BUCINA ZVOLEN, A.S.

Location:

Slovak Republic

Project number:

2460

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

16 Jun 1998

Status:

Complete

PSD disclosed:

21 May 1998

Project Description

Loan to a wood processing company in the Slovak Republic for modernisation and extension of its core production facility and improvements to the energy systems.
The project aims to upgrade and expand Bucina Zvolen's core production facility, which will enable the company to improve the product quality, enhance its profitability, meet growing product demand and increase its share in existing markets throughout Europe. Reconstruction and modernisation of the company's energy system will eliminate inefficiency and significantly contribute to environmental improvements.

Transition Impact

The project demonstrates substantial economic benefits including, among other things, improvements in waste product usage/recycling. This will result in further cost reduction and profitability increase. Energy efficiency investments will focus on reducing energy distribution losses and utilising co-generation opportunities. The impact on the transition arises from the company's on-going restructuring process, focusing core business operations in a separately established subsidiary.

The Client

Bucina Zvolen a.s. is a private Slovak mechanical wood processing company. It was established as a subsidiary of Bucina a.s., an industry leader with a history of more than 50 years.

EBRD Finance

The EBRD will provide a loan of DM 28.54 million (ECU 15.16 million).

Project Cost

DM 28.54 million (ECU 15.16 million).

Environmental Impact

The project was screened as B/1, requiring an environmental audit of the existing facilities and the project site and an analysis of the investment proposed.
Due diligence was conducted in accordance with terms of reference prepared by the Bank. In general, Bucina Zvolen was found to be in compliance with the prevailing environmental requirements in the Slovak Republic, which have been undergoing harmonisation with those of the European Union. In addition, the company is ISO certified for quality (according to the ISO 9,000 series), and is currently planning certification for environmental management (under the ISO 14,000 series).
In order to bring the facilities up to international standards and to address environmental issues identified during the due diligence process, an Environmental Action Plan (EAP) has been developed and agreed between company management, the environmental authorities and the Bank. Key measures in the EAP include additional investigation and mitigation of residual contamination in the former areas of wood treatment and waste management units, based on extensive existing information, in agreement with the environmental authorities and the Bank. Other measures include a series of gradual improvements to energy efficiency, air emission and waste-water treatment. These will be addressed in part by the investment project under preparation.
Together with the main components of the investment project, the EAP would bring operations in line with European Union standards for the environment. Implementation by the company of the EAP will form part of the legal agreement with the Bank and will ensure compliance with both Slovak and European Union standards. Furthermore, the company will be required to report to the Bank periodically on the environment and health and safety and on the implementation of the EAP.

Technical Cooperation

None

Company Contact

 

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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