NAP Ukraine

Location:

Ukraine

Project number:

44012

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

23 Jul 2013

Status:

Completed

PSD disclosed:

15 Mar 2013

Translated version of this PSD: Ukrainian

Project Description

The proposed project will finance the pre- and post- harvest working capital needs of farms in Ukraine owned by NCH Agribusiness Partners L.P. (“NAP”) with the ultimate aim of improving farming yields and efficiency through better farm management and technology.

Transition Impact

The Project is expected to have strong demonstration effects in Ukraine stemming from the following: improvements in the productivity and efficiency of NAP’s farms through the adoption of advanced farming techniques and environmentally sustainable farming practices; promotion of higher standards in farm management and corporate governance according to international best practices; skills transfer to local employees and other farms with potential spill over effects to the broader industry.

The Client

34 farming companies operating in Ukraine.

EBRD Finance

Up to USD 50 million senior secured revolving loan.

Project Cost

USD 167-191 million.

Environmental Impact

According to EBRD's Environmental Policy and Procedures, this project has been categorised B. As the project involves fungible financing to a client with multiple sites and assets, environmental and social due diligence is focused on assessing the client's management systems. This due diligence was carried out through corporate questionnaires and a review of the standards and practices used for the existing NAP investments. NAP has developed a comprehensive management system for sustainable agriculture. While implementation of environmental and social actions is the responsibility of individual farm managers, NAP oversees these activities through a process of audits and reviews, and the development of annual business plans for each farm. NAP has developed a checklist for sustainable agriculture practices, which is used to rate each farm and identify areas for improvements. It also aims to have farms certified to ISO9001, ISO 14001 and OHSAS18001. Implementation of these measures will improve the environmental and social performance of the farming operations. The standards and commitment that are to be implemented will form part of the legal agreement for the Project.

Technical Cooperation

TC project involving training programs for small and medium sized third party farms in Ukraine is currently being considered.

Company Contact

Michael Bertram, Head of NCH Ukraine
E-mail: michael@nchadvisors.kiev.ua
tel. +38 044 390 57 20

NCH Advisors Inc. representative office in Ukraine:
27 T, Dehtyarivska street, Kyiv, 04119

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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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.