Reference: 20190118
Release date: 10 October 2019

Promoter – Financial Intermediary

Not disclosed.

Location

Description

The project concerns financing of grain silos, agriculture equipment and grain railcars in Ukraine.

Objectives

EIB funds will be used for the expansion of the company storage infrastructure, the purchase of new agricultural machinery and equipment, as well as of grains freight railcars. The investment is expected to increase the volume of agricultural commodities produced and commercialised. The EIB expects parts of the new equipment to be imported from different EU countries, which will help to increase the relations between the EU and Ukraine. The project will also help to improve the local labour market, creating 1,100 additional permanent jobs for the new operations and employing 300 workers during construction (most of them from low income/low resources families). Finally, it will also contribute to increasing the economic activity on the region and value chains, since it is envisaged to involve 15-20 local subcontracting SMEs.

Sector(s)

Under ELM Guarantee

This operation is covered by the ELM Political Risk Guarantee.

Proposed EIB finance (Approximate amount)

not disclosed

Total cost (Approximate amount)

not disclosed

Environmental aspects

All of the project's components are expected to be operated and implemented in conformity with applicable national and EU environmental legislations.

Procurement

It is required that the promoter ensures that any procurement procedures are done in accordance with the EIB' Guide to Procurement and the relevant applicable EU public procurement rules.

Status

Approved - 14/11/2019

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Related tags

Ukraine Agriculture, fisheries, forestry