The project sponsor is Agros, an agribusiness holding company established by Interros, one of the largest Russian private business groups. Agros owns 90% of Stavropolsky Broiler.

The total project cost is estimated at $33.4 million equivalent. The proposed IFC investment consists of an A loan of $10 million and a C Loan of $5 million.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

* These investment figures are indicative

The project is located on 11 sites in the Stavropol region, Southern Russia, approximately 1,250 kilometers southeast of Moscow. Four of the facilities are in mixed industrial/residential areas (Stavropol, Piatigorsk, Nevinnomyssk and Blagodarny) and seven in isolated agricultural areas with few neighbors. All of the existing operations have been in existence for more than 15 years. The sites have proper infrastructure and road access.

This is a category B project according to IFC’s environmental review procedure because specific impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The following potential environmental, social, health and safety impacts of the project were addressed and, where appropriate, corrective actions adopted:

- Site acquisition, cultural property and sensitive natural habitats;
- Environmental assessment of existing operations and facilities;
- Sustainability of raw material (feed, water) supply;
- Industrial hygiene, occupational safety and health;
- Emissions to the environment (e.g. air and water, solid waste and toxic/hazardous materials management);
- Quality and thoroughness of environmental and social data collection, storage, retrieval, analyses and appropriate corrective actions in the event of significant deviations from Russian/World Bank Group policies and guidelines;
- Employment and the local economy;
- Environmental Management System for existing and planned operations; and Environmental, health and safety performance of existing and planned operations.

Location of environmental documents in locally affected community
The project’s environmental documents are located at Stavropolsky Broiler Headquarters as well as in local municipalities in Stavropol, Piatigorsk, Nevinnomyssk and Blagodarny. Stavropolsky Broiler Headquarters are located at: Broilernaya Str. 1 Stavropol Krai Shapkovsky District, Broilerniy 355026, Russia

The project will have a widespread developmental impact. It will have a broad impact on the Russian poultry industry by demonstrating the benefits of a vertically integrated system with application of modern management and technology. It will increase demand for the region’s large grain crops. The project will create/save 1,300 jobs, most of them in the newly acquired broiler farms which are currently idle, in rural areas where there is little employment alternatives except for the subsistence activities. The investment will improve product quality, hygiene and bio-security. The venture’s broiler farms will serve as demonstration units to train local farmers in modern broiler outgrow techniques. IFC has played an important role in developing and structuring the project. Using the IFC-British Trust Fund, IFC commissioned consultants to prepare the project’s feasibility study and subsequently advised the company on structuring the project. Drawing on its extensive sector experience, IFC provided in-house advise on livestock operations, which have already helped the company achieve performance improvements. The IFC loan provides extended grace and repayment periods, not available locally. Going forward, IFC’s vital role in the project will be reinforced by extensive supervision required during the implementation phase.