ETI Turkey

cancelled

The EBRD is considering a long-term loan of up to TRY 200 million to Eti Gida San. ve Tic. A.S., one of the leading diversified salty snacks, cakes and confectionary companies in Turkey. The loan will finance the company's capacity expansion and modernization investments in its existing facilities in Turkey which will be implemented over the following three years (the project). The project transition impact potential is expected to derive from setting standards for corporate governance and business conduct, skills transfer and market expansion through backwards linkages to local farmers. ETI GIDA SANAYI VE TICARET ANONUIM SIRKETI TRY 200,000,000.00 TRY 200,000,000.00 Categorised B. The production of salty snacks, cakes and confectionary products is associated with a number of environmental, health and safety issues, although these are typically well understood and readily addressed through standard mitigation measures. Environmental and social due diligence for this project was undertaken internally by the Bank and included meetings and discussions with company technical staff and site visit to a selection of production facilities. The company has a number of production facilities, principally located in Eskisehir, but also in Konya and Bozüyük. The Bank's Environmental and Social Due Diligence visit focused on facilities located in Eskisehir. Those facilities are within a purpose-built industrial park located some 10km from the centre of the town and include cake, biscuit, and chocolate production plants and a grain processing plant. There are no sensitive receptors in close proximity to the industrial park and hence the company's facilities have a very limited impact on surrounding areas. Facilities are of a modern construction and are well equipped with the required infrastructure to manage environmental, health and safety issues. Key impacts are associated with the supply chain, the use of materials in production, energy and water consumption, solid waste management, waste water treatment and health, safety and hygiene issues. The company has the required policies, systems and procedures to manage these. Appropriate staffing is in place with dedicated positions for environment, quality, health and safety and labour management. While the company does not have a formalised environmental management system, it does have certified systems in place for health and safety (OHSAS 18001) and food safety/quality (IOS 22,000, BRD and HACCP). The key focus for the company is compliance with national legislative requirements and due diligence confirms that the company is in compliance with those. In addition, the company has a number of initiatives in place to implement best practice particularly in the areas of material use, for example in packaging, energy use, waste minimisation and waste water treatment. The company has a comprehensive health and safety management system in place, with staffing at both the central and facility levels, and procedures in place for risk assessment, training, provision of personal protective equipment and reporting. Human resource policies are also in place covering the requirements of EBRD's Performance Requirement (PR) 2. As with environmental issues, the company is implementing a number of good practice initiatives, for example to increase the proportion of women entering the blue collar work stream. A limited number of improvements will be required to ensure that the company achieves compliance with the Bank's PRs. These include the development and implementation of a formalised environmental management system, undertaking of best bvailable technique assessment for applicable facilities, and further development of environmental and social reporting to both the Bank and the public. These measures will be discussed with the company and formulated into an environmental and social action plan. The company will be required to provide annual reporting on the implementation of the Envrionmental and Social Action Plan and other issues to the Bank. None. Nuri Ozkaya nozkaya@etigrup.com.tr +902222212000