Lorry Cargo Transportation

Location:

Russia

Project number:

45267

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Target board date:

15 Jan 2014

Status:

Repaying

PSD disclosed:

08 Nov 2013

Project Description

The EBRD is considering a corporate loan in the amount of up to EUR 40 million to OJSC Lorry. The Company is the key operating subsidiary of GT Globaltruck and is one of the leading players in Russia’s regional long-haul trucking market. The loan will be used to finance a medium-term fleet renewal and expansion programme.

Transition Impact

The transition impact of the project will be derived from

i) enhanced competition in the long haul transportation sector

ii) implementation of modern road safety management programmes, as well as

iii) introduction of new energy efficient components focusing on fuel usage reduction. The improvements criteria will be based on concrete benchmarks linked to operational performance of the Company.

The Project is expected to set a new industry-wide standard in the sector that could be replicable by other long haul companies.

The Client

OJSC Lorry.

EBRD Finance

Up to EUR 40 million corporate loan.

Project Cost

EUR 82 million.

Environmental Impact

The proposed project has been categorised B in accordance with the 2008 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the project, which is on-going, includes an environmental and social audit to assess the Client’s management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client’s ability to carry out the Project in compliance with the Bank’s Performance Requirements.

An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism and information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.

This PSD will be updated when the results of due diligence are known.

Technical Cooperation

None.

Company Contact

Yuri Danilenko, CEO of GlobalTruck Logistic
Tel. +7 (495) 788 60 09
Email: yuriy.danilenko@lorry.com
Web site: http://www.lorry.com

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

Project Complaint Mechanism (PCM)

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.