Tnuva - Romania Dairies SRL

Location:

Romania

Project number:

35934

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

20 Sep 2005

Status:

Complete

PSD disclosed:

19 Aug 2005

Project Description

The project will develop Tnuva `s green field dairy venture in Romania and consist of

(i) a major EU standards dairy plant for the manufacturing of fresh dairy products under Yoplait brand

(ii) a milk farm and a livestock feeding centre to ensure high quality milk supply.

Transition Impact

Transition impact of the project will be derived from the following:

  • enhancing the skills of local staff in the dairy plant
     
  • developing a state of the art dairy farm and feeding centre to serve as a best practice platform for local dairy farmers to emulate
     
  • develop and improve local milk quality in addition to environmental and hygiene procedures.

The Client

TRD-Tnuva Romania Dairies SRL and TRM - Tnuva Romania Milk SRL –wholly owned subsidiaries of the Israel’s leading food company Tnuva Central Cooperative for the Marketing of Agricultural Produce in Israel Ltd.

EBRD Finance

Up to €15 million equity participation.

Project Cost

Up to €55 million.

Environmental Impact

Environmental Review Summary

1. Project Description

The proposed investment by the European Bank for Reconstruction and Development (EBRD) involves an equity investment in Tnuva`s green field dairy venture in Romania and consist of (i) the construction of a major EU standard dairy plant for the manufacturing of fresh dairy products under the Yoplait brand and (ii) a milk farm and a livestock feeding centre to ensure high quality milk supply.

2. Environmental classification and rationale

The project has been classified B/1 according to the EBRD’s Environmental Policy and Procedures as it involves the expansion of an existing farm and construction of a new dairy facility. These would be typically associated with limited direct environmental, health and safety issues, which can be readily identified and assessed as well as efficiently mitigated with modern technology and project design. For this reason the Bank conducted an environmental analysis of the expansion plans and environmental audit of the existing facilities. These studies took the form of a corporate environmental review.

3. Key environmental issues and mitigation

The findings of the review indicate that there are no significant environmental issues associated with the facility or the proposed project. The Company is Israel’s leading food company ‘Tnuva Central Cooperative for the Marketing of Agricultural Produce in Israel Ltd’ and are fully committed to compliance with EU standards and Romanian regulations for environment, health and safety, ensuring that any environmental impacts will be efficiently prevented or mitigated.

Site:

Dairy - The dairy facility will be located 9km from Bucharest, close to the town of Popsti Leordeni. The closest residential building is 500 metres from the facility.

Farm – The farm is located 24.5km south east of Bucharest, near to the village of Adunatii Copaceni. The nearest residential buildings are about 1km away.

Regulatory compliance:

Dairy – Construction of the dairy commenced in August 2005. The design and construction of the facility will be compliant with EU standards and Romanian standards and regulations.

Farm – The existing farm buildings will be renovated and a new milking station will be constructed. All equipment and practices will be compliant with EU standards and Romanian regulations including those on the welfare of animals kept for farming purposes and live animal transport.

Air emissions:

Dairy – Air emissions from the facility will be confined to those from the boiler, which will comply with national and EU standards.

Farm - Air emissions from the farm’s boiler will comply with national and EU standards. Ventilation of the cow sheds will be in strict compliance with national and EU standards and will minimise issues associated with odour.

Water Supply:

Both sites will be supplied by on-site wells. The quality of the water will be assessed, if necessary pre-treated, and monitored and will meet national and EU regulations on potable drinking water.

Waste Water:

Dairy – The new dairy facility will incorporate a waster water treatment plant which will conform to EU standards.

Farm – Plans for improved waste water treatment at the farm are under development and will be designed to conform to national and EU standards.

Solid Waste Management:

Dairy – The dairy will carry out waste management in accordance with national and EU standards and will be recycled where facilities exist.

Farm - The most significant source of waste will be manure which will be dealt with in accordance with EU and national standards.

Health and Safety Management:

Health, safety and hygiene issues will managed in accordance with EU and national standards.

4. Environmental opportunities

As a new build the dairy will be incorporating modern equipment from the outset leading to efficient operation in terms of the consumption of water and energy. The planned refurbishment of the farm will also incorporate modern technology leading to more efficient and less impacting operation.

5. Disclosure of Information and Consultation

In accordance with EBRD policy the Company is required to carry out its actions in accordance with national requirements for public disclosure and consultation. Additionally, the Company will be required to disclose this summary of key environmental issues locally prior to final management review of this project.

6. Monitoring and Reporting

Monitoring of the company’s environmental performance during the project will be conducted by the EBRD and will take the form of review of annual environmental reports supplied by the company and ad hoc visits by Bank staff. The Company will also be required to provide the Bank with immediate notification of any material incidents or accidents likely to have an effect on the environment or worker and public safety.

Technical Cooperation

None.

Company Contact

Ms. Nicole Assif:

Email: Nicola@tnuva.co.il

 

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

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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