Texol

Location:

Kazakhstan

Project number:

47758

Business sector:

Transport

Notice type:

Private

Environmental category:

B

Status:

Passed Concept Review, Pending Structure Review

PSD disclosed:

10 Nov 2016

Translated version of this PSD: Russian

Project Description

A senior secured A/B and/or parallel loan of up to USD 103 million to TexolTrans LLP, the owner of one of the largest fleets of liquid petroleum gas (LPG) tank wagons in Kazakhstan.

Project Objectives

The operation will enable the Company to restructure the existing debt of USD 88 million to align its debt service requirements with its revised expected income streams under the lease contracts as well as to finance new capital expenditures of up to USD 15 million.

Transition Impact

The transition impact for this project will be sourced from:

  • Support of a private wagon fleet owner in the railway sector in Kazakhstan which remains dominated by the state;
     
  • Improvement of the Company's corporate governance practices through covenanting the Corporate Governance Action Plan;
     
  • Delivery of cross-border outward foreign direct investments (FDI) by a Kazakh private company.

Client Information

TEXOL TRANS LLP

EBRD Finance Summary

USD 51,500,000.00

The EBRD will keep up to 50 per cent of the total Loan (up to USD 51.5 million) on its own books while the balance will be offered to commercial banks.

Total Project Cost

USD 103,000,000.00

Environmental and Social Summary

Categorised B (2014). The in-house environmental and social due diligence (ESDD) was based on review of the corporate and sector-specific questionnaires and additional reports provided by the Company. The ESDD identified that the Company has in place certified ISO 9001:2008 Quality Management; ISO 14001:2004 Environmental Management and OHSAS 18001:2007 Occupational Health and Safety Management Systems. The Company is also in the process of developing Energy Management System. Relevant internal and external audits are regularly carried out; environmental, health and safety management plans are developed at both the corporate and the operational levels.

Relevant training is provided to the management and employees of the Company and; required HSE budget is allocated on annual basis. Dedicated HSE and HR personnel is employed by the Company. The Company is also planning to develop a formal Supply Chain Management System; currently they are implementing the Sourcing and Award Procedure to select suppliers and contractors based on evaluation criteria, which, inter alia, include HSE criteria.

The Company has in place important components of the HR Management Policy, including the Code of Conduct; the Employee Incentive Plan; regulations on personal data; staff regulations and internal employment policies and procedures. A grievance mechanism is in place: individual labour
grievances are reviewed and settled by a permanent conciliation commission. The Company is also in compliance with the Kazakhstan's national labour law, which is aligned with ILO standards on freedom of associations; non-discrimination; prohibition of child and forced labour. All employees have a written employment contract specifying work-hours, wage, overtime payment, etc. Adequate accommodation facilities and amenities and transportation services are provided to employees based at the operational premises.

The company and its subsidiaries operate in accordance with the environmental legislation of Kazakhstan, as well as in accordance with the international industrial safety requirements for the rolling stock industry. The specified set of measures allows minimising environmental risk from the
operation of rolling stock.

The Company is pursuing waste reduction, segregation and recycling opportunities when feasible.

Operational facilities have contracts with specialised third parties for disposal of waste and wastewater. Robust health and occupational and process safety measures are implemented at the operational facilities. Hazard identification and risk assessment, and accident investigation procedures are in
place. The Emergency Response Plans, as well as the appropriate emergency response systems have been developed and are being implemented at all facilities. Operations inside the tanks are carried out by the licensed contractors in accordance with the requirements of "Safety Rules in the Gas Sector", company specifications, safety instructions and standard operating procedures and under the direct supervision of the technical personnel. The Company maintains the Industrial Accident and Incident Reporting, Recording and Investigation log, and the Road Accident log. No accidents have occurred to date and the Company sends monthly reports on hours of incident-free operation to its main customer (Tengizchevroil, LLC).

The Company is largely compliant with the EBRD Performance Requirements and a number of planned initiatives aimed at achieving a full compliance with the PRs will be covenanted in the legal documentation. The Client will submit annual E&S reporting to the Bank. The Bank will also conduct
monitoring visits to the Project facilities if and when required.

Technical Cooperation

None.

Company Contact Information

Marat Khaidarov
mkhaidarov@texoltrans.kz
+77272587777
www.texoltrans.kz
TexolTrans LLP 276, Gornaya street Almaty, Kazakhstan 050020

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

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.