian
The EBRD is considering a senior secured long-term loan of up to US$ 20 million to finance the modernisation, energy efficiency and environmental improvements of Astarta's existing sugar processing plants.
The Project's transition impact will be derived from demonstration of new replicable behaviour and standards market expansion through BAT (Best Available Technique) implementation and obtaining ISO 50001 certificate, and transfer and dissemination of skills and innovation through new technologies.
Astarta Group is one of the largest vertically integrated agricultural companies in Ukraine, operating nine sugar plants, around 250,000 hectares of leased arable land, as well as dairy farms, and engaged in soybean processing.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B (2014 ESP). The Bank has a long track record with the company and Astarta's environmental and social policies and performance have been subject to review and monitoring by the ERBD, FMO and IFC, Citibank/OPIC over the past few years. Environmental, Health Safety and Certification Department has confirmed that the Company has robust EHS management systems in place and is implementing the existing Environmental and Social Action Plan (ESAP). The current Bank loans with the Company were subject to a derogation with respect to the Bank's Environmental and Social Policy, as the Company will not be able to attain EU environmental standards due to the size and technological standing of the existing plants. This will remain the case for the foreseeable future, although the specific investments under this loan are in line with the Bank's Environmental and Social Policy and an additional derogation is not considered necessary.
The Company has had a steady improvement in its environmental and social performance over time, as it modernizes and moves towards EU BAT standards. For the current due diligence, Environmental, Health Safety and Certification Department has reviewed the Company's most recent environmental reports and additional information about the investment programme, including the EIA for the fuel switch project at Narkevichy in Khmelnitsky oblast. This EIA was undertaken in accordance with national legislation but is in line with EU requirements.
The Company has environmental, health and safety management systems certified to ISO 14001 and OSHS 18001 FSSC 22001 standards. The investments to be financed will help to maintain these management systems and support Astarta's ongoing BAT investment programme, leading to reduced consumption of natural gas and water and improved resource efficiency. The switch to coal at Narevichy will lead to an increase in CO2 emissions of around 10,000 tonnes per year, while the overall investment programme is expected to lead to a net reduction of 21,000 tonnes per year. All of the investments will be implemented within the existing boundaries of the Company's facilities and do not introduce new processes or increase production, and are not associated with significant social issues. Some of them, such the maintenance of the EHS management systems and the asbestos removal programme, are commitments from the Environmental and Social Action Plan agreed under the previous loan and updated in 2014. The asbestos removal programme will be carried out by qualified experts.
The ESAP requires the Company to carry out an updated assessment of all sugar plants against EU BAT requirement and develop a new BAT programme for five years that will be provided later in 2016. Other existing ESAP commitments will also apply to this loan. Environmental, Health Safety and Certification Department will continue to monitor Astarta's environmental and social performance through receipt of annual report and periodic site visits.
Company Contact Information
Mr. Viktor Gladky
+38 044 593-11-05
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