Release date: 13 June 2023
Promoter – Financial Intermediary
BUILDCOM EOOD,OLIVA ADLocation
Description
The project consists of the construction of a new port facility in the vicinity of the Port of Varna - a comprehensive trans-european network (TEN-T) port - for the storage, handling and export of grain cereals, oilseeds, vegetable oils and oil seed meals in the area of Beloslav, Bulgaria.
Additionality and Impact
The project supports two main policy priority areas under the InvestEU mandate. They are (i) The development of sustainable and safe transport infrastructures and mobility solutions, equipment and innovative technologies in accordance with Union transport priorities and the commitments taken under the Paris Agreement; and (ii) Sustainable agriculture, forestry, fishery, aquaculture and other elements of the wider sustainable bioeconomy,
The project supports the development of sustainable and safe transport infrastructures in accordance with EU transport priorities and the commitments taken under the Paris Agreement, in particular through the development of port facilities integrated in the TEN-T. It is aligned with the priorities of Connecting Europe Facility (CEF) and increases the capacity of the Solidarity Lanes by providing an optional route to transport Ukrainian agricultural commodities to exports markets.
The project addresses market failures related to under-priced transport and logistics externalities.
The financing of the project addresses other market failures and weaknesses, including: (i) imperfect competition, due to asymmetric information and (ii) failures in the financial market caused by the fact that the economic lifetime of the project exceeds significantly the tenor of loans that are typically available on capital markets. In that context, the promoter is faced with a sub-optimal investment situation, as it cannot access long-term loans matching the economic lifetime of the project.
The project improves the competitive position of the agribusiness sector in Northern Bulgaria and maritime transport by increasing the capacity and efficiency to handle the related traffic. This incentivises modal shift from road to less carbon intensive transport modes, enables interoperability between transport modes and reduces the related logistic costs and externalities.
The project would not have been carried out (to the same extent) by the EIB without the InvestEU support.
Objectives
The aim is to generate substantial economic and financial benefits, such as: (i) providing efficient and low-cost access for domestic cereals, oilseeds, vegetable oils and oil seed meals to liquid international market via TEN-T networks and the Black Sea (ii) reducing greenhouse gas emissions in transporting agricultural commodities to the regions and destinations in most need to mitigate food insecurity and malnutrition. The rationale behind the development of the project consists of the positive synergy potential between the promoter's grain producing and export business and light commercial vehicles (LCV') freight transport capabilities, as well as sponsoring a project of regional importance in Northern Bulgaria.
Sector(s)
- Agriculture, fisheries, forestry - Agriculture, forestry and fishing
- Transport - Transportation and storage
Proposed EIB finance (Approximate amount)
EUR 50 million
Total cost (Approximate amount)
EUR 100 million
Environmental aspects
Compliance with the Strategic Environmental Assessment (SEA) Directive 2001/42/EC, the Environmental Impact Assessment (EIA) Directive 2014/52/EU amending the EIA Directive 2011/92/EC, the Habitats Directive 92/43/EEC, the Birds Directive 2009/147/EC, the Water Framework Directive 2000/60/EC, as well as biodiversity assessment requirements, climate change adaptation issues, mitigation/compensation measures and environmental and social monitoring plans, will be assessed during appraisal and/or allocation phase for each project component, whenever applicable.
Procurement
The promoter is a private company and the project will be developed on privately owned land, therefore, it is not required to follow the EU public procurement directives and may undertake private procurement procedures according to the EIB's Guide to Procurement (GtP).
Status
Signed - 27/06/2023
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).