Darnitsa

Location:

Ukraine

Project number:

42402

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

24 Jul 2012

Status:

Cancelled

PSD disclosed:

18 Jun 2012

Project Description

The proposed project is designed to support Darnitsa in financing of the modernisation and expansion of the existing manufacturing facilities as well as adding new product lines.

Transition Impact

The transition impact and demonstration effects associated with this potential investment are expected to include:

  • Demonstration of new production processes and products
  • Setting standards of business conduct and corporate governance

The Client

Darnitsa is one of the leading pharmaceutical producers in Ukraine.

EBRD Finance

The Bank will provide a loan to Darnitsa of EUR 25 million.

Project Cost

EUR 44.4 million.

Environmental Impact

Environmental classification and rationale

The project is Categorised B. Operation of the pharmaceutical production is associated with a number of site specific issues, which can be readily identified, assessed and mitigated through measures as defined in the Environmental and Social Action Plan.

Due diligence completed

Environmental and social due diligence (ESDD) has been undertaken by the Bank’s Environment and Sustainability Department based on the review of all available information, including site visit, review of corporate management systems and interviews with the Company’s representatives.

Key environmental issues and mitigation

The Company’s operations carry a low degree of environmental and social risk. Due diligence identified a need to document management systems procedures at the Corporate level and additionally identified a number of waste management, contractor management and emergency response issues which require to be addressed in order that the Company can operate to the standards of the Performance Requirements (PRs). These issues require mitigation actions to address not only operational risk but also the risks posed by the construction and fitting-out activities which are part of the Project going forward.

Summary of Environmental Action Plan

An Environmental and Social Action Plan (ESAP) has been developed and agreed with the Company to address some areas for improvement identified during the ESDD and carry out the necessary mitigation measures which will enable the Company to comply with national regulations and the Bank’s PRs. Since the beginning of the ESDD, the Company has already started implementation of some ESAP requirements and has already improved its EHS management system.

Disclosure of information and consultation

The Company will also disclose locally information on its environmental and social performance.

Monitoring and reporting

The Company will monitor the environmental impact of its operations in accordance with national law and regulations. The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports prepared for the project covering:

(i) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programmes, and

(ii) the status of implementation of environmental mitigation and improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.

Technical Cooperation

None.

Company Contact

Mikhail Chupryna
Head of Corporate Finance
Tel. +38 044 207 73 48
E-mail: mc@darnitsa.kiev.ua

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Text of the PIP

Project Complaint Mechanism (PCM)

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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.