ASTARTA AGRI-FOOD AND CLIMATE CHANGE ADAPTATION

Promoter – Financial Intermediary

TOV FIRMA ASTARTA-KYIV

Location

• Ukraine

Description

The proposed investment programme comprises the construction and operation of eight grain elevators, one linked to a soya bean crushing and oil extraction plant of 700 t/d of soybeans. The plant and grain elevators are spread over eight different locations in Poltova, Vynnitsia and Khmelnitskiy regions in Ukraine. The total storage capacity with the necessary elevators and grain drying systems is 513,000 t.

Objectives

The Project improves the resource efficiency of the country's agri-food sector and contributes to better food security. The country's food self-sufficiency will be improved in terms of locally processed food, with higher environmental sustainability, better feed/food quality (health), and increased storage capacity. The Project will help to create a buffer against lower agricultural yields at times of adverse climate events and thus provides valuable climate-change adaptation measures to the country. The project will generate additional employment in Ukraine's rural communities. It also aims to support the country's economic development and its integration with international markets.

Comments

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

Sector(s)

• Industry - Manufacturing

Under ELM Guarantee

This operation is covered by the ELM Political Risk Guarantee.

Proposed EIB finance (Approximate amount)

EUR 50 million

Total cost (Approximate amount)

EUR 100 million

Environmental aspects

Elevator facilities are not under the provisions of Annex I or II of the EIA Directive 2011/92/EU and do not require a full environmental impact assessment ("EIA"). However, according to Ukrainian law, the Project's components require a full EIA, including public consultation. The EIA procedure in Ukraine is not at the level of the international standards, especially with regards to (1) permitting and public hearing procedures, (2) emission limits, and (3) enforcement of emissions below the limits. The Promoter has mitigated these risks by introducing open discussion with local communities and pro-actively organising public hearings for the Project's schemes.

Procurement

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

Status

Signed - 17/10/2014