NEPF Farming Ukraine

Location:

Ukraine

Project number:

45888

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

26 Feb 2014

Status:

Complete

PSD disclosed:

20 Dec 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 (“Farms”) owned by New Europe Property Fund L.P. (“NEPF”) 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 further improvements in the productivity and efficiency of the selected Farms through application of advanced farming techniques and environmentally sustainable farming practices; promotion of higher standards in farm management and corporate governance according to international best practices; extensive skills transfer to local employees and other farms with potential spillover effects to the broader industry; and expansion of linkages with local sub-contractors through creating demand for their harvesting services.

The Client

30 farming companies operating in Ukraine.

EBRD Finance

Up to a USD 40 million senior secured loan.

Project Cost

Up to 120 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 NEPF investments. NEPF has developed a comprehensive management system for sustainable agriculture. While implementation of environmental and social actions is the responsibility of individual farm managers, NEPF oversees these activities through a process of audits and reviews, and the development of annual business plans for each farm. NEPF 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
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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