This project is still under review by the EWS. Project information and/or project analysis may be incomplete.
Savola Foods Kazakhstan (EBRD-47100)

Countries
  • Kazakhstan
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
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 10, 2015
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.
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Disclosed by Bank Apr 2, 2015


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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.
TRANSLATED VERSION OF THIS PSD:RUSSIAN Russian PROJECT DESCRIPTION The EBRD is considering a long-term loan of up to USD 60 million in Kazakh Tenge (KZT) equivalent to Savola Foods CIS LLP (the "Company" or "Savola"), one of the leading branded edible oil producers in Kazakhstan, based in Aktobe. The loan will finance the Company's capital investments aimed at expansion of production and storage capacity, certain logistics and energy efficiency improvements and working capital needs (the "Project"). TRANSITION IMPACT The Project's transition impact is expected to derive from setting standards for corporate governance and business conduct, market expansion and backward linkages with local farmers. With the EBRD's support, the Company will improve its corporate governance standards, environmental and resource efficiency. THE CLIENT Savola Foods CIS LLP, a limited liability partnership organised and existing in the Republic of Kazakhstan, being a subsidiary of Yug Rusi Group, the leading Russian producer of edible oil (the "Group"). EBRD FINANCE Up to USD 60 million loan in KZT equivalent for the account of EBRD. PROJECT COST USD 83 million in KZT equivalent. ENVIRONMENTAL AND SOCIAL CATEGORISATION, IMPACT, AND MITIGATION Categorised B in accordance with ESP 2014. The independent due diligence, consisting of an environmental and social assessment of the proposed investment as well as current operations (inclusive of a site visit) (ESDD) is currently being finalised. The ESDD identified that the Project is likely to bring a number of improvements related to the automation of operations and reduced use of solvents, which will improve the safety of operations and also quality of the products. The investment will also enable using seed hulls for production of biomass pellets to be used by the plant's boilers for production of energy. The Company has a number of elements of the environmental, health and safety management systems; and it is in the Company's long-term plan to gradually implement the ISO 14001 and OHSAS 118001 management systems at all plants of the Group. A number of improvements to the current facilities and operations are required and include soil contamination survey; wastewater and storm water management; waste and pest management, labour relations and assessment of risks to the community due to the residential properties within the boundaries of the sanitary-protection zone. Required measures to achieve a full compliance with the EBRD environmental and social requirements have been included in the draft ESAP, which will need to be finalised and agreed prior to the Final Review of the Project. TECHNICAL COOPERATION The energy and resource efficiency audit was conducted under the EBRD's Energy and Resource Efficiency Programme for the Corporate Sector funded by the EBRD Shareholders Special Fund. The audit was focused on reviewing the Company's current operations and investment plan, performing a resource efficiency benchmarking to its peers and international best practices and on the identification of incremental energy and resource efficiency investments. COMPANY CONTACT Mrs. Oxana Guseva, Deputy General Director for Financial Affairs of LLC "MEZ Yug Rusi"
Investment Description
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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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