Astarta

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The proposed loan to Astarta Holding will be applied to finance (i) the Astarta Holding's investments in energy efficiency improvements at its five sugar plants, (ii) purchase of agricultural equipment for its farms, and (iii) restructuring Astarta Holding’s balance sheet. See also Mid-Sized Corporate Support Facility The project will result in energy efficiency improvements in the energy intensive sugar production of Astarta Holding. The main transition impact potential of the Project is expected to be derived from energy efficiency aspects of the investment programme including a potential for obtaining carbon credits. The project will have a positive demonstration effect on other Ukrainian sugar producers and farmers in the region. "Astrata-Kyiv" LLC (the "Company"), its parent companies and its operating subsidiaries (together the “Astarta Holding”) is the leading largest sugar producer in Ukraine. Up to USD 20 million long term loan to the Astarta Holding. The project is estimated to cost USD 20 million to implement. Screening category and justification: The project was screened as B/1 requiring an environmental due diligence consisting of a Corporate Environmental Audit and an Environmental Analysis of the proposed investment plan to ascertain future compliance with national and the EU environmental standards. Due diligence undertaken and outcomes: The environmental due diligence of the Project was undertaken by an independent international environmental consultant and included site visits to the Company headquarters and the key operational facilities and farms. During the due diligence meetings where also held with senior technical and production managers at the corporate and site levels. The Company operates a number of sugar processing facilities, which have been gradually modernized. Many of these facilities have been re-commissioned by Astarta Holding in recent years and are currently being refurbished. The environmental due diligence has confirmed that the plants are in general compliance with National environmental standards, additional benchmarking was undertaken against the EU environmental standards. The financing of energy efficiency measures will significantly improve the environmental standing of the Company. Based on the environmental due diligence an Environmental and Social Action Plan (ESAP) was developed and is being agreed with the Company. This is envisaged to include the development of a systematic approach to environmental issues at the Company, including the implementation of an environmental management system certified to ISO 14001. Implementation requirements: An energy audit has been commissioned to assist the Astarta Holding in analysing energy saving project opportunities. The energy audit has been conducted by a company contracted within the Energy Audit Programme funded by the Central European Initiative. Mr. Mykhaylo Parandiy Tel. +380 44 585 94 17 Fax +380 44 462 58 71, Mob.: +380 50 384 02 51 e-mail: Parandiy@astartakiev.kiev.ua