Pivara Tuzla

complete

Modernisation of the existing production facility of Pivara Tuzla d.d., a privately owned brewery, to improve the quality of the company’s products and to develop its sales regionally. Objectives of the project include: (i) improving product quality; (ii) maintaining the company’s strong domestic brand; (iii) expansion of sales and profits. Proceeds will be used for new plant, including brewery and laboratory equipment. The project will show that majority privately owned and well-managed companies in Bosnia and Herzegovina are able to attract medium-term financing. The investment will also highlight the potential of Bosnian companies for foreign investors and local/foreign banks. The project will also help to improve corporate practice and corporate governance, for example, through covenanting IAS accounting (which improves transparency) and through representation by the Bank on the board. Pivara Tuzla d.d. is a majority privately owned brewery in north-east Bosnia and Herzegovina. DM 12 million (EUR 6 million) convertible loan in two tranches of DM 8 million (EUR 4 million) and DM 4 million (EUR 2 million). DM 24 million (EUR 13 million). The project was screened B/1, requiring an environmental audit of existing facilities and an environmental analysis of the planned modernisation programme. These were conducted by independent environmental consultants in July 1999. The audit confirmed that the company is in compliance with relevant national requirements for environment, health and safety. The analysis did not raise issues of environmental significance in respect of the modernisation plans. With regard to EU/World Bank standards, there were several issues, including raw water quality, waste-water quality, and solid waste disposal, which will require some improvement to reach the required standard. These improvements have been formulated into an Environmental Action Plan (EAP), which will be implemented by the company and form part of the loan agreement. The company will submit annual environmental reports to the EBRD, updating progress made on the implementation of the EAP. None.