Hotel Leipzig

Location:

Ukraine

Project number:

41840

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

B

Target board date:

12 Jul 2011

Status:

Complete

PSD disclosed:

21 Apr 2011

Translated version of this PSD: Ukrainian

Project Description

The EBRD is considering financing the reconstruction and operation of Hotel Leipzig (the “Project”) located in the centre of Kiev, Ukraine. After reconstruction, the Project will consist of ca 180 room 4 star hotel.

Transition Impact

The Project is expected to address the key transition gaps in Kiev, Ukraine, deriving from the following factors:

Competition. The Project will address the demand for international standard medium-range hotels in Kiev.

Backward linkages and skills transfers. The Project will contribute to a significant upgrading of technical and managerial skills in the economy beyond the Project entity both at the hotel construction and operating stages. Construction companies involved in the Project will be required to deliver an international standard hotel product. Once the Hotel is fully operational, employees will have a direct exposure to practices of the international hotel chain through training and day to day operations. The Project will also stimulate competitive behaviours among the Project’s local suppliers and encourage the development of local support businesses catering to the needs of the hotel and tourism sector.

Setting standards in energy efficiency. As part of the environmental due diligence of the Project, the Bank has commissioned an energy performance assessment for the identification of sustainable energy opportunities in Leipzig Hotel. Application of the best practice technologies in the capital city of Ukraine is expected to have a strong demonstration impact on the industry.

The Client

Grand Plaza, a special purpose company incorporated in Ukraine, part of Istil Group (the “Borrower”).

EBRD Finance

A Senior Loan of USD 30 million (the “Loan”) to the Borrower.

Project Cost

USD 79.8 million

Environmental Impact

Categorised B. Due diligence indicated that the Project site is not contaminated and the historical status of the building has been respected in accordance with required law. The Project will create new employment opportunities. An Environmental and Social Action Plan (ESAP) has been developed to address impacts on the neighbouring residents, construction worker health and safety issues, a grievance mechanism for construction workers and neighbouring residents, respectively, and life and fire safety issues.

Technical Cooperation

None.

Company Contact

Mr. Vadim Nozdrya
CEO, Istil Group
Office 10, 3rd floor
33 Taras Shevchenko Blvd.
Kyiv 01032, Ukraine

Phone: + 380 44 220 1570

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Text of the PIP

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The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.