The EBRD is considering a USD 18 million long term loan to Efes Vitanta Brewery. The loan will be used to modernise and expand the company’s brewing capacity, and will also be used to build a waste water treatment facility.
The transition impact will be derived through the Projects influence on:
Backward linkage and transfer of know how:
The anticipated production growth and modernisation will create greater opportunities for Efes Vitanta to work with its suppliers to create new and innovative packaging solutions and designs that will help local companies modernise their products and put them in line with European standards, thus making them more competitive.
The project will further improve relations with local distributors and help them conform to best industry practices. Further expansion of the Company will pass on these good practices to new distributors and buyers, and may encourage similar practices by other food producers and distributors in Moldova.
As the Hotel Restaurant & Cafe segment has traditionally accounted for a significant share of beer sales, the Company has and continues to promote a policy of training restaurant, bar and café owners and operators. Thus, the Company provides assistance as to how to improve quality and hygiene standards in the serving of beer, how to store beer, as well as with menu design and presentation. With the further expansion of this activity, the Company will strive to provide more of this type of assistance to hospitality establishments outside Chisinau.
As one of the key foreign investors in Moldova the Company has and will continue to have a positive impact on the modernization of marketing, management, product and production development practices in the country.
As part of the project the Company, despite the lack of local legislation, has chosen to invest in a waste water treatment system that will serve as an example to other corporates in Moldova.
IM Efes Vitanta Moldova Brewery SA, a client incorporated and existing under the laws of Moldova. It is a 96.5% owned subsidiary of Efes Breweries International.
USD 18 million senior loan
USD 24 million
Environmental classification and rationale
The project has been classified B/1 according to the EBRD’s Environmental Policy and Procedures as it is associated with the modernisation of existing structures and further expansion. This can typically result in limited adverse environmental and social impacts and in significant environmental benefits, which can be readily identified and assessed by means of an Environmental Analysis as well as efficiently mitigated with modern technology and project design. As the existing facilities are involved, an Environmental Audit has also been undertaken.
Key environmental issues and mitigation
An environmental due diligence was undertaken of the project by the Bank, inclusive of an independent consultant’s review of the site and of the project. A comparison was made of the current performance with relevant national requirements and best international practices for the sector.
The findings of the environmental due diligence confirmed that the Company is generally in compliance with applicable national regulations on environment, occupational health and safety and labour. There are some environmental, health and safety and social (EHSS) issues of concern for the Vitanta Brewery associated with general level and quality of the environmental, health and safety management, energy and water use, wastewater treatment, occupational health and safety issues. To improve waste water quality the project will include the installation of a waste water treatment facility which will be designed to the good international practice. Construction-related impacts associated with the installation of the wastewater treatment plant are likely to be localised, short term in nature and they will be efficiently prevented or mitigated by applying international construction practice and planning.
Development and long term strengthening of environmental, health and safety management systems and practices are required to successfully address other EHSS concerns. This will be achieved through the thorough implementation of an Environmental and Social Action Plan (ESAP) agreed by the EBRD and the Company.
A comprehensive water and energy use audit will be undertaken prior to design and construction of the waste water treatment facility to ensure its design is in line with good international practice. The surveys will also help the Company to identify water and energy saving opportunities.
Disclosure of Information and Consultation
In accordance with EBRD policy the Company is required to carry out its actions in accordance with national requirements for public disclosure and consultation. Additionally, the Company agrees to disclose this summary of key EHSS issues locally prior to the EBRD’s final management review of this project.
Monitoring and Reporting
The Company will report to the EBRD annually on its environmental, safety and labour performance and on the implementation of the ESAP. The Bank will evaluate the project's compliance with the applicable environmental and social standards during the lifetime of the project by reviewing these reports and by conducting monitoring visits to the project when and if deemed appropriate. The Company will also be required to notify the Bank of any material incidents or accidents likely to have an effect on the environment or worker and public safety.
Lemi Guven, Finance Manager
IM Efes Vitanta Moldova Brewery SA
MD-2023, Republic of Moldova, Chisinau, Uzinelor, 167
Fax: + +373 (22) 475356
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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