BD Logistics

complete

The proposed project will finance the development, construction and operation of two international standard warehouses in Moscow region. The proposed project will contribute to fulfilling the long term unmet demand for international standard warehousing and logistics facilities in Russia, and will introduce to the Russian market improved standards of warehouse construction management techniques. A special purpose company will be registered in Russia which will be owned by ZAO Agrofirma Belaya Dacha Holding and the Bank. Equity investment of USD 4.3 million representing 34% of the Company’s equity. Senior Loan of USD 23.3 million structured as A/B Loan comprising Bank ‘A’ loan of USD 8.3 million and Participants (commercial banks) ‘B’ loan USD 15 million. The Bank’s total exposure will be in the region of 35% of total Project Costs. USD 35.9 million. Description of the proposed project The Bank will provide equity investment of USD 4.3 million representing 34% of the Company’s equity as well as Senior Loan of USD 23.3 million structured as A/B Loan comprising Bank ‘A’ loan of USD 8.3 million and Participants (commercial banks) ‘B’ loan USD 15 million. The proposed project will finance the development, construction and operation of two international standard warehouses in Moscow region. Screening categories and rationale for classification A large scale property development such as this project has specific environmental impacts which, however, can be readily identified and prevented through adequate measures and application of good international practice. For the above reasons, the EBRD has classified the project B/1, requiring an Environmental Analysis and Audit of the proposed site and associated facilities. Information reviewed during the environmental appraisal Soil and radiation test results on the adjunct area of the project site where the Sponsor already developed warehouse buildings as well as the completed Environmental Questionnaire have been reviewed by the Bank. An audit report and other relevant documents will be provided for the Bank’s review shortly as part of environmental due diligence. Environmental impacts and mitigation measures Early findings of the environmental due diligence confirm that the project has been structured in accordance with Russian environmental requirements and good international practice. A specific site audit is currently being conducted focusing on the following issues: (i) confirmation of compliance with environmental legal requirements; (ii) soil and ground water contamination analysis. An Environmental Action Plan (EAP) might be required if any significant shortcomings are identified during the due diligence. The company will be required to ensure that it complies with Russian and EU environmental, health and safety standards and requirements. To achieve that, the company will incorporate all necessary preventive and mitigation measures into the project design as well as commit itself to good international practice. Environmental opportunities The project will allow for urban regeneration through the utilisation of the brown-filed site. In addition, the project will use energy efficient materials and technology in operation of the warehouses. Monitoring The Bank will evaluate the project’s compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports (AER) prepared for the project covering: (1) on-going performance of project-specific environmental, health and safety programmes if applicable, and (ii) the status of implementation of environmental mitigation measures. Summary in Russian None. Website: http://www.belaya-dacha.ru