- Back to the list
European Bank for Reconstruction and Development (EBRD) is extending a €10 million loan to PP Polesie LLC thanks to Civitta BY2016-09-05
As a result of the preparation of investment memo EBRD is extending a €10 million loan to PP Polesie LLC. The loan proceeds will be used to further strengthen Polesie’s balance sheet and introduce energy efficient technologies. The company is set to become the first Belarusian business supported by the EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme.
Polesie is one of the major exporters of toys to Russia and is also actively expanding in the EU member-states including Germany, Italy and Spain. After the project was finished the project team started communication with EBRD on potential investment and financing opportunities for Polesie. At the same time Civitta Belarus was working with Polesie on a strategy review that was a basis for attracting investments and further communication with EBRD. Simultaneously our analysts and experts have developed and implemented budgeting and corporate governing system. All this work has led to receiving refinancing loan by EBRD.
A grant available through FINTECC will help Polesie install and put into operation by mid-2018 a 2.4 MWe combined cooling, heat and power plant (CCHP), also known as a trigeneration plant – an energy efficient technology that is new to the Belarusian manufacturing sector. Trigeneration will allow the company to efficiently generate electricity, heating and cooling power for the production cycle.
The implementation of the project is expected to result in electricity savings of around 3,000 MWh per year, gas savings of 24,100 MWh per year and CO2 savings of 7,500 tonnes per year (or the equivalent of taking 3150 cars off the road). An energy efficiency audit, which helped identify potential energy efficiency investment opportunities for Polesie, was funded by the Central European Initiative (CEI).
The EBRD’s FINTECC programme is designed to promote the transfer of technologies that make businesses more resilient to climate change and are currently underdeveloped. The programme, funded by the Global Environment Facility and the EBRD Shareholder Special Fund, operates successfully in 16 of the countries where the EBRD invests.
Since the start of its operations in Belarus, the EBRD has invested almost €1.8 billion in some 70 projects in various sectors of the country's economy.
Since the start of its operations in Belarus, the EBRD has not done any projects on pure refinancing loans, so both Civitta and Polesie team have done a great job for receiving this refinancing loan and for making this unique success story happen.