MHP AGRI-FOOD

Construction of agri-food production facilities to build resilience to adverse weather events and crop yield variability. The project involves the construction of two grain-storage facilities, one fodder-processing plant and one sunflower-crushing plant.

The project forms part of a major investment programme being implemented over several years to expand production capacity and improve resource efficiency and environmental sustainability. In addition, the project enhances food security, as it promotes the self-sufficiency of the host country in terms of locally processed feed and food ingredients and increased storage capacity, thus improving the resilience of the Ukrainian agri-food sector to adverse weather shocks, mainly droughts (climate change adaptation).

Within the EU the project would, by virtue of its technical characteristics, fall within the scope of Annex II of Environmental Impact Assessment (EIA) Directive (2011/92/EU). An environmental impact study (EIS) was required under Ukrainian legislation. This was completed in 2010. Based on the EIS, the Ukrainian authorities granted the ecological permit in 2010 to the promoter, which is a condition for granting the construction permit. The project incorporates best available techniques for emissions abatement and air and water emissions are expected to be within the limits represented by international and European standards. The generated waste is neither significant nor of a dangerous nature and corresponding and appropriate disposal mechanisms have been already established.

The promoter will be required to comply with the Bank's Guide to Procurement.

This operation is covered by the EU Political Risk Guarantee for EIB loans outside the EU.