NARZAN

Location:

Russia

Project number:

34651

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

C

Approval date:

06 Apr 2004

Status:

Completed

PSD disclosed:

19 Jan 2004

Project Description

The proposed project will consist of debt and equity financing of JSC Narzan (the Company), a leading Russian mineral water producer located in Kislovodsk, Stavropol region. The Bank's financing will enable the Company to expand its bottling capacity, develop new products and satisfy the working capital needs.

Transition Impact

The transition impact of the Project is expected to be good and will derive primarily from corporate governance improvement resulting from the Bank's involvement as shareholder in the Company, including the introduction of IAS accounting, integrated MIS systems, and an independent board director. Additional transition impact will derive from: (i) the demonstration effects of the Bank's investment in a region which has seen relatively little investment; and (ii) forward linkages based on the Company's know-how transfer to distributors across the country.

The Client

JSC Narzan is a joint stock company, incorporated in Russia and focused on production, bottling and distribution of mineral water.

EBRD Finance

Up to US$ 12.25 million financing, which includes a secured senior corporate loan and an equity investment into the Company.

Project Cost

US$ 12.25 million

Environmental Impact

Screened B/1. An environmental audit and analysis of the operations, including a site visit to the Kislovodsk facility by the Bank's Environmental Specialist, confirmed that there are no significant environmental issues associated with the project and demonstrated the company's commitment to high environmental standards. The environmental due diligence addressed a range of issues including the impact of water abstraction on the regional water balance and the security and supply of the water source and product quality vis-à-vis applicable international standards; and post consumer waste issues. The company is committed to comply with all relevant national and EU environmental, health and safety standards.

Technical Cooperation

None.

Company Contact

Viacheslav Sinadski, Member of the Board of Management.
Tel: +7 095 775 3949
Fax: +7 095 244 7511
 

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@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.

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