Danube Logistics - Giurgiulesti Port

Location:

Moldova

Project number:

44144

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Approval date:

12 Dec 2012

Status:

Repaying

PSD disclosed:

25 Oct 2012

Translated version of this PSD: Romanian

Project Description

The EBRD is considering providing a senior loan to Danube Logistics SRL, an enterprise established in Moldova, which owns and operates the only port in the country, Giurgiulesti International Free Port, located on the Lower Danube, near the village of Giurgiulești, the southernmost point of Moldova, on the border with the EU and 10 km away from Romanian city of Galați, the largest port town on the Danube River.

The loan will part finance the completion of the port infrastructure and in particular building of mixed-gauge rail terminal and roll-on-roll-off ramp.

Specifically, building of up to 100 m of mixed-gauge rail on the territory of the port will connect the Romanian and Moldovan railways where Romania as the rest of the EU uses narrow gauge and Moldova as well as the neighbouring Ukraine and other CIS countries uses broad gauge. First of all, it will enable the trains to enter the port and, secondly, it will help avoid long hours of lifting each carriage to have its bogies changed.

The EBRD’s investment will be also used for balance sheet restructuring through the refinancing of the short-term debt with long-term loans.

With the help of the EBRD’s loan the port will become a multipurpose logistics hub at the crossings of maritime trade routes between Eastern Europe and the EU, with due access to road, rail (broad and narrow gauges), the Danube River and the Black Sea, It will also contribute to an increased competition for Moldovan cargo traffic with the regional ports, including Galați in Romania and Odessa in Ukraine.

Transition Impact

Transition impact will be delivered through the following:

  • Competition in the project sector: The mixed-gauge rail terminal will be the first privately-owned terminal in the country which will put competing pressure on the state owned terminal. The port operation will also increase competition with regional ports for Moldovan cargo traffic.
  • Setting standards of business conduct/Environmental Management: The Bank will support the introduction of improved energy management practices at a corporate level which will ultimately lead to the formal implementation of an energy management standard.
  • Demonstration of new replicable behaviour and activities: The project will support a foreign investor in an early transition country and the financial restructuring of the port will promote sustainable financial conditions.

The Client

Giurgiulesti International Free Port is the only port in the Republic of Moldova and is owned and operated by Danube Logistics SRL.

EBRD Finance

A senior loan of up to USD 12 million.

Project Cost

USD 30.7 million.

Environmental Impact

The proposed project has been categorised B in accordance with the 2008 EBRD Environmental and Social Policy. The potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the project, which is ongoing, includes an assessment of the client’s management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) environmental and social impacts and benefits. It will also assess the client’s ability to carry out the project in compliance with the Bank’s Performance Requirements.

An Environmental and Social Action Plan will be prepared for the project, and a Stakeholder Engagement Plan will be developed. It will include a grievance mechanism and information on environmental and social performance. A summary of the agreed Action Plan will be released to stakeholders.

 

Technical Cooperation

None.

 

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

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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.