GNG Fuels and Fertilizers (IFC-43225)

Countries
  • Ukraine
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 26, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
CONCERN GALNAFTOGAZ, JSC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 70.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jan 17, 2021

Disclosed by Bank Apr 27, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

IFC has been invited to lend US$70 million (m) in senior loans to Galnaftogaz (“GNG” or the “company”), a long-standing IFC client and a leading Ukrainian retail distributor of transportation fuels. Proceeds will fund: (i) GNG’s capex program, which includes climate-focused investments in alternative fuels such as liquified petroleum gas (LPG) storage and retail services as well as electric car charging services; and (ii) permanent working capital to help GNG grow its Farmer-Supply Program (FSP) to supply up to 200 farmers with fuel and fertilizers (together the “project”). The investment will include new OKKO brand retail filling stations, a new LPG storage depot, and two new liquid fuel storage depots, and FSP expansion to cover small growing number of qualified farms.

As part of the project about 100 stations will be modernized and refurbished to improve their environmental, safety and energy efficiency features. Fuel tanks in the main fuel storage depots have vapor recovery installations and all the fuel loading/filling activities are automatically controlled to mitigate operational risks. Besides these stations, GNG also uses services of other third-party fuel storage depots. As part of this project, GNG will further improve energy efficiency for filling stations (e.g. new more efficient pumps), complete fuel storage depot renovations, build new LPG depot in Brovary, and purchase/renovate two existing diesel/gasoline depots in Kherson. The new LPG depot in Brovary will be built in an existing industrial zone with no community nearby. Both river and railroad depots in Kherson are in industrial zones, but there are some residential communities near the railroad depot in Kherson. Besides, GNG will continue expansion of its OKKO branded filling stations.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works