Olimpex Dry Port

Location:

Ukraine

Project number:

45035

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Target board date:

11 Feb 2015

Status:

Repaying

PSD disclosed:

19 Dec 2014

Translated version of this PSD: Ukrainian

Project description:

EBRD is considering a senior secured loan to GNT Trade DMCC (the “Company”) for the construction and development of a drying and cleaning facility in the Port of Odessa with annual design capacity of 0.5 million tonnes of grain located 6 km away from the port and connected to it by a dedicated flyover.
 
The drying and cleaning facility will be integrated with the Company’s existing grain transhipment terminal in the port of Odessa which handled some 2.4 million tonnes of grain in 2013.

Transition impact:

The transition impact of the proposed Project is expected to derive from the following:
  1. Setting standards of corporate governance and business conduct through streamlining and restructuring the Sponsor’s operating model and introducing efficient energy management systems.
  2. Expansion of competitive market interactions through improving the efficiency of the grain supply chain in Ukraine and generating cost savings in transportation and handling.
  3. Demonstration effects through encouraging other stevedoring operators in the Port of Odessa and other Ukrainian ports to make use of the dry port model by moving their auxiliary operations into the hinterland while freeing the quay area for the core loading/unloading operations resulting in increased efficiency and throughput capacity.

The client:

GNT Trade DMCC is a subsidiary of GNT Olimpex Holding Ltd. (the “Sponsor”), a holding consolidating the leading private providers of the transhipment, forwarding and other port services in Ukraine.

EBRD finance:

A senior secured corporate loan of up to US$18.7 million.

Total project cost:

US$18.7 million.

Environmental  impact:

Categorised B. The potential environmental and social impacts associated with the development and operation of a grain drying and cleaning facility are expected to be site specific, readily identified and addressed through appropriate mitigation and management measures.
Environmental and Social Due Diligence (ESDD) has been carried out by the Bank’s environmental and social specialists based on a review of the relevant information and the Company’s corporate management systems as well as a site visit and discussions with the management.
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 substantially compliant with local EHS regulatory requirements. All sites have dedicated EHS and hygiene engineers and a HR manager.
The ESAP has been developed and agreed with the Company to address the necessary mitigation measures and improvements which will enable the Company to comply with national regulations and the Bank’s Performance Requirements (PRs). As part of the ESAP, the Company will (i) ensure implementation of the principles of corporate Environmental and Health and Safety (EHS) management system at project level in line with ISO 14001, OHSAS 18001 and relevant EBRD PRs and develop and implement EHS training plan for employees involved in the operation of new facilities; (ii) ensure implementation of national and best international / EU requirements and principles in fire and explosion safety at the design stage of the Project; (iii) disclose information on its environmental and social performance.
EBRD will monitor the Project’s E&S performance by reviewing annual environmental and social reports, including updates on the implementation of the ESAP provided by the Company.

Technical cooperation:

N/A

Company contact:

Dusan Denic
CFO
GNT Trade DMCC
 

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