Translated version of this PSD: Estonian
Provision of a long-term senior secured loan of up to EUR 65 million in favour of Porto Franco OU ("Porto Franco" or the "Company"), a special purpose vehicle incorporated in Estonia, to develop and operate a mixed-use urban regeneration project in Tallinn, Estonia.
The EBRD funding will support the development and operation of an integrated retail, office and hotel project with a total Gross Buildable Area of ca. 150,000 sqm and a Gross Leasable Area of ca. 65,000 sqm (the "Project"). The Project is developed on the site of a former military shipyard situated between the Historic Centre (Old Town) of Tallinn (a UNESCO World Heritage site) and the Old City Harbour (Port of Tallinn) in Estonia.
The transition impact of the Project will come in particular from the following:
Green: the Project will be certified under LEED certification scheme and a minimum Gold rating. The Project concept encompasses the use of a wider range of state-of-the-art energy and water efficiency technologies and reduction of waste and pollution. It incorporates climate resilient techniques addressing climate risks specific for the region and for the Baltics in particular. In addition, this is the first Project financed by the Bank in the region to apply a Building Information Modelling ("BIM"), a smart digital solution allowing to model and optimise the design, construction and operation of the assets through its lifetime. The BIM will be integrated with an open protocol Building and Energy Management System ("BEMS") allowing to reduce environmental footprint of the Project and to lead to substantial energy, water, materials and waste reduction. As a result, 100% of the construction costs for the development qualifies as climate finance under the MDB Climate Finance Methodology.
- Well-Governed: the Project will contribute to the establishment of multi-stakeholder processes and partnerships within the City of Tallinn that support economic activity/transactions by increasing the effectiveness of collective action and ensuring strategic alignment of priorities and transparency. The fulfilment of this objective will be made possible by the successful completion of the Technical Cooperation on Tallinn Urban Regeneration (description below) and the continuation and formalisation of the activities and processes initiated with the consultants in collaboration with the local authorities and the main private sector stakeholders, including Porto Franco.
PORTO FRANCO OU
Porto Franco OU is a special purpose vehicle established for the purpose of development and operation of a mixed-use urban regeneration project located in the centre of Tallinn.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B under the 2014 ESP. Initial Environmental & Social Examination ("IESE") undertaken internally has categorized the Project as B due to the fact that the potential environmental and social issues are site specific and can be addressed through the application of standard mitigation measures. The IESE and following Environmental and Social Due Diligence ("ESDD") were based on review of the completed ESDD Questionnaire & Technical DD report incorporating a life & fire safety analysis as well as discussions with the Company's management. ESDD showed that the Project has been developed in compliance with national law and in accordance with good international practice to date. The Company is required to implement an Environmental and Social Action Plan ("ESAP"), comply with EBRD Performance Requirements ("PRs") as well as submit an annual Environmental and Social ("ES") report.
ESDD showed the following: the Company has adequate ES risk management capacities to implement the project in compliance with EBRD PRs; an EIA has been carried out in accordance with Estonian legal requirements including public consultation; the project fits in Tallinn's urban zoning requirements; there is no known historical contamination or resettlement/economic displacement issues; there are no cultural heritage-related issues affecting the project; the general contractor of the project is accredited with ISO14001 and OHSAS 18001; there are no labour or Occupational Health & Safety ("OHS") issues identified at the construction site; there have been no material OHS incidents at the construction site to date; there are a small number of Ukrainian construction workers with work permits paid equally to the local peers; and, the building will be equipped with an automated fire detection system, sprinkler system, compartmentation, escape routes and emergency plan.
The ESAP has been agreed with the Company and addresses continued environmental & labour, OHS management for the construction & operation of the Project, a third party life & fire safety audit for the commission of the project, stakeholder engagement to address the link of the project with UNESCO heritage urban center and grievance mechanisms for workers and the public, respectively. The Bank will monitor the Project's environmental and social performance by reviewing an annual environmental and social report as well as a site visit if deemed appropriate.
Tallinn Urban Regeneration i Land-use review and development partnership models (https://www.ebrd.com/work-with-us/procurement/pn-78541.html). The Bank will engage the services of a consultant to undertake activities that contribute to the effective coordination and alignment of urban regeneration projects in Tallinn. Activities undertaken by the consultant will support key actors in the city to mobilise action and, in so doing, enable critical investments to move forward. The consultant will conduct a land-use review that contributes to effective coordination and alignment of urban regeneration projects in Tallinn. The consultant will also provide a strategic assessment of the city's capacity (financial and otherwise) to deliver urban projects i and identify policy tools that may be adopted to enhance this capacity.
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