Mondi Syktyvkar Mill Modernisation

Promoter – Financial Intermediary

Mondi plc

Location

• Russia

Description

The project comprises the modernisation and expansion of the existing integrated Mondi Syktyvkar pulp and paper mill located close to the city of Syktyvkar, Komi Republic, in the north-west of the Russian Federation. This includes pulp, paper and paper-board production, power generation and extension of the wood yard.

Objectives

• Upgrading of older equipment to the standard of best available technology (BAT); the project will thus improve the environmental performance of the existing paper mill.
• Energy efficiency upgrades reducing use of fossil natural gas.
• Increasing use rates of paper made from locally grown renewable resources for packaging and other purposes.
• Security of supply on the fast growing Russian paper market.

Sector(s)

• Agriculture, fisheries, forestry
• Industry
• Energy

Proposed EIB finance (Approximate amount)

EUR 100 million.

Total cost (Approximate amount)

Approximately EUR 545 million.

Environmental aspects

Upgrades in pulp and paper mills fall under Annex I of EIA directive 85/337/EC and its amending directives and the IPPC (01/2008EC) directive. The project has been permitted by the competent Russian authority after presentation of the corresponding EIA. The promoter has proactively divulged project impacts in mass media and to public stakeholders and carried out a social assessment. The project incorporates BAT for emission control. The promoter’s forest management practices are FSC (Forest Stewardship Council) certified in all its leaseholds. Compliance with EIB environmental and social standards will be assessed in the appraisal.

Procurement

Procurement is expected to be in line with EIB guidelines for private sector projects. The Bank’s services will verify details during the project’s due diligence.

Status

Signed - 20/12/2011