Turkey: AKSA Energy Efficiency

EBRD has provided US$ 50 million loan to Aksa Akrilik Kimya Sanayi A.S (“Aksa”), Turkish manufacturer of acrylic and carbon fiber, to finance the implementation of a series of operational and energy efficiency investments at the Company’s production facility in Yalova. The Project will improve the Company’s operational efficiency by optimizing production processes, thereby reducing operational costs through newly adopted in house production technologies.

The Project will represent a showcase with best energy efficiency and environmental standards nationally and internationally to other players in the domestic and world market.

Transition Impact

The Project’s main transition impacts are expected to derive from the following two sources:

• Setting standards in energy efficiency and better environmental performance
  With the implementation of the entire package of energy and operational efficiency measures the Company will reduce their net process energy requirements that will result in CO2 emission savings. The Project will utilize the highest standards of best available and innovative technologies, compliant with the EU’s IPPC Directive and the respective EU-BREF directives of the textile and polymers industry. Aksa will also achieve best international practice in plant and worker safety and risk management, by implementing particular environment & social management and performance enhancement incentives within the scope of the Project.
• Demonstration effect of innovation and operational restructuring
  The Project will drive innovation and process enhancements in order to improve productivity which will lead to higher profitability. The Project will therefore represent a show case and set a benchmark for other Turkish companies utilising similar production processes.

The Client

Aksa Akrilik Kimya Sanayi A.S (“Aksa”), incorporated in Turkey for the manufacturing of acrylic and carbon fiber, is 39.5 per cent owned by Akkok Sanayi Yatırım ve Gelistirme A.S. (“Akkok”). 41.7 per cent of shares are traded on the Istanbul Stock Exchange.
Aksa is a leading acrylic fiber supplier in the domestic market and also a major player in the important markets of Middle East, China, EU and North America.

EBRD Finance

US$ 50 million long-term loan.

Project Cost

US$ 60 million.

Environmental Impact

The Project has been Categorised B in accordance with the EBRD E&S Policy, 2008. Independent Due Diligence has confirmed that potential adverse environmental and social impacts of the Project are site specific, readily identified and addressed through mitigation measures. Overall, the proposed Project will result in a net environmental benefit through improved energy and raw material efficiency and resultant savings.

Aksa has an E&S policy, a number of environmental and social management systems and CSR programmes and adequately resourced environmental, H&S, management systems and other departments. As a result, the facility is operated in an efficient manner and regularly engages with the environmental authorities and other Aksa stakeholder groups. The primary areas for improvement relate to the management of occupational health and process safety, for which actions have been agreed in the Environment and Social Action Plan (“ESAP”) to achieve industry best practice. Aksa has committed to a number of voluntary E&S management and performance enhancement incentives to achieve best in class with regard to plant and worker safety and adaptation to climate change.

Improvements at Company operations identified during due diligence have been addressed and agreed in an ESAP to ensure that the current and future operation of the facility meets, and in some instances exceeds, relevant Turkish regulations and EBRD requirements. The Bank will monitor the Project and implementation of the ESAP.

Technical Cooperation

Energy Audit, funded by Netherlands Technical Cooperation Fund, was undertaken by Royal Haskoning.

Company Contact

Aksa Akrilik Kimya Sanayi A.S
Betul Sadıkoğlu
Finance Director
Miralay Sefik Bey Sk. Ak-Han No:15
34437 , Gumussuyu/Istanbul
Tel: +90 212 251 4500
E-mail: bbingöl@aksa.com

Business opportunities

For business opportunities or procurement, contact the client company.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
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. Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Country:Turkey.Project number:42311.Business sector:Manufacturing and Services.Public/Private:Private.Environmental category:B. Board date: 13 Apr 2011.Status: Board approved, Pending signing. PSD disclosed: 18 Nov 2011

AccessBank Azerbaijan Proyect

The EBRD is considering making available a senior loan of up to US$ 25 million to Azerbaijan’s Accessbank to increase access to finance for local micro, small and medium-sized enterprises (MSMEs). The transaction would stimulate the development and support the expansion of such lending in the country, particularly outside the Baku region. It would also provide longer tenor financing, which has become increasingly scarce as a consequence of the global financial crisis and the sovereign debt crisis in the Eurozone. The transaction would thereby strengthen Accessbank’s balance sheet and business model by improving the diversification and maturity of its funding.

