Penta Agro

cancelled

Translated version of this PSD: Russian The EBRD is considering provision of a long-term corporate loan to finance selected investments aimed at modernisation of production facilities in the Russia’s Far East region for production of higher value-added products, investments into storage facilities for agricultural products and energy efficiency improvements. Transition impact potential would derive mainly from market expansion through increased backward linkages to farmers and higher value added product offerings in the Russia’s Far East region. The project targets investments into the development of primary agriculture infrastructure via investments into crop storage facilities. The project will also entail significant skills transfers through training and a local internship programme. Additional transition impact can be derived from energy efficiency improvements that will set standards in the local sector. Penta Agrogroup OAO (the “Company” or “Penta Agro”). RUB 1 billion secured corporate loan to Penta Agro and selected subsidiaries of the Company. RUB 1 billion. The Project has been categorised B in accordance with the EBRD Environmental and Social Policy 2008. The environmental and social impacts associated with the Project activities will be site specific and readily mitigated. Environmental and social due diligence (ESDD) has been undertaken by the Bank’s Environment and Sustainability Department based on a review of all available information, including review of corporate management systems and interviews with the Company’s representatives. A review of the Company’s corporate management system showed that the Company has well-established corporate EHS management systems and capacity to manage the project in accordance with the Bank's Performance Requirements. The Company will invest in expansion of modern packaging lines and modernisation programs with good level of environmental and health & safety performance. An Environmental and Social Action Plan (ESAP) has been developed and should be agreed with the Company to address the necessary mitigation measures and improvements which will enable the Company to comply with national regulations and the Bank’s PRs. In addition, a Stakeholder Engagement Plan and grievance mechanism will be developed and implemented by the Company and information on environmental and social performance will also be disclosed locally. The Bank will monitor the Company’s environmental and social performance and implementation of the ESAPs through annual E&S reports. Energy Audit under Industrial Energy Efficiency program funded by Germany. Sergey Kuptsov: Tel.: +7 (495) 510 26 95 E-mail: kuptsov@sygroup.ru