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Project summary document

Project name:Kuzbass Pishekombinat
Country:Russia
Project number:38903
Business sector:Agribusiness
Public/Private:Private
Environmental category:A
Board date:26 January 2009
Status:Passed final review, Pending board approval
Date PSD disclosed:
Date PSD updated:
15 October 2008
Local language translation:Перевод на русский 
Date translation disclosed:
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Kuzbass Pishekombinat [Environmental Impact Assessment]

Project description
and objectives:

A long-term loan of up to EUR 20 million to partially finance the mid-term investment programme of Kuzbassky Pischekombinat, a pig breeding and meat processing company operating in Novokuznetsk Kemerovo region of the Russian Federation.

Transition impact:

Transition impact potential will derive from sound corporate restructuring and the introduction of good business standards which is expected to set excellent standards for other players in the region. The project will promote increased competition, increase production efficiency and will raise environmental and sanitary standards in the company. Own production and local procurement of raw materials will generate strong backward linkages and encourage local producers to process better quality and higher quantity according to best business practice. End-consumers will benefit from high quality products.

The client:

ZAO Kuzbassky Pischekombinat (KPK) a joint stock company and OOO Borovkovo a limited liability company, both organised and existing under the laws of the Russian Federation.

EBRD finance:

EUR 20 million senior secured loan

Total project cost:

Up to EUR 76 million

Environmental impact:

Environmental classification and rationale
The project has been screened A/1, requiring environmental and social due diligence, consisting of an environmental audit of the existing facilities and an environmental and social impact assessment (ESIA) of the planned investment in line with the Bank’s Environmental Policy (2003) and Public Information Policy. The project is also subject to Russian OVOS requirements.

Due diligence undertaken and outcomes
An Environmental and social due diligence was undertaken of the Project by independent consultants and the Bank. This included an Environmental and Social Due Diligence audit and an Environmental and Social Impact Assessment in line with Bank requirements. The Project will also be subject to Russian EIA requirements.

The environmental and social due diligence has confirmed that the upgrades to existing and new vertically integrated pig, cattle and dairy farms and associated fodder plant, slaughterhouse and meat processing facility will be designed and structured to meet Russian Federation and European Union environmental, sanitary, health, safety standards. The due diligence also confirmed that both existing, planned and future operations inclusive of waste management and emergency planning are in line with best practice and that the environmental and social impacts will be mitigated and are structured in line with the Bank’s Environmental Policy 2003.

The environmental and social due diligence has confirmed that the existing assets are well managed and are in compliance with Russian Federation requirements and the investment programme will allow the plant to meet best international practice. The planned modernization programme will improve efficiency, animal welfare, and hygiene standards as well as environmental management at the existing facilities.

An Environmental and Social Monitoring and Management Plan (ESMMP) has been developed based on the due diligence.

Disclosure of information and consultation
The Project is subject to a public consultation and a disclosure plan (PCDP) developed and approved by the Bank. Disclosed materials include:

  • 2008 ESIA Non Technical Summary in Russian and English

  • 2008 Supplementary information to the ESIA

  • 2006 Russian OVOS (Environmental Impact Assessment) of Hog Farm Phase 1

  • 2008 Russian OVOS (Environmental Impact Assessment) of Slaughterhouse

  • 2008 Russian OVOS (Environmental Impact Assessment) of Fodder Plant

  • 2008 Public Consultation and Disclosure Plan (PCDP) in Russian and English


The materials are available in hard copy at the following locations in Russia:

  • EBRD Regional Office in Moscow
    6 Gasheka Street
    Moscow 125047
    Contact: Mr Vadim Dormidontov, Senior Banker
    Phone: +7 (495) 787 1111
    Fax +7 (495) 787 1122
    E-mail: dormidov@ebrd.com

and released locally in the following locations:

  • Shkolnoe/Prokopievsk Community Hall
    Agrokolledj, Shkolnoe
    Tsentral’naya street 3,
    Contact: Vassiliy Petrovich Snitko
    Tel +7(38-466) 64-00-18 , 64-15-31

  • Pushkino Community Hall
    Pushkinskoe Administration Building
    Krasninskoe, Molodejnaya street, 2-1
    Contact: Yulia Vasilievna Denisova
    Tel. +7(38442) 6-83-20.

The Non Technical Summary has bee released for public review by the project sponsor on its website:

The materials are also available in hard copy at:
EBRD's Business Information Centre in London.

Additionally the Non Technical Summary, Supplementary Information and Public Consultation and Disclosure Plan is available on the EBRD internet site.

Monitoring and reporting
The Company will monitor the environmental impact of its operations in accordance with national law and regulations. The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports prepared for the project covering

(i) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programmes, and

(ii) the status of implementation of environmental mitigation and improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.

The Bank will undertake monitoring of the Project, inclusive of site visits by Bank staff as well as independent audits as necessary once the facilities have been constructed.

There is an Environmental Impact Assesment available for this project.

Technical
cooperation:

Dutch Donor funding has been received for the preparation of environmental due diligence and the preparation of a public consultation and disclosure plan.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Stanislav Lomov
Head of department of investments and development
CJSC "Kuzbassky pishekombinat"
Tel. + 7 (3843) 36-12-90
e-mail: lsb@delikates-nk.ru

EBRD contact:

Anja Langenbucher, Operation Leader: langenba@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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