Belvedere

Location:

Bulgaria

Project number:

35309

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

22 Mar 2005

Status:

Completed

PSD disclosed:

25 Jan 2005

Project Description

The proposed financing will strengthen Belvedere’s operations in Bulgaria and support it in the process of becoming one of the biggest local players in the wine sector and increasing its export sales. Proceeds will be used mainly for the reconstruction of the existing wineries and for acquisition of vineyards.

Transition Impact

The transition impact from the project will result mainly in increased competition in the overall wine production chain leading to grape quality improvements.

(i) Belvedere will invest in vineyards to be able to provide approximately 30% of its raw material needs.

(ii) The projected production growth implies that, despite the presence of own vineyards, the quantity of grapes purchased from the local economy will continue to grow as the production expands and the company will be contributing to quality improvements among its grape suppliers.

(iii) Establishing of own vineyards, as well as the pre-financing programs, will allow Belvedere to set and maintain higher quality standards for grape production, a problem which has plagued virtually all of the Bulgarian winemakers over the last few years, thus affecting the image of Bulgarian wine in international markets.

The Client

Belvedere Capital Management Ltd. is a Bulgarian holding company established to consolidate the wine activities of Belvedere S.A., France in the country which is 100% owned by Belvedere S.A.

EBRD Finance

The total financing package is for up to € 9 million and would be consisting of:

(i) EUR 7 million long-term secured debt

(ii) up to EUR 2 million equity.

Project Cost

Up to EUR 30 million.

Environmental Impact

In accordance with the EBRD's Environmental Policy and Procedures the Bank has categorised this project as B/1 requiring an environmental audit of the Company's current facilities and production processes and an environmental analysis of potential impacts associated with the proposed reconstruction of the wineries and the acquisition of vineyards. Based on the recommendations made by the environmental audit, an Environmental Action Plan has been adopted by the Company.

Technical Cooperation

None.

Company Contact

Mr Nikolay Dalakov, General Manager

Tel: +359 2 976 9450

 

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

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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