The EBRD is considering a USD 18 million long term loan to Efes Vitanta Brewery. The loan will be used to modernise and expand the company’s brewing capacity, and will also be used to build a waste water treatment facility.
The transition impact will be derived through the Projects influence on:
1. Backward linkage and transfer of know how:
• The anticipated production growth and modernisation will create greater opportunities for Efes Vitanta to work with its suppliers to create new and innovative packaging solutions and designs that will help local companies modernise their products and put them in line with European standards, thus making them more competitive.
2. Forward linkages:
• The project will further improve relations with local distributors and help them conform to best industry practices. Further expansion of the Company will pass on these good practices to new distributors and buyers, and may encourage similar practices by other food producers and distributors in Moldova.
• As the Hotel Restaurant & Cafe segment has traditionally accounted for a significant share of beer sales, the Company has and continues to promote a policy of training restaurant, bar and café owners and operators. Thus, the Company provides assistance as to how to improve quality and hygiene standards in the serving of beer, how to store beer, as well as with menu design and presentation. With the further expansion of this activity, the Company will strive to provide more of this type of assistance to hospitality establishments outside Chisinau.
3. Demonstration Effect:
• As one of the key foreign investors in Moldova the Company has and will continue to have a positive impact on the modernization of marketing, management, product and production development practices in the country.
• As part of the project the Company, despite the lack of local legislation, has chosen to invest in a waste water treatment system that will serve as an example to other corporates in Moldova.
IM Efes Vitanta Moldova Brewery SA, a client incorporated and existing under the laws of Moldova. It is a 96.5% owned subsidiary of Efes Breweries International.
EBRD finance: USD 18 million senior loan.
Total project cost: USD 24 million. |
