Project description
and objectives:
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Carlsberg Multi-Project Facility (MPF), approved in 1996, comprising EBRD
equity financing for Carlsberg's investment programme in central and eastern
Europe and the former Soviet Union, including the modernisation of existing
breweries and limited new greenfield operations.
In January 2003, the project was revised to include debt financing and to
extend it to a Carlsberg affiliate, Baltic Beverages Holdings (BBH) (the
“Amended MPF”). The project will serve as a catalyst for the restructuring,
modernisation, and expansion of the regional beer brewing and distribution
chain. Work with existing plants and greenfield investments should result in
an efficient industrial environment and well paid, long-term job opportunities
throughout the product chain.
The project will be revised to increase the amount of the Amended MPF to € 250
million to accommodate for future financing needs of BBH in the region and two
new sub-projects.
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Sub-projects:
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- Carlsberg MPF - Svyturys
- Derbes Brewery
- Slavutich Expansion II
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Transition impact:
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The project will contribute to the transition process through: (a) local
partner involvement in sub-projects; (b) restructuring of beer industries in
central and eastern Europe and the former Soviet Union, given that upgrading
of existing plants is the primary focus; (c) skills transfer to local
management and employees; (d) technology transfer for production and
marketing; (e) competition enhancement; (f) development of downstream linkages
(advertising, distribution systems etc.); (g) upstream raw material
procurement impact; and (h) focus on efficient, accountable corporate
governance.
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The client:
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Carlsberg is a major international brewing group, with "Carlsberg" and
"Tuborg" being two widely sold international beer brands. During the last 35
years Carlsberg has rapidly expanded its international basis, increasingly
focusing on direct investments in emerging markets. In central and eastern
Europe this has been evidenced by its investments (with EBRD funding) in
United Romanian Breweries, Panonska Pivovara (Croatia) and Svyturys
(Lithuania). BBH is active in the former Soviet Union and has built up a
portfolio of breweries. BBH is 50% owned by Carlsberg and 50% by Scottish &
Newcastle of the UK.
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EBRD finance:
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EBRD finance consists of a three-year MPF worth € 250 million, on which
Carlsberg and BBH can draw for Bank equity and debt investments in
sub-projects in its investment programme throughout central and eastern Europe
and the former Soviet Union.
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Total project cost:
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€300 million to €350 million spread over sub-projects in the region.
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Environmental impact:
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For each project considered for financing an environmental appraisal will be
undertaken in accordance with the EBRD's Environmental Procedures for Multi
Project Facilities. These require that environmental issues will become part
of the investment decision-making process. Environmental action plans, which
will be developed where necessary resulting from the environmental appraisal
process and will consider environmental compliance, liabilities, risks and
opportunities. BBH will apply both national and EU standards to all
investments under the MPF. Prior to the approval of the original project, the
EBRD reviewed Carlsberg’s environmental appraisal and monitoring capabilities
and how these would apply to the investments proposed under this MPF.
Carlsberg has adopted a group-wide environmental policy and formalised
environmental procedures which are satisfactory to the Bank. An annual
environmental report will be submitted to the EBRD on the investee companies
encompassed by the facility.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Andrei Aleinik, Corporate Treasurer
Email: aaleinik@bbh.sp.ru
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EBRD contact:
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Miljan Zdrale, Operation Leader: zdralem@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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