Translated version of this PSD: Ukrainian
The loan will be used to support the agricultural working capital needs of MHP associated with the growing of grains and oilseeds and the processing of these grains and oilseeds into raw material for fodder production. The capex component of the loan will support the purchase of new agricultural equipment for crop farming as well as oilseed processing activities after the launch of a new soy processing plant.
EBRD financing would:
i) finance working capital needs for farming/fodder activities;
ii) finance and refinance capital expenditures related to agricultural equipment and soy processing
plant for MHP Group's agricultural farming operations.
The Bank's financing will facilitate the following:
i) The successful development of agricultural lands in Ukraine, which are currently inefficient by improving energy and resource efficiency and improving crop production methods;
ii) MHP will transfer knowledge/experience of effective farming methods to new farms to increase yields and operational efficiency, improve resource use efficiency to reduce costs.
iii) The launch of the new soya processing plant will allow MHP to become vertically integrated in relation to fodder production (soy is currently processed externally), and the new plant will use energy efficient technology.
MYRONIVSKY HLIBOPRODUCT, PJSC
MHP Group ("MHP") - a vertically integrated grain / fodder and poultry producer in Ukraine.
EBRD Finance Summary
USD 85 million loan to PJSC MHP in Ukraine.
Total Project Cost
USD 303 million for agricultural activities, with additional financing provided by commercial banks and internally generated cash flows.
Environmental and Social Summary
The proposed project has been categorised B in accordance with the 2014 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 Bank has already undertaken environmental and social due diligence on various MHP facilities under the two previously financed projects. This included an independent environmental and social audit of a range of facilities including poultry production, feed production, grain storage and meat processing. The consultants found that MHP Group's facilities were generally operating to a level consistent with national and EU standards for environment, occupational health and safety, animal welfare and bio security. A number of recommendations were formulated into a time-bound costed Environmental and Social Action Plan (ESAP) covering a number of areas including corporate level management actions, generic actions uniform across production sites, and site specific actions. MHP has been providing updates to EBRD, through the annual environmental and social reporting process, on the implementation of the ESAP. It is evident from these reports, that MHP Group has made good progress in the implementation of the ESAP and that there are no actions that are behind to date.
The environmental and social due diligence for the current project has been completed, and it includes an analysis of the potential (future) E&S impacts and benefits associated with the construction of the new soy plant. The due diligence involved a review of the local environmental impact assessment undertaken for the project and the public disclosure process. This review confirmed that the Project will comply with both national legislative requirements and the EBRD’s Performance Requirements (PRs). Given the lack of E&S impacts associated with the project, the due diligence conducted previously on the Company and the progress made on the implementation of the existing ESAP, no additional actions will be required of the Company. The Company will be required to continue to comply with the EBRD’s PRs and provide annual environmental and social reports to the EBRD.
May 2016 Update
In response to a number of concerns raised by local people and CSOs, the Bank launched a monitoring assignment involving both independent environmental and social consultants and members of the Bank’s Environment and Sustainability Department. An in-country monitoring visit was undertaken in November 2015 involving site visits to key MHP production facilities and a number of meetings with CSOs and locally affected people. The clear findings are that MHP is a modern company operating modern facilities that meet national legislative requirements and, to a large extent, good international practice. There are, however, a number of recommendations as to how the Company can improve policy, procedure and practice to meet the Bank’s PRs. These improvements have been set out in an updated Environmental and Social Action Plan that has now been agreed with the Company.
Company Contact Information
+38 044 207 00 00
+38 044 207 00 02
158, Ak.Zabolotnogo Street 03143 Kyiv Ukraine
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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