Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

27 Apr 1999



PSD disclosed:

29 Apr 1999

Project Description

Financing of the purchase of raw materials necessary to produce 45,000 metric tonnes of refined edible sunflower oil per year in Dnipropetrovsk, Ukraine. This project modifies earlier projects signed by the EBRD in December, 1995 and September 1997.

Loan proceeds from the project will be used for the purchase of sunflower seeds from local producers in Ukraine and refinancing an earlier preferred share issue.

Transition Impact

The positive transition impact from the project stems from:

  1. private sector organisation of Ukrainian agriculture, where distribution and purchasing systems are still controlled by the state;
  2. knock-on benefits to the economy – from the company's expansion and exports;
  3. skills transfer from the sponsor, especially in new areas for the company, such as oil refining and bottling as well as establishment and marketing of the new brand;
  4. the positive demonstration effect as an example of successful private sector direct foreign investment in Ukraine (where per capita levels have been low relative to those in the Bank's other countries of operations).

The Client

Dnipropetrovsk Oil Extraction Plant (DOEP), a closed joint-stock company with foreign investment organised under the laws of Ukraine. The sponsor of the project is Eridania Beghin Say (EBS), a diversified agribusiness conglomerate food holding company organised under the laws of France.

EBRD Finance

A three-year revolving credit facility of US$ 35 million replacing the existing US$ 15 million facility. Also the Bank’s US$ 8.5 million existing preference share issue will be replaced by a US$ 8.5 million senior, subordinated debt issue maturing on 31 December 2002.

Environmental Impact

This operation involves the provision of additional financing to an existing Bank project at an edible oil processing plant. Environmental due diligence conducted on the existing project raised issues related to waste-water treatment and discharge, air emissions, fuel management and workers' health and safety, which led to the preparation and implementation by the company of an Environmental Action Plan agreed with the Bank.

The original investment had aimed at the construction of new facilities in line with western European standards and included provisions for the construction of a waste-water treatment plant. The project being proposed now would not have an impact on the environmental status or performance of the facility as it would simply provide working capital finance for the purchase of raw materials.

Detailed annual environmental reports have been reviewed since inception, which indicate full compliance with the Environmental Action Plan and with applicable regulations. The legal requirements for this project will ensure continued commitment by the company to implement the Environmental Action Plan, to report annually to the Bank on environment and health and safety and to provide immediate notification in case of accidents or incidents.

Technical Cooperation



Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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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