Translated version of this PSD: Ukrainian
The Loan is to support the expansion and modernisation of Nibulon's grain logistics infrastructure in 2018-19 including the construction of river terminals, transhipment crane, river fleet and Mykolaiv terminal enhancement.
The Project will support Nibulon's strategy aimed mainly at the expansion and optimisation of its river grain logistics facilities in order to increase grain trading volumes reducing the share of road and rail transportation, which will lead to the improvement of profitability, efficiency, as well as to the reduction of environmental footprint.
The Project is expected to have a significant transition impact under the 'Integrated' quality as it will enable Nibulon to increase its export capacity through improved logistics and infrastructure. The Project will also promote the development of low carbon transportation mode prioritising sustainable pattern of grain transportation routes in the country (via the Dnieper and South Buh rivers) thus contributing to Green Economy Transition.
NIBULON AGRICULTURAL ENTERPRISE LLC
Nibulon is leading Ukrainian integrated grain/oilseeds exporter and producer, operating one of the largest logistics networks of grain storage and transportation in Ukraine.
EBRD Finance Summary
Up to US$ 50 million loan to Nibulon LLC in Ukraine.
Total Project Cost
US$ 140 million.
Environmental and Social Summary
The Project has been categorised B in accordance with the Bank's Environmental and Social Policy 2014. Environmental and social due diligence (ESDD) was undertaken internally by ESD, and included: (i) a review of the Company's corporate management systems; (ii) relevant information provided by the Company; and (iii) a site visit and discussions with the Company's personnel to evaluate the current operational performance, and the risk management plans for the planned investment programme. The ESDD also used all available findings and results from the IFC and the EIB who also analysed and approved the Project for co-financing earlier this year.
The Borrower is an existing client of the Bank and has been the subject of a number, including recent, environmental and social due diligence processes. Completed ESDD confirmed that the Company has adequate corporate systems in place to manage their environmental, health and safety (EHS) issues, and that at both the corporate and site level the Company is compliant with local EHS regulatory requirements. All sites have dedicated EHS and hygiene engineers, and an HR manager.
The Company has advanced supply chain management systems which comply with international standards and undertakes regular audits of suppliers, hence contributing to the establishment of high quality standards in the industry, and improving the suppliers' quality performance. The ESDD also confirmed satisfactory implementation of the existing ESAP by the Company and good performance level on improvements in managing of the EHS issues.
The Company has all the required EHS permits for its current operational activities and is undertaking all necessary studies for obtaining required permits and licences as part of the design process for the project.
Potential future adverse impacts associated with the project are related to the construction and operational activities and are expected to be site specific and addressed through appropriate mitigation measures. It is expected that certain sub-components of the project, such as the grain terminals, will have to undergo individual Environmental Impact Assessments (EIA) under the Ukrainian legislation. The terminals are developed in compliance with national regulatory requirements and international standards for emissions abatement, and the air and water emissions are expected to be within the limits set by national and European standards.
The generated waste is neither significant, nor of a dangerous nature and the corresponding and appropriate disposal mechanisms have been established. The main emissions expected for the terminals are the emissions to the air (mainly dust from the grain handling), waste and waste water. The dust control equipment reduces dust concentration from 6,000 mg/Nms at the inlet to 20 mg/Nms, level prescribed by international standards, and lower than the Ukrainian one.
Construction of the project vessels does not require an Environmental Impact Assessment (EIA) under the Directive 2011/92/EU and will have a positive impact on emissions reduction and efficiency gains of the Client's fleet. The shipyard component is well established and holds all environmental certifications required under the Ukraine law for the construction of these types of vessels. Its construction is limited to the industrial area within the boundaries of the existing sea port and no sensitive ecological receptors or protected zones will be affected.
An Environmental and Social Action Plan (ESAP) has been developed in line with the requirements of other IFIs and should be agreed with the Company before the Board and will include requirements:
to ensure that the project will follow international EHS standards during construction and operational phases, will include mitigation measures focused on continuous implementation of Nibulon's corporate Environmental & Social, Health & Safety, and Social standards;
for any of the project's components screened in for an EIA by the competent authority, an EIA must be provided to the Bank prior to the construction start, along with the confirmation that all mitigation measures will be implemented. In addition, the Bank will receive the minutes of the public hearing session and the newspaper and/or internet notifications carried out in the context of the environmental permitting (EIA) procedure, showing that the project has undergone satisfactory public consultation
- Nibulon has to submit to the Bank the operating permit(s) for the individual components of the project before the start of their operations.
The project will be monitored in terms of its environmental and social performance and implementation of the ESAP through reviewing annual E&S reports prepared by the Client and site visits when deemed necessary.
TC funds provided by Japan-EBRD Technical Cooperation Fund to partially cover Project's external legal costs.
Company Contact Information
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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Text of the PIP