Project description
and objectives:
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The Project is a brownfield expansion of the operations of Turkuaz Edible Oil
Industries, a subsidiary of Savola Edible Oils, through the capital
expenditures in the refining facilities. At completion, the overall capacity
will approximately have doubled.
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Transition impact:
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The Project is expected to have a strong transition impact including a
contribution to the development of sunflower seed cultivation in the Aktobe
region, and in the neighbouring regions of Uralsk and Kostanay, in North West
Kazakhstan. The Project will also contribute to enhancing competition through
the expansion by a skilled international operator in the bottled oil market,
leading to the introduction of new high quality products which will ultimately
increase consumers’ choice of well packaged branded products in line with
international standards and increase the competition for other local as well
as foreign operators.
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The client:
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Turkuaz Edible Oil Industries, a sunflower oil producer located in Kazakhstan,
and involved in the crushing of sunflower seed, and selling of the refined,
bottled oil. Turkuaz is a subsidiary of Savola Edible Oils, an edible oil
producer and part of the Savola Group, the leading Saudi Arabian food company.
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EBRD finance:
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This is an expansion to the original project approved and signed in September
2005.
The original financing for an amount of USD 16 million and USD 9.25 million
was fully disbursed as of the date of this document. This project is an
extension to that financing for expansion of the investments in the refining
plant. The expansion financing is represented in an EBRD senior secured loan
of up to USD 4 million.
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Total project cost:
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USD 49.8 million.
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Environmental impact:
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The project was categorised B/1 so requiring an environmental audit and
analysis. These were conducted by independent environmental consultants who
confirmed that there are no significant environment, health or safety issues
associated with, or anticipated for, this project. The Company has all the
approvals required by the environmental authorities and has generally been
operating in accordance with the required standards. In its recent annual
environmental report to the Bank the Company confirmed that it continues to
operate in accordance with national environmental requirements. Some
improvements were required, particularly with regard to waste water treatment
and the improvement of a range of environmental management issues. An
environmental action plan ("EAP") was developed to address these issues
including the reconstruction of the waste water treatment and fire water
storage facilities and the management and environment, health and safety
issues by the Company. The Company has confirmed that it is implementing the
EAP and has taken a number of actions including the development of a health
and safety management system and the purchase of new training software for the
training of workers on health and safety issues. The Company will ensure that
its expansion plans are structured to meet both national and EU environment,
health and safety standards and the Bank will continue to monitor this and the
implementation of the EAP.
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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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Turkuaz Edible Oil Industries LLP
General Manager
41, Razyezd,
Kursantskoe Highroad
Aktobe
Kazakhstan
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EBRD contact:
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Tarek El Sherbini, Operation Leader: elshert@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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