STM Electrical Units

Location:

Russia

Project number:

42372

Business sector:

Manufacturing and Services

Notice type:

Private

Environmental category:

B

Target board date:

15 Feb 2011

Status:

Cancelled

PSD disclosed:

23 Dec 2010

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing financing to Sinara Transport Machines to organise production of high precision electrical units that are used in the locomotives production.

Transition Impact

The Project will promote further diversification of the Russian economy in the regions and enhance competition in the railway engineering sector.

The Client

JSC Sinara Transport Machines (STM). STM focuses on railway transport engineering and manufacturing of

(i) diesel shunting locomotives at LTZ in Kaluga region and

(ii) diesel engines at UDMZ diesel engine plant in Yekaterinburg. STM is an existing client of the Bank under USD 65 million mezzanine loan extended to the Company in 2008.

EBRD Finance

Loan of up to RUB 250 million.

Project Cost

RUB 250 million.

Environmental Impact

The environmental and social impacts related to the manufacture of electrical equipment used in locomotive manufacture are site specific and can be mitigated by means of an Action Plan. Therefore, the Project has been categorised B.

An Independent Consultant carried out due diligence on behalf of the Bank at the Yekaterinburg plant in 2008 as part of an existing investment project. The Bank is therefore aware of conditions at the site.

The scope of any additional due diligence required to evaluate the Company’s capacity to operate under the Bank's Performance Requirements (PRs), and the progress against the requirements of the existing Environmental and Social Action Plan (ESAP) will be defined. Additionally, the activities associated with the proposed Project shall be subject to a detailed Environmental Analysis to assess compliance against Russian and EU standards. Should actions be identified that will be required to bring operations into compliance with the Bank's PRs then these shall be included in a new ESAP to be agreed with the Company.

Technical Cooperation

There are no plans for Techincal cooperation under the new project. Within its existing project with STM, EBRD arranged an energy efficiency audit to help the Company assess potential for improved energy efficiency. The audit was conducted within EBRD’s donor-funded Industrial Energy Efficiency Programme.

Company Contact

Anatoly Nikolayevich Ovsyannikov
Deputy of Executive director
ZAO Sinara Group
Tel. (343) 310-3300, 7295

Vladislav Vasilyevich Starodumov
Head of Investment Department
ZAO Sinara Group
Tel. (343) 310-3300, 7909

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

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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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.