FOOD INDUSTRY CAPACITY EXPANSION

Promoter – Financial Intermediary

OLIVA AD

Location

• Bulgaria

Description

The project consists of the construction of a crushing and oil extraction facility of crude sunflower oil with a nameplate capacity of up to 1 500 tons per day (tpd) and associated storage and logistics facilities in the village of Beloslav (near Varna, Bulgaria). The promoter has already obtained the necessary building permits and has started first stages of construction along with negotiations with equipment suppliers.

Objectives

The proposed investment is to support the expansion of a successful mid-cap local operator in the sunflower market which has been continuously modernising its assets and improving competitiveness. Furthermore, the proximity of the new plant to the Varna port is expected to facilitate transport (notably due to the presence of an important logistic hub - sea, railways and roads). Through the construction of a new greenfield sunflower oilseed production plant, which is expected to incorporate best available technology, the company should be able to consolidate its competitive position and, therefore, increase its market share both in Bulgaria and in the EU. The project will also create new employment and help secure existing employment in rural areas and, therefore, contribute to agriculture/bioeconomy in a less developed European region.

Sector(s)

• Agriculture, fisheries, forestry - Agriculture, forestry and fishing
• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 37 million

Total cost (Approximate amount)

EUR 74 million

Environmental aspects

The project is expected to be operated and implemented in conformity with applicable national and EU environmental legislations.

Procurement

The Bank will require the promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.

Status

Signed - 18/09/2017