Translated version of this PSD: Ukrainian
The Transition Impact potential of the Project will derive from:
- Setting standards for corporate governance and business conduct through introduction of best practices in areas of corporate governance and environment standards through implementation of extensive Corporate Development plan and ESAP;
- Demonstration of new products and processes by introduction of high value-added products - high quality premixes for animal feed;
- Energy efficiency effect from reconstruction of the existing poultry houses and replacement of the inefficient outdated equipment.
Inter Group, a vertically integrated group of companies, is one of the largest eggs and compound feed producer in Ukraine. The Group is also involved in import and trading in veterinary medicines and animal feed additives.
Up to US$ 25 million debt financing.
The project was subject to an Initial Environmental and Social Examination (IESE) to decide the category of the project and, following a site visit by EBRD, was finally categorised “B”. Environmental and social due diligence was then undertaken by third-party experts against a Terms of Reference drafted by the Bank covering a selection of six facilities operated by Inter Group. The due diligence demonstrated that facilities are generally well managed and run, although a number of issues were revealed in terms compliance with both the national requirements and the best practice. Actions to address these issues have been integrated to the environmental and social action plan (ESAP) including:
- The development and implementation of a total quality management system including relevant aspects of ISO 9001, 14001, 22000 and OHSAS 18001;
- The development of waste management plans to improve housekeeping arrangements across all sites;
- The improvement of health and safety management through a variety of actions addressing explosion risk from dust, noise, facility management and the undertaking of repetitive tasks by staff;
- A review of emergency procedures;
- Implementation of a Stakeholder Engagement Plan.
The audit team included an animal welfare expert who observed that animals were generally in good condition with evidence of high levels of animal welfare. A number of recommendations have been made to align the Group’s practices with the European standards and these have been integrated into the ESAP.
The ESAP is designed to ensure that the project will comply with the Bank’s Performance Requirements and due diligence indicates that the Company has the capacity to implement the ESAP. The Bank will monitor the implementation of the ESAP through annual reporting by the Company and the undertaking of sites visits as and when deemed necessary.
Name: Maxim Gerashchenko
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