Belarus Rolling Stock Project

Location:

Belarus

Project number:

44333

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Target board date:

26 Mar 2013

Status:

Repaying

PSD disclosed:

25 Feb 2013

Translated version of this PSD: Russian

Project Description

The EBRD is providing a senior loan to a joint venture (JV) "Electric Transport", established in Belarus between Stadler Rail AG (Switzerland) and the Minsk Region Executive Committee (MREC), for the construction of a production plant for passenger trains, trams and trolleybuses.

The Project will comprise the construction and commissioning of new modern production facilities on a greenfield site in an industrial zone of Fanipol (4km from Minsk) and the modernisation of existing tram and trolleybus production facilities of Belkommunmash (BKM), a leading Belarusian manufacturer of trolleybuses and trams in CIS, that will form part of the JV operations.

Transition Impact

  • Transfer and dispersion of skills: the JV will construct and operate a new rolling stock production facility utilising the latest modern technologies, and provide for skills and know-how transfer from Stadler to the JV’s local employees through a hands-on staff training programme. Stadler is also expected to bring management skills;
  • Demonstration of new replicable behaviour and activities: the Project shows the successful reorganisation and commercialisation of a state-owned entity into a majorly privately-owned company, with the introduction of a new product line for trains utilising latest technologies;
  • Setting standards for corporate governance and business conduct: the JV will introduce a management system which integrates standards and procedures of environmental management, health and safety, and quality management, and will introduce improved corporate governance.

The Client

A joint venture OJSC “Electric Transport” (expected to be renamed to “Stadler Minsk”), majority owned by Stadler Rail AG (Switzerland).

EBRD Finance

Senior Loan of up to EUR 26.0 million (up to EUR 14.5 million, EUR 5.5 million and EUR 6.0 million in phases 1, 2 and 3 respectively).

Project Cost

The total project costs are estimated at EUR 73.7 million (EUR 41.5 million, EUR 20.2 million and EUR 12.0 million in phases 1, 2 and 3 respectively).

Environmental Impact

Categorised B. An independent environmental and social due diligence was conducted in November 2012. The ESDD identified that the new production plant is designed to meet local as well as international (EU) standards to ensure minimal waste generation, air emissions and wastewater generation and is structured to comply with the EBRD PRs. The BKM site has implemented an EMS compliant with ISO 14001 and occupational health and safety management system compliant with OHSAS 18001. The audit of existing facilities and operations identified that overall the facility appears to be well-managed with respect to environmental and OHS issues and has achieved a good level of compliance with national legal requirements of Belarus. The facility holds all environmental permits for air emissions, wastewater management, and waste and chemicals management. An Environmental and Social Action Plan (ESAP) has been developed for mitigation of identified E&S issues and impacts during construction and operation of the project, and to bring the Company's operations into compliance with the EBRD's PRs. The ESAP may be further amended to reflect additional Project components not covered by the original ESDD. The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP. The Bank will conduct monitoring visits, as required.

Technical Cooperation

None.

Company Contact

Philipp Brunner, Project Manager
Zavodskaja Street, Building Nr. 4, Suite 111,
222750 Fanipol, Belarus
Fax +41 71 626 20 28
Mobile: +41 79 961 91 18
E-mail: philipp.brunner@stadlerrail.com

 

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