Monetka Sustainable Retail

Location:

Russia

Project number:

45885

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

30 Apr 2014

Status:

Cancelled

PSD disclosed:

28 Mar 2014

Translated version of this PSD: Russian

Project Description

The EBRD is considering financing of Monetka’s sustainable retail development including expansion of the retail chain to remote towns, distribution facilities, expansion of its truck fleet and certain energy and resource efficiency investments.

Transition Impact

The project is promoting sustainable up-grade of existing retail and logistic infrastructure with regional roll-out of modern formats including to very small and/or remote towns where organised retail is scarce or non-existent. The transaction envisages development, adoption and implementation of the sustainable retail strategy/policies of the company with strong focus on efficient use of resources.

The Client

OOO RM-Group, a holding company for Monetka’s food retail operations in Russia.

EBRD Finance

RUB 4.1 billion senior secured loan co-financed by a commercial bank.

Project Cost

RUB 7.3 billion.

Environmental Impact

Categorised B according to the EBRD’s Environmental and Social Policy 2008. The potential adverse future environmental and social impacts associated with the Project are site-specific and readily addressed through mitigation measures. Due diligence confirmed that Monetka have adequate systems in place to manage their environmental, health, safety and HR impacts. They are largely compliant with the requirements of the EBRD's Performance Requirements.
Based on the EHSS due diligence an Environmental and Social Action Plan (ESAP) was developed to ensure compliance with the Banks PRs. The Company will provide the Bank with regular reporting on the implementation of the ESAP. The Company is committed to comply with all PR's for their ongoing and future activities.

The Bank will monitor the Company's environmental and social performance for the lifetime of the project through annual environmental and social reporting and via periodic site visits. The Company will be required to immediately notify the Bank of any incidents or accidents likely to have an effect on the environment or worker and public safety.

Technical Cooperation

CD International Ltd, UK was contracted in 4Q 2013 under the EBRD/UNIDO Market Transformation Programme on Energy Efficiency in Carbon Intensive Industries in the Russian Federation. The assignment is funded by the Global Environmental Facility (the “GEF”). The TC support includes resource efficiency audit of existing retail premises and identification/assessment of sustainable opportunities in the retail and logistic infrastructure.

The Consultant will assist the Client with identification and assessment of sustainable investment opportunities related to energy and water efficiency, waste management as well as will review and suggest an up-grade of corporate policies related to sustainability and environmental protection. All engineering, design, and commissioning costs related to the implementation of incremental energy and resource efficient opportunities suggested by the Consultant will be covered by the Client. Cost-sharing is in line with the Bank policies on Cost Sharing Between Donors and Clients (BDS10-249).

Company Contact

Veronika Domnina, CFO

E-mail: vdomnina@monetka.ru

 

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

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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.