Environmental & Social Review Summary
Project Number
27551
Company Name
BANAT CONSTRUCT SRL
Date ESRS Disclosed
Oct 24, 2008
Country
Romania
Region
Europe
Last Updated Date
Nov 30, 2016
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : Apr 3, 2008
Signed : May 15, 2008
Invested : Dec 8, 2008
Sector
Construction and Real Estate
Industry
Agribusiness and Forestry
Department
Regional Industry MAS LAC & EUR
Project Description
Soravia Real Estate Development GmbH (SRED) is the recently formed, commercial real estate development arm of the Austria-based Soravia Group (the Group or the sponsor). SRED identifies, evaluates, builds and sells real estate projects in Austria, Slovakia, Estonia, the Russian Federation, Romania, Bulgaria, Serbia, Macedonia, Montenegro and Ukraine.
In May 2008 IFC and SRED concluded an agreement under whose terms IFC conditionally agreed to support selected commercial real estate development projects in Southern and Eastern Europe. Mihai Bravu is the first such sub-project to be considered for IFC support under the terms of this agreement. The project is being developed by a SRED-controlled project company Banat SRL (“Banat” or “the Company.”)
Mihai Bravu sub-project is a €112 million 15-floor office building that will include underground and outside parking lots. The office will also host a small retail area that will offer services to the tenants. The project is being developed on a plot of some 7,700 m2 : the gross area of the project is approx. 69.500 m² over ground and approx. 29.200 m² underground. Of this, there will be approximately 54.000 m² or rentable office space and. 4.000 m² of retail space. In addition there will be storage rooms and 670 parking spaces, which will mostly be underground. The Project is located in Sector 3 directly on the Blvd. Mihai Bravu which connects the northern part of the city with the south-eastern part. The Boulevard is a four-lane-street with tramway line in the middle. At the time of review, SRED had acquired the site and was commencing studies necessary to complete the project’s social and environmental assessment, and complete project design.
In May 2008 IFC and SRED concluded an agreement under whose terms IFC conditionally agreed to support selected commercial real estate development projects in Southern and Eastern Europe. Mihai Bravu is the first such sub-project to be considered for IFC support under the terms of this agreement. The project is being developed by a SRED-controlled project company Banat SRL (“Banat” or “the Company.”)
Mihai Bravu sub-project is a €112 million 15-floor office building that will include underground and outside parking lots. The office will also host a small retail area that will offer services to the tenants. The project is being developed on a plot of some 7,700 m2 : the gross area of the project is approx. 69.500 m² over ground and approx. 29.200 m² underground. Of this, there will be approximately 54.000 m² or rentable office space and. 4.000 m² of retail space. In addition there will be storage rooms and 670 parking spaces, which will mostly be underground. The Project is located in Sector 3 directly on the Blvd. Mihai Bravu which connects the northern part of the city with the south-eastern part. The Boulevard is a four-lane-street with tramway line in the middle. At the time of review, SRED had acquired the site and was commencing studies necessary to complete the project’s social and environmental assessment, and complete project design.
Overview of IFC's Scope of Review
IFC’s has had several stages of review of this Project. Before committing the investment facility IFC met Soravia at their Vienna headquarters where SRED’s general approach to project design and management of social and environmental risk was discussed. SRED developments were also visited, the TownTown project in Vienna and the Soravia Business Center development in Skopje, Macedonia. The conclusions of this earlier social and environmental review may be viewed on IFC’s web site under project #26132
In its review of the Mihai Bravu project, IFC met Soravia’s local management team in Bucharest, and visited the site of the future Mihai Bravu project. In addition, the IFC team visited another SRED development in Bucharest “Metropolis Centre” in order to understand the EHS construction practices adopted by a Romanian general contractor employed by SRED. Subsequently IFC reviewed an EHS assessment of the current conditions at the site and of potential impacts during the construction of the sub-project, prepared by SRED.
In its review of the Mihai Bravu project, IFC met Soravia’s local management team in Bucharest, and visited the site of the future Mihai Bravu project. In addition, the IFC team visited another SRED development in Bucharest “Metropolis Centre” in order to understand the EHS construction practices adopted by a Romanian general contractor employed by SRED. Subsequently IFC reviewed an EHS assessment of the current conditions at the site and of potential impacts during the construction of the sub-project, prepared by SRED.
