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| Concordia Russia |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment 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. |
| Project number | 25229 |
| Company name | Concordia Ltd. |
| Country | Russian Federation |
| Sector | Food & Beverages |
| Environmental category | B |
| Department | Agribusiness |
| Status | Completed |
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| Date SPI disclosed | November 22, 2006 |
| Projected board date | December 22, 2006 |
| Previous Events | Signed: April 2, 2007
Approved: January 30, 2007 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The project consists of construction and operation of a green-field meat processing plant in Kaliningrad, Russia with initial installed capacity of 53,000 ton per year, expandable to 110,000 ton per year, of breaded, molded, and smoked meat products and ham. The project will increase domestic production and reduce Russia’s reliance on imported meat products. |
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| Project sponsor and major shareholders of project company |
| The Sponsors are Sadia S.A. (Sadia) and the Miratorg group (Miratorg). Sadia and Miratorg will hold respectively 60% and 40% of the project holding company, Investeast Limited, through their respective wholly-owned subsidiaries. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated at $79 million. The proposed IFC investments include a $25 million A loan for IFC’s own account and a $30 million B loan from participating bank(s). |
| Location of project and description of site |
| The project is located in the Gurievsky region of northeast Kaliningrad city, Russia (55°05' N, 21°53' E). The site consists approximately of 28.3 ha of industrial land on a 49-year lease term from the authorities. |
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| Anticipated development impact of the project |
The Project is expected to have the following development impacts:
- Supporting a South-South investment that transfers best production, management and commercial practices from Brazil to Russia and create wealth for both economies;
- Creating new employments within the project company and along the supply chain;
- Building production capacity in non-oil sector in Russia, contributing to economic diversification and reducing reliance on imported meat products;
- Contributing to local community development by improving local infrastructure and social facilities;
- Benefiting consumers and downstream producers; and
- Contributing to environmentally and socially sustainable private sector development. |
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| IFC's expected development contribution |
IFC’s role includes:
- providing long-term project finance in local currency that is still not easily available;
- catalyzing financing from other sources and provide comfort for co-investors;
- supporting existing clients to expand; and
- requesting and advising the project to follow environmental and social policies and guidelines of the host country and IFC. |
| 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, health, safety and social information submitted by the Project, meeting with the management of Concordia, and visiting the project site. |
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| For inquiries about the project, contact: |
Mr. Renato Ruszczyk, General Director
OOO Concordia
Kaliningrad, Russia
+7-4012-59-53-06 (Telephone)
+7-4012-59-53-10 (Fax) |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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