RTSDecaux

Location:

Kazakhstan

Project number:

39149

Business sector:

Information and Communication Technologies

Notice type:

Private

Environmental category:

C

Target board date:

29 Jul 2009

Status:

Completed

PSD disclosed:

11 Jun 2009

Project Description

The EBRD is considering providing a senior loan of up to $5 million to finance the expansion of the Company’s street furniture and outdoor advertising operations in the city of Astana, following its successful bid for a 25-year contract for these operations. Under the terms of its bid, the company will install bus shelters and other types of street furniture in the city of Astana over the next years.

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.

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 15 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 $5,000,000

Project Cost

Confidential

Environmental Impact

Screened C/1. There are unlikely to be any significant environmental and social issues associated with the project. JCDecaux is publicly committed to sustainable development. The company is required to ensure that the project meets applicable national and EU environmental, health, safety and labour standards. The Bank will monitor the client’s environmental and social performance during the life of the project by reviewing the annual environmental and social report and site visit if necessary and appropriate.

Technical Cooperation

None.

Company Contact

Mr Arman Kagarov, President
E-mail: kagarov@rts.kz

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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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.