Centravis

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The proposed project is designed to support Centravis in restructuring its balance sheet and improving its equity position. The EBRD will introduce an adequate financing structure to help Centravis cope with the crisis and improve its debt service capacity. The project transition impact will derive from the following key areas: CJSC “Centravis Production Ukraine” is a leading Ukrainian producer of seamless stainless tubes and pipes. Centravis is also one of the world leaders in the segment. The Bank will provide a financing package to Centravis, consisting of equity investment up to EUR 10 million and a loan of EUR 48 million, of which EUR 33 million will be syndicated to Erste Bank and HVB-Unicredit Group. EUR 67 million Screening category and justification The project was categorised as B (2008), requiring an Environmental and Social Due Diligence (ESDD), consisting of an environmental analysis of the proposed investment programme and an environmental audit of the existing production facilities. Due diligence undertaken and outcomes The ESDD was undertaken by independent consultant and site visits by ESD. The ESDD has confirmed that the Company has a good environmental and social management system and has the capacity to fully implement the Bank’s Performance Requirements (PRs) of Environmental & Social Policy. Centravis’s current and planned operations are in compliance with national legislation and the planned investment programme is structured to meet both national and EU environmental standards. The Company has a good Environmental, Health and Safety Management systems, which are certified to the ISO 14001 and OHSAS 18001 standards respectively. In terms of social aspects, the Company has good Human Resource management system and is addressing social and labour issues in line with national requirements as well as corporate standards that meet the Bank’s PRs of Environmental & Social Policy. The Company is going beyond national legislative requirements in terms of its retrenchment programme and providing assistance and compensation to workers. An Environmental and Social Action Plan (ESAP) developed and agreed with the Company based on the ESDD. This requires further strengthening of existing management systems, notably in terms of Human Resources policies and the development of an integrated Corporate Retrenchment Policy by the end of 2009. The Company has also committed to undertake investment to improve the operations of the wastewater treatment company in which Centravis has shareholding as well as investment in reducing emissions from acid pickling facilities and ventilation systems. A stakeholder Engagement Plan (SEP) has been developed by the Company in line with PR10. Implementation requirements None Mr Andrzej Szczepek, CFO CJSC “Centravis Production Ukraine” 1a Clara Zetkin Street, Dnipropetrovsk, Ukraine Telephone: +38 0562 334767 Telefax: +38 0562 334773 Email: szczepek@centravis.com