RLF - MOST Logistics Terminal

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A EUR 9.6 million loan to Agrosem LLC to finance the expansion of the Group's rail terminal in western Ukraine near the border with Poland, including the development of a grain transhipment complex and container yards facility.

Project ID 54024

Status Repaying

Location

Ukraine

Business Sector

Transport

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Vasyl Shalyha
v.shalyha@agrosem.ua
+380 067 5050649
https://agrosem.ua/
9B; Stepana Bandery Ave, Kyiv 04073, Ukraine

Project ID 54024

Status Repaying

Location

Ukraine

Business Sector

Transport

Notice Type

Private

Environmental Category

Approval Date

21 Mar 2023

Disclosure date

31 Mar 2023

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

RLF - MOST Logistics Terminal (Ukrainian) (PDF, 0.39MB)

Project description

Project objectives

The Project will improve Ukraine's transport connectivity with the EU by addressing the shortage of modern transhipment capacity at the Ukraine/Poland border, which is one of the key infrastructure bottlenecks. Since the beginning of the war on 24 February 2022, Ukraine has been facing major disruptions to its economy and supply chains from the attacks on critical infrastructure and the blockade of its sea ports by Russia. The Project will facilitate the development of alternative transportation routes for grain exports from Ukraine and container flows between Ukraine and the EU, which is of vital importance due to the ongoing war.

Transition impact

ETI Score:70

lient

The Project helps to (i) address grain export logistics challenges arising from the war and partial blockade of the Ukrainian sea ports, and (ii) diversify the transportation routes from Ukraine to the EU via the western land border.

2. Inclusive

The Project's support will enable the Group to maintain effective and productive capacity of their employees. The Project will enable the Company to play a proactive role in supporting mental health services focusing on existing staff, demobilised staff members, women's health and common ailments, counselling services to single parents or grandparents who have caring responsibilities. This will be accompanied by return to work guidance and training for those who are ready to enter the labour market. The Bank will also fund a TC helping to strengthen the client's Psychological Support Office.

Client information

AGROSEM LLC

Agrosem LLC is the main operating entity of Agrosem Group (the "Group"). The Group is one of the top-5 distributors of fertilisers, agricultural machinery and inputs in Ukraine. It is also involved in farming and agricultural commodity trading activities and operates a proprietary rail terminal in Lviv region in western Ukraine.

EBRD Finance Summary

EUR 9,600,000.00

€9.6 million senior loan from EBRD

€1.5 million investment grant from the USA within their contribution to the Ukraine Crisis Response Special Fund

€2.6 million equity contribution from the Company

Total project cost

EUR 13,700,000.00

Additionality

Financing Structure

EBRD offers financing that is not available on the market from commercial sources on reasonable terms and conditions, including financing of capex investment needs, longer tenor and grace period.

Risk Mitigation

EBRD provides comfort to clients and investors by mitigating non-financial risks, such as country, regulatory, project, economic cycle, or political risks.

Environmental & Social Summary

Categorised B (2019 ESP). Environmental and social due diligence (ESDD) has been undertaken by an independent E&S consultant and included a review of available E&S information, including a review of corporate management systems, interviews with the Company's representatives and a site visit. The review covered the existing facilities and confirmed that they are in satisfactory conditions and generally meet the EBRD's Performance Requirements. A review of the Company's corporate management system showed that it has EHS procedures and rules, however it needs to be further developed into an integrated EHS management system in line with good international practice and implemented throughout their operations. Coordination, oversight and monitoring functions provided by the Company should be enhanced to ensure consistency of approach and management of key EHS issues for new projects and operational activities. Given their satisfactory corporate management systems, it is expected that the environmental and social impacts associated with the Project will be readily mitigated and properly managed. During the ESDD it was found that the air treatment facilities and cleaning practices need to be improved for the existing and new storage facilities. Appropriate mitigation actions have been integrated into the ESAP for the Project including improvements of contractors' management and monitoring practices. An Environmental and Social Action Plan (ESAP) has been agreed with the Company to address the necessary mitigation measures and improvements, to enable the Company to fully comply with national regulations and the Bank's PRs. As part of the ESAP the Company will implement the following actions:

Ensure implementation of the principles of Corporate EHS management system at the Project level in line with ISO 14001, OHSAS 18001 and relevant EBRD PRs, and develop an EHS training plan for employees involved in the operation of new facilities and ensure its implementation.
Ensure implementation of national and best international (EU) requirements and principles for air treatment facilities and cleaning practices for the Project.
Develop and implement effective monitoring and oversight of contractors' Environmental and Social Management. The Company will also disclose locally information on its environmental and social performance.

The Bank will monitor the Company's environmental and social performance and implementation of the ESAP through annual E&S reports.

Technical Cooperation and Grant Financing

Pre-signing:

Technical Due Diligence - funded by the EBRD Shareholder Special Fund (the "SSF").
Financial Due Diligence - funded by the EBRD Shareholder Special Fund (the "SSF").

Post-signing:

Assistance in provision of war-related psychological and trauma support - will be funded by the EBRD Special Shareholder Fund, Ukraine MDA, or the Action 4 Equality and Gender Fund.

Company Contact Information

Vasyl Shalyha
v.shalyha@agrosem.ua
+380 067 5050649
https://agrosem.ua/
9B; Stepana Bandery Ave, Kyiv 04073, Ukraine

PSD last updated

31 Mar 2023

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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RLF - MOST Logistics Terminal

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)