RTS City

Location:

Kazakhstan

Project number:

41858

Business sector:

Information and Communication Technologies

Notice type:

Private

Environmental category:

C

Target board date:

26 Oct 2010

Status:

Repaying

PSD disclosed:

16 Sep 2010

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a loan of up to $14 million to RTS Decaux JSC, a joint stock company incorporated in Kazakhstan, providing outdoor advertising services, to finance the expansion of the Company’s street furniture and outdoor advertising operations in the city of Almaty, following its successful bid for a 25-year contract for these operations, thus supporting the development of the advertising sector in Kazakhstan. The EBRD loan would also support the expansion of its operations in Astana, financed by a first loan of EBRD to the Company, signed in August 2009. Under the terms of its bids, over the next years the company will install bus shelters and other types of street furniture in Almaty and Astana.

Transition Impact

The Project will support the expansion of the growing segment of outdoor in the advertising market in Kazakhstan, still dominated by TV. It will contribute to the restructuring of the Kazakh outdoor advertising industry, which is presently excessively fragmented and cannot offer country-wide services. In addition to the outdoor advertising industry itself, market expansion will be visible for the Company’s suppliers, since the Company now produces its constructions locally, while it used to import the first constructions from France.

With the involvement of JCDecaux, the Project potentially offers strong demonstration effects to the market through further innovation brought in the Kazakh market by the worldwide leader in street furniture.

The Project will also improve competition in the corporate sector in Kazakhstan, which will have access to this new channel to advertise their products. Advertising promotes competition, access to information, and is a key element of any modern economy.

The Client

RTS Decaux JSC, a joint stock company incorporated in Kazakhstan. The client provides outdoor advertising services, operating the largest network of municipal street furniture in 10 cities in Kazakhstan. RTS Decaux is a joint venture 50% owned by JCDecaux Asie Holding, a subsidiary of JCDecaux SA, 30% owned by Lancaster Group Kazakhstan and 20% by two founding shareholder managers. The Company inherited outdoor advertising activities formerly led by a company registered as Informika CJSC until 1999 and then re-registered as RTS Perekryostok JSC from 2004.

EBRD Finance

Up to $14 million.

Environmental Impact

Categorised C. The due diligence on the company carried out in May 2009 is still applicable for the proposed project. The company reports on environmental and social matters regularly to the Bank and is in compliance with and will continue to comply with relevant national environmental, health and safety legal requirements. The company will be required to comply with relevant EBRD Environmental and Social Performance Requirements (PRs) for the upcoming project.

Technical Cooperation

None.

Company Contact

Mr Arman Kagarov, President

E-mail: kagarov.arman@rtsdecaux.kz

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

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Text of the PIP

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The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

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.