Translated version of this PSD: Romanian
The EBRD is considering providing a long term loan of up to € 23 million to ETI European Food Industries S.A. ("Eti European"), Romanian subsidiary of Eti Gida Sanayi ve Ticaret A.S. ("Eti"). The loan will finance capital expenditures and working capital needs related to the construction of a green-field confectionery factory near Craiova, Romania.
The transition impact of the project is expected to derive from
(i) skills transfer through provision of training opportunities and links to local educational institutions addressing the regional inclusion gaps with respect to education.
Further transition impact is related to
(ii) backward linkages to local farmers, e.g. through provision of technical assistance, as part to the company’s effort to secure a sustainable supply of raw materials.
Founded in 1962, ETİ is one of the leading confectionery producers in Turkey.
Long term loan of up to € 23 million.
€ 39 million.
Categorised B. The construction of a green-field confectionery factory is not associated with significant environmental and social impacts. Any such impacts would be site specific and readily addressed through appropriate mitigation measures.
Environmental and social due diligence on this project included a site visit to Eti’s production facilities in Turkey, discussions with various staff involved in environment, health and safety management, and the review of written submissions by the company. In terms of the Romanian site the company has undertaken a number of preparatory studies for compliance purposes, including an assessment of effects on the local environment. A full environmental and social impact assessment was not required for this development. The production facility will be located in an industrial zone and is not anticipated to have any negative impact on local communities. The facility has been designed to meet both EU requirements as expressed through national law and Eti’s own very high standards for its production units. Over and above any national requirements for environmental, health and safety and labour management Eti will apply its own standards many of which would be considered as best international practice.
EBRD will agree an environmental and social action plan with the company to ensure that all elements of the Bank’s performance requirements will be met in the context of this project including adoption and implementation of adequate management systems, ensuring the health and safety of employees and implementing HR practices in accordance with good practice. The Company will be required to provide reports on environmental and social issues generally and on the implementation of the environmental and social action plan.
Fikret Comert (CFO)
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