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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 | 21399 |
| Project name | Trakya 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 project consists of the construction of a $100-110 million float glass plant in the town of Targovishte in the northwestern part of Bulgaria. At full capacity, it is expected to produce 200,000 tons of clear float glass annually and employ 200 people. Approximately 90,000 tons of this production will be exported to the nearby Balkan markets, particularly Greece and Romania, 20,000 tons in the domestic Bulgarian market, and the remainder within Turkey. |
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| Project sponsor and major shareholders of project company |
| The sponsor is Turkiye Sise ve Cam Fabrikalari A.S. (Sisecam or the sponsor), Turkey’s leading glass manufacturer and a longtime IFC client. Technical and management assistance will be provided from Trakya Cam Sanayii A.S. (Trakya Cam), the float glass division of the Sisecam Group. Established in 1977, Trakya Cam started its operations in 1978 and has grown over the past quarter century into one of the leading glass manufacturers in southern Europe with revenues of $220 million over sales of 650,000 tons of float and processed glass. |
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| Total project cost and proposed IFC investment |
| The total project cost is estimated at $100-110 million. The IFC investment consists of an A loan of $22. 5 million, a B loan of $32. 5 million, and either an equity investment or a C loan of $5.0 million. |
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| Location of project and description of site |
| The project site is Targovishte, a town in northwestern Bulgaria, 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 modern float glass plant in Bulgaria, allow the transfer of technological know-how related to float glass production, and make a significant contribution towards developing Bulgaria’s export base. It will create direct employment for 200 workers outside the capital, and will foster additional commercial activity. Approximately 90% of production will be directed to export markets, mainly the Balkans and Turkey, contributing to foreign exchange generation. The project will benefit from low electricity and labor costs as well as good proximity to local export markets. 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 and Investments Dept.
Is Kuleleri, Kule 3
34330 4. Levent
Istanbul, Turkey |
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