Russia Pilkington Energy Project

The EBRD is considering a co-investment with RUSNANO to finance a new float glass plant in Ramenskoye in the Russian Federation, which will also have the capacity to produce coated energy efficient glass for the Russian market, as well as to provide funding for refinancing of the existing debt of Pilkington Glass LLC. The Project will contribute to energy efficiency of buildings and the expansion of the market for new energy-saving products in Russia.

Transition Impact.The Project transition impact will derive from the following key areas: (i) contributing to the adoption and implementation of energy performance regulations of buildings. (ii) supporting the expansion of the market for new energy-saving products. (iii) successful integration of the operations of Pilkington Glass LLC and the StiS Group of Companies. StiS is the leading manufacturer of insulated glass units in Russia

The Client. The investee, Pilkington Nederland No. 6 BV, will become the only integrated flat glass business in Russia combining float glass manufacturing facilities with downstream processing activities. This entity beneficially owns Pilkington Glass LLC, which will be the borrower under the proposed debt financing

European Bank for Reconstruction and Development.Country: Russia.Project number:42160 .Business sector: Manufacturing and Services.Private .Environmental category:B Board date:14 June 2011.Status: Pending concept review. PSD disclosed:6 Dec 2011

Pilkington Russia 3

Pilkington Russia3- Equity

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Ukraine Zaporizhzhia Energy Efficiency Project

The EBRD is considering providing a €12.5 million loan to finance the installation of new gas engine units for simultaneous co-generation of heat and electricity and the installation of individual heating stations at the building level in the district heating system of the city of Zaporizhzhia in Ukraine.

The Project is designed to increase the overall efficiency of the district heating system in the city of Zaporizhzhia and focus on reduction of fuel consumption. The transaction will have significant demonstration effect for other cities and utilities in Ukraine concerning ways to improve energy efficiency of district heating operations and reduce fuel consumption. It will also increase the penetration of combined heat and power technologies for which there exists a substantial market potential in the country.

Through physical investments and the Corporate Development Support Programme, the Project will improve financial and operational performance of the Company. The Corporate Development Support Programme and other donor funded assistance will provide substantial training for the key staff of the Company enabling substantial market skill transfer. The Client. The District Heating Company “Miski Teplovi Merezhi” (the “Company”), a municipal utility wholly owned by the City of Zaporizhzhia

European Bank for Reconstruction and Development.Country: Ukraine.Project number:42241.Business sector: Energy efficiency .Public .Environmental category:B Board date:26 June 2012 2012.Status: Pending concept review. PSD disclosed:7 Dec 2011

Ukraine Zaporizhzhia Energy Efficiency Projectc

Armenia Kotayk Solid Waste Management Project

The EBRD is considering providing a €3.5 million sovereign loan to the Republic of Armenia for the construction of the first EU compliant regional landfill and relevant infrastructure in the country. The landfill will be located in Hrazdan, capital town of Kotayk distrcit in the central part of Armenia, and will be used by eight municipalities in the nearby region - Hrazdan, Abovian, Charentsavan, Yeghvard, Nor Hachn, Tsakhadzor, Byureghavan and Sevan (Participating Municipalities). The project will require the tendering out of waste collection to the private sector and the creation of a fully commercial solid waste management company (the “Company”).

The project will also include the aquisition of vehicles, bins and equipment for waste management. 

European Bank for Reconstruction and Development.Country: Regional.Project number:39603.Business sector: Municipal and environmental infrastructure. Public .Environmental category:A Board date:17 Apri 2012.Status: Signed. PSD disclosed:8 Dec 2011

Kotayk Solid Waste Management Project

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Danone Industria Project.Russia,Ukraine,Belarus,Kazakhstan and Azerbaijan

The Bank co-invested with Groupe Danone in its Russian dairy subsidiary, Danone Industria in 2001as part of a Multi-Project Facility (MPF) (see PSD: http://www.ebrd.com/english/pages/project/psd/2001/1968.shtml). In 2010 the Bank exchanged its shareholding in Danone Industria for a stake in Danone CIS, a holding company that consolidates the subsidiaries of Danone in Russia, Ukraine, Belarus, Kazakhstan and Azerbaijan to support the Danone operations in those countries.

The Bank’s investment is expected to have the following main impact on the transition in the Region: a) Market expansion The Bank is supporting the expansion of Danone’s dairy operations in Ukraine, Belarus and Kazakhstan in addition to Russia where the Bank already co-invested in Danone Industria. The Belarusian and Kazakh dairy markets are still in relatively early stages of their development, with no major local operator able to produce high quality dairy products. Danone’s product portfolio mix remains unique for the region, with a number of strong and affordable brands of children’s yoghurts, yogurt drinks, and desserts. (b) Backward linkages.

Further expansion of Danone’s operations in the region will have a positive impact on the local fresh milk suppliers (with most of them being small independent farms).

European Bank for Reconstruction and Development.Country: Regional.Project number:41758.Business sector: Agribusiness.Public/Private:Private.Environmental category:B Board date:8 June 2010.Status: Signed. PSD disclosed:9 Dec 2011

Danone CIS (f. Project Neva)z

Romania.R2CF Covasna Sub-Project

European Bank for Reconstruction and Development. The EBRD is considering providing a loan of to €7.6 million to S.C. Gospodarie Comunala S.A for water and wastewater infrastructure improvements. The financing is a sub-project of the €200 million Framework for Romania EU Cohesion Fund Co-Financing for regionalised water companies (the “Framework”).

The project will be cofinanced by a regional investment programme of up to of €78.9 million, which will include significant grant funding from the European Union, the Government of Romania and the local governments under Romania’s Cohesion Fund Programme. The investments are expected to significantly reduce water losses, optimise operating costs and expand the water supply and wastewater collection and treatment services in Covasna County, in line with relevant EU directives.

Transition Impact

The sub-project will support environmental improvements as well as the continued regionalisation of water and wastewater services in Covasna County, which will result in efficiency gains as well as the transfer of commercial and managerial skills to less-developed localities in the county. The Company will participate in a benchmarking programme alongside other borrowers under the Framework, which was approved by the Bank to co-finance projects in Romania’s water and wastewater sector alongside EU Cohesion Funds.

The project will also inlcude tariff adjustments to achieve financial and operational sustainability.

In addition, the transition impact potential for this Project will be further enhanced based on the fact that the Company is expanding to smaller and less developed communities, resulting in a greater scope for institutional capacity building.

The Client

S.C. Gospodarie Comunala S.A. (Apa Canal Covasna). EBRD Finance Senior loan of up to €7.6 million. Project Cost Up to €86.5 million. Country: Romania.Project number:42570.Business sector: Municipal and environmental infrastructure.Public/Private: Public.Environmental category: IEE.Board date: Status:Passed concept review, Pending final review.PSD disclosed: 2 Dec 2011

R2CF Covasna Sub-Project.

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