Early Warning System

Countries

Egypt

Geographic location where the impacts of the investment may be experienced.

Specific Location

Ash Sharqiyah

Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.

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

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

Jan 11, 2023

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

Beko Egypt Home Appliances Industries LLC

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

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)

$ 50.00 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.

Project Cost (USD)

$ 100.00 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.

Bank Documents

Translation: Beko Egypt Home Appliances Industries LLC (Arabic)

Primary Source

Original disclosure @ EBRD website

Updated in EWS Apr 12, 2024

Disclosed by Bank Jan 26, 2024

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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.

According to the Bank’s website, the project consists of the provision of a senior loan of up to USD 50 million in favour of Beko Egypt Home Appliances Industries LLC to finance the establishment of its first production facility in Egypt, at the Industrial Zone in 10th of Ramadan City, Ash Sharqiyah.

The Loan will finance the development of a greenfield regional manufacturing hub in Egypt with an annual capacity of 1.1m units (600k units of refrigerator and 500k units of oven), out of which 60% will be directed for exports to diversified markets including European countries, the Middle East and Africa. The new products manufactured in the facility will increase access to high-energy class refrigerators and ovens, which are well beyond current market standards in the MENA region. The Project's total investment cost amounts to c. USD 100m, with the new facility expected to start operations by 1H 2024. The Bank's financing will be mainly directed towards the construction of the production facility building, which will be LEED Gold certified, and the establishment of an R&D centre.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised B (2019 ESP): Arçelik is well known to the Bank through previous transactions; has a good Environmental & Social performance track record; strong EHS organization with experienced staff at the corporate level; and duly implements agreed Environmental and Social Action Plan ("ESAP") for previous projects.

Investment Description

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

European Bank for Reconstruction and Development (EBRD)

Provision of a senior loan of up to USD 50 million

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Beko Egypt is a fully owned subsidiary of Arçelik A.S ("Sponsor") engaged in the production of white goods. Arçelik, incorporated in Turkey, is a leading global player in the production, sales and aftersales services of consumer durable goods and consumer electronics. Arçelik is majority owned and controlled by Koç Group, the largest investment holding company in Turkey and is listed on Borsa Istanbul.

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
-	-	-	-	Arcelik A.S.	Parent Company	-
-	-	-	-	Beko Egypt Home Appliances Industries LLC	Client	-

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.

COMPANY CONTACT INFORMATION

Mine Sule Yazgan
yatirimciiliskileri@arcelik.com
+902123143434

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

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 at: 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