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Four projects approved by European Bank
The Board of Directors of the European Bank for Reconstruction and Development yesterday approved four projects, two in Poland and two in Hungary, for a total investment of US $128.5 million (ECU 104.1 million) in capital from the European Bank and third parties. The Bank's investments total US $27.7 million (ECU 22.4 million).
The Board approved a US $10 million (ECU 8.1 million) loan to Westel Radiotelefon KFT, the Hungarian operator of a cellular telephone network, to finance expansion of the national mobile cellular telecommunications system, which will play an important role in modernizing the national telecommunications system. Total investment in this project is US $80 million (ECU 64.8 million).
A US $6.7 million (ECU 5.4 million) loan to ABB Dolmel, a Polish joint venture, will finance the expansion of a facility which produces generators for the power generation equipment industry, allowing the company to compete more effectively in world markets and to improve its product line for the domestic market's requirements. The loan is part of an investment package of US $10.7 million (ECU 8.7 million).
A loan of US $7 million (ECU 5.65 million) will help finance the construction of a soft drink bottling plant in Bydgoszcz, Poland. The joint venture between Pubrex, a Polish construction company, and Ringnes, the largest beverage company in Norway, will be used to remodel and equip Pubrex's existing plant, and to develop a retail distribution network of warehouses and delivery trucks. Overall investment in this project is US $22.8 million (ECU 18.5 million).
The Board also approved a US $4 million (ECU 3.2 million) equity investment in Fusion Investment Company, Ltd., a Hungarian company formed in 1991 by a group of entrepreneurs, to develop franchised Burger King restaurants in Hungary and in the CSFR. The investment, which will help the company establish new restaurants in joint ventures with local investors, is part of a US $15.0 million (ECU 12.15 million) investment programme.
In addition to the financial benefits, these projects are expected to create substantial employment opportunities, as well as help to foster entrepreneurship in Central and Eastern Europe.
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