Translated version of this PSD: Ukrainian
The provision of a US$ 35 million senior loan to finance the acquisition of up to 1,000 grain hopper railcars by a subsidiary of Louis Dreyfus Company in Ukraine.
The Project will support the client's strategy of building a reliable and efficient supply chain in Ukraine and will aim to address the existing shortage of railcars on the Ukrainian market.
The Project is expected to result in a significant reduction in GHG emissions by promoting efficient utilisation of new railcars for inland grain logistics, thus avoiding the shift to other transport modes, particularly to road transportation (Green quality). Furthermore, the Project will support a private operator in a market dominated by the state-owned company (Competitive quality).
Founded in 1851 and active in more than 100 countries, Louis Dreyfus Company is a leading international merchant and processor of agricultural goods, originating, processing, merchandising and transporting over 80 million tonnes of products annually.
EBRD Finance Summary
Senior loan of up to US$ 35 million.
Total Project Cost
Environmental and Social Summary
Category B (ESP, 2014). The purchase and operation of railcars for transport of grain and oilseed is not associated with significant environmental and social (E&S) impacts. Due diligence confirmed that the E&S are site specific and can be readily mitigated through the implementation of standard mitigation measures and a targeted action plan.
Environmental and Social Due diligence (ESDD) was carried out internally and included review of a detailed questionnaire completed by the client and follow up discussions with Health, Safety and Environment and procurement specialists. ESDD has shown that the Sponsor has an existing E&S management system, Code of Conduct and other documentation which aligns with the applicable Performance Requirements and can be used as a basis for the new SPV that will be formed to purchase and lease the railcars.
The SPV will need to establish management systems for the E&S impacts in line with the EBRD Performance Requirements. Such management systems will need to be adapted from the current policies and systems of the Sponsor and will need to account for appropriate management of risks and impacts, particularly occupation health and safety, in the rail car leasing operations. This will include procedures for the evaluation of E&S aspects during freight forwarder selection, inclusion of E&S requirements within lease and maintenance contracts and implementation of a programme to monitor contractor E&S performance.
Rail cars will be built and maintained in accordance with national and manufacturer's standards and an emergency response plan prepared to assign roles, responsibilities and response requirements between the entities involved in rail car movements. In addition, the Client will be required to develop HR policies and procedures, a code of conduct and a worker grievance mechanism scaled to the Project.
An Environmental and Social Action Plan (ESAP) has been developed and agreed with the client and includes requirements to be included in lease agreements to ensure their implementation. The Project will be monitored through implementation of the ESAP, review of annual E&S reports and site visits it deemed necessary.
Company Contact Information
Louis Dreyfus Company Suisse S.A
Tel: +41-58 688 26 66
29, route de l' Aéroport, PO Box 236 CH-1215 Geneva 15
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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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.