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| 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. |
Summary of Project Information (SPI) |
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| Project number | 10213 |
| Project name | Pliva |
| Country | Croatia |
| Sector | Chemicals |
| Department | Global Manufacturing & Services |
| Company name | Pliva d.d. |
| Environmental category | B |
| Date SPI disclosed | September 29, 2000 |
| Projected board date | October 30, 2000 |
| Status | Completed |
| Previous Events | Invested: December 6, 2000
Signed: November 17, 2000
Approved: November 9, 2000 |
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| Project sponsor and major shareholders of project company |
| Pliva d.d. is the largest pharmaceuticals company in Central and Eastern Europe in terms of sales and market capitalisation. Pliva was founded in 1921 as Kastel d.d., and re-named as Pliva d.d. in 1941. The company was nationalised in 1947, and privatised in 1996 with a listing on the London and Zagreb stock exchanges. Currently Pliva has the following shareholder structure: foreign institutional investors (58.4%), Croatian Pension Fund (25.6%), European Bank for Reconstruction and Development (EBRD) (7.2%), Employee Stock Ownership Plan (ESOP) (1.7%), Individuals (3.6%). |
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| Total project cost and proposed IFC investment |
| The total project cost is US$ 113.2 million. The proposed IFC investment is an aggregate of up to US$ 47.5 million, consisting of an IFC A Loan for IFC's own account in the amount of up to US$25 million, an IFC B Loan for the account of commercial banks (i.e. participants) in the amount of up to US$ 12.5 million, and an IFC C loan of up to US$10 million. The European Bank of Reconstruction and Development (EBRD) will provide financing for the project alongside with IFC. |
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| Location of project and description of site |
| The project includes the construction and outfitting of a new 25,000 square meter Research Institute adjacent to Pliva's existing facilities in Zagreb, Croatia. Project completion is targeted for the end of 2002. |
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| Description of company and purpose of project |
The project supports the growth and strategic development of Pliva, the leading pharmaceutical company in Central and Eastern Europe, and the only one that has produced a blockbuster drug through its original research. Pliva’s strategy for the future is to continue to build on its existing R&D expertise by focusing on both original research, and generic drug development.
IFC investment will support the construction and outfitting of a new 25,000 square meter Research and Development facility. Currently, the company's R&D is conducted in three different locations and suffers from space limitations. Consolidation of R&D activities in one state of the art facility will increase efficiency and multi-disciplinary interaction. The layout and infrastructure of the new facility will ensure that all Pliva's R&D activities will be performed in compliance with international quality requirements, or "Good Laboratory Practice" (GLP). About 55% of the facility will be dedicated to new product development and 45% of the facility will be dedicated to original research. The department for new product registration will also be located in the new facility. The investment will also result in a significant improvement in the working conditions of the scientists by increasing laboratory space per scientist to international standards. Pliva's new R&D facility will employ about 500 people.
The project is expected to have a broader positive impact on Croatian society through providing local scientists employment opportunities in their own country, helping to curb the high level of "brain drain" to employment opportunities outside of Croatia. Despite Pliva's impressive financial performance, to date, the perceived country and macroeconomic risks have made it difficult for the Company to secure adequate long term financing at a reasonable cost. The World Bank Group's priorities in Croatia have been to encourage private sector development and to support this process through rehabilitating the country's industrial asset base and environmental standards. Finally, this project is compatible with IFC's mission of attracting foreign investment and assisting through financing and advisory work with the restructuring and privatisation of formerly socially-owned enterprises. |
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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/or social impacts may result which, can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria.
To view the environmental documents for this project, click here
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| Location of environmental documents in locally affected community |
1) IFC Field Office
Trg. J. F. Kennedya 6b/III
Zagreb, Croatia
2) Project site
Ulica grada Vukovara 49
Zagreb, Croatia
3) The following Pliva facilities:
Prilaz Baruna Filipovica
Zagreb
Savski Marof
Kalinovica
Hrv. Leskovac
Trogir |
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| To contact the project company, please write to: |
| mkarner@ifc.org |
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