STM Electrical Units

cancelled

Translated version of this PSD: Russian The EBRD is considering providing financing to Sinara Transport Machines to organise production of high precision electrical units that are used in the locomotives production. The Project will promote further diversification of the Russian economy in the regions and enhance competition in the railway engineering sector. JSC Sinara Transport Machines (STM). STM focuses on railway transport engineering and manufacturing of (i) diesel shunting locomotives at LTZ in Kaluga region and (ii) diesel engines at UDMZ diesel engine plant in Yekaterinburg. STM is an existing client of the Bank under USD 65 million mezzanine loan extended to the Company in 2008. Loan of up to RUB 250 million. RUB 250 million. The environmental and social impacts related to the manufacture of electrical equipment used in locomotive manufacture are site specific and can be mitigated by means of an Action Plan. Therefore, the Project has been categorised B. An Independent Consultant carried out due diligence on behalf of the Bank at the Yekaterinburg plant in 2008 as part of an existing investment project. The Bank is therefore aware of conditions at the site. The scope of any additional due diligence required to evaluate the Company’s capacity to operate under the Bank's Performance Requirements (PRs), and the progress against the requirements of the existing Environmental and Social Action Plan (ESAP) will be defined. Additionally, the activities associated with the proposed Project shall be subject to a detailed Environmental Analysis to assess compliance against Russian and EU standards. Should actions be identified that will be required to bring operations into compliance with the Bank's PRs then these shall be included in a new ESAP to be agreed with the Company. There are no plans for Techincal cooperation under the new project. Within its existing project with STM, EBRD arranged an energy efficiency audit to help the Company assess potential for improved energy efficiency. The audit was conducted within EBRD’s donor-funded Industrial Energy Efficiency Programme. Anatoly Nikolayevich Ovsyannikov Deputy of Executive director ZAO Sinara Group Tel. (343) 310-3300, 7295 Vladislav Vasilyevich Starodumov Head of Investment Department ZAO Sinara Group Tel. (343) 310-3300, 7909