ARCH COLD CHAIN SOLUTIONS EAST AFRICA FUND

Equity fund targeting greenfield investments in cold chain solutions in East Africa.

The Fund will invest equity or equity-related funds primarily into greenfield assets in temperature-controlled supply chains. The project comprises storage, distribution and related services and activities that maintain a given temperature range for a product or range of products. Target clients are expected to be active mainly in the agriculture/food (~90%) and vaccines/medicine (~10%) sectors. The promoter intends to complement the energy provision needs with off-grid renewable power production (mainly using solar photovoltaic (PV) and battery storage), seeking to minimise environment and climate impacts.

Given the technical characteristics of the potential investments contemplated by the Fund, some of them will require a full environmental and social impact assessment (ESIA). Details of the Fund's environmental and social due diligence procedures for ensuring compliance with national legislation, the principles and standards of relevant EU legislation and the EIB's Environmental and Social Standards, as well as the capacity of the Fund Manager to assess and monitor environmental and social risks and impacts, will be reviewed during appraisal. The Fund will be required to develop an environmental and social policy and establish the appropriate management systems so as to comply with the environmental and social requirements of the Bank. The assessment of the environmental and social impacts and risks will be part of the standard due diligence process that the Fund will have to carry out for each underlying investment, thereby ensuring that the portfolio and these investments are in compliance with national law and in line with the principles of EIA Directive and the EIB Environmental and Social Standards, as well as the application of Best Available Techniques.

The Bank will require the Fund to ensure that all investments will be done in accordance with the principles and provisions of the Bank's procurement core requirements, as per the Equity Risk Guidelines. This includes ensuring that procured works, goods and services are of appropriate quality, acquired at economic prices and in a timely manner and not the result of a discrimination of suppliers based on their nationality or of a preference given to works, goods or services originating in the beneficiary country. EIB-eligible investments will need to follow the appropriate procedures, in accordance with the Bank's Guide to Procurement, in particular with regard to the granting/obtaining of concessions (or other contractual arrangements), notably in terms of international publicity, traceability and the non-discrimination of bidders. The Fund is currently developing a Procurement Policy, and will be required to integrate it into the Fund's procedures. The assessment of the procurement procedures and risks will be part of the standard due diligence process that the Fund will carry out for every project. The Bank will be consulted both for the final drafting of the Fund's Procurement documentation and procedures, as well as for the incorporation of Procurement obligations into the Fund's legal documentation.