SARAJEVSKA PIVARA

complete

Modernisation and expansion into soft drinks of one of the largest breweries in Bosnia and Herzegovina. The project aims to modernise the company, including management and product improvement measures. It also aims to expand the company's operations into carbonated soft drinks and a new range of packaging (cans and plastic bottles). The EBRD's direct investment in a local producer will strengthen the local supply in an import-dominated consumer goods market. This will have a significant impact not only on the beverage, distribution and retail sectors but also on the country at large. In particular, the investment will act as a demonstration project for others, including foreign investors, local and foreign banks (viability of medium-term lending) and the government (incentive for speeding up privatisation). Sarajevska Pivara d.d. is a medium-sized brewery located in Sarajevo, in the Federation part of Bosnia and Herzegovina. Established in 1864, it has produced beer from its current site since 1880. Last year the company introduced a new packaging line and new products, such as canned beer and soft drinks. The project will be co-financed with the International Finance Corporation (IFC). Both the EBRD and IFC will each provide a seven-year loan of up to DM 8 million (ECU 4.1 million) totalling around DM 16 million (ECU 8.2 million). DM 23 million (ECU 11.7 million). This operation has been classified as B/1, requiring an Environmental Analysis and an Environmental Audit. The completion of an Audit has led to the preparation of an Environmental Action Plan (EAP). Issues identified encompassed water supply and quality, waste-water discharge, waste management and potential soil and groundwater contamination. The company will be required to adopt and implement the EAP to the satisfaction of the Bank, and to report annually on the environment and progress on implementing the EAP. None