Transition Impact

The transaction has the following transition impact objectives:

• market expansion, by increasing financial intermediation and access to finance for MSMEs
• the further growth of agricultural lending products
• the transfer of skills

As the only commercial bank in Azerbaijan focused entirely on providing financial services to MSMEs, Accessbank has a significant demonstration effect on other local banks.

Through its regional presence outside Baku, the bank will be able to reach MSMEs in regions where access to finance is more limited.

Accessbank has also piloted lending to small farmers and expects to roll out its agricultural lending products to all of its regional branches shortly.

Additionally, Accessbank is developing a sensitivity analysis for sub-borrowers in FX without sufficient FX income. The goal is demonstrate their capacity to repay under different stress scenarios and disclose the impact of a devaluation on repayments.

The Client

Accessbank Azerbaijan, the leading provider of financial services to MSMEs in Azerbaijan, the second most profitable private Azeri bank, and the sixth largest by total loan portfolio.

EBRD Finance

MSME senior loan of up to US$ 25 million with a tenor of up to five years (two years grace period) in two tranches (i) US$ 15 million and (ii) US$ 10 million (uncommitted).

Project Cost

US$ 25 million.

Environmental Impact

Categorised FI under EBRD's Environmental and Social Policy. Accessbank will be required to comply with EBRD's Performance Requirements for FIs (specifically PR 2 and 9) and should implement the respective Environmental and Social Procedures as per e-Manual.

Technical Cooperation

None.

Company Contact

Renata Iksar, iksarr@ebrd.com
Sven Friebe: friebes@ebrd.com

Business opportunities

For business opportunities or procurement, contact the client company.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
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. Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed.

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Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.

Last updated 11 November 2011

Guardian Russia Rostov Proyect

The proposed project aims to achieve the successful development of a new float glass manufacturing plant and a glass coating line in the city of Krasny Sulin, Rostov Region, Russian Federation.

The project is aimed at addressing the growing opportunities in the construction market in Russia and will mainly focus on production of various high quality glass products for the construction industry which help make buildings energy efficient.

Transition Impact

The main transition impact potential derives from

(i) strengthening compliance with the existing regulatory framework for energy efficiency in buildings (Sub-law No. 52) and

(ii) expanding markets for new low carbon products resulting in carbon emission reductions and greater energy efficiency for end-users. Russia still has a vast potential to enhance the energy efficiency of its buildings by using Low-E glass and this project will contribute.to increasing the production of this type of glass in the country.

The Client

Guardian Steklo Rostov LLC is an indirectly wholly owned Russian subsidiary of Guardian Europe S.à.r.l. (part of the Guardian Industries Corp.) one of the world leaders in float and fabricated glass manufacturing.

EBRD Finance

EBRD long-term senior loan of up to RUB 2.1 billion.

Project Cost

Total project cost is RUB 6.9 billion.

Environmental Impact

Screening category and justification
Category B. The proposed project has been categorised B in accordance with the 2008 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and can be addressed through mitigation measures. The project is currently under construction.

The environmental and social due diligence (ESDD) has confirmed that the Company has the capacity to fully implement the Bank’s Performance Requirements, and the new float facility is being designed to comply with both Russian standards, as well as EU requirements and best industry practice. The Company has undertaken a local OVOS (EIA) and as part of the implementation of the new Environmental and Social Action Plan (ESAP), will develop additional stakeholder engagement systems.

The ESDD confirmed that the plant is not located in a sensitive location and environmental and social impacts are not significant.

As a result of the ESDD, the Company has agreed to include combination of primary and secondary measures in the design of the new float line in accordance with EU IPPC and IED BAT requirements. These primary and secondary measures will be installed latest in 2016 allowing appropriate optimisation of the process prior to installation and will further reduce emissions as well as the water vapour plume, which can limit the visual impact of the plant.. Prior to the involvement of the Bank, the Company had not considered some of those measures, as those are not required under Russian Federal law, and air modelling studies did not indicate any significant human health risks. The inclusion of primary and secondary measures as well as additional monitoring systems are included in the ESAP. The ESAP requires the Sponsor to structure the design, construction and operation of the plant in line with EU environmental standards and includes among others, a commitment to install systems to continuously monitor environmental conditions, to the abatement of dust and primary NOx as well as to the implementation of an Environmental, Health and Safety Management System. The ESAP has been agreed in principle and is to be fully agreed by the time of Board consideration.

