Translated version of this PSD: Ukrainian
Project Description
Debt financing for TC Meest Express LLC which is incorporated in Ukraine and the Meest group of companies (the 'Group') in further development and expansion of its domestic and international operations, which will include: the expansion of the collection and delivery network points; the development of an IT platform; the development of processing technology at warehouses and collection and delivery points; the development of domestic and international logistics hubs; the promotion of the 'Meest' brand, as well as the introduction of carbon neutral courier products. The project loan will benefit from concessional financing under the Green Logistics Programme provided by the Global Environmental Facility to promote energy efficiency and lower carbon emissions in the logistics sector.
Project Objectives
The Group's main strategy is to increase its market share by strengthening its competitive advantage in the domestic market. To achieve these objectives, the Group is investing in expanding its network of Pick-Up and Drop-Off (PUDO) points and parcel lockers in order to increase efficiency of its
logistic operations.
Transition Impact
Transition impact is expected to derive from (i) setting standards of business conduct by improving efficiency of warehousing operations through reduced order processing times; (ii) introducing innovative "Green logistics" practices and measures; (iii) setting standards of corporate governance by simplifying a legal structure of the group and making it transparent; (iv) more private ownership by increasing the Group's coverage and market penetration.
Client Information
TC MEEST EXPRESS LLC
EBRD Finance Summary
USD 10,000,000.00
Total Project Cost
USD 20,000,000.00
Environmental and Social Summary
The Project has been categorised B in accordance with the EBRD Environmental and Social Policy 2014.
Environmental and social due diligence ('ESDD') has been undertaken by the Bank's Environment and Sustainability Department based on a review of all available information, including a review of corporate management systems and interviews with the Group's representatives. The review covered the existing facilities and confirmed that they are in satisfactory conditions and generally meet the requirements. All delivery and collection facilities are located in the urban area and don't have negative impacts on any sensitive receptors.
A review of the Group's corporate management system showed that it has well established integrated EHS management systems that have been developed in line with good international practice and are implemented throughout their operations. Coordination, oversight and monitoring functions provided by the Group seek to ensure consistency of approach and management of key EHS issues for new projects and operational activities. The Group has demonstrated its commitment to implement the Project to high national and international environmental standards. Given their good corporate
management systems, it is expected that the environmental and social impacts associated with the Project will be readily mitigated and properly managed.
In respect of the fire and explosion safety of the existing facilities suitable actions and programme relating to safety improvement have been integrated into the Environmental and Social Action Plan ('ESAP') for the Project.
The ESAP has been agreed with the Group to address the necessary mitigation measures and improvements which will enable the Group to comply with national regulations and the Bank' s Performance Requirements ('PRs'). As part of the ESAP the Group will implement the following actions:
- Revise corporate due diligence procedures to take into account EBRD's PRs, particularly with respect to assessment of the potential social impacts of projects.
- Ensure implementation of the principles of Corporate EHS management system at project level in line with ISO 14001, OHSAS 18001 and relevant EBRD PRs and develop EHS training plan for employees involved in the operation of new facilities and ensure its implementation.
- Ensure implementation of national and best international (EU) requirements and principles in fire and explosion safety at the design stage of the project.
Technical Cooperation
The Project is expected to receive the following TC support: costs of legal due diligence and legal documentation will be funded by the EU4Business programme for Ukraine; the assessment of carbon impact, identification of further opportunities for carbon reduction and the development of carbon neutral courier products will be provided by the EBRD Shareholder Special Fund under the Green Logistics Programme.
Company Contact Information
Aida Marushchak
+38 032 240 45 00
www.meest-group.com
147, Zelena Str., Lviv, 79035, Ukraine
Business opportunities
For business opportunities or procurement, contact the client company.
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Text of the PIP
