Olivaria

Location:

Belarus

Project number:

35555

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

26 Jul 2005

Status:

Repaying

PSD disclosed:

20 Jun 2005

Project Description

The proposed project involves financing the modernization and capacity expansion of the existing Olivaria brewery in Minsk, Belarus.

Transition Impact

The Transition impact of the proposed project is expected to derive from the demonstration effect associated with the successful restructuring of a privately run company, through modernisation of its production lines and rationalisation of the internal control processes.

These, in turn, are expected to generate efficiency gains in production and to improve product quality and distribution, leading to market expansion and greater competition in the beverage sector in Belarus. The project’s transition impact potential is further enhanced by setting standards of corporate governance and business conduct at the company level that could be replicated in the sector.

The Client

Olivaria is a fully privately-owned brewing company based in Minsk, Belarus.

EBRD Finance

Financing will be via the provision of a loan and equity investment for an amount not exceeding USD 8 million.

Project Cost

USD 12.3 million.

Environmental Impact

Project description
The proposed investment by the European Bank for Reconstruction and Development (EBRD) involves a loan and equity to OAO Olivaria to finance the modernisation and capacity expansion of Olivaria’s brewery facility located in the centre of Minsk.

Environmental, health and safety issues
The project has been categorised B/1 according to EBRD’s Environmental Policy and as such requires an Environmental Analysis and Audit to assess any past, current and future environmental issues and impacts associated with the facilities and proposed project. Additionally, as a ‘B’ level project the EBRD requires this Environmental Review Summary to be released locally into the public domain by OAO Olivaria prior to the Bank’s final management review of the project.

Environmental, health and safety risks associated with the modernisation and capacity expansion of Olivaria’s brewery facility have been addressed within the scope of the Environmental Audit and Analysis. The Audit and Analysis have been conducted by an independent environmental consultant and whilst the reporting is not completed the initial findings indicate that there are no major environmental sensitivities associated with the current facility or the proposed project. A time-bound Environmental Action Plan is being developed and will be agreed with the Company to ensure the project meets national and EU standards for environment, health and safety.

Air emissions
OAO Olivaria operates in compliance with its permit for air emissions. The company have commissioned a study detailing how its emissions will change during its modernisation and expansion. Any necessary mitigation measures identified by the study will be incorporated into the Environmental Action Plan.

Effluent discharges
OAO Olivaria operates in compliance with the water protection legislation. Waste water is discharged to the municipal sewer system for treatment at the municipal waste water treatment facilities. Storm water run-off is undergoes pre-treatment at tri-sectional settling tanks with filters before it is discharged to the municipal storm-water sewer system. The company carries out activities aimed at the protection and sustained use of water resources and has as part of its investment plan measures aimed at reducing the discharge of contaminants in its waste water.

Solid and hazardous waste management
OAO Olivaria carries out waste-management practices in accordance with its permit requirements. The company will ensure that future waste handling will conform to Belarusian / EU standards and will be recycled where facilities exist.

Emergency response planning and preparedness
The facility has emergency response plans which include a special plan for the ammonia-containing refrigeration plant.

Employee health and safety
Health and safety issues are well recognised by OAO Olivaria. Their health and safety management system is compliant with Belarusian standards.

Environmental opportunities
As part of the modernization of the facility the company will install new, modern, energy efficient equipment. The company intend to install a replacement beer filtration system and employ utilisation of bottom yeast – both measures that will improve waste water quality and reduce the pollutant load. Changes to wort supply will result in reduced dust emissions while recovery of fermentation carbonic acid will reduce CO2 emissions.

Monitoring and compliance
OAO Olivaria will be required to report annually to EBRD on environmental, health and safety issues associated with the plants operation. In additional staff from the Bank’s Environment Department may make periodic monitoring visits to the plant.

(For more information on EBRD’s Environmental Policy requirements please contact EBRD at 34 A Engelsa St., building 2, 6th floor, Minsk, 220030, Belarus or visit EBRD's environmental pages)

Technical Cooperation

It is envisioned that the Bank will seek technical assistance funds. Additional details will be provided once the donor has been confirmed and TC application finalized.

Company Contact

General Director: Nikolai Dudko

E-mail: dudko@gin.by

 

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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