Dominant Resource Efficiency

Location:

Russia

Project number:

44531

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

29 Oct 2013

Status:

Cancelled

PSD disclosed:

05 Sep 2013

Translated version of this PSD: Russian

Project Description

The EBRD is considering USD 78.0 million (or RUB equivalent) loan to Dominant Group (“Dominant”), one of the largest sugar producers in Russia also involved in dairy and primary agriculture.

The loan will primarily finance modernisation of sugar plants, including energy efficiency improvements and purchase of modern agricultural machinery with lower fuel consumption and carbon emissions (the “Project”).

Transition Impact

The Project’s transition impact potential will derive from demonstration of new replicable behaviour and activities and setting standards for corporate governance and business conduct. In particular, the group will as a result increase efficiency in sugar beet farming and reduce energy and resource intensity of its processing facilities through modernisation of its equipment and introduction of energy and resource-saving management practices.

The Client

Dominant.

EBRD Finance

USD 78.0 million (or RUB equivalent) loan for the account of EBRD.

Project Cost

Approximately USD 130.8 million.

Environmental Impact

Categorised B. Independent consultants were employed, in accordance with a Terms of Reference (TOR) provided by the Bank, to undertake a number of tasks including a corporate review of environmental, health and safety management, E&S audits of those facilities utilising EBRD funding, BAT assessments for both existing operations and the modernization programme and to develop an Environmental and Social Action Plan (ESAP) and a Stakeholder Engagement Plan as necessary to ensure that the Company will comply with the Bank’s PRs.

The key findings from the E&S due diligence are that there are no significant adverse environmental or social impacts associated with the operations of the company. However, there are a number of issues which will need to be addressed by the Company to ensure compliance with the Bank’s PRs. The Company does not have a formalised EHS management system for the group nor staff specifically nominated for the management of environmental issues. There are a number of people living within the sanitary protection zones of the various facilities, and the Company needs to manage issues in relation to dust management and discharge of waste waters to filtration fields. There are a number of minor issues in relation to health and safety particularly for the use of contractors on Company sites. No major labour or social issues were identified although the Company has not undertaken a formal identification of key stakeholders nor developed a communication strategy for communicating with them.

A draft Environmental and Social Action Plan has been developed, to ensure the project meets the Bank’s PRs, and this will be finalised and agreed with the Company prior to Board approval of the project. The ESAP is designed to address the key issues identified during due diligence and includes sections on corporate actions for EHS management and actions specific to each facility. At the corporate level these actions include the development of a EHS management system including a staffing structure, the establishment of KPIs, measurement of the Company’s activities against BAT and development of more formalised reporting. Actions for individual facilities include actions to compliment the development of systems at the corporate level and individual actions in response to specific risks identified during the auditing process. The Company will be required to provide annual reporting to EBRD on the implementation of the ESAP and on any other EHS issues arising during the year.

Technical Cooperation

Energy efficiency audit funded under the Global Environmental Facility (GEF) funded framework for Russia.

Company Contact

Ekaterina Chistilina
Tel: +7 (495) 745 50 73
E-mail: e.chistilina@dominantsugar.ru

 

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

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.