Rani Plast Film Plant

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The EBRD is considering providing a senior loan of up to €8 million to a Russian subsidiary of AB Rani Plast OY for the acquisition of a turnkey constructed plastic film extrusion plant in the region of Kaluga. The Project is expected to have transition impact through: (i) transfer and dispersion of skills and know-how to the sector of plastic film extrusion and flexible packaging; (ii) demonstration effect of foreign investment in the Russian regions including the promotion of an industrial park concept in Russia through support of the I-Park’s tenant; and (iii) application of EU environmental standards. The Bank will provide a senior loan of up to €8 million loan to the Project Company. €20 million. Screening Category Potential significant adverse environmental and social impacts associated with the project are site specific and can be readily identified and addressed through mitigation measures. Therefore, the project has been screened B in accordance with the EBRD Environmental Policy (2008). Environmental and Social Issues An Environmental Analysis of the proposed project and an Environmental Audit of the existing facilities were carried out by independent consultants. Below is the summary of the outcomes of the due diligence: Elevated concentrations of iron, lead, cadmium and oil products have been found in surface and ground waters at the Kaluga site. The due diligence has concluded that: Summary of Environmental Action Plan An Environmental and Social Action Plan (ESAP) has been developed as part of the due diligence process. The main action items in the ESAP, which will need to be applied by Rani Plast and its contractors can be summarised as follows: The Sponsor will be required to provide an annual environmental and social report to the Lenders, including updates on the monitoring undertaken, implementation of the agreed ESAP, and notification on any material accidents or incidents. None. Mr Juha Hakala Development Director Ab Rani Plast Oy Phone + 358 20 768 0537 Mobile + 358 400 710220 Fax + 358 20 768 0200 juha.hakala@raniplast.com www.raniplast.com Ab Rani Plast Oy Tehtaantie 6 FI-68700 Teerijärvi, Finland