CMI Offshore

Location:

Regional

Project number:

47096

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Approval date:

18 Oct 2017

Status:

Cancelled

PSD disclosed:

17 Oct 2016

Translated version of this PSD: Russian

Project Description

The USD 21 million loan will be provided for 5 years to enable CMI Offshore Ltd (the "Company") to continue its growth programme in Turkmenistan and Kazakhstan.

Project Objectives

The Bank's loan will be used to support the Company in balance sheet restructuring and in acquiring new vessels.

Transition Impact

The transition impact of the project will focus on supporting private foreign direct investments, skill transfers and environmental impact.

Client Information

CMI OFFSHORE LTD

CMI Offshore provides marine and logistics services to offshore oil and maritime sectors in the Caspian Sea region.

EBRD Finance Summary

USD 21,000,000.00

Total Project Cost

USD 21,000,000.00

Environmental and Social Summary

Categorised B (2014 ESP). The Project involves provision of a loan to the Company for the acquisition of an existing Anchor Handling Tug Supply (AHTS) vessel, which is currently being operated by the Company under a hire-purchase contract. The Project will thus not result in any additional environmental or social impacts compared with the current situation.

The Company provides maritime logistic and support services and operates a fleet of Anchor Handling Tug Supply / Platform Supply Vessel (AHTS/PSV) units, Standby / Rescue vessels, tugs, crew boats, passenger ferries, barges and survey / diving ships. The Company has been awarded contracts to provide maritime logistic and support services to offshore oil developments in the Caspian Sea. However, CMI Offshore is not directly involved in the exploration or extraction of oil or gas and its vessels do not transport significant quantities of oil, gas or other hazardous materials, and its services to offshore oil developments include, among others, emergency response and recovery support and oil spill containment and response in the event of any offshore emergency.

As part of the Bank's environmental and social due diligence (ESDD) for the Project, an independent environmental and social audit of the Company, its vessels and operations against the EBRD's Environmental and Social Performance Requirements and international maritime safety and environmental regulations and standards, including the International Convention for the Prevention of Pollution from Ships (MARPOL) and other relevant International Maritime Organization (IMO) conventions was carried out. The ESDD showed that the Company's fleet complies with applicable international maritime safety and environmental standards and requirements. The Company has certified ISO 9001:2008, OHSAS 18001:2007 and ISO 14001:2004 management systems, which include establishing safeguards against all identified risks, evaluating audit results, analysing the cause of non-conformances and reviewing the effectiveness of corrective actions. The ESDD confirmed that the Company operates its vessels within established and controlled navigation routes. Some of the existing navigation channels in the Caspian Sea pass through or along the borders of existing marine protection areas, for example, the navigation channel to/ from Turkmenbashi port goes partially inside Hazar Nature Reserve, an internationally protected wetland under the RAMSAR Convention. The Administration of the Hazar State Nature Reserve has confirmed that the operations of the Company's vessels servicing the objects offshore do not represent a threat to the Reserve's flora and fauna.

CMI Offshore has a sound safety and operational track record and it is compliant with the International Safety Management (ISM) Code and the International Ship and Port Facility Security (ISPS) Code. The Company is committed to high level of quality, safety, reliability, customer service and environmental responsibility and provides its customers with the emergency rescue, response and recovery support in the event of any offshore emergency. The Project financing will also include a covenant for CMI Offshore to obtain and maintain environmental and safety certifications and
comply with IMO conventions for new vessels during the project lifespan.

The Bank will be monitoring the environmental and social performance of the project through annual reporting and monitoring visits if necessary.

Technical Cooperation

None.

Company Contact Information

Nadiya Isikova
nadiya@cmioffshore.com
+302108034334
http://cmioffshore.com/
34, Agiassou Vrilissia, 152 35 Greece

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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