Veolia Voda Capital Increase

Location:

Regional

Project number:

40883

Business sector:

Municipal and environmental infrastructure

Notice type:

Private

Environmental category:

B

Target board date:

25 Nov 2009

Status:

Complete

PSD disclosed:

16 Oct 2009

Project Description

The EBRD is considering making an additional equity contribution to the share capital of Veolia Voda in an amount of up to EUR70 million. The equity contribution will be made through the issuance of new shares.

The proceeds will be used by the Company to fund its development in the Bank’s countries of operation expanding the current scope of development focussed from 6 countries (including Russia and Ukraine) to all of the Bank’s countries of operation.

Transition Impact

The project will support the expansion of a leading strategic investor in water and wastewater services into markets that it is not present today (new countries). Furthermore, the client will expand into industrial water/wastewater treatment, demonstrating the benefits of outsourcing to specialist companies.

The Client

Veolia Voda SA.

EBRD Finance

Up to EUR70 million equity investment.

Project Cost

Up to EUR70 million.

Environmental Impact

Environmental classification and rationale

The Project has been categorised B. In accordance with the Bank’s Environmental and Social Policy (2008), Projects where clients with multi-site operations are seeking general corporate funding through additional equity investment require a corporate environmental and social audit to assess the Company’s current environmental and social management systems against the Bank’s Performance Requirements (PRs). The Bank has an existing equity investment in the Company, and therefore the increase in the equity will not expose the Bank to any new environmental and social issues.

Due diligence undertaken and outcomes

Additional environmental and social due diligence (ESDD) has been undertaken to complement the Bank’s previous appraisal so as to assess the Company’s past and current performance against the Bank’s PRs.

The ESDD has confirmed that the Company has a good environmental and social management system in place and the capacity to fully implement the Bank’s PRs. The Company has environmentally related objectives at its core as it is helping to improve the quality of drinking water and wastewater treatment through its operations. The Company has developed a comprehensive Environmental and Social Action Plan (ESAP) as part of the initial equity investment in 2006. This has been further reviewed as part of the current due diligence and updated as required to take account of the Bank’ PRs. In addition, the Company will implement environmental and social due diligence procedures agreed with the Bank to its potential new operations.

The implementation of the current investment programme and the Environmental and Social Action Plan (ESAP) will enable to the Company to comply with National, EU and its corporate environmental standards and is structured in line with EU environmental standards. The implementation of the ESAP will significantly improve the company's environmental management and overall performance.

The Company is developing a stakeholder engagement plan. This includes the requirement of publishing an annual corporate report for its CEE operations in 2010.

Expected Implementation requirements

  • The Company will implement the ESAP (as agreed with the Company), Environmental and Social Due Diligence Procedures and Corporate Environmental, Health and Safety Management System
     
  • The Company will implement the Bank’s Performance Requirements
     
  • The Company will provide to the Bank an annual environmental report, including updates on the ESAP (i.e. implementation status of the various projects), and notification on any material accidents or incidents.
     
  • As provided under the current contractual undertakings of the Company, the Company will continue to facilitate periodic monitoring visits by Bank staff or appointed representatives, when deemed necessary.

 

Technical Cooperation

None.

Company Contact

Mr. Etienne Petit
Veolia Voda SA
Parizkska 11
110 00 Praha 1
Czech Republic

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)

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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.