DFF - Dniprovska Agri

Location:

Ukraine

Project number:

48474

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

28 Feb 2017

Status:

Disbursing

PSD disclosed:

22 Mar 2018

Translated version of this PSD: Ukrainian

Project Description

A US$ 5 million loan to Dniprovska Agri Group for the construction of a biomass boiler, which will improve the company's operational and environmental performance.

Project Objectives

The new biomass boiler will use poultry manure from the company's farms and help optimize its energy-supply mix as well as reduce its operating costs.

Transition Impact

Transition impact is expected to derive from Setting Standards of Corporate Governance and Business Conduct: The project will finance the installation of a biomass boiler using poultry manure to generate heat and cover the fuel demand of its facilities. The system is EU BAT compliant but has very limited penetration in Ukraine.

Client Information

DNIPROENERGO-RESURS LLC

EBRD Finance Summary

USD 5,000,000.00

Total Project Cost

USD 5,850,000.00

Environmental and Social Summary

Categorised B (ESP 2014): The provision of capital for the installation of a biomass boiler and working capital finance for the purchase of sunflower seeds is associated with moderate and sitespecific impacts.

Environmental and social due diligence for the Project included an independent animal welfare assessment of the Company, a site visit to the Company's sites by a member of the Bank's Environmental and Sustainability Department (ESD) and review of an environmental and social (E&S) questionnaire and other supporting documents. No significant E&S impacts or risks were identified and the Company's facilities were deemed to be largely compliant with Ukrainian and EU environmental and social requirements. A number of minor issues were noted and corrective actions to address these have been formulated into a time-bound environmental and social action plan (ESAP) which has been agreed with the Company. The ESAP includes actions such as the development and implementation of a company-wide environmental and social management system, undertaking a dust assessment, emissions monitoring, improvements in OHS oversight for contracted workers and implementation of a driver safety programme.

The project will finance the installation of a biomass boiler. The system is EU Best Available Techniques (BAT) compliant, will achievement considerable reductions in gas use, and will reduce chicken manure/sunflower seed husk waste.

Particular attention has been paid to animal welfare. A detailed audit of poultry farming facilities was conducted by an independent consultant based on the analysis of both Ukrainian and EU regulations for animal welfare. The audit has found that the Company is generally in compliance with the standards, with some minor deficiencies. An Animal Welfare Action Plan has been developed and includes actions related to both biosecurity and animal welfare such as repairs to chicken sheds (roof repairs and blocking vermin access points); additional staff training on welfare practices and ensuring live animal transport adheres to EU standards.

The Project will be monitored by the Bank on an annual basis through the Annual Environmental and Social Reports.

Technical Cooperation

Technical cooperation consists of two tasks: (1) assessment of financial and technical viability and review of key implementation aspects associated with the Project execution; (2) assessment of technically and economically viable option for biomass boiler installation at sunflower oil extraction
plant. Additionally, technical cooperation was provided for legal due diligence costs to pay for expenses in connection with the preparation of the Bank's financing of the Project.

Company Contact Information

Anna Sarnatskaya, Deputy CFO
office@ofc-pkd.com.ua
+38 061 702-02-02
+38 061 702-02-01
http://dneprovsky.com

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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