The Bank has an existing project with the Client in Russia, and the ESDD confirmed that the Company is fully implementing the agreed ESAP and is in compliance with National standards.

Implementation requirements

• The Company will be required to provide the Bank with an annual environmental report, including updates on the ESAP, and notification on any material accidents or incidents.
• The Company will implement the ESAP and an environmental, health and safety management system inclusive of continuous monitoring systems.
• The Company will conduct its business with due regard to National and EU environmental regulations and standards.
  
  The Company will arrange for periodic environmental audits and monitoring visits by Bank staff or appointed representatives, if and when deemed necessary.

Technical Cooperation

None.

Company Contact

Laurent Hendrickx
Guardian Europe S.à.r.l.
Tel: + 352 52 111 812
E-mail: lhendrickx@guardian.com
Website: http://www.guardian.com.

Business opportunities

For business opportunities or procurement, contact the client company.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
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. Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed.

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Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.

Last updated 11 November 2011

Georgia. Novotel Hotel Tbilisi

The EBRD is considering a senior loan to 64 Chavchavadze LLC (the “Borrower”) to finance the development, construction and operation of a 4-star hotel in the capital Tbilisi, It would be run under the Novotel brand by the hotel operator Accor (the “Project”).

The Project site is located on Chavchavadze Avenue, close to the city centre and major corporate demand generators, and would feature 160 rooms, 1800 square metres of retail space and approximately 70 underground parking units.

Transition Impact

The Project is expected to increase competition in the mid-range hotel sector, which is currently small and fragmented. There are only two international branded hotels in operation in Tbilisi and very few in the pipeline. Non-branded mid-market hotels are classified according to the local rating system and the vast majority do not meet international standards. The Project would bring improved standards of accommodation and services in the mid-range segment, at affordable rates, and would suit both leisure and business travellers. The Project could also facilitate the transfer of technical and managerial skills more widely in the sector.

The Client

64 Chavchavadze LLC is a limited liability company incorporated in Georgia, whose ultimate beneficiaries are Mr. Lasha Papashvili and Mr. Sulkhan Papashvili.

Mr. Lasha Papashvili will co-Sponsor the Project jointly with the Georgian Real Estate Holding, a holding company set up in Georgia.

EBRD Finance

US$ 18 million, including US$ 15 million committed tranche and US$ 3 million uncommitted tranche.

Project Cost

US$ 30 million.

Environmental Impact

The Project was categorised “B” by the European Bank for Reconstruction and Development (EBRD), which requires an environmental and social analysis in accordance with the 2008 Environmental and Social Policy and Performance Requirements (PR’s)

The Project has some environmental and social impacts which can be readily addressed through mitigation measures and an action plan.

The Bank’s environmental and social due diligence is currently being carried out. An initial review of the completed EBRD Environmental and Social Due Diligence Questionnaire for Property Projects showed that the Project has been developed in accordance with relevant legal requirements including those of city planning. Further analysis and clarification regarding land acquisition, water and waste management, occupational health and safety, fire and public safety, construction material safety and other related issues will be followed. Energy efficiency opportunities will be also explored. Based on the further analysis, an Environmental and Social Action Plan (ESAP) will be developed and agreed by the client as part of the legal agreement with EBRD. The client will be required to ensure that the Project complies with PR’s and submit an annual environmental and social report to the Bank.

Technical Cooperation

The Project qualifies as a Built Environment Project with substantial sustainable energy investments, and has benefited from a Technical & Energy Performance Assessment under the Framework for Enhancing Sustainable Energy and Transition Impact in the Built Environment funded by the Japan-SEI TC Fund, provided by the Government of Japan. A consultant engaged by Energy Efficiency and Climate Change Team has assessed the performance of the Project, assisted in identification of the overall Sustainable Energy Investment and proposed further energy saving opportunities suitable for the development. In addition the consultant provided a detailed cost-benefit analysis of the proposed sustainable energy investments and evaluated their impact on the overall energy performance of the building.

