CEREOL UKRAINE

Location:

Ukraine

Project number:

18828

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

20 Nov 2001

Status:

Complete

PSD disclosed:

04 Oct 2001

Project Description

Proposed new working capital facility to Dnipropetrovsk Oil Extraction Plant, which was initiated to allow the purchase of raw materials for the production of refined edible sunflower oil. This project modifies earlier projects signed by the EBRD in May 1999 and July 2000.
Provision of medium-term working capital financing to secure the purchase of raw materials and to satisfy working capital requirements.

Transition Impact

The positive transition impact from the project stems from:
  • continuous support of the underdeveloped Ukrainian agricultural sector through the provision of working capital financing;
  • knock-on benefits to the economy – from the company's expansion and exports; and
  • the demonstration effect of supporting a strategic investor that has been developing new value-added products, improving the technical production process, contributing its marketing expertise and knowledge of efficient seed procurement.

The Client

Dnipropetrovsk Oil Extraction Plant (DOEP) is the Ukrainian producer of branded bottled refined sunflower oil, with leading market positions in Ukraine and Russia. The company is majority owned by Cereol, one of the leading edible oil companies world-wide.

EBRD Finance

Working capital facility of up to US$ 41.5 million (€47.6 million).

Project Cost

Provision of medium-term working capital financing to secure the purchase of raw materials and to satisfy working capital requirements.

Environmental Impact

This operation involves the extension of the current financing to an existing Bank project at an edible oil processing plant. Environmental due diligence conducted prior to the beginning of the existing project raised issues related to waste-water treatment and discharge, air emissions, fuel management and workers' health and safety, which led to the preparation and implementation by the company of an Environmental Action Plan agreed with the Bank in 1995. The project being proposed now would not have an impact on the environmental status or performance of the facility as it would simply provide working capital finance, and in particular for the purchase of raw materials. Detailed annual environmental reports have been reviewed since inception, which indicate full compliance with the Environmental Action Plan and with applicable regulations. The legal requirements for this project will ensure continued commitment by the company to implement the Environmental Action Plan, to report annually to the Bank on environment and health and safety and to provide immediate notification in case of accidents or incidents. The client has demonstrated full compliance with the environmental requirements set out for this operation and completed implementing the Environmental Action Plan.

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)

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.