WARESCO - EXTENSION OF FACILITY

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Extension of the Sienna Centre, an international-standard office development in central Warsaw, Poland. The proceeds of this proposed loan increase will be used to construct an additional 2,400 square metres of office space in a building connected to the Sienna Centre, thereby completing the company's original project concept. The project will help to relieve the acute shortage of good-quality, international-standard commercial property in Warsaw, and to promote inward investment as well as support the development of the local market economy. The EBRD's debt financing of the project and the participation of a foreign commercial bank will also contribute to increasing the "comfort" of commercial banks in funding commercial property developments in Poland. The client, Waresco Sp. z o.o., is a single-purpose Polish limited liability company established in 1996 to construct and operate a modern office development, the Sienna Centre, in Warsaw, Poland. The company is majority owned by Madinco s.a., a Belgian limited liability company formed for the purpose of undertaking property development in Poland. Madinco s.a. is controlled by the Buelens Group and by Compagnie Immobilière de Belgique, both Belgian companies with extensive experience in property development and investment. The EBRD will increase its existing senior loan by providing an additional US$ 2.6 million (ECU 2.2 million). US$ 1.3 million (ECU 1.1 million) of the senior loan extension will be for the account of the Bank, with the balance being for the account of the original participant in the project, Générale de Banque. The original total financing requirements for the project amounted to US$ 34.1 million (ECU 28.8 million), with the Bank providing a total of US$ 9.0 million (ECU 7.83 million) in senior and senior subordinated loans. US$ 4.4 million (ECU 3.7 million). The project has been screened B/0, requiring an environmental analysis of the proposed development. The analysis, which was based on the information provided by the project sponsor, examined the environmental efficiency of the design of the building, the nature of the technology and construction materials used, environmental impacts associated with construction and environmental considerations during the operation of the building. On the basis of the environmental analysis, the following positive environmental features will form part of the project: Key mitigation measures in the project Legal compliance: Construction will be undertaken in accordance with Polish and UK worker health and safety legal requirements and standards. Environmental permits, licences and approvals have been received from a number of local authorities, including the Regional Environmental Department. Planning permission has been obtained, including all technical approvals. Fire safety: The development will comply with all local fire, safety and emergency procedures. Sprinklers will be installed throughout according to authorities' requirements. Safety features: The latest developments in installation and safety techniques will be applied to the complex. Energy efficiency: Energy conservation measures will form a major part of the project along with the provision of clean air filtration systems, insulation and centralised heat regulation systems. Lighting: Lighting will be installed to a very high standard and the building will have full climatic comfort. Noise: Appropriate measures to reduce noise emissions, particularly from cooling plants, will be taken to ensure minimal noise disturbance to surrounding buildings and houses. Global Issues: Ozone-depleting substances will not be used. Hazardous substances: No environmentally damaging materials or substances (asbestos, formaldehyde, oil-cooled transformers etc.) will be used in the construction. Environmental standards: To meet high standards of environmental, health and safety and to reduce environmental impacts during the construction phase, the Sienna Centre will adopt Western standards and practice. Noise and dust levels will be kept to a minimum level and a contact person assigned to handle any public complaints. None