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Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

02 Jun 1998



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


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

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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