The project consists of EBRD credit lines and EU grant funding to a small number of dairy companies for investment in milk quality improvement in the whole of the milk supply chain from farm to factory. The EBRD credit lines are intermediated by three polish commercial banks in charge of identifying the beneficiaries.
The objective is the modernisation of 10-15 dairies and their supplying farms in Poland in order to upgrade their milk quality standards to EU level.
The facility will have considerable impact on the transition by facilitating the modernisation of the dairy industry and by contributing to its restructuring.
The facility will be available to Bank Slaski, Rabobank Polska and WBK for on-lending to dairy companies.
The EBRD will provide a total of EUR 24 million to the three banks (three loans).
EUR 32 million, comprising EUR 24 million from the EBRD and EUR 8 million (grant) from EU PHARE.
Projects financed through this facility will be required to meet both national and EU standards for environment, health and safety. In conducting due diligence on potential participating facilities, the technical adviser will consult with the dairies and any relevant experts from the Polish Veterinary Department of the Ministry of Agriculture, the European Union and the EBRD to decide what action and investments may be necessary to ensure that the facilities meet the required standards. The necessary actions and investments will be built into the investment plan, and implementation of that plan will be monitored throughout the lifetime of the project. The Bank will receive copies of annual environmental reports prepared by the facilities and approved by the technical adviser and the participating banks.
A EUR 300,000 consultancy contract provided by EU Phare will finance a technical adviser to review the investment projects for their eligibility under the facility.
For business opportunities or procurement, contact the client company.
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