FM RUSSIA

Location:

Russia

Project number:

3267

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Approval date:

04 Nov 1997

Status:

Completed

PSD disclosed:

01 Oct 1997

Project Description

The project will provide funds to FM Logistic (SEVO) Z.A.O. to construct, equip and operate a warehouse, distribution and logistics centre 5 kilometres from Sheremetievo international airport, 32 kilometres outside central Moscow.
Through the construction of a new logistics centre, the project will promote the effective distribution of products and reduce operating costs for manufacturing companies operating in Russia. The project will also reduce the cost of finished goods, demonstrate that a project of this nature can be successfully undertaken in Russia, and create on-going employment opportunities.

Transition Impact

The project will contribute towards the development of the private sector and market-oriented economy through positive demonstration effects for new products and processes and the expansion of competitive market interactions in other sectors. The consumer goods segment of the Russian economy, in particular, stands to benefit from the continued expansion of SEVO's sophisticated logistics approach.

The Client

SEVO will be owned by Batilogistic S.A. from the Faure et Machet (FM) Group, a leading, privately owned French logistics company providing state-of-the-art transport, warehousing and distribution services for top international clients in the consumer goods sector in France, Germany, Poland and Russia.

EBRD Finance

The EBRD will make an equity investment of US$ 4.8 million (ECU 4.4 million) in the company and provide a loan of US$ 12 million (ECU 11 million). Co-financing is being arranged with other banks.

Project Cost

US$ 48.0 million (ECU 43.9 million).

Environmental Impact

The project involves the construction, equipment and operation of a three-phase, 62,720m² warehouse, distribution and logistics centre and related infrastructure, including road and rail link to the site. Once completed, the project will cater for the needs of international companies for modern transport, warehousing and distribution facilities. The project was screened B/0, requiring an Environmental Analysis of the impact associated with the construction, equipment and operation of the warehouse, distribution and logistics centre. The analysis highlighted the following issues:
  • To meet high standards of environmental, health and safety and to reduce any adverse environmental impact during the construction phase, the complex will adopt the highest Western standards. Noise and dust levels will be kept to a minimum level.
  • Construction will be undertaken in accordance with Russian and EU worker health and safety legal requirements and standards.
  • Environmental permits have been received from a number of local authorities, including approval from the Ministry of Environment and the State Inspectorate for Health and Epidemiology.
  • The development will comply with all local fire, safety and emergency procedures. Sprinklers will be installed throughout according to authorities' requirements.
  • The latest developments in installation and safety techniques will be applied to the warehouse complex. Energy conservation measures will form a major part of the project along with the provision of clean air filtration systems. There will be minimal impact on the surrounding area. Other positive environmental features of the development include the following:
 
  • Increased traffic to the warehouse is not expected to create any problems.
  • There will be no environmentally damaging materials or substances (asbestos, formaldehyde, oil-cooled transformers etc.) used in the construction.
  • The sponsor will provide the Bank with an Annual Environmental Report documenting, among other things, any environmental issues, such as incidences of non-compliance and updating the Bank on environmental initiatives taken by the project.

Technical Cooperation

None

Company Contact

 

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

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