Yuzhny Grain Terminal



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

07 Sep 2016



PSD disclosed:

26 Oct 2015

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

A senior secured loan to MV Cargo Ltd (the iCompanyi) to finance a greenfield development of a new state-of-the-art private grain terminal in the Port of Yuzhny with annual throughput capacity of up to 5.0 million tonnes of grain.

The Company will implement the project in partnership with Cargill, one of the largest providers of food, agricultural, financial and industrial products and services in the world, and the Ukrainian Sea Ports Authority, a state enterprise responsible for supervising the functioning, maintenance and development of the Ukrainian seaports and their infrastructure.


Project Objectives

The project aims to address the existing shortage of modern deep-water grain handling port facilities in Ukraine.

Transition Impact

The transition impact of the proposed Project is expected to derive from the following:

1. Expansion of competitive market interactions via investments in transport infrastructure for soft commodities which will improve the grain supply chain efficiency, promote strong backward linkages to the agricultural sector by stimulating grain production and exports in Ukraine and generate cost savings in transportation and handling.

2. Promotion of skills dissemination and demonstration effects stemming from the use of modern technology, equipment and energy efficiency measures.

Client Information


MV Cargo Ltd is a special purpose company established for the development and operation of the Project.

EBRD Finance Summary

USD 28,548,996.00

A senior secured corporate loan of up to US$ 37.0 million.

The Project is intended to be co-financed by International Finance Corporation that would provide a parallel loan in the amount of up to US$ 37.0 million to the Company.

Total Project Cost

USD 141,548,992.00

Environmental and Social Summary

The Project has been categorised B in accordance with the Bank's Environmental and Social Policy 2014. Environmental and social due diligence (ESDD) was undertaken by external environmental and social consultants, and included: (i) a review of the Company's corporate management systems; (ii) relevant information provided  by the Company; and (iii) a site visit and discussions with the Company's personnel to evaluate the current operational performance, and the risk management plans for the planned investment programme. The ESDD has been done in coordination with the IFC and was structured to meet both organisation's requirements.


The ESDD confirmed that the Company has adequate corporate systems in place to manage their environmental, health and safety (EHS) and labour issues and is working on the implementation of a comprehensive EHS management system in line with ISO 14001, OHSAS 18001 and relevant EBRD PRs.  The Company has all required EHS permits for its current operational activities and is undertaking all necessary studies for obtaining required permits and licences as part of the design process for the project.


Potential future adverse impacts associated with the project are related to the construction and operational activities and include impacts to water quality, air quality, noise and vibration levels and waste management. The majority of these impacts are expected to be site specific and addressed through appropriate mitigation measures. Project implementation activities are limited to the industrial area within the boundaries of the existing sea port and no sensitive ecological receptors or protected zones will be affected. The project complies with the master plan and sea port development programme and will not require acquisition of lands or involuntary resettlement or economic displacement.


Potential occupational health and safety and labour issues during the construction phase will be overseen by the Client and the Contractors and Cargill's standards will apply for the operational phase. In additional to that the Client will be required to identify and assess the risk of unfair labour and working conditions in its supply chains of goods and materials and to establish and implement policies and procedures for managing and monitoring the EHSS performance of third party employers.


An Environmental and Social Action Plan (ESAP) has been prepared together with IFC and should be agreed with the Company before Board consideration to address the necessary mitigation measures and improvements which will enable the Company to comply with national regulations and the Bank's PRs. The ESAP includes the following actions:


  • Ensure implementation of the principles of Corporate EHS management system at the project level in line with ISO 14001, OHSAS 18001 and relevant EBRD PRs and develop EHS training plan for employees involved in the operation of new facilities and ensure its implementation;
  • Undertake necessary studies for obtaining required permits and licences as part of the design process, including environmental assessments and public disclosure and consultation process in accordance with Ukrainian law, and ensure implementation of requirements of national legislation and pass through the state expertise;
  • Ensure that all mitigation measures are included into the project;
  • Ensure implementation of national and good international (EU) requirements and principles in Fire and Explosion Safety at the design stage of the Project;
  • Ensure implementation of national legal requirements and best international (EU) practices and principles during construction activities, including environmental, social, H&S and traffic issues;
  • Carry out continuous EHS audits and supervision of the contractors;
  • Obtain all necessary Environmental, Sanitary, H&S and Fire safety permits prior to operation of the facilities and  
  • The Company will also develop Stakeholder Engagement Plan, including external grievance mechanism and will disclose locally information on its environmental and social performance.


No greenhouse gas assessment is required. Standard monitoring procedures will apply to the Project.

Technical Cooperation and Grant Financing


Company Contact Information

Mr. Alexandr Nashchubskiy
MV Cargo Ltd. 60, Chapaeva str., Vizirka, Odessa region, 67543, Ukraine

Implementation summary

The Project introduced a new modern deep-water grain terminal in the Port of Yuzhny with annual throughput capacity of 5 million tonnes. Phase 1 of the terminal was completed and started operation in August 2018 while Phase 2 was substantially completed and launched in September 2019. Since the start of operation the terminal has already handled over 5 million tonnes of grain for export.

The project ensured adherence to strict environmental, energy-efficiency and social standards. The Company has implemented the Environmental and Social Action Plan in full and on time.

In terms of transition impact the Project provided a strong demonstration effect as one of the largest private investments in the Ukrainian infrastructure. The partnership with Cargill is going to further enhance the Project's corporate governance and business standards.  Furthermore, the Project contributed to market expansion and increased competition by addressing the bottlenecks in the grain supply chain and stimulating and promoting the production and export of grain in Ukraine.

PSD last updated

03 Nov 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


Share this page: