The project will enable Ambro, a subsidiary of Sical, to modernise its pulp and paper production facilities and to improve environmental conditions at the plant located in Suceava, northern Romania.
The project will enable the company to modernise its pulp and paper production facilities and to improve environmental conditions at the plant located in Suceava, northern Romania. The objective is to double paper production capacity and to improve cost competitiveness and profitability.
The project will promote the transition process by supporting private ownership and developing management know-how and new technology. The project should also increase competition and export earnings.
Sical, the sponsor, is an international corrugated board packaging group, quoted on the Paris stock exchange. The borrower is Ambro, a Romanian pulp and paper mill, and a subsidiary of Sical.
The EBRD will provide a loan of US$ 9.0 million (EUR 8.3 million) to Ambro to finance working capital and capital expenditure for modernisation and environmental improvements. EBRD's financing is complemented by an IFC loan of US$ 9.0 million.
US$ 45 million (EUR 42 million)
The project has been classified as B/1, requiring an environmental audit of the existing facilities and an environmental analysis of the proposed modernisation programme. Environmental due diligence was fully co-ordinated with the IFC. The studies showed that currently the company does not comply with Romanian or EU standards for atmospheric air emissions and liquid effluent discharge. Potential soil contamination and inadequate sludge storage practices were also identified. Forestry maintenance, which is controlled by state-owned companies, was found to be generally satisfactory.
Based on the findings of the environmental due diligence, a draft Environmental Action Plan (EAP) has been developed. The implementation of the EAP over a period of three years will ensure the company’s compliance with Romanian and EU environmental standards and with the World Bank’s guidelines. Some further studies are required to refine aspects of the EAP, such as soil or groundwater treatment. These will be completed shortly and the final version of the EAP will be agreed with the EBRD and the IFC prior to the first disbursement. A sum of US$ 12 million has been set aside for the implementation of the EAP, including improvements in the treatment of black liquor, waste water and sludge; re-use of ash filtrate; improvement in general housekeeping; and environmental monitoring and training.
The company will report annually on environmental, health and safety matters, including implementation of the EAP.
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