OBOLON BREWERY

Location:

Ukraine

Project number:

4408

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

04 Nov 1997

Status:

Completed

PSD disclosed:

08 Oct 1997

 

Project Description

The project includes modernising Obolon's operations and increasing its production capacity.

The project will enable Obolon to increase its production capacity so that the company can expand its market share in Ukraine as well as develop its export markets, thus retaining its position as the leading Ukrainian brewery.

Transition Impact

  • Obolon will increase the level of competition in the beer, mineral water and soft drinks market and therefore increase efficiency of resource allocation, demand satisfaction and innovation.
  • The significant increase in output of beverages will provide more work for local suppliers of the raw materials required by Obolon.
  • The EBRD's support of the company will signal that long-term financing for a full-scale modernisation is available for private domestic companies determined to succeed in the transition process.

The Client

Obolon, a joint-stock company, is Ukraine's leading private manufacturer of beer and is based in Kiev. Nationally, it is the most recognised beer brand, ahead of any competitor, domestic or foreign.

EBRD Finance

US$ 40 million (ECU 36 million) loan with a portion to be syndicated to commercial banks.

Project Cost

US$ 40 million (ECU 36 million).

Environmental Impact

The project involves an investment programme aimed at the modernisation of Obolon Brewery's facilities in Kiev. It was screened as B/1, requiring an Environmental Audit and Analysis to assess the impact associated with the investment project and mitigation measures to reduce any adverse environmental impact. Environmental due diligence was conducted, which covered the company's facilities in Kiev as well as recently acquired subsidiaries.

 

The Bank's environmental consultants reported that Obolon's environmental management practices at its main production facilities in Kiev were satisfactory. The company has its own internal environmental standards, which ensure that all activities are conducted in compliance with sanitary (hygienic) and environmental codes. The company's environmental department receives support from top management. Recently acquired facilities were generally found to comply with Ukrainian requirements for environment and health and safety.

 

The company will be required to adopt and implement an Environmental Action Plan (EAP), based on the Environmental Audit and Analysis, which sets out the actions needed to bring it into compliance with existing Ukrainian legislation and EU standards and practice. Obolon will also be required to report periodically to the Bank on environment and health and safety, in particular on the implementation of the EAP and immediate notification of any incident or accident with significant material damage or other environmental consequences.

Technical Cooperation

Technical assistance consists of assessment of Obolon and assistance in preparing a business plan (ECU 49,750); legal due diligence (ECU 50,000) and environmental due diligence (US$ 20,000).

Company Contact

 

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

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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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.

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