HEMOFARM A.D.

Location:

Serbia

Project number:

23390

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

09 Apr 2002

Status:

Completed

PSD disclosed:

01 Mar 2002

Project Description

Proposed capacity expansion and upgrading of the company’s existing pharmaceutical facilities in Vršac, FR Yugoslavia to meet the increased demand for Hemofarm products. The proceeds of the Bank loan will be used to finance capacity expansion and facilities/equipment upgrade to meet the increased market demand for Hemofarm’s products.

Transition Impact

This will be the first project with a strong, privately-owned local sponsor in FR Yugoslavia. The transition impact of this project is emphasised by the ability of recently privatised companies to access capital in the form of a long-term corporate loan. The Project will also help foster competition and efficiency in the country’s pharmaceutical sector.

The Client

Hemofarm A.D., a joint stock company, incorporated in FR Yugoslavia, manufacturing pharmaceuticals, vitamins, medical materials, veterinary and crop protection products.

EBRD Finance

€18.0 million senior loan to the Company. The facility will be split into two phases: Phase 1 in the amount of €12.4 million and Phase 2 in the amount of €5.6 million.

Project Cost

€24.1 million.

Environmental Impact

The Project was screened B/1. Independent environmental consultants undertook environmental due diligence, which included an environmental audit and environmental analysis of Hemofarm's facilities. An environmental specialist from the Bank also conducted a site visit to Hemofarm facilities in October 2001. The environmental investigations confirmed that all Hemofarm facilities comply with Yugoslav and Serbian legal requirements.
Hemofarm has been certified ISO 9000 and is expected to obtain the Environmental Management System, ISO 14000 certification, in May 2002. These two certifications, along with the Bank's investment, will assist Hemofarm in substantially upgrading the environmental management of its facilities. These upgrades are detailed in the Environmental Action Plan (EAP) and include improvement of air emission monitoring and control, better housekeeping in waste management, and participation in the upgrade of the municipal wastewater treatment plant. An EAP was agreed with the company and when implemented will ensure compliance with all relevant EU environmental standards.
The company will report annually to the EBRD on the progress of implementation. In addition, Hemofarm will provide a copy of the Environmental Impact Assessment (EIA) which is required by the Serbian authorities for the construction of the extension to its facilities.

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

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

Share this page: