Circle Maritime Invest (CMI)

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Translated version of this PSD: Russian The EBRD is considering providing a senior loan of up to US$ 65 million to Circle Maritime Invest (‘CMI’ or the 'Company’). The Company will use the funds to finance part of the post-delivery acquisition costs of three shallow draft icebreaking tug boats in order to meet its commitment under a long-term time charter with Agip KCO - a company acting as an agent on behalf of the Kashagan Oil Consortium - to provide offshore support services in the Kazakhstan’s sector of the North Caspian Sea. The Project Vessels will be used in icebreaking management operations, as well as in towing, transportation, and rescue activities and other support services to the artificial islands (acting as oil platforms) constructed in the surrounding areas of the Kashagan oilfields. The following transition impact is expected to be achieved as a result of implementation of the proposed project: JSC “Circle Maritime Invest” registered in Kazakhstan, is a privately owned marine service company. Through its operating company, Caspian Offshore Construction (also registered in Kazakhstan), CMI provides operation and maintenance services to offshore support service vessels in the Caspian Sea. It currently has 38 vessels in operation consisting of ice-classed push/pull tugs, emergency evacuation vessels, crew boats, and barges as well as floating hotels; 10 of which are owned by the Company. The Company’s main client is Agip KCO N.V. which is the operator on behalf of the seven international oil companies representing the Consortium involved in the exploration of the Kashagan oil fields, and other deposits such as the Aktote, Kairan and Kalamkas discoveries in the northern part of the Caspian Sea. A senior loan of up to US$ 65 million. The total investment cost of the Project is US$ 122 million. Project Categorisation The acquisition of three new tug boats is associated with limited environmental and social impacts that can be readily identified and mitigated. Therefore, the project is categorised as B. Issues Identified and Mitigation Measures The Environmental and Social Due Diligence (ESDD) for the project included: The operations of CMI are overall in compliance with regulatory requirements, EU environmental standards and international (including IMO, MARPOL and SOLAS) standards of maritime safety and environment protection. Also the Company has appropriate systems and controls in place to manage environmental, health and safety and labour risks. The main client for the Company is Agip KCO, which also has an established EHS management system. CMI has a contractual obligation to comply with all relevant environmental and maritime safety, OHS and labour requirements, standards and operational procedures of Agip KCO. The shipyard contracted to construct the project vessels was found to operate under strict environmental, health and safety policies and good and safe working practices. An Environmental and Social Action Plan (ESAP) has been developed to further improve the environmental and social performance of the Company and to ensure compliance with the EBRD PRs. The main action items in the ESAP includes the following: Monitoring Monitoring of the environmental and social performance of the project will be carried out through annual reporting. None. Gulam Aliyev, Chief Investment officer of JSC “Circle Maritime Invest” 7th floor, Business Center of Rixos Hotel 506/99 Seifullin Ave., Almaty, Kazakhstan, 050012 Tel: +7 (727) 259 73 33