Early Warning System

Countries

Montenegro

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

Canceled

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

Aug 13, 2024

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

Farmont M.P.

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)

$ 3.30 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.
Currency conversion note:
Bank reported 3
Converted using 2024-08-13 exchange rate.

Project Cost (USD)

$ 3.63 million

Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 21, 2025

Disclosed by Bank Aug 18, 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 an EBRD financing of EUR3 million in two tranches of EUR2 million and EUR1 million for the expansion of Farmont's logistics centre and opening and/or acquistion of a small pharmacy retail chain.

EBRD financing will enable the Company to expand its existing logistics centre with additional 2,000 sqm, in addition to current one 800 sqm. New logistics centre will fulfil all the energy efficiency standards achieve at least one energy efficiency class better on the energy certificate (EPC) than the national baseline. The expansion of the logistics centre will enable Farmont to increase its capacities and expand its wholesale business. In addition, through tranche 2, the the Company will open several new pharmacies and/or purchase a small chain of pharmacies, that will enable vertical integration, and higher profitability.

Investment Description

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

European Bank for Reconstruction and Development (EBRD)

Loan amount: up to EUR 3.0 million
Tenor: 7 years, including up to 2 years grace period
Two tranches of EUR 2.0 million and EUR 1.0 million respectively. Tranche 2 will be uncommitted.

SOURCES TOTAL EUR 3.3 m:
EBRD Tranche 1: EUR 2.0 m
EBRD Tranche 2: EUR 1.0 m
Client Financing: EUR 0.3 m

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.

Farmont M.P. is a limited liability family company founded by Momcilo Popovic. The Company deals with wholesale of medicines, medical and sanitary materials, medical devices and equipment.

The Popovic family also owns "HELP" ltd, which runs a retail chain of pharmacies operating in Montenegro. HELP currently has 10 pharmacies, up from one in 2019, out of which seven in Podgorica.

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
-	-	-	-	Farmont M.P.	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

Petar Popovic
petar.popovic@farmont.me
+382 20 663 075
https://www.farmont.me/
Farmont doo Kosic; bb, Danilovgrad Montenegro

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