The proposed project involves financing of the development, construction and start-up costs of Saratov Shopping Centre, a modern family-oriented retail and entertainment complex with a gross building area of 53,000 square metres and gross leasable area of 26,000 square metres in the centre of Saratov. The Project will feature:
a quality shopping and entertainment mall on two levels including a supermarket, a DYI store and a multiplex cinema, as well as a retail gallery with smaller tenants and catering facilities;
structured parking facilities.
The project transition impact will derive from the following key areas:
(i) Effective provision of international standard shopping and entertainment facilities and improvement of the market structure in the project sector by fulfilling the long-term unmet demand for international standard shopping and family entertainment facilities in Saratov, leading to increased competition.
(ii) The project will also contribute to significant upgrading of technical and managerial skills in the local economy by engaging reputable architects and contractors, introducing improved construction standards and outsourcing services to local companies.
(iii) Improvement of modern business standards through transparent procurement of land for the project, tendering of all the major contracts, introduction of International Financial Reporting Standards.
OOO Investitsionno – Ipotechnaya Kompania (“the Borrower”), a special purpose limited liability company incorporated in Russia. The Borrower is owned by property development and management companies of Fishman Group, one of the largest Israeli private investment conglomerates, via the fully-owned Cyprus-registered holding company Bastwick Ltd.
EBRD will provide senior debt of up to USD 48.5 millions of which USD 22.4 millions will be syndicated to commercial banks.
USD 53.8 million.
Screening category and justification
B1. The development, construction and operation of the city-centre shopping centre could involve some environmental issues. These issues can be readily identified and addressed through the implementation of adequate mitigation measures. For these reasons, an environmental analysis and audit were required for the project.
Due diligence undertaken and outcomes
Environmental due diligence including the Bank environmental specialist’s visit and reviews of the completed Environmental Questionnaire and soil test report confirmed that the Project has been designed in accordance with good international practice. The Project is also in line with the city’s intention to convert the industrial use of the city centre to commercial use. The site is fit for the Project purpose, and there are no significant environmental liability issues to prevent the project implementation. Russian regulatory environmental review which is expected to take place in December 2006 will recommend mitigation measures which will need to be incorporated into the Project in a form of an Environmental Action Plan (EAP). The EAP will be incorporated into legal documentation.
The Sponsor will be required to ensure that the project complies with relevant national and EU environmental, health, safety and labour protection standards and requirements as well as EAP and to submit an annual environmental report on environment, health and safety, labour and any relevant community issues to the Bank.
Roman Rozental, Chief Financial Officer of Bastwick Ltd.,
For business opportunities or procurement, contact the client company.
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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).
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