This project is still under review by the EWS. Project information and/or project analysis may be incomplete.
Sofia Med (EBRD-43799)

Countries
  • Bulgaria
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
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
Dec 12, 2012
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.
Investment Amount (USD)
Not Disclosed
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 @ EBRD website

Disclosed by Bank Nov 7, 2013


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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.
PROJECT DESCRIPTION The EBRD is considering providing EUR 40 million loan to Sofia Med, a Bulgarian metal processing company specialized in copper and copper alloy products. EUR 30 million will be used for company's work capital financing as a part of a larger balance sheet restructuring and EUR10 million will be used to finance energy efficiency measures and increase capacity for higher value products. TRANSITION IMPACT The Bank's support, along with long-term commitments from commercial banks, will help the company operate with a sustainable long-term financing structure.This will enable Sofia Med to embark on additional capital expenditures to increase efficiency and cut down production costs. , The investments will also help the company to shift production towards higher value-added products like high performance alloys and industrial rolled products). The planned energy efficiency projects and especially improved energy efficiency management system will bring the company in line with best international practices.Given its importance for the Bulgarian economy, Sofia Med's further development will also boost growth of its numerous up-stream and down-stream clients. THE CLIENT Sofia Med, the leading Bulgarian copper, titanium zinc and brass processor, is a joint-stock company incorporated 100% owned by Halcor, a large-scale metal processing company with over sixty years of experience. a . 95% of Sofia Med's products is exported to Western and Eastern Europe. EBRD FINANCE EUR 40 million loan. PROJECT COST EUR 40 million loan. ENVIRONMENTAL IMPACT The proposed project has been categorised B in accordance with the 2008 EBRD Environmental and Social Policy. The potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.The current operations of Sofia Med were reviewed and found to be in compliance with local, and therefore EU legal requirements and the related Integrated Pollution Prevention and Control permitting regime. The company's management capacity and practice meet standards that will allow for operations and future investment projects to be implemented in line with the EBRD's performance requirements.The implementation and certification of quality, health and safety and environmental systems, coupled with significant modernisation of the plant undertaken with the International Financial Corporation's involvement from 2001 to date, has resulted in the application of best practices to many aspects of the operations. Minor improvements in the hazardous waste storage area were discussed with the site management and will be reflected in the environmental and social action plan to be agreed with the company.Sofia Med may potentially face requirements to purchase additional emission credits in the future. However, as a result of cooperation between the company and the EBRD teams for Environment and Sustainability and Energy Efficiency and Climate Change and based on the energy audit findings, a capital expenditure programme is being developed to support energy efficiency measures. TECHNICAL COOPERATION None.
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 EBRD The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.

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