Company Contact

Marilena Vuiu
Principal Banker, EBRD, Property and Tourism
Tel: +44 (0) 207 338 6213
Email: vuium@ebrd.com

Business opportunities

For business opportunities or procurement, contact the client company.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
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. Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed.

Romania: EPGE (Chirnogeni wind)-80 MW

The EBRD is considering providing an A/B loan of up to € 92 million to finance the construction and operation of 80 MW Chirnogeni wind farm located in Dobrogea region. The construction is expected to start at the beginning of 2012,and full commissioning is expected to take place during the first quarter of 2013.

The Project will support Romania's efforts to increase its renewable energy capacity to meet EU’s green energy quotas.

Transition Impact

Through this Project, the Bank will support the expansion of renewable energy market in Romania.

The Project has the potential to help solidify the regulatory regime for renewable energy, to demonstrate a successfully operating large scale wind power generation facility and attract other investors in the Romanian renewable energy sector. In addition, the transition impact is expected to come from improving the standards for business conduct through the Client's application of international best practice in its environmental impact assessment.

The Client

EPGE is the developer of the Chirnogeni wind project. EPGE is a privately owned power development company incorporated in Cyprus, and a member company of the Paraskevaides Group based in Cyprus. EPGE is focusing on developing power projects in Eastern Europe, the Balkans, Middle East, The Gulf Region, and North Africa.

EBRD Finance

The wind farm will be financed through an A/B loan structure of up to € 92 million.

Project Cost

The total project cost is roughly €135 million.

Environmental Impact

The project is considered Category A, requiring an Environmental and Social Impact Assessment (ESIA) in line with the Bank’s 2008 Environmental and Social Policy.

Environmental and social due diligence completed by the Bank included a review of the separate Environmental and Strategic Impact Assessments (ESIAs) for the 80MW wind project and the rehabilitation of 42 kilometres of 110kV transmission line and supporting project information. Due diligence has confirmed that the Project has been structured to meet Romanian Law and Bank Performance Requirements. No significant issues were raised during public consultations following disclosure of the ESIAs under Romanian law.

The transmission ESIA included a cumulative impact assessment that considered this wind project and other nearby wind projects as well as additional monitoring of birds and bats on the project site. The evaluation of potential impacts on birds concluded there would be no adverse impacts on raptors or other large birds. Although the transmission line passes through a designated Natura 2000 the rehabilitation works will not disturb new land or have a significant effect on this protected area.

Following the Bank’s due diligence an updated ESIA package including the two ESIAs, Non-Technical Summary, Stakeholder Engagement Plan, and Environmental and Social Action Plan were disclosed on 26 October 2011 and are available on the project website, in EBRD offices in London and Bucharest, at EPGE office in Bucharest, and in nearby villages.

Should significant issues be raised during the 60-day Bank disclosure period, these will be brought to the attention of the Board.

An Environmental and Social Action Plan has been developed and agreed with the Company to ensure that the Project is structured to meet the 2008 Bank’s Environmental and Social Policy The plan includes substantial monitoring and reporting obligations, including seasonal monitoring for birds and bats during the first few years of operation, as well as extensive stakeholder engagement.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

None.

Business opportunities

For business opportunities or procurement, contact the client company.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
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. Text of the PIP

Project Complaint Mechanism (PCM)

The EBRD has established the Project Complaint Mechanism (PCM) to provide an opportunity for an independent review of complaints from one or more individuals or from organisations concerning projects financed by the Bank which are alleged to have caused, or likely to cause, harm. The Rules of Procedure governing the PCM can be found at www.ebrd.com/downloads/integrity/pcmrules.pdf, the Russian version can be accessed at http://www.ebrd.com/downloads/integrity/pcmrulesr.pdf

Any complaint under the PCM must be filed no later than 12 months after the last distribution of EBRD funds. You may contact the PCM officer (at pcm@ebrd.com) or the relevant EBRD Resident Office for assistance if you are uncertain as to the period within which a complaint must be filed.

Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.