Drenik, established in 1996 in Serbia, is a major tissue paper producer and distributor in the Western Balkans with production plants in Serbia and Hungary. It is fully owned by Mr. Igor Peric, a Serbian entrepreneur.

Total project cost is estimated at over €100 million. The proposed IFC investment is comprised of an up to €60 million A Loan and an up to $50m equivalent in € MCPP Trust Loan to partially finance the Project.

 Investments under the Project are planned to be made in Drenik’s plant located in Belgrade, Serbia.

Not applicable as the Project is not in the extractives sector.

 This is a category B Project according to IFC’s Policy on Environmental and Social Sustainability. Based on information reviewed by IFC, the proposed Project will have limited adverse E&S risks and/or impacts that are few, generally site-specific, largely reversible and readily addressed thorough existing mitigation measures and good international industry practices (GIIP).

Key E&S issues associated with the Project include: (i) the Group’s management systems to assess and manage E&S risks and impacts from its operation and those related to construction of CHP; (ii) monitoring and management of contractors’ E&S performance during construction and operation of CHP; (iii) monitoring and management of air emissions, waste, wastewater and hazardous materials relevant to construction and operational phases; (iv) pulp and biomass-related supply chain risks and issues; (v) process safety risks and emergency planning and response; (vi) the plant’s potential operational impacts on nearby residential area; and (vii) Drenik’s stakeholder engagement activities related to E&S aspects.