Nibulon

Location:

Ukraine

Project number:

38141

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

08 Jun 2010

Status:

Complete

PSD disclosed:

14 Apr 2010

Translated version of this PSD: Ukrainian

Project Description

The EBRD is considering providing a loan of up to USD 50 million to Nibulon Ltd, a leading Ukrainian agricultural producer and grain trader, to finance its investments in grain infrastructure in Ukraine.

Transition Impact

The proposed project is expected to have a substantial demonstration effect and will result in a further development of grain infrastructure in Ukraine including the revival of transportation and grain infrastructure on the Dnieper river. Additional grain handling and storage facilities will improve grain quality and its collection in the region and will also provide access to additional quality storage facilities for farmers.

The Client

Nibulon Ltd is largest local grain exporter and one of the largest vertically integrated agricultural companies in Ukraine.

EBRD Finance

Up to USD 50 million term loan.

Project Cost

Approximately USD 112.4 million.

Environmental Impact

Categorised B (2008). The adverse environmental and social impacts associated with the Project are site-specific and can readily be identified and addressed through mitigation measures.

An Environmental and Social Audit of the Company's management practices and current operations and an Analysis of potential E&S issues associated with the proposed Project was carried out by independent consultants.

The due diligence confirmed that the Company's operations are in general in compliance with Ukrainian legislative requirements and the proposed project will not have any significant adverse environmental impacts or socio-economic impacts. The main potential environmental issue associated with the project will be the dust emissions, which can be eliminated by the proposed mitigation measures.

Based on the due diligence results, an Environmental and Social Action Plan (ESAP) has been developed by the Consultants to address the current and potential future environmental and social issues and to further improve the Company's environmental and social performance to achieve the EU standards. The ESAP covers both corporate management system issues and site specific non-compliance issues associated with the current operations of the Company. The main items in the ESAP are related to dust control and monitoring; soil and groundwater contamination investigations at sites with long industrial history; and hazardous material handling and storage.

The Company will establish and implement monitoring procedures to measure compliance with environmental and social requirements, as well as implementation of the ESAP and the Contractor monitoring provisions. EBRD will be monitoring the E&S performance of the Company through annual reports.

The environmental and social information on the project will be disclosed in accordance to the EBRD requirements at locations accessible to project affected public and through the Company website (www.nibulon.com).

Technical Cooperation

None.

Company Contact

Andriy Mikhailyuk
Head of Financial Department
tel. (+380512) 48-94-14
Email: Mikhailyuk@nibulon.com.ua

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

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
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.