Project description
and objectives:
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The proposed project comprises the expansion of the operations of Azbuka Vkusa
LLP branded retail chain during 2007-2008, via investments in new stores and
own production workshops. The proposed project will allow Azbuka Vkusa to
acquire and refurbish stores in Russia and Ukraine, and consequently, to
strengthen its position in this sector and to serve a larger customer base.
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Transition impact:
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The Bank’s investment is expected to generate a strong transition impact
through the expansion of Azbuka Vkusa’s advanced retail format in Ukraine and
Russian regions. The project has strong demonstration effect as it supports
improvements in corporate governance and transparency, as well as development
of advanced marketing, operating, and human resources techniques. The Bank’s
financing will also strengthen backward linkages, as Azbuka Vkusa is
developing its own “ready meals” segment of business.
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The client:
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Established in 1992, Azbuka Vkusa LLP is a Moscow holding group operating 19
food supermarkets and stores offering a new concept of expanded variety of
services and goods under the brand name “Azbuka Vkusa” (”Alphabet of Taste” in
English). The Company comprises of operating and real estate companies, as
well as ready meals production facility, an audio/video products retailer and
a wine retailer.
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EBRD finance:
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Up to USD 50 million senior loan.
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Total project cost:
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USD 230 million until the end of 2010.
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Environmental impact:
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Screened C/1. The project is likely to result in minimal adverse environmental
impacts. A corporate environmental audit was conducted by a member of the
Bank’s Environment Department which included site visits and interviews of key
management staff. The audit assessed the
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status of the Company’s regulatory compliance;
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environmental and social performance;
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potential risks and liabilities associated with the Company’s food production
and supermarket operations; and
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environmental and social processes involved in store acquisition,
refurbishment and product sourcing.
The environmental due diligence has not identified any major environmental or
social issues associated with stores and food processing facility in operation
and/or under construction at this stage.
In line with EBRD procedures, the Company will be required to ensure that each
store and its food processing facility will meet the relevant Russian
Federation and EU environmental, health and safety standards and applicable
Russian Federation laws and standards on employment, as well as standards
consistent with the Conventions of the International Labour Organisation
relating to the employment of children and young people, discrimination at
work, and forced labour.
The Bank will evaluate the project’s compliance with the applicable
environmental, health, safety and labour requirements during the lifetime of
the project by reviewing annual environmental and social reports and as well
as ad hoc visits to the Company by the Bank’s Environment Department staff.
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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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Victoria Lubnina, Deputy General Director for Finance
Azbuka Vkusa LLP
Tel: + 7 495 504 34 87
Fax: + 7 495 504 34 77
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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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