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| Summary of Project Information (SPI) |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
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| Project number | 21412 |
| Project name | Pasa Bulgaria |
| Country | Bulgaria |
| Sector | Nonmetallic Mineral Product Manufacturing |
| Department | Global Manufacturing & Services |
| Company name | Trakya Glass Bulgaria EAD |
| Environmental category | B |
| Date SPI disclosed | February 2, 2004 |
| Projected board date | March 15, 2004 |
| Status | Active |
| Previous Events | Invested: December 30, 2004
Signed: June 25, 2004
Approved: June 17, 2004 |
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| Description of company and purpose of project |
| The proposed project is the construction of a green field glass tableware plant with an annual capacity of 53,000 tons in Targovishte, Bulgaria, at an estimated cost of $60 million. The project, which is expected to be commissioned in 2005 and employ 500 employees in 8 production lines, is located 123 km from the port of Varna on the Black Sea and 313 km from Sofia. It will sell 90% of its production in the Balkans, Central, Eastern, and Western Europe and 10% domestically. |
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| Project sponsor and major shareholders of project company |
| The sponsor is the Sisecam Group (Sisecam or the sponsor), Turkey’s leading glass manufacturer and a longtime IFC client. Management and technical assistance to the project will be provided by Pasabahce Cam Sanayii ve Ticaret A.S. (Pasabahce), the flagship company of the glassware division of the Sisecam Group. Established in 1934, over the years Pasabahce has grown to become the third largest player in the tableware industry worldwide. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at $60 million. The IFC investment consists of an A loan of $12.25 million, a B loan of $17.75 million, and either an equity investment or a C loan of $2.75 million. |
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| Location of project and description of site |
| The site of the project is Targovishte, a town in the northeastern Bulgaria in a longstanding glassmaking region in Eastern Europe. The site enjoys convenient access to Varna, the largest port in Bulgaria and its best port for maritime transportation of container shipments. |
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| Project Development Impact and IFC's Role |
The project will have a strong development impact. It will bring a state-of-the-art tableware facility to Bulgaria, and create direct employment for approximately 500 workers outside the capital and foster additional commercial activity. Approximately 90% of production will be directed to export markets, mainly Balkans, Central-Eastern and Western Europe countries, contributing to foreign exchange generation. The large scale of the plant will capture economies of scale in production and low capital cost. Other non-quantifiable development impacts include the demonstration effect for other foreign investors who are considering Bulgaria for new production facilities and the potential for linkages along the supply chain that could make of Targovishte a glass production center in the region.
IFC is expected to play a critical role in the project by:
-providing long-term, limited recourse financing otherwise not available to the company,
- mobilizing resources from the international debt markets through its B-loan program and broadening Sisecam’s sources of term capital and
- encouraging Turkish investors to venture abroad. |
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| Environmental and social issues - Category B |
This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical, environmental and social information submitted by the project sponsor as well as site visits to the Targovishte plant site and to a number of Sisecam’s plants in Turkey.The following potential environment, health, safety and social impacts of the project were analyzed.
- Site selection and related land use;
- Compliance of the proposed plant with IFC and Bulgarian environmental, health and safety (EHS) requirements;
- Commitment to quality and efficiency; and
- Labor and community issues.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
The offices of the Regional Governor in Targovishte, Bulgaria at the following address:
7700 Targovishte, BG
2, "St. Karadja" Str. |
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| To contact the project company, please write to: |
Ms. Aytac Mutluguller,
Manager, International Finance & Investments
Is Kuleleri, Kule 3
80620 4 Levent
Istanbul, Turkey
Phone: 90-212-350-3480
Fax: 90-212-350-4480 |
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