Oliva

Location:

Bulgaria

Project number:

43860

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

18 Sep 2012

Status:

Repaying

PSD disclosed:

22 Jun 2012

Project Description

The EBRD is considering providing long-term financing to Oliva, one of the major Bulgarian producers of crude sunflower oil, for the optimisation of the operations in the Company’s oilseeds crushing facility in Polski Trambesh. The Project will help Oliva meet increasing demand for its products while improving margins via economies of scale in raw material purchases and processing. Additional investments in silos and energy efficient equipment will improve the Company’s profitability and competitiveness.

Transition Impact

1) Market expansion through backward linkages to suppliers – as a result of the expansion of the Company’s processing and storage capabilities, seeds sourcing is expected to increase substantially. The raw material supply chain will be further optimized. Thus Oliva will be able to provide opportunity for long-term off-take agreements to larger number of suppliers including opportunities for potential pre-harvest financing.

2) Improved energy efficiency standards through the implementation of modern boiler to produce heat for own use and decrease CO2 emissions footprint.

The Client

Oliva AD engages in the procurement, crushing, and processing of sunflower seeds for the Bulgarian market and for export. The end products include crude and edible sunflower oil and meal from sunflower seed.

EBRD Finance

Up to €8.0 million to finance capital investments.

Project Cost

€11.3 million.

Environmental Impact

The Project has been Categorised B in accordance with the EBRD’s Environmental and Social Policy whereby impacts are likely to be site specific, readily identifiable and addressed through mitigation measures.

An independent international firm of environmental & social consultants was appointed by the EBRD to undertake due diligence of the sponsor and the plant at Polski Trambesh, which included a site visit, management interviews and document review in May/June 2012. Due diligence confirmed that the new plant would be designed, constructed and operated to meet the EBRD’s requirements.   

The proposed Project is also being appraised against the EBRD’s requirements, including inter alia national and EU legislative requirements and international best practice. Although this Project will be required to meet the 2014 Environmental and Social Policy requirements of the EBRD, no further due diligence is planned at this stage and the installation of a biomass boiler has the potential to realise net positive environmental impact in waste management and CO2 reduction.

As part of the Project, Oliva will be required to implement previous ESAP items already completed as per the previous financing provided by the EBRD. ESD will monitor the implementation of the new Project in line with existing company reporting / monitoring activities.

Technical Cooperation

None.

Company Contact

Oliva JSC
Mr Ivo Ivanov, Production Manager
1 Marin Boev Str.,
Knezha, Bulgaria

 

Business opportunities

For business opportunities or procurement, contact the client company.

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Text of the PIP

Project Complaint Mechanism (PCM)

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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.