KSANI GLASS PACKAGING FACTORY

Location:

Georgia

Project number:

4543

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Approval date:

02 Jun 1998

Status:

Completed

PSD disclosed:

19 May 1998

Project Description

The project consists of the modernisation of Ksani's glass packaging facilities.
The project will:
  • assist in the privatisation of a state-owned company;
  • improve productivity, energy efficiency and product competitiveness;
  • support export-oriented production/import substitution; and
  • bring environmental practices up to international standards.

Transition Impact

This is the second EBRD operation in the private industrial sector in Georgia, and will demonstrate to other investors the Bank's continued willingness to finance private companies with strong foreign sponsors. The project will also assist the company in regaining its traditional market in Georgia and in beginning exports to neighbouring countries.

The Client

Saaktsio Sazogadoeba MINA ("Ksani"), a glass bottle manufacturer located 35 km from Tbilisi, was sold by the Government of Georgia through an international tender to Turkiye Sise ve Cam Fabrikalari AS ("Sisecam"), a leading Turkish glass manufacturer. Sisecam, a subsidiary of Is Bank of Turkey, is one of the top 10 glass producers in the world, with a 1.5 per cent share of the world market.

EBRD Finance

The proposed EBRD financing consists of:
US$ 6.32 million (ECU 5.85 million) 6½ year secured loan with a 2½ year grace period;
US$ 2 million (ECU 1.85 million) equity subscription, through a capital increase;
US$ 500,000 (ECU 463,000) share purchase from the Georgian Government.

Project Cost

Total project costs are estimated at US$ 21.4 million (ECU 19.8 million).

Environmental Impact

The project was screened as B/1, requiring an environmental audit of the existing facilities and the project site and an analysis of the investment proposed.
Due diligence was conducted by an international consultancy in accordance with terms of reference prepared by the EBRD. The environmental audit and analysis did not raise any major concerns. An Environmental Action Plan (EAP) has been developed with a view to bringing the facilities up to international standards and to addressing less significant environmental issues identified during the due diligence process. The EAP will include, among other things, improvements in workers' health and safety, waste-water treatment and water supply, and also the investigation and mitigation of contaminated soil. These will be addressed in part by the project under preparation, which includes provisions for the construction and operation of a waste-water treatment plant.
Together with the main components of the project, the EAP would bring operations in line with European Union standards for the environment. Implementation by the company of the EAP will form part of the legal agreement with the Bank and ensure compliance with both Georgian and European Union standards. Furthermore, the company will be required to report to the Bank periodically on environmental and health and safety matters and on the implementation of the EAP.

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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