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Yuzhny Grain Terminal.

Business sector:Transport

Notice type:Private

Environmental category:B

Target board date:09 Dec 2015

PSD disclosed:26 Oct 2015

Project Description : EBRD is considering a senior secured loan to MV Cargo Ltd (the "Company") to finance a greenfield development of a new state-of-the-art private grain terminal in the Port of Yuzhny with annual throughput capacity of up to 5.0 million tonnes of grain.

The Company will implement the project in partnership with Cargill, one of the largest providers of food, agricultural, financial and industrial products and services in the world, and the Ukrainian Sea Ports Authority, a state enterprise responsible for supervising the functioning, maintenance and development of the Ukrainian seaports and their infrastructure.

Project Objectives : The project aims to address the existing shortage of modern deep-water grain handling port facilities in Ukraine.

Transition Impact : The transition impact of the proposed Project is expected to derive from the following:

1. Expansion of competitive market interactions via investments in transport infrastructure for soft commodities which will improve the grain supply chain efficiency, promote strong backward linkages to the agricultural sector by stimulating grain production and exports in Ukraine and generate cost savings in transportation and handling.

2. Promotion of skills dissemination and demonstration effects stemming from the use of modern technology, equipment and energy efficiency measures.

Client Information : MV CARGO LTD

MV Cargo Ltd is a special purpose company established for the development and operation of the Project.

EBRD Finance Summary : US$ 37,000,000.00

A senior secured corporate loan of up to US$ 37.0 million.

The Project is intended to be co-financed by International Finance Corporation that would provide a parallel loan in the amount of up to US$ 37.0 million to the Company.

Environmental and Social Summary : The proposed project has been categorised B in accordance with the 2014 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the project, which is ongoing, includes an independent third party environmental and social audit to assess the Client's management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client's ability to carry out the Project in compliance with the Bank's Performance Requirements.

An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism and information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.

Project completion date : 2017-12-31 12:00:00

Major organization : MV CARGO LTD

Address : 60, Chapaeva str.,

Vizirka, Odessa region, 67543

Country :Ukraine

Email :

Financier : European Bank for Reconstruction and Development (EBRD),

Financier address : European Bank for Reconstruction and Development (EBRD)

One Exchange Square

London EC2A 2JN

United Kingdom

Website :

Tel : 020 7338 6000

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Publication:Mena Report
Date:Oct 29, 2015
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