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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 | 23257 |
| Project name | Sandora |
| Country | Ukraine |
| Sector | Food & Beverages |
| Department | Agribusiness |
| Company name | Sandora Limited Liability Company |
| Environmental category | B |
| Date SPI disclosed | April 28, 2004 |
| Projected board date | June 10, 2004 |
| Status | Completed |
| Previous Events | Invested: December 17, 2004
Signed: June 25, 2004
Approved: June 24, 2004 |
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| Description of company and purpose of project |
Sandora Limited Liability Company (Sandora or the company) is the leading manufacturer of branded packaged juices and juice nectars in Ukraine. Having experienced explosive growth in the past several years, Sandora now aims to improve local fruit procurement, expand own puree production and juice varieties and improve product quality. The company has requested IFC’s assistance to provide long-term financing to support its investment and growth plan. The project consists of the following components:
- modernization and expansion of the company’s existing juice and puree factory in Mykolayiv;
- modernization of recently acquired fruit processing puree plant in Simferopol;
- expansion of distribution and
- provision of working capital. |
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| Project sponsor and major shareholders of project company |
| Sandora is owned by Igor Bezzub, Raimondas Tumenas and Sergey Sypko. 1995, Mr. Sypko, at that time professor at the Mykolayiv ship building university, came up with the idea of establishing a greenfield fruit processing/juice packing business in Mykolayiv, Southern Ukraine, an area with abundant supply of quality fresh fruit and vegetables. After searching for investors, he partnered with two Lithuanian citizens, Igor Bezzub and Raimondas Tumenas, who provided start-up capital for the venture and developed marketing and sales. Today, Merrs. Bezzub and Tumenas own each 45% of Sandora and Mr. Sypko, who serves as the company’s General Director, owns 10%. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at $30 million. The proposed IFC investment is a $10 million A loan for IFC’s own account. |
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| Location of project and description of site |
| Juice and fruit puree production is located outside of Mykolayiv on a site of a former cannery, purchased by Sandora and subsequently refurbished, re-equipped and expanded to a modern state of the art facility. The plant has installed capacity to produce in excess of 500 million liters of juice and nectars per annum. Electrical power is supplied from the national grid and water is drawn from 11 ground wells 60-80 meters deep. The plant drainage is discharged into municipal system. Fruit wastes are sold for industrial use and animal feed. Sandora recently purchased and operates a small fruit processing facility located in Simferopol. |
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| Project Development Impact and IFC's Role |
| The project promotes the production of value-added products and supports local entrepreneurship as well as technology transfer by importing the latest fruit processing and packaging equipment and training Ukraine nationals to international standards in quality control, operational, and marketing skills. It will also contribute to the development of the fruit sector in Southern Ukraine by creating consistent demand for local fruits purchased from private small farmers. The key role of IFC will be in providing long-term financing necessary for carrying out the Company’s expansion and diversification plans. IFC will also play an role in assisting the company with the introduction of ISO9001, HACCP as well as with improving supply management. |
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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 that 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 and environmental and social information submitted by the project sponsor and a visit to Company operations in Mikolayiv. The following potential environment, health and safety and social impacts of the projects were analyzed.
- Systematic management of quality and food safety, environment and occupational health and safety;
- Sustainability and quality of potable water supply
- Electric power supply;
- Wastewater management;
- Solid waste management;
- Air Emissions;
- Use of Refrigerants;
- Occupational Health and Safety;
- Sandora farming operations; and
- Technical and material support for independent supplier farms.
To view the environmental documents for this project, click here |
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| Location of environmental documents in locally affected community |
Environmental documents are available for public viewing at Sandora’s offices located at
17, N. Zavodskaya str.,
Mykolayiv, 54028, Ukraine |
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| To contact the project company, please write to: |
Sergey Sypko, General Director,
17, N. Zavodskaya str., Mykolayiv,
54028, Ukraine |
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