KRUSZWICA S.A.

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Equity investment of up to the ECU equivalent of US$ 18.5 million to finance the modernisation programme of Kruszwica, the largest producer of edible oil in Poland. The project will finance the company's modernisation programme, including environmental protection improvements. The expected transition impact is high and will contribute to: (1) promoting competition; (2) demonstrating ways of achieving successful restructuring in a key sector for Poland. Zaklady Tluszczowe Kruszwica S.A., a Polish registered company. Currently the largest producer of edible oil in Poland, the company is located in central Poland. The EBRD will co-invest alongside Cereol (part of the Eridania Beghin – Say Group). The EBRD investment will be channelled through Polska Oil Investment BV, an ad hoc vehicle created in the Netherlands. Equity investment – up to the ECU equivalent of US$ 18.5 million. US$ 40 million (ECU 37.1 million) to be implemented by July 2001. The project was screened B/1, requiring an environmental audit of the existing facilities and an environmental analysis of the proposed development. A pre-investment audit had been commissioned by the company and submitted to the EBRD for its review. Additional information was required, which was carried out by the same consultants undertaking additional studies, including the environmental analysis. All this was completed by August 1997. The audits and the analysis resulted in a number of recommendations, which have been built into a draft Environmental Action Plan (EAP). None