Loan of US$ 65 million to be provided on a 50/50 basis by the EBRD and the Royal Bank of Canada to finance construction of a grain terminal in the under-utilised modern deep-sea North Port of Gdansk.
The project involves the construction of the modern grain terminal in the North Port of Gdansk. The main objective is to provide trading companies and shippers with a deep-water facility and fast loading and unloading equipment to allow a much more efficient trading flow (import and export) of grain, seeds and oil through Poland and other central and eastern European countries.
The new facility will increase competition in the transportation sector since Poland does not yet have a large and state-of-the-art terminal with access to a deep water port. This will allow for a substantial reduction in transaction costs, i.e. transport costs for import/export of basic agricultural commodities. The new terminal would contribute to greater competition in agribusiness and food processing sectors. In addition, this project will upgrade Polish transport infrastructure, which is particularly significant for the country in the context of EU accession.
Europort Inc. Poland Sp z o.o. is a limited liability company incorporated in Gdansk, sponsord by Saskatchewan Wheat Pool (large Canadian grain company and manager of the terminal), Strait Crossing Group Ltd. (Canadian construction company in charge of the construction work), Joseph D’Andrea, and Dessaport International Corp. The sponsors own the Company via special purpose vehicles Marnico Beheer V.BV (incorporated under laws of the Netherlands), Lakeamber Holdings (incorporated under the laws of Ireland) and EuroPort Inc. (incorporated under the laws of Delaware, USA). The Company was incorporated for the purpose of construction and development of the grain handling and storage facility in the under-utilised North Port of Gdansk. The terminal is expected to start operation in spring 2000.
Loan of US$ 32.5 million (ECU 29 million).
US$ 86.6 million (ECU 77.3 million).
The project was screened as B/1, requiring an Environmental Analysis of the proposed development and an Environmental Audit of the existing facilities. Environmental due diligence confirmed that the proposed grain terminal would meet all relevant Polish environmental, health and safety standards, including those which result from international agreements and conventions as well as the harmonisation process with the European Union. Geotechnical Site Investigations did not detect any significant contamination. The Environmental Action Plan, which is an integral part of the proposed development, includes the following mitigation measures:
use of low sulphur oil (Ecoterm Oil) as fuel in the boiler house;
installation of a state-of-the-art dust reduction system;
noise reduction through installation of silencers and adequate insulation;
installation of state-of-the-art fire and explosion preventative measures as recommended by the Canadian Grain Handling Association and National Fire Protection Association of the United States;
installation of a green protective barrier (high and low trees and shrubs) wherever viable.
The borrower will be required to report annually to the Bank on environment, health and safety matters and notify the Bank on any incident or accident with significant material damage or other environmental consequences.
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Text of the